Liberty LiLAC Group Picks Up Speed in Latest Quarter

By Alex DUMORTIER, CFAFool.com

Liberty Global plc announced its third quarter earnings on Thursday afternoon, including results for the LiLAC Group , which represents Chilean and Puerto Rican operations. The results were well received by the market, with shares of the LiLAC Group gaining over 2% on Friday.

The raw numbers

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*Removes the impact of acquisitions and foreign exchange. Source: Liberty Group

What happened with LiLAC Group this quarter?

  • Total RGUs (revenue-generating units) rose 8.2% year-over-year to 3.49 million, with the number of customers rising 10% to 1.66 million, for an average number of products per customer of 2.1.
  • Chile posted rebased revenue growth of 7% year-over-year, while Puerto Rico achieved 6%. The Puerto Rican B2B activity was particularly strong, growing at more than 20%.
  • Similarly, operating cash flow growth for the quarter was relatively even between Chile and Puerto at 11% and 9%, respectively.
  • LiLAC Group's attributed debt at the end of the third quarter was unchanged over the previous quarter at $2.3 billion. The attributed cash balance improved by $6 million to $239 million.

What management had to sayLiberty Global CEO Mike Fries provided a (characteristically) upbeat summary of the group's results for the press release:

During the conference call, Mr. Fries added:

Looking forwardThe LiLAC Group does appear to have picked up some momentum in the third quarter. Management is vaunting the strength of its bundles, but note that the average products per customer relationship has fallen year-over-year from 2.14 to 2.10 (although it is stable relative to the end of the second quarter). Investors will want to see more evidence that the LiLAC Group can maintain its competitive position and continue to capitalize on the favorable demographics in these regions.

The article Liberty LiLAC Group Picks Up Speed in Latest Quarter originally appeared on Fool.com.

Alex Dumortier, CFA has no position in any stocks mentioned. The Motley Fool recommends Liberty Global and Liberty LiLAC Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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