LBTYA

Liberty Global PLC

TMT


Presented:07/08/2019
Price:$26.99
Cap:$19.91B
Current Price:$20.43
Cap:$7.40B

Presented

Date07/08/2019
Price$26.99
Market Cap$19.91B
Ent Value$47.08B
P/E Ratio25.97x
Book Value$5.90
Div Yield0%
Shares O/S737.64M
Ave Daily Vol1,482,639
Short Int2.86%

Current

Price$20.43
Market Cap$7.40B
Liberty Global Plc is an international television and broadband company, which engages in the provision of broadband communications services, including video, broadband Internet and fixed-line telephony services; B2B services; as well as mobile services. It operates through the following geographical segments: U.K/Ireland; Belgium; Germany; Switzerland/Austria; and Central and Eastern Europe. The company was founded in 2004 and is headquartered in London, the United Kingdom.

Publicly traded companies mentioned herein: BT Group PLC (BT), Comcast Corp (CMCSA), ITV PLC (ITV LN), Liberty Global PLC (LBTYA, LBTYK), Sunrise Communications Group AG (SRCG SW), TalkTalk Telecom Group PLC (TALK LN)

Highlights

The presenter is short shares of Liberty Global PLC (LBTYA, LBTYK), the holding company of a portfolio of European cable assets. Liberty has been selling off its assets over the last two years, which the presenter mainly attributes to the EU’s unattractive cable business. Relative to the US, the EU cable business is facing more aggressive competition from telecoms upgrading their networks. Once Liberty’s German and Swiss asset sales close next quarter, the business will be solely comprised of its UK cable asset. At that point, he believes emerging headwinds in the UK market will cause Liberty to miss earnings expectations and report negative revenue growth and EBITDA growth, forcing the proforma company’s inflated ~20x FCF multiple to compress. Shares are currently priced at ~$26, but the presenter expects shares to fall to ~$15. 

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Idea Discussion

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