VMED O2 - comment

2024 guidance shows a sacrifice of EBITDA to protect its customer base. The 8.8% rise in consumer bills will lead to customer cancellations, and the announced increase in marketing expenses (and low to mid-single-digit fall in EBITDA) will be used to persuade higher-value customers to stay by subsidising their subscriptions. After distributing £2bn to shareholders in 2023, for 2024, this sum is guided at £850m. Adjusted Free cash flow in 2023 was £722m, but for 2024 is expected at £500m. The £360m proceeds from selling a 16.67% stake in the Towers business will bridge the gap to the guided £850m Adjusted Free Cash flow.  

https://www.towerxchange.com/article/2cefuku4dzrungkwantog/liberty-global-monetises-stake-in-cornerstone

 https://news.virginmediao2.co.uk/wp-content/uploads/2024/02/Virgin-Media-O2-Q4-FY-2023-Earnings-Release.pdf

 https://www.uswitch.com/broadband/guides/virgin-media-price-increase-what-can-customers-do/

Aengus McMahonVMEDO2