Liberty Prints Stable Q3; Share Buybacks Value-Accretive Right Now; Shares Attractive

Liberty Global's sales increased 3.7% organically year on year in the third quarter, while EBITDA grew by 1.6% due to price increases in several markets and cost controls, which were able to offset increases in energy costs. Liberty Global has executed price increases in the U.K., Belgium, and Netherlands, so far. Liberty has exposure to stable markets with rational behavior, so its sales and EBITDA should remain less pressured than other European telecommunication firms, as the company is able to pass through any inflation to customers. Reported sales and EBITDA, in U.S. dollars, showed high-single-digit and double-digit declines, respectively, due to the appreciation of the USD against the euro. (Liberty is essentially a consolidation vehicle for a list of portfolio firms, meaning each operating subsidiary manages its own cash and resources). We maintain our $32 fair value estimate.