Liberty Global Reports $1.32 Billion Net Loss Despite Revenue Growth in Q1 2025

Liberty Global Ltd. reported a net loss of $1.32 billion for the first quarter of 2025, a significant decline from a profit of $634.5 million in the same period last year. The company's revenue for the quarter was $1.17 billion, reflecting a 7.3% increase compared to $1.09 billion in Q1 2024. This growth was primarily driven by the acquisition of Formula E Holdings, which contributed approximately $84.2 million to revenue, and $49.6 million from transitional services provided to Sunrise Communications AG following its spin-off in November 2024.

The financial performance was impacted by several factors, including a substantial increase in non-operating expenses, which totaled $1.45 billion, compared to $689.6 million in the previous year. This increase was largely attributed to foreign currency transaction losses of $1.08 billion and realized and unrealized losses on derivative instruments amounting to $164.7 million. The company also reported an operating income of $60.7 million, a recovery from an operating loss of $12.3 million in Q1 2024, indicating improved operational efficiency despite the overall net loss.

Operationally, Liberty Global's customer base showed mixed results. The company served approximately 11.5 million fixed-line customers and 44.2 million mobile subscribers across its markets. However, the average revenue per user (ARPU) for residential services declined, reflecting competitive pressures and changing consumer preferences. The company’s strategic focus on enhancing its broadband and mobile services continues, with ongoing investments in network upgrades and customer service improvements.

Liberty Global's balance sheet as of March 31, 2025, showed total assets of $25.97 billion, up from $25.44 billion at the end of 2024. The company had cash and cash equivalents of $1.98 billion, an increase from $1.82 billion at the end of the previous year. Total debt and finance lease obligations stood at $9.37 billion, with a weighted average interest rate of 5.08%. The company remains committed to maintaining a leverage ratio of four to five times its consolidated Adjusted EBITDA, which was reported at $324.6 million for the quarter.

Looking ahead, Liberty Global anticipates continued challenges from competitive market dynamics and inflationary pressures on operational costs. The company is focused on leveraging its recent acquisitions and enhancing service offerings to drive revenue growth. Management remains optimistic about achieving operational efficiencies and improving customer retention, while also navigating the complexities of foreign exchange fluctuations and interest rate risks associated with its debt portfolio.