[November 05, 2014] |
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Liberty Global Reports Q3 & YTD 2014 Results
DENVER, Colorado --(Business Wire)--
Liberty Global plc ("Liberty Global" or the "Company") (NASDAQ: LBTYA,
LBTYB and LBTYK), today announces financial and operating results for
the three months ("Q3") and nine months ("YTD") ended September 30,
2014. Certain of the information concerning Virgin Media Inc. ("Virgin
Media") relates to the period prior to our ownership of the business.
Please also note that we sold substantially all of our legacy content
business on January 31, 2014 (the "Chellomedia Sale") and, accordingly,
we have presented the disposed business as a discontinued operation for
all periods presented. Highlights for the 2014 periods as compared to
the same periods in 2013 (unless noted) include:
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YTD Organic RGU2 additions of 928,000, including 344,000 in
Q3
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Strongest Q3 broadband additions on record and lowest Q3 video
attrition in 7 years
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Enhancing customer experience with mobile, WiFi, Horizon Go and
MyPrime services
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YTD revenue of $13.6 billion; YTD and Q3 rebased revenue growth3
of 3%
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Growth driven by broadband internet, supported by mobile and B2B
growth
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YTD OCF4 of $6.4 billion, reflecting rebased YTD and Q3
growth of 6% and 5%, respectively
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U.K., Germany and Chile led our Q3 rebased growth
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Operating income of $2.0 billion YTD, a 31% increase
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Adjusted Free Cash Flow ("FCF") increased 45%1 on
a combined basis to $1.4 billion YTD
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Includes $321 million in Q3 2014, a 66% year-over-year increase
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Ziggo tender offer completed, will own 100%
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Expect to restart our share repurchase program imminently
Mike Fries, Chief Executive Officer, stated, "We continue leveraging the
scale of our core distribution platform and the substantial investments
we're making to bring innovative products to market. As a result, our
third quarter results were driven in large part by record volume growth,
underpinned by strong consumer demand for our next-generation video
platforms, our market-leading broadband speeds, and our increasingly
converged products that provide our customers with connectivity and
entertainment outside of the home. These robust subscriber gains helped
us deliver a 6% increase in rebased OCF to $6.4 billion YTD and a 45%
rise in Adjusted Free Cash Flow to $1.4 billion on a combined basis."
"We are pleased to report that we completed our Ziggo tender offer and
we will own 100% of their outstanding shares. We expect to immediately
begin the integration of Ziggo and UPC Netherlands, which we expect will
drive substantial cost and revenue synergies over the coming years. In
another strategic development, we recently announced a plan to establish
a tracking stock for our Latin American and Caribbean operations, which
we believe will benefit shareholders through the creation of a
"pure-play" Latin American stock."
"Upon closing of the Ziggo offer, we will look to use our substantial
liquidity position to reignite our share repurchase program. Our
buybacks will resume imminently, and we expect to repurchase
approximately $2.6 billion of stock over the next fourteen months, which
will bring our cumulative total to more than $13 billion since the
company's formation in 2005. We are excited about our current
operational momentum and our strong organic growth prospects for next
year as we leverage the incremental scale provided by Ziggo, which will
expand our total customer base to 27 million households taking more than
55 million subscription services."
Subscriber Statistics
At the end of Q3, we provided our 24.5 million unique customers with
49.2 million subscription services ("RGUs") across our footprint of 47.5
million homes passed. During the third quarter of 2014, we increased our
subscriber base by a Q3 record of 344,000 organic RGU additions. By
September 30, 2014, we crossed the 15.0 million broadband internet
subscriptions mark, increased telephony subscribers to 12.6 million and
finished with a video base of 21.6 million subscribers.
During Q3, we increased our customer base organically by 29,000 customer
relationships. Driven by the continued traction of our bundles, which
are powered by our market-leading broadband and entertainment products,
over 58% of our customers subscribed to double- and triple-play
products, yielding a bundling ratio of 2.0x. At the end of Q3, we had
10.4 million triple-play customers, which exceeded our single-play
customer base (10.1 million) for the first time.
For the three and nine months ended September 30, 2014, we generated
organic subscriber additions of 344,000 and 928,000, reflecting
year-over-year increases of 10% and 6%, respectively. Both
year-over-year improvements were led by stronger broadband RGU additions
and reduced video attrition, partly offset by lower telephony additions.
From a geographic perspective, our Q3 RGU growth consisted of 262,000
additions in Western Europe, 57,000 in Central and Eastern Europe
("CEE") and 25,000 in Latin America5. Our record Q3
performance in Western Europe was led by 70,000 RGU additions in the
U.K., an improvement of 77,000 compared to a 7,000 RGU loss in Q3 2013,
in large part driven by the attractiveness of our new "Big Bundles". Our
German operation delivered 121,000 RGU additions during Q3, in-line with
the corresponding prior year period, despite executing select video
price increases in September. In the Netherlands, a combination of
increased promotional activities by our competitors, our previously
announced notification of an October 1st price increase and
lower demand for our telephony product resulted in an RGU loss of 4,000
for the third quarter of 2014.
Our CEE operations added 57,000 RGUs in Q3, an increase of 16% compared
to Q3 2013, mainly driven by churn improvements in the Czech Republic
and Poland. Rounding out our geographic footprint, our operation in
Chile added 9,000 RGUs, which was below their Q3 2013 performance of
29,000, while our Puerto Rican operation reported 16,000 RGU additions,
their best Q3 performance ever.
We continue to enhance our customers' video experience with our
next-generation TV platforms, which include recent innovations like
MyPrime and Horizon Go. These next-generation platforms, which are
helping to reduce video churn, contributed to the improved Q3 video loss
of 46,000 RGUs, the lowest third quarter video attrition in seven years.
Our Western European region delivered a particularly strong result led
by our British operation, which added 5,000 video RGUs in Q3, a
turnaround from a 13,000 loss in Q3 2013. Meanwhile, our Dutch and
German operations both showed lower video attrition in Q3, as compared
to the same period in 2013. During Q3, we added 261,000 next-generation
video subscribers, increasing our TiVo subscriber base to 2.4 million in
the U.K. and our Horizon TV base to 770,000 subscribers across the
Netherlands, Switzerland, Germany and Ireland. We finished Q3 2014 with
a total of 13.5 million digital subscribers, representing 65% digital
penetration6, of which 3.2 million or 23% were TiVo or
Horizon TV subscribers.
In terms of our broadband internet and telephony performances, we added
239,000 and 151,000 organic RGUs, respectively, during the third
quarter. Our broadband additions represented a record third quarter
performance, with Germany and the U.K. contributing 77,000 and 49,000
RGU additions, respectively. Meanwhile, our telephony additions were
nearly identical to our performance in Q3 2013, as lower results in the
Netherlands and Switzerland were offset by improved performance in the
U.K.
With respect to our mobile business, we finished the quarter with 4.4
million mobile subscribers7, which represents a sequential
increase of 98,000 subscribers and doubles our Q3 2013 additions. This
growth was led by an increase of 48,000 subscribers in Belgium,
Telenet's best performance in the last five quarters, while Germany, the
U.K. and Chile added 22,000, 18,000 and 11,000, respectively. In late
October, we launched our full-MVNO mobile service in the Netherlands for
select customers in the first phase of a controlled roll-out and we are
currently planning to launch additional full-MVNOs in the months to come.
Revenue
For the three and nine months ended September 30, 2014, our revenue
increased 5% to $4.5 billion and 36% to $13.6 billion, respectively, as
compared to the corresponding prior year periods. Our Q3 2014 reported
increase was driven by organic growth, net positive foreign currency
("FX") movements, mainly related to the appreciation of the British
pound against the U.S. dollar, and, to a lesser extent, a few small
in-market acquisitions. The principal driver of our reported growth for
the year-to-date period was the inclusion of Virgin Media and, to a
lesser extent, organic growth, net positive FX movements and small
acquisitions. When adjusting to neutralize the impact of acquisitions
and FX, we recorded year-over-year rebased revenue growth of 3% for each
of the three and nine months ended September 30, 2014.
Western Europe, which accounted for over 85% of our consolidated revenue
in Q3, delivered 3% rebased revenue growth for the quarter. Our CEE
operations posted 2% rebased revenue growth, its best quarterly revenue
performance in more than three years, helped by growth in Romania and
Poland. Outside of Europe, our Latin American operations reported 4%
rebased revenue growth, in-line with recent quarters.
Turning back to Western Europe, our performance was led by our Belgian
operation, which delivered 6% rebased top-line growth in Q3, our best
result this year, driven by the ongoing success of compelling bundles
and a larger mobile customer base. In addition, our German operation
posted 5% rebased revenue growth for Q3, largely driven by 507,000
organic RGU additions during the last twelve months and higher ARPU8,
partially offset by lower interconnect revenue. Meanwhile, our Swiss
operation delivered 4% rebased revenue growth in Q3, its tenth
consecutive quarter of rebased growth in excess of 3.5%, primarily due
to growth in broadband internet.
Rounding out our top five Western European operations, our British
operation reported 2% year-over-year rebased growth in Q3 supported by a
3% increase in cable subscription revenue, a 10% increase in mobile
subscription revenue and a 6% increase in business ("B2B") revenue.
These results were partially offset by the $18 million negative impact
of the Value Added Tax ("VAT") legislation that was enacted in May 2014
and lower revenue from other sources, including lower interconnect
revenue and lower revenue from Virgin Media's off-net business. Finally,
the aforementioned competitive situation in the Dutch market resulted in
a modest rebased revenue decline of 1% in the Netherlands, in-line with
our Q2 performance, but an improvement as compared to the 4% decline in
Q3 2013.
Operating Cash Flow
Our consolidated OCF increased 6% to $2.1 billion and 36% to $6.4
billion for the three and nine months ended September 30, 2014,
respectively, as compared to the corresponding prior year periods. The
underlying reasons for our reported OCF growth were consistent with the
aforementioned revenue drivers, including the contribution from Virgin
Media in the year-to-date period. In terms of our rebased OCF growth, we
delivered year-over-year growth of 5% and 6% for the three and nine
months ended September 30, 2014, respectively.
Our Q3 rebased OCF performance benefited from the $32 million net impact
of a favorable retroactive reduction for local authority charges for
network infrastructure in the U.K. Approximately $6 million of this
benefit is applicable to Q3 and is expected to recur in future quarters.
This positive impact was partially offset by the $18 million negative
impact in Q3 of the aforementioned VAT legislative change in the U.K.
Furthermore, it is worth noting that our YTD rebased growth included the
Q1 2014 impacts of several favorable nonrecurring items, as previously
outlined in our Q1 and Q2 2014 earnings releases.
Our European operations generated 4% rebased OCF growth in Q3,
underpinned by our Western European operations, which delivered 5%
rebased growth during Q3. In addition, our European Q3 results were
supported by 4% rebased growth in CEE, our best third quarter
performance since 2011. Turning to Latin America, our Chilean operation
delivered 17% rebased OCF growth in the quarter, primarily as a result
of a reduction in the OCF deficit of our mobile business. Our overall
OCF growth was partially offset by increased year-over-year central and
other costs due in part to further investments in scale initiatives in
the areas of information technology and finance.
Looking at our five largest markets, our Q3 performance was bolstered by
Unitymedia KabelBW and Virgin Media, which delivered 7% and 6% rebased
OCF growth, respectively. In Germany, our rebased OCF performance was
driven by the aforementioned revenue growth, in combination with
continued tight cost controls. The rebased OCF growth of Virgin Media
benefited from top-line growth, a combination of cost containment and
integration synergies and the net impact of the nonrecurring items
mentioned above. Our Belgian and Swiss businesses each delivered a 4%
increase in rebased OCF in Q3 2014, largely due to the revenue drivers
noted above. These results were offset by our Dutch operation, which
reported a 1% rebased OCF decline mainly due to continued challenging
competitive dynamics.
For each of the three and nine months ended September 30, 2014, we
reported consolidated OCF margins9 of 46.9% and 46.8%,
respectively, in line with the corresponding prior year periods. If we
were to adjust our margin calculations10 to include Virgin
Media for the full nine month period ended September 30, 2013, our
combined OCF margin would have been 45.4%. The resulting combined
year-over-year 140 basis point margin improvement for the nine-month
period can be attributed to expanded margins across the majority of our
operations, offset somewhat by higher central and other costs. The 40
basis point margin improvement in Q3 was primarily driven by margin
expansion in the U.K. and, to a lesser extent, Germany.
Operating Income
Operating income increased 35% to $704 million and 31% to $2.0 billion
for the three and nine months ended September 30, 2014, respectively. As
compared to the prior year nine-month period, our operating income
increased primarily due to the inclusion of Virgin Media, which
accounted for a significant portion of our growth in OCF and
depreciation and amortization expenses. Our improved performance in Q3
2014 was primarily the result of year-over-year organic OCF growth,
lower impairment, restructuring and other operating items, and lower
depreciation and amortization expenses. In addition, the increases in
operating income are net of a decrease attributable to the Q3 2013
release of a $146 million litigation provision.
Net Earnings/Loss Attributable to Shareholders
For the three and nine months ended September 30, 2014, we reported net
earnings attributable to shareholders ("Net Earnings") of $157 million
or $0.20 per basic and diluted11 share and net losses
attributable to shareholders ("Net Losses") of $172 million or $0.21 per
basic and diluted share, respectively. These compare to Net Losses of
$830 million or $1.04 per basic and diluted share and $843
million or $1.33 per basic and diluted share for the three and nine
months ended September 30, 2013, respectively.
The $987 million year-over-year improvement in Q3 was aided by positive
movements related to our derivative instruments, that more than offset
the net increase in foreign currency transaction losses. For the nine
months ended September 30, 2014, the $671 million improvement was mainly
driven by our increased operating income, lower income tax expense and a
$333 million gain on the January 2014 Chellomedia Sale, partially offset
by higher interest expense as a result of a higher average outstanding
debt balance.
At October 31, 2014, we had 780 million shares outstanding, including
215 million Class A ordinary shares, 10 million Class B ordinary shares
and 555 million Class C ordinary shares. This excludes the ordinary
shares to be issued in November in connection with the Ziggo acquisition.
Property and Equipment Additions
For Q3 2014, we incurred property and equipment ("P&E") additions12
of $908 million or 20% of revenue, as compared to $955 million or 22% of
revenue for the corresponding prior year period. From a YTD perspective,
we reported P&E additions of $2.8 billion or 20% of revenue during 2014,
as compared to $2.2 billion or 22% of revenue for the corresponding
prior year period. Virgin Media, which accounted for $1.1 billion of our
P&E additions during the nine-month period ended September 30, 2014, as
compared to $420 million for the same period of 2013, was the primary
reason for the increase in absolute spend for the 2014 YTD period.
Adjusting our YTD 2013 result for the inclusion of Virgin Media for the
full period, our combined P&E additions would have been $2.8 billion or
22% of combined revenue.
The decreases to our P&E additions in both absolute and percentage terms
for the Q3 and the YTD periods on a combined basis were primarily due to
our increased revenue and slightly lower P&E additions in absolute terms
partly as a result of higher levels of customer premises equipment
("CPE") purchases in 2013 related to our various Horizon launches. In
terms of allocation, in the YTD 2014 period, 54% of total capital spend
was related to CPE and scalable infrastructure, 25% to line extensions
and upgrade/rebuild activity, and 21% to support capital, including IT
upgrades and general support systems.
Free Cash Flow & Adjusted Free Cash Flow
We generated FCF of $305 million for the three months ended September
30, 2014, which reflects a 72% increase as compared to $177 million in
the corresponding prior year period. Similarly, our Adjusted Free Cash
Flow, which primarily excludes certain costs associated with our Chilean
wireless operation, increased 66% to $321 million for Q3 2014, as
compared to $193 million for the third quarter of 2013. Both increases
were mainly driven by organic OCF growth and lower capital expenditures,
partially offset by lower cash dividends received and higher cash
interest payments.
When combining the Adjusted FCF of both Liberty Global and Virgin Media
for the prior YTD period, our Adjusted FCF of $1.4 billion for YTD 2014
represents a 45% increase over the combined Adjusted FCF of $962 million
for the comparable 2013 period. This increase was mainly driven by
organic OCF growth and favorable net working capital and FX movements,
partially offset by higher cash interest payments. We remain confident
that we will meet or exceed our $2.0 billion Adjusted FCF target for the
full year.
Leverage & Liquidity
At September 30, 2014, we had total debt13 of $41.1 billion
and cash and cash equivalents of $955 million. As compared to June 30,
2014, our reported debt and cash positions decreased by $1.4 billion and
$155 million, respectively. The decrease in our total debt during the
third quarter was primarily the result of the translation effect
associated with the weakening of our currencies relative to the U.S.
dollar, partially offset by an increase related to the £426 million
($691 million) ITV plc ("ITV") collar loan.
With respect to our leverage position at September 30, 2014 and after
excluding $2.2 billion of debt backed by shares we hold in Sumitomo
Corporation, ITV and Ziggo, we had consolidated gross and net leverage
ratios14 of 4.6x and 4.5x, respectively. The sequential
leverage reduction of 0.3x for both ratios was aided by the fact that
the weakening of the average FX rates of all of our currencies against
the U.S. dollar was less significant than the weakening of the spot
rates of these currencies on September 30, 2014. Our fully-swapped debt
borrowing cost15 decreased slightly from 6.6% at June 30,
2014 to 6.5% at September 30, 2014, helped by our debt refinancing in
Puerto Rico in July. At September 30, 2014, the average tenor of our
debt was seven years and less than 10% of our debt was due before 2019.
Subsequent to quarter end, we took advantage of favorable market
conditions to refinance nearly $2.0 billion of debt in total at Virgin
Media and Unitymedia KabelBW, which reduced our fully-swapped borrowing
cost by roughly 20 basis points to 6.3% on a pro-forma basis and further
improved our maturity profile.
At the end of Q3 2014, our consolidated liquidity16 position
was approximately $4.6 billion, including aggregate borrowing capacity
of $3.6 billion, as represented by the maximum undrawn commitments under
each of our credit facilities.17
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding our operating, strategic and financial
momentum, our 2014 and future prospects, including with respect to
organic growth in subscribers, higher rebased OCF growth and Adjusted
FCF, the penetration and expansion of our advanced services, including
Horizon TV, MyPrime and WiFi spots, increased broadband internet speeds
and acceptance of our product bundles and mobile offerings, the amount
and timing of our share repurchases, the proposed tracking stock, the
timing and anticipated consequences and synergies of the Ziggo
acquisition and other information and statements that are not historical
fact. These forward-looking statements involve certain risks and
uncertainties that could cause actual results to differ materially from
those expressed or implied by these statements. These risks and
uncertainties include the continued use by subscribers and potential
subscribers of our services and their willingness to upgrade to our more
advanced offerings, our ability to meet challenges from competition, to
manage rapid technological change or to maintain or increase rates to
our subscribers, the effects of changes in laws or regulation or in
consumer television viewing preferences and habits, our ability to
obtain regulatory approval and satisfy regulatory conditions associated
with acquisitions and dispositions, our ability to successfully acquire
and integrate new businesses and realize anticipated efficiencies from
businesses we acquire, the availability of attractive programming for
our digital video services and the costs associated with such
programming, our ability to achieve forecasted financial and operating
targets, the outcome of any pending or threatened litigation, our
ability to access cash of our subsidiaries and the impact of our future
financial performance, or market conditions generally, on the
availability, terms and deployment of capital, fluctuations in currency
exchange and interest rates, the ability of vendors and suppliers to
timely deliver quality products, equipment, software and services, as
well as other factors detailed from time to time in our filings with the
Securities and Exchange Commission, including the most recently filed
Forms 10-K/A and 10-Q. These forward-looking statements speak only as of
the date of this release. We expressly disclaim any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in our
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
About Liberty Global
Liberty Global is the largest international cable company with
operations in 14 countries. Liberty Global connects people to the
digital world and enables them to discover and experience its endless
possibilities. Liberty Global's market-leading triple-play services are
provided through next-generation networks and innovative technology
platforms that connected 24 million customers subscribing to 49 million
television, broadband internet and telephony services at September 30,
2014.
Liberty Global's consumer brands include Virgin Media, UPC, Unitymedia,
Kabel BW, Telenet and VTR. Liberty Global's operations also include
Liberty Global Business Services, our commercial division, and Liberty
Global Ventures, our investment fund. For more information, please visit www.libertyglobal.com.
_______________________________________
1
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Please see page 17 for information on Free Cash Flow ("FCF") and
Adjusted Free Cash Flow ("Adjusted FCF") and the required
reconciliations.The combined Adjusted FCF growth rate of 45% for the
YTD period is calculated by comparing our reported Adjusted FCF
during YTD 2014 period to the combined Adjusted FCF of our company
and Virgin Media during the YTD 2013 period, as calculated on pages
17 and 18.
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2
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Please see page 23 for the definition of RGUs. Organic figures
exclude RGUs of acquired entities at the date of acquisition, but
include the impact of changes in RGUs from the date of acquisition.
All subscriber/RGU additions or losses refer to net organic changes,
unless otherwise noted.
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3
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Please see page 12 for information on rebased growth.
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4
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Please see page 15 for our OCF definition and the required
reconciliation.
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5
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Latin America includes our broadband communications operations in
both Chile and Puerto Rico.
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6
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Digital penetration is calculated by dividing the number of digital
cable RGUs by the total number of digital and analog cable RGUs.
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7
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Our mobile subscriber count represents the number of active
subscriber identification module ("SIM") cards in service rather
than services provided. For example, if a mobile subscriber has both
a data and voice plan on a smartphone this would equate to one
mobile subscriber. Alternatively, a subscriber who has a voice and
data plan for a mobile handset and a data plan for a laptop (via a
dongle) would be counted as two mobile subscribers. Customers who do
not pay a recurring monthly fee are excluded from our mobile
telephony subscriber counts after periods of inactivity ranging from
30 to 90 days, based on industry standards within the respective
country. Our September 30, 2014 mobile subscriber counts for the
U.K. and Chile include 986,100 and 22,200 prepaid mobile
subscribers, respectively. In Q3 2013, we shortened the period for
excluding inactive customers from our mobile subscriber count in
Chile to 30 days, resulting in a 61,000 reduction in prepaid mobile
subscribers
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8
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Average Revenue Per Unit ("ARPU") refers to the average monthly
subscription revenue per average customer relationship and is
calculated by dividing the average monthly subscription revenue
(excluding installation, late fees, interconnect and mobile services
revenue) for the indicated period, by the average of the opening and
closing balances for customer relationships for the period. Customer
relationships of entities acquired during the period are normalized.
Unless otherwise indicated, ARPU per customer relationship for the
Liberty Global Consolidated, the European Operations Division and
Other Europe are not adjusted for currency impacts.
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9
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OCF margin is calculated by dividing OCF by total revenue for the
applicable period.
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10
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Please see page 18 for information on combined OCF and combined OCF
margins.
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11
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All share and per share amounts presented herein have been
retroactively adjusted to give effect to the March 3, 2014 share
split in the form of a share dividend ("2014 Share Dividend"), which
constitutes a bonus issue under our articles of association and
English law, of one Liberty Global Class C ordinary share for each
outstanding Class A, Class B and Class C ordinary share.
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12
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Our property and equipment additions include our capital
expenditures on an accrual basis and amounts financed under vendor
financing or capital lease arrangements.
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13
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Total debt includes capital lease obligations.
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14
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Our gross and net debt ratios are defined as total debt and net debt
to annualized OCF of the latest quarter. Net debt is defined as
total debt less cash and cash equivalents. For purposes of these
calculations, debt excludes the loans backed by the shares we hold
inSumitomo Corp., ITV plc and Ziggo and is measured using swapped
foreign currency rates, consistent with the covenant calculation
requirements of our subsidiary debt agreements.
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15
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Our fully-swapped debt borrowing cost represents the weighted
average interest rate on our aggregate variable- and fixed-rate
indebtedness (excluding capital lease obligations), including the
effects of derivative instruments, original issue premiums or
discounts and commitment fees, but excluding the impact of financing
costs.
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16
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Consolidated liquidity refers to our consolidated cash and cash
equivalents plus the maximum undrawn commitments under our
subsidiaries' borrowing facilities without regard to covenant
compliance calculations.
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17
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Our aggregate unused borrowing capacity of $3.6 billion represents
the maximum undrawn commitments under our subsidiaries' applicable
facilities without regard to covenant compliance calculations. Upon
completion of the relevant September 30, 2014 compliance reporting
requirements for our credit facilities, and assuming no further
changes from quarter-end borrowing levels, we anticipate that our
subsidiaries' borrowing capacity would be $3.5 billion.
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Liberty Global plc
Condensed Consolidated Balance Sheets (unaudited)
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September 30, 2014
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December 31, 2013
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in millions
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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954.9
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$
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2,701.9
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Trade receivables, net
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1,345.3
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1,588.7
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Derivative instruments
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458.1
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252.1
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Deferred income taxes
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369.8
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226.1
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Prepaid expenses
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232.9
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238.2
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Current assets of discontinued operation
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-
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238.7
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Other current assets
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265.4
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236.9
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Total current assets
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3,626.4
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5,482.6
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Investments
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4,529.7
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3,491.2
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Property and equipment, net
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22,119.6
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23,974.9
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Goodwill
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22,395.9
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23,748.8
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Intangible assets subject to amortization, net
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4,815.4
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5,795.4
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Long-term assets of discontinued operation
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-
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513.6
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Other assets, net
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4,753.0
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|
|
|
4,707.8
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
62,240.0
|
|
|
|
$
|
67,714.3
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
1,018.0
|
|
|
|
$
|
1,072.9
|
|
Deferred revenue and advance payments from subscribers and others
|
|
|
1,194.1
|
|
|
|
1,406.2
|
|
Current portion of debt and capital lease obligations
|
|
|
1,669.0
|
|
|
|
1,023.4
|
|
Derivative instruments
|
|
|
1,196.2
|
|
|
|
751.2
|
|
Accrued interest
|
|
|
581.7
|
|
|
|
598.7
|
|
Accrued programming and copyright fees
|
|
|
371.1
|
|
|
|
359.1
|
|
Current liabilities of discontinued operation
|
|
|
-
|
|
|
|
127.5
|
|
Other accrued and current liabilities
|
|
|
2,419.4
|
|
|
|
2,344.0
|
|
Total current liabilities
|
|
|
8,449.5
|
|
|
|
7,683.0
|
|
|
|
|
|
|
|
|
|
|
Long-term debt and capital lease obligations
|
|
|
39,463.8
|
|
|
|
43,680.9
|
|
Long-term liabilities of discontinued operation
|
|
|
-
|
|
|
|
19.8
|
|
Other long-term liabilities
|
|
|
4,019.5
|
|
|
|
4,789.1
|
|
Total liabilities
|
|
|
51,932.8
|
|
|
|
56,172.8
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Total Liberty Global shareholders
|
|
|
10,939.0
|
|
|
|
12,025.8
|
|
Noncontrolling interests
|
|
|
(631.8
|
)
|
|
|
(484.3
|
)
|
Total equity
|
|
|
10,307.2
|
|
|
|
11,541.5
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
$
|
62,240.0
|
|
|
|
$
|
67,714.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global plc
Condensed Consolidated Statements of Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
in millions, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
4,497.2
|
|
|
|
$
|
4,276.5
|
|
|
|
$
|
13,633.1
|
|
|
|
$
|
10,006.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (other than depreciation and amortization) (including share-based
compensation)
|
|
|
1,659.7
|
|
|
|
1,646.6
|
|
|
|
5,077.7
|
|
|
|
3,711.5
|
|
Selling, general and administrative (SG&A) (including share- based
compensation)
|
|
|
800.0
|
|
|
|
739.5
|
|
|
|
2,355.0
|
|
|
|
1,823.9
|
|
Depreciation and amortization
|
|
|
1,313.5
|
|
|
|
1,381.3
|
|
|
|
4,084.0
|
|
|
|
2,921.7
|
|
Release of litigation provision
|
|
|
-
|
|
|
|
(146.0
|
)
|
|
|
-
|
|
|
|
(146.0
|
)
|
Impairment, restructuring and other operating items, net
|
|
|
20.3
|
|
|
|
133.9
|
|
|
|
161.5
|
|
|
|
200.6
|
|
|
|
|
3,793.5
|
|
|
|
3,755.3
|
|
|
|
11,678.2
|
|
|
|
8,511.7
|
|
Operating income
|
|
|
703.7
|
|
|
|
521.2
|
|
|
|
1,954.9
|
|
|
|
1,494.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(617.3
|
)
|
|
|
(630.0
|
)
|
|
|
(1,912.6
|
)
|
|
|
(1,643.9
|
)
|
Interest and dividend income
|
|
|
13.2
|
|
|
|
62.0
|
|
|
|
29.2
|
|
|
|
110.7
|
|
Realized and unrealized gains (losses) on derivative instruments,
net
|
|
|
527.9
|
|
|
|
(875.4
|
)
|
|
|
(177.3
|
)
|
|
|
(683.3
|
)
|
Foreign currency transaction gains (losses), net
|
|
|
(375.8
|
)
|
|
|
258.0
|
|
|
|
(433.0
|
)
|
|
|
213.0
|
|
Realized and unrealized gains due to changes in fair values of certain
investments, net
|
|
|
92.2
|
|
|
|
80.8
|
|
|
|
189.4
|
|
|
|
345.4
|
|
Losses on debt modification and extinguishment, net
|
|
|
(9.6
|
)
|
|
|
(0.7
|
)
|
|
|
(83.5
|
)
|
|
|
(170.7
|
)
|
Other expense, net
|
|
|
(13.0
|
)
|
|
|
(3.5
|
)
|
|
|
(17.4
|
)
|
|
|
(6.7
|
)
|
|
|
|
(382.4
|
)
|
|
|
(1,108.8
|
)
|
|
|
(2,405.2
|
)
|
|
|
(1,835.5
|
)
|
Earnings (loss) from continuing operations before income taxes
|
|
|
321.3
|
|
|
|
(587.6
|
)
|
|
|
(450.3
|
)
|
|
|
(341.0
|
)
|
Income tax expense
|
|
|
(145.6
|
)
|
|
|
(223.2
|
)
|
|
|
(28.0
|
)
|
|
|
(436.8
|
)
|
Earnings (loss) from continuing operations
|
|
|
175.7
|
|
|
|
(810.8
|
)
|
|
|
(478.3
|
)
|
|
|
(777.8
|
)
|
Discontinued operation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from discontinued operation, net of taxes
|
|
|
-
|
|
|
|
(10.8
|
)
|
|
|
0.8
|
|
|
|
(13.2
|
)
|
Gain on disposal of discontinued operation, net of taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
332.7
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(10.8
|
)
|
|
|
333.5
|
|
|
|
(13.2
|
)
|
Net earnings (loss)
|
|
|
175.7
|
|
|
|
(821.6
|
)
|
|
|
(144.8
|
)
|
|
|
(791.0
|
)
|
Net earnings attributable to noncontrolling interests
|
|
|
(18.6
|
)
|
|
|
(8.5
|
)
|
|
|
(26.8
|
)
|
|
|
(51.7
|
)
|
Net earnings (loss) attributable to Liberty Global shareholders
|
|
|
$
|
157.1
|
|
|
|
$
|
(830.1
|
)
|
|
|
$
|
(171.6
|
)
|
|
|
$
|
(842.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) attributable to Liberty Global shareholders
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.20
|
|
|
|
$
|
(1.03
|
)
|
|
|
$
|
(0.64
|
)
|
|
|
$
|
(1.31
|
)
|
Discontinued operation
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
|
0.43
|
|
|
|
(0.02
|
)
|
|
|
|
$
|
0.20
|
|
|
|
$
|
(1.04
|
)
|
|
|
$
|
(0.21
|
)
|
|
|
$
|
(1.33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global plc
Condensed Consolidated Statements of Cash Flows (unaudited)
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
in millions
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(144.8
|
)
|
|
|
$
|
(791.0
|
)
|
Loss (earnings) from discontinued operation
|
|
|
(333.5
|
)
|
|
|
13.2
|
|
Loss from continuing operations
|
|
|
(478.3
|
)
|
|
|
(777.8
|
)
|
Adjustments to reconcile loss from continuing operations to net
cash provided by operating activities
|
|
|
4,548.4
|
|
|
|
3,229.6
|
|
Net cash provided (used) by operating activities of discontinued
operation
|
|
|
(9.6
|
)
|
|
|
14.2
|
|
Net cash provided by operating activities
|
|
|
4,060.5
|
|
|
|
2,466.0
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(2,046.3
|
)
|
|
|
(1,791.0
|
)
|
Investments in and loans to affiliates and others
|
|
|
(994.2
|
)
|
|
|
(1,336.4
|
)
|
Proceeds received upon disposition of discontinued operation, net of
disposal costs
|
|
|
988.5
|
|
|
|
-
|
|
Cash paid in connection with acquisitions, net of cash acquired
|
|
|
(34.5
|
)
|
|
|
(4,068.2
|
)
|
Other investing activities, net
|
|
|
(5.3
|
)
|
|
|
(49.2
|
)
|
Net cash used by investing activities of discontinued operation
|
|
|
(3.8
|
)
|
|
|
(8.4
|
)
|
Net cash used by investing activities
|
|
|
(2,095.6
|
)
|
|
|
(7,253.2
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Repayments and repurchases of debt and capital lease obligations
|
|
|
(6,853.6
|
)
|
|
|
(7,823.5
|
)
|
Borrowings of debt
|
|
|
4,455.2
|
|
|
|
9,254.6
|
|
Repurchase of Liberty Global and LGI shares
|
|
|
(961.0
|
)
|
|
|
(860.7
|
)
|
Payment of financing costs and debt premiums
|
|
|
(191.0
|
)
|
|
|
(356.1
|
)
|
Net cash received (paid) related to derivative instruments
|
|
|
(146.7
|
)
|
|
|
537.0
|
|
Distributions by subsidiaries to noncontrolling interests
|
|
|
(12.1
|
)
|
|
|
(533.2
|
)
|
Decrease in restricted cash related to the Virgin Media Acquisition
|
|
|
-
|
|
|
|
3,594.4
|
|
Decrease in restricted cash related to the Telenet Tender
|
|
|
-
|
|
|
|
1,539.7
|
|
Purchase of additional Telenet shares
|
|
|
-
|
|
|
|
(457.7
|
)
|
Other financing activities, net
|
|
|
30.9
|
|
|
|
4.7
|
|
Net cash used by financing activities of discontinued operation
|
|
|
(1.2
|
)
|
|
|
(6.4
|
)
|
Net cash provided (used) by financing activities
|
|
|
(3,679.5
|
)
|
|
|
4,892.8
|
|
Effect of exchange rate changes on cash:
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
(32.4
|
)
|
|
|
62.5
|
|
Discontinued operation
|
|
|
-
|
|
|
|
(0.5
|
)
|
Total
|
|
|
(32.4
|
)
|
|
|
62.0
|
|
Net increase (decrease) in cash and cash equivalents:
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
(1,732.4
|
)
|
|
|
168.7
|
|
Discontinued operation
|
|
|
(14.6
|
)
|
|
|
(1.1
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(1,747.0
|
)
|
|
|
167.6
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
2,701.9
|
|
|
|
2,038.9
|
|
End of period
|
|
|
$
|
954.9
|
|
|
|
$
|
2,206.5
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest - continuing operations
|
|
|
$
|
1,855.6
|
|
|
|
$
|
1,498.5
|
|
|
|
|
|
|
|
|
|
|
Net cash paid for taxes:
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
67.8
|
|
|
|
$
|
68.4
|
|
Discontinued operation
|
|
|
2.2
|
|
|
|
8.7
|
|
Total
|
|
|
$
|
70.0
|
|
|
|
$
|
77.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue and Operating Cash Flow
In the following tables, we present revenue and operating cash flow by
reportable segment of our continuing operations for the three and nine
months ended September 30, 2014, as compared to the corresponding prior
year periods. All of our reportable segments derive their revenue
primarily from broadband communications services, including video,
broadband internet and fixed-line telephony services. Most of our
reportable segments also provide B2B services and certain of our
reportable segments provide mobile services. Segment information for the
prior periods has been retrospectively revised to present the disposed
Chellomedia operations as a discontinued operation. Unless otherwise
noted, we present only the reportable segments of our continuing
operations in the tables below. For additional information, see note 15
to the condensed consolidated financial statements included in our most
recently filed Form 10-Q.
At September 30, 2014, our operating segments in the European Operations
Division provided broadband communications services in 12 European
countries and DTH services to customers in the Czech Republic, Hungary,
Romania and Slovakia through a Luxembourg-based organization that we
refer to as "UPC DTH." Our Other Western Europe segment includes our
broadband communications operating segments in Austria and Ireland. Our
Central and Eastern Europe segment includes our broadband communications
operating segments in the Czech Republic, Hungary, Poland, Romania and
Slovakia. The European Operations Division's central and other category
includes (i) the UPC DTH operating segment, (ii) costs associated with
certain centralized functions, including billing systems, network
operations, technology, marketing, facilities, finance and other
administrative functions, and (iii) intersegment eliminations within the
European Operations Division. In Chile, we provide (i) video, broadband
internet and fixed-line telephony services through VTR GlobalCom and
(ii) mobile services through VTR Wireless. Our corporate and other
category includes (a) less significant consolidated operating segments
that provide (1) broadband communications services in Puerto Rico and
(2) programming and other services and (b) our corporate category.
Intersegment eliminations primarily represent the elimination of
intercompany transactions between our broadband communications and
programming operations.
For purposes of calculating rebased growth rates on a comparable basis
for all businesses that we owned during 2014, we have adjusted our
historical revenue and OCF for the three and nine months ended September
30, 2013 to (i) include the pre-acquisition revenue and OCF of certain
entities acquired during 2013 and 2014 in our rebased amounts for the
three and nine months ended September 30, 2013 to the same extent that
the revenue and OCF of such entities are included in our results for the
three and nine months ended September 30, 2014, (ii) remove intercompany
eliminations for the applicable periods in 2013 to conform to the
presentation during the 2014 periods following the disposal of the
Chellomedia operations, which resulted in previously eliminated
intercompany costs becoming third-party costs, and (iii) reflect the
translation of our rebased amounts for the three and nine months ended
September 30, 2013 at the applicable average foreign currency exchange
rates that were used to translate our results for the three and nine
months ended September 30, 2014. We have included three small entities
in whole or in part in the determination of our rebased revenue and OCF
for the three months ended September 30, 2013. We have included Virgin
Media and four small entities in whole or in part in the determination
of our rebased revenue and OCF for the nine months ended September 30,
2013. We have reflected the revenue and OCF of the acquired entities in
our 2013 rebased amounts based on what we believe to be the most
reliable information that is currently available to us (generally
pre-acquisition financial statements), as adjusted for the estimated
effects of (i) any significant differences between Generally Accepted
Accounting Principles in the United States ("GAAP") and local generally
accepted accounting principles, (ii) any significant effects of
acquisition accounting adjustments, (iii) any significant differences
between our accounting policies and those of the acquired entities and
(iv) other items we deem appropriate. We do not adjust pre-acquisition
periods to eliminate nonrecurring items or to give retroactive effect to
any changes in estimates that might be implemented during
post-acquisition periods. As we did not own or operate the acquired
businesses during the pre-acquisition periods, no assurance can be given
that we have identified all adjustments necessary to present the revenue
and OCF of these entities on a basis that is comparable to the
corresponding post-acquisition amounts that are included in our
historical results or that the pre-acquisition financial statements we
have relied upon do not contain undetected errors. The adjustments
reflected in our rebased amounts have not been prepared with a view
towards complying with Article 11 of Regulation S-X. In addition,
the rebased growth percentages are not necessarily indicative of the
revenue and OCF that would have occurred if these transactions had
occurred on the dates assumed for purposes of calculating our rebased
amounts or the revenue and OCF that will occur in the future. The
rebased growth percentages have been presented as a basis for assessing
growth rates on a comparable basis, and are not presented as a
measure of our pro forma financial performance. Therefore, we believe
our rebased data is not a non-GAAP financial measure as contemplated by
Regulation G or Item 10 of Regulation S-K.
In each case, the following tables present (i) the amounts reported by
each of our reportable segments for the comparative periods, (ii) the
U.S. dollar change and percentage change from period to period and (iii)
the percentage change from period to period on a rebased basis:
|
|
|
Three months ended
|
|
|
Increase
|
|
|
Increase
|
|
|
|
|
September 30,
|
|
|
(decrease)
|
|
|
(decrease)
|
|
Revenue
|
|
|
2014
|
|
|
2013
|
|
|
$
|
|
|
%
|
|
|
Rebased %
|
|
|
|
|
in millions, except % amounts
|
|
European Operations Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K. (Virgin Media)
|
|
|
$
|
1,747.0
|
|
|
|
$
|
1,587.4
|
|
|
|
$
|
159.6
|
|
|
|
10.1
|
|
|
|
2.3
|
|
Germany (Unitymedia KabelBW)
|
|
|
671.7
|
|
|
|
641.3
|
|
|
|
30.4
|
|
|
|
4.7
|
|
|
|
4.8
|
|
Belgium (Telenet)
|
|
|
575.7
|
|
|
|
545.6
|
|
|
|
30.1
|
|
|
|
5.5
|
|
|
|
5.5
|
|
The Netherlands
|
|
|
301.6
|
|
|
|
305.4
|
|
|
|
(3.8
|
)
|
|
|
(1.2
|
)
|
|
|
(1.2
|
)
|
Switzerland
|
|
|
353.2
|
|
|
|
332.1
|
|
|
|
21.1
|
|
|
|
6.4
|
|
|
|
4.3
|
|
Other Western Europe
|
|
|
223.8
|
|
|
|
223.5
|
|
|
|
0.3
|
|
|
|
0.1
|
|
|
|
(0.1
|
)
|
Total Western Europe
|
|
|
3,873.0
|
|
|
|
3,635.3
|
|
|
|
237.7
|
|
|
|
6.5
|
|
|
|
2.9
|
|
Central and Eastern Europe
|
|
|
279.8
|
|
|
|
279.1
|
|
|
|
0.7
|
|
|
|
0.3
|
|
|
|
1.7
|
|
Central and other
|
|
|
34.7
|
|
|
|
33.4
|
|
|
|
1.3
|
|
|
|
3.9
|
|
|
|
*
|
|
Total European Operations Division
|
|
|
4,187.5
|
|
|
|
3,947.8
|
|
|
|
239.7
|
|
|
|
6.1
|
|
|
|
2.9
|
|
Chile (VTR)
|
|
|
223.7
|
|
|
|
244.8
|
|
|
|
(21.1
|
)
|
|
|
(8.6
|
)
|
|
|
4.2
|
|
Corporate and other
|
|
|
95.3
|
|
|
|
93.4
|
|
|
|
1.9
|
|
|
|
2.0
|
|
|
|
*
|
|
Intersegment eliminations
|
|
|
(9.3
|
)
|
|
|
(9.5
|
)
|
|
|
0.2
|
|
|
|
N.M.
|
|
|
*
|
|
Total
|
|
|
$
|
4,497.2
|
|
|
|
$
|
4,276.5
|
|
|
|
$
|
220.7
|
|
|
|
5.2
|
|
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liberty Global (excluding Virgin Media)
|
3.3
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
Increase
|
|
|
Increase
|
|
|
|
|
September 30,
|
|
|
(decrease)
|
|
|
(decrease)
|
|
Revenue
|
|
|
2014
|
|
|
2013
|
|
|
$
|
|
|
%
|
|
|
Rebased %
|
|
|
|
|
in millions, except % amounts
|
|
European Operations Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K. (Virgin Media)
|
|
|
$
|
5,249.5
|
|
|
|
$
|
1,988.7
|
|
|
|
$
|
3,260.8
|
|
|
|
164.0
|
|
|
|
2.1
|
|
Germany (Unitymedia KabelBW)
|
|
|
2,056.4
|
|
|
|
1,884.1
|
|
|
|
172.3
|
|
|
|
9.1
|
|
|
|
6.1
|
|
Belgium (Telenet)
|
|
|
1,732.3
|
|
|
|
1,616.2
|
|
|
|
116.1
|
|
|
|
7.2
|
|
|
|
4.2
|
|
The Netherlands
|
|
|
936.0
|
|
|
|
923.4
|
|
|
|
12.6
|
|
|
|
1.4
|
|
|
|
(1.5
|
)
|
Switzerland
|
|
|
1,071.3
|
|
|
|
982.0
|
|
|
|
89.3
|
|
|
|
9.1
|
|
|
|
4.7
|
|
Other Western Europe
|
|
|
687.9
|
|
|
|
665.7
|
|
|
|
22.2
|
|
|
|
3.3
|
|
|
|
0.1
|
|
Total Western Europe
|
|
|
11,733.4
|
|
|
|
8,060.1
|
|
|
|
3,673.3
|
|
|
|
45.6
|
|
|
|
2.9
|
|
Central and Eastern Europe
|
|
|
859.7
|
|
|
|
848.4
|
|
|
|
11.3
|
|
|
|
1.3
|
|
|
|
0.4
|
|
Central and other
|
|
|
101.2
|
|
|
|
96.7
|
|
|
|
4.5
|
|
|
|
4.7
|
|
|
|
*
|
|
Total European Operations Division
|
|
|
12,694.3
|
|
|
|
9,005.2
|
|
|
|
3,689.1
|
|
|
|
41.0
|
|
|
|
2.7
|
|
Chile (VTR)
|
|
|
678.8
|
|
|
|
747.9
|
|
|
|
(69.1
|
)
|
|
|
(9.2
|
)
|
|
|
4.4
|
|
Corporate and other
|
|
|
282.6
|
|
|
|
280.9
|
|
|
|
1.7
|
|
|
|
0.6
|
|
|
|
*
|
|
Intersegment eliminations
|
|
|
(22.6
|
)
|
|
|
(27.8
|
)
|
|
|
5.2
|
|
|
|
N.M.
|
|
|
*
|
|
Total
|
|
|
$
|
13,633.1
|
|
|
|
$
|
10,006.2
|
|
|
|
$
|
3,626.9
|
|
|
|
36.2
|
|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liberty Global (excluding Virgin Media)
|
3.2
|
|
|
|
|
* - Omitted; N.M. - Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Increase
|
|
|
Increase
|
|
|
|
|
September 30,
|
|
|
(decrease)
|
|
|
(decrease)
|
|
Operating Cash Flow
|
|
|
2014
|
|
|
2013
|
|
|
$
|
|
|
%
|
|
|
Rebased %
|
|
|
|
|
in millions, except % amounts
|
|
European Operations Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K. (Virgin Media)
|
|
|
$
|
755.9
|
|
|
|
$
|
663.0
|
|
|
|
$
|
92.9
|
|
|
|
14.0
|
|
|
|
6.2
|
|
Germany (Unitymedia KabelBW)
|
|
|
417.5
|
|
|
|
391.2
|
|
|
|
26.3
|
|
|
|
6.7
|
|
|
|
6.9
|
|
Belgium (Telenet)
|
|
|
287.9
|
|
|
|
275.4
|
|
|
|
12.5
|
|
|
|
4.5
|
|
|
|
4.4
|
|
The Netherlands
|
|
|
175.1
|
|
|
|
176.3
|
|
|
|
(1.2
|
)
|
|
|
(0.7
|
)
|
|
|
(0.7
|
)
|
Switzerland
|
|
|
213.3
|
|
|
|
200.8
|
|
|
|
12.5
|
|
|
|
6.2
|
|
|
|
4.1
|
|
Other Western Europe
|
|
|
115.4
|
|
|
|
113.8
|
|
|
|
1.6
|
|
|
|
1.4
|
|
|
|
0.9
|
|
Total Western Europe
|
|
|
1,965.1
|
|
|
|
1,820.5
|
|
|
|
144.6
|
|
|
|
7.9
|
|
|
|
4.9
|
|
Central and Eastern Europe
|
|
|
135.0
|
|
|
|
131.9
|
|
|
|
3.1
|
|
|
|
2.4
|
|
|
|
3.9
|
|
Central and other
|
|
|
(63.0
|
)
|
|
|
(44.5
|
)
|
|
|
(18.5
|
)
|
|
|
(41.6
|
)
|
|
|
*
|
|
Total European Operations Division
|
|
|
2,037.1
|
|
|
|
1,907.9
|
|
|
|
129.2
|
|
|
|
6.8
|
|
|
|
4.0
|
|
Chile (VTR)
|
|
|
86.6
|
|
|
|
84.5
|
|
|
|
2.1
|
|
|
|
2.5
|
|
|
|
17.2
|
|
Corporate and other
|
|
|
(13.1
|
)
|
|
|
(15.2
|
)
|
|
|
2.1
|
|
|
|
13.8
|
|
|
|
*
|
|
Intersegment eliminations
|
|
|
-
|
|
|
|
11.4
|
|
|
|
(11.4
|
)
|
|
|
N.M.
|
|
|
*
|
|
Total
|
|
|
$
|
2,110.6
|
|
|
|
$
|
1,988.6
|
|
|
|
$
|
122.0
|
|
|
|
6.1
|
|
|
|
4.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liberty Global (excluding Virgin Media)
|
3.7
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
Increase
|
|
|
Increase
|
|
|
|
|
September 30,
|
|
|
(decrease)
|
|
|
(decrease)
|
|
Operating Cash Flow
|
|
|
2014
|
|
|
2013
|
|
|
$
|
|
|
%
|
|
|
Rebased %
|
|
|
|
|
in millions, except % amounts
|
|
European Operations Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K. (Virgin Media)
|
|
|
$
|
2,264.8
|
|
|
|
$
|
838.3
|
|
|
|
$
|
1,426.5
|
|
|
|
170.2
|
|
|
|
6.1
|
|
Germany (Unitymedia KabelBW)
|
|
|
1,277.5
|
|
|
|
1,120.6
|
|
|
|
156.9
|
|
|
|
14.0
|
|
|
|
10.8
|
|
Belgium (Telenet)
|
|
|
877.9
|
|
|
|
792.1
|
|
|
|
85.8
|
|
|
|
10.8
|
|
|
|
7.6
|
|
The Netherlands
|
|
|
543.5
|
|
|
|
532.2
|
|
|
|
11.3
|
|
|
|
2.1
|
|
|
|
(0.7
|
)
|
Switzerland
|
|
|
639.3
|
|
|
|
572.2
|
|
|
|
67.1
|
|
|
|
11.7
|
|
|
|
7.2
|
|
Other Western Europe
|
|
|
343.4
|
|
|
|
324.2
|
|
|
|
19.2
|
|
|
|
5.9
|
|
|
|
2.7
|
|
Total Western Europe
|
|
|
5,946.4
|
|
|
|
4,179.6
|
|
|
|
1,766.8
|
|
|
|
42.3
|
|
|
|
6.5
|
|
Central and Eastern Europe
|
|
|
418.9
|
|
|
|
407.6
|
|
|
|
11.3
|
|
|
|
2.8
|
|
|
|
1.9
|
|
Central and other
|
|
|
(184.3
|
)
|
|
|
(144.5
|
)
|
|
|
(39.8
|
)
|
|
|
(27.5
|
)
|
|
|
*
|
|
Total European Operations Division
|
|
|
6,181.0
|
|
|
|
4,442.7
|
|
|
|
1,738.3
|
|
|
|
39.1
|
|
|
|
5.8
|
|
Chile (VTR)
|
|
|
255.1
|
|
|
|
256.5
|
|
|
|
(1.4
|
)
|
|
|
(0.5
|
)
|
|
|
14.5
|
|
Corporate and other
|
|
|
(57.1
|
)
|
|
|
(44.6
|
)
|
|
|
(12.5
|
)
|
|
|
(28.0
|
)
|
|
|
*
|
|
Intersegment eliminations
|
|
|
4.0
|
|
|
|
34.1
|
|
|
|
(30.1
|
)
|
|
|
N.M.
|
|
|
*
|
|
Total
|
|
|
$
|
6,383.0
|
|
|
|
$
|
4,688.7
|
|
|
|
$
|
1,694.3
|
|
|
|
36.1
|
|
|
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liberty Global (excluding Virgin Media)
|
5.9
|
|
|
|
|
* - Omitted; N.M. - Not Meaningful
Operating Cash Flow Definition and Reconciliation
OCF is the primary measure used by our chief operating decision maker to
evaluate segment operating performance. OCF is also a key factor that is
used by our internal decision makers to (i) determine how to allocate
resources to segments and (ii) evaluate the effectiveness of our
management for purposes of annual and other incentive compensation
plans. As we use the term, OCF is defined as revenue less operating and
SG&A expenses (excluding share-based compensation, depreciation and
amortization, provisions and provision releases related to significant
litigation and impairment, restructuring and other operating
items). Other operating items include (a) gains and losses on the
disposition of long-lived assets, (b) third-party costs directly
associated with successful and unsuccessful acquisitions and
dispositions, including legal, advisory and due diligence fees, as
applicable, and (c) other acquisition-related items, such as gains and
losses on the settlement of contingent consideration. Our internal
decision makers believe operating cash flow is a meaningful measure and
is superior to available GAAP measures because it represents a
transparent view of our recurring operating performance that is
unaffected by our capital structure and allows management to (1) readily
view operating trends, (2) perform analytical comparisons and
benchmarking between segments and (3) identify strategies to improve
operating performance in the different countries in which we operate. We
believe our operating cash flow measure is useful to investors because
it is one of the bases for comparing our performance with the
performance of other companies in the same or similar industries,
although our measure may not be directly comparable to similar measures
used by other public companies. OCF should be viewed as a measure of
operating performance that is a supplement to, and not a substitute for,
operating income, net earnings (loss), cash flow from operating
activities and other GAAP measures of income or cash flows. A
reconciliation of total segment operating cash flow to our operating
income is presented below.
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
in millions
|
Total segment operating cash flow
|
|
|
$
|
2,110.6
|
|
|
|
$
|
1,988.6
|
|
|
|
$
|
6,383.0
|
|
|
|
$
|
4,688.7
|
|
Share-based compensation expense
|
|
|
(73.1
|
)
|
|
|
(98.2
|
)
|
|
|
(182.6
|
)
|
|
|
(217.9
|
)
|
Depreciation and amortization
|
|
|
(1,313.5
|
)
|
|
|
(1,381.3
|
)
|
|
|
(4,084.0
|
)
|
|
|
(2,921.7
|
)
|
Release of litigation provision
|
|
|
-
|
|
|
|
146.0
|
|
|
|
-
|
|
|
|
146.0
|
|
Impairment, restructuring and other operating items, net
|
|
|
(20.3
|
)
|
|
|
(133.9
|
)
|
|
|
(161.5
|
)
|
|
|
(200.6
|
)
|
Operating income
|
|
|
$
|
703.7
|
|
|
|
$
|
521.2
|
|
|
|
$
|
1,954.9
|
|
|
|
$
|
1,494.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Debt, Capital Lease Obligations and Cash and Cash
Equivalents
The following table1 details the U.S. dollar equivalent
balances of our third-party consolidated debt, capital lease obligations
and cash and cash equivalents at September 30, 2014:
|
|
|
|
|
|
|
Capital
|
|
|
Debt & Capital
|
|
|
|
Cash
|
|
|
|
|
|
|
|
|
Lease
|
|
|
Lease
|
|
|
|
and Cash
|
|
|
|
|
Debt2
|
|
|
|
Obligations
|
|
|
Obligations
|
|
|
|
Equivalents
|
|
|
|
|
in millions
|
|
Liberty Global and unrestricted subsidiaries
|
|
|
$
|
2,287.3
|
|
|
|
$
|
40.0
|
|
|
|
$
|
2,327.3
|
|
|
|
|
$
|
|
477.7
|
|
Virgin Media3
|
|
|
13,369.3
|
|
|
|
298.9
|
|
|
|
13,668.2
|
|
|
|
|
48.9
|
|
UPC Holding
|
|
|
10,245.1
|
|
|
|
29.0
|
|
|
|
10,274.1
|
|
|
|
|
40.1
|
|
Unitymedia KabelBW
|
|
|
7,231.0
|
|
|
|
852.3
|
|
|
|
8,083.3
|
|
|
|
|
16.9
|
|
Telenet
|
|
|
4,279.2
|
|
|
|
427.0
|
|
|
|
4,706.2
|
|
|
|
|
300.2
|
|
VTR Finance4
|
|
|
1,400.0
|
|
|
|
0.6
|
|
|
|
1,400.6
|
|
|
|
|
59.6
|
|
Liberty Puerto Rico
|
|
|
671.9
|
|
|
|
1.2
|
|
|
|
673.1
|
|
|
|
|
11.5
|
|
Total Liberty Global
|
|
|
$
|
39,483.8
|
|
|
|
$
|
1,649.0
|
|
|
|
$
|
41,132.8
|
|
|
|
|
$
|
|
954.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and Equipment Additions and Capital Expenditures
The table below highlights the categories of our property and equipment
additions for the indicated periods and reconciles those additions to
the capital expenditures that we present in our condensed consolidated
statements of cash flows:
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
in millions, except % amounts
|
Customer premises equipment
|
|
|
$
|
290.4
|
|
|
|
$
|
402.7
|
|
|
|
$
|
989.2
|
|
|
|
$
|
854.9
|
|
Scalable infrastructure
|
|
|
180.5
|
|
|
|
157.8
|
|
|
|
524.0
|
|
|
|
394.0
|
|
Line extensions
|
|
|
100.4
|
|
|
|
86.6
|
|
|
|
297.1
|
|
|
|
258.6
|
|
Upgrade/rebuild
|
|
|
129.4
|
|
|
|
126.4
|
|
|
|
402.3
|
|
|
|
296.2
|
|
Support capital & other
|
|
|
207.6
|
|
|
|
181.8
|
|
|
|
576.7
|
|
|
|
417.9
|
|
Property and equipment additions
|
|
|
908.3
|
|
|
|
955.3
|
|
|
|
2,789.3
|
|
|
|
2,221.6
|
|
Assets acquired under capital-related vendor financing arrangements
|
|
|
(276.1
|
)
|
|
|
(144.4
|
)
|
|
|
(677.9
|
)
|
|
|
(366.0
|
)
|
Assets acquired under capital leases
|
|
|
(16.8
|
)
|
|
|
(63.4
|
)
|
|
|
(106.6
|
)
|
|
|
(108.3
|
)
|
Changes in current liabilities related to capital expenditures
|
|
|
28.9
|
|
|
|
56.5
|
|
|
|
41.5
|
|
|
|
43.7
|
|
Capital expenditures5
|
|
|
$
|
644.3
|
|
|
|
$
|
804.0
|
|
|
|
$
|
2,046.3
|
|
|
|
$
|
1,791.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment additions as % of revenue
|
|
|
20.2
|
%
|
|
|
22.3
|
%
|
|
|
20.5
|
%
|
|
|
22.2
|
%
|
_________________________________
1
|
|
Except as otherwise indicated, the amounts reported in the table
include the named entity and its subsidiaries.
|
2
|
|
Debt amounts for UPC Holding and Telenet include senior secured
notes issued by special purpose entities that are consolidated by
each.
|
3
|
|
The Virgin Media borrowing group includes certain subsidiaries of
Virgin Media Inc. ("Virgin Media"), but excludes Virgin Media. The
cash and cash equivalents amount includes cash and cash equivalents
held by the Virgin Media borrowing group, but excludes $1 million of
cash and cash equivalents held by Virgin Media. This amount is
included in the amount shown for Liberty Global and unrestricted
subsidiaries. In addition, the $57 million carrying value of the
6.5% convertible notes of Virgin Media is excluded from the debt of
the Virgin Media borrowing group and included in the debt of Liberty
Global and unrestricted subsidiaries.
|
4
|
|
VTR Finance B.V. and its subsidiaries, including VTR GlobalCom SpA
and VTR Wireless SpA, are collectively referred to as "VTR".
|
5
|
|
The capital expenditures that we report in our condensed
consolidated statements of cash flows do not include amounts that
are financed under vendor financing or capital lease arrangements.
Instead, these expenditures are reflected as non-cash additions to
our property and equipment when the underlying assets are delivered,
and as repayments of debt when the related principal is repaid.
|
|
|
|
Free Cash Flow and Adjusted Free Cash Flow Definition and
Reconciliation
We define free cash flow as net cash provided by our operating
activities, plus (i) excess tax benefits related to the exercise of
share-based incentive awards and (ii) cash payments for third-party
costs directly associated with successful and unsuccessful acquisitions
and dispositions, less (a) capital expenditures, as reported in our
consolidated statements of cash flows, (b) principal payments on
capital-related vendor financing obligations and (c) principal payments
on capital leases (exclusive of the portions of the network lease in
Belgium and the duct leases in Germany that we assumed in connection
with certain acquisitions), with each item excluding any cash provided
or used by our discontinued operations. We also present Adjusted FCF,
which adjusts FCF to eliminate the incremental FCF deficit associated
with the VTR Wireless mobile initiative and certain financing and other
costs associated with the Virgin Media acquisition. We believe that our
presentation of free cash flow provides useful information to our
investors because this measure can be used to gauge our ability to
service debt and fund new investment opportunities. Free cash flow
should not be understood to represent our ability to fund discretionary
amounts, as we have various mandatory and contractual obligations,
including debt repayments, which are not deducted to arrive at this
amount. Investors should view free cash flow as a supplement to, and not
a substitute for, GAAP measures of liquidity included in our
consolidated statements of cash flows. The following table provides the
reconciliation of our continuing operations' net cash provided by
operating activities to FCF and Adjusted FCF for the indicated periods:
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
in millions
|
Net cash provided by operating activities of our continuing
operations
|
|
|
$
|
1,153.4
|
|
|
|
$
|
1,103.2
|
|
|
|
$
|
4,070.1
|
|
|
|
$
|
2,451.8
|
|
Excess tax benefits from share-based compensation6
|
|
|
-
|
|
|
|
1.2
|
|
|
|
-
|
|
|
|
1.7
|
|
Cash payments for direct acquisition and disposition costs7
|
|
|
4.9
|
|
|
|
14.8
|
|
|
|
25.3
|
|
|
|
53.2
|
|
Capital expenditures
|
|
|
(644.3
|
)
|
|
|
(804.0
|
)
|
|
|
(2,046.3
|
)
|
|
|
(1,791.0
|
)
|
Principal payments on capital-related vendor financing obligations
|
|
|
(165.6
|
)
|
|
|
(98.3
|
)
|
|
|
(563.5
|
)
|
|
|
(265.7
|
)
|
Principal payments on certain capital leases
|
|
|
(43.6
|
)
|
|
|
(39.5
|
)
|
|
|
(140.8
|
)
|
|
|
(47.7
|
)
|
FCF
|
|
|
$
|
304.8
|
|
|
|
$
|
177.4
|
|
|
|
$
|
1,344.8
|
|
|
|
$
|
402.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FCF
|
|
|
$
|
304.8
|
|
|
|
$
|
177.4
|
|
|
|
$
|
1,344.8
|
|
|
|
$
|
402.3
|
|
FCF deficit of VTR Wireless
|
|
|
16.3
|
|
|
|
15.8
|
|
|
|
51.0
|
|
|
|
94.2
|
|
Virgin Media acquisition adjustments8
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
32.3
|
|
Adjusted FCF
|
|
|
$
|
321.1
|
|
|
|
$
|
193.2
|
|
|
|
$
|
1,395.8
|
|
|
|
$
|
528.8
|
|
______________________________________
6
|
|
Excess tax benefits from share-based compensation represent the
excess of tax deductions over the related financial reporting
share-based compensation expense. The hypothetical cash flows
associated with these excess tax benefits are reported as an
increase to cash flows from financing activities and a corresponding
decrease to cash flows from operating activities in our consolidated
cash flow statements.
|
7
|
|
Represents costs paid during the period to third parties directly
related to acquisitions and dispositions.
|
8
|
|
Represents costs associated with the Virgin Media Acquisition
consisting of (i) cash paid of $19.8 million during the period
related to the pre-acquisition costs of the new Virgin Media capital
structure and (ii) cash paid of $12.5 million during the period for
withholding taxes associated with certain intercompany transactions
completed in connection with the Virgin Media Acquisition.
|
Combined Free Cash Flow, Adjusted Free Cash Flow, Revenue, Property &
Equipment Additions and OCF for Historical YTD 2013
The combined amounts presented below have been included in this release
to provide a means for comparison. The Liberty Global amounts presented
below are on a reported basis. The Virgin Media pre-acquisition amounts
presented below are on a reported basis for the period from January 1,
2013 to June 7, 2013, as adjusted to conform to the FCF and Adjusted FCF
definitions of Liberty Global as set forth earlier. The Virgin Media
pre-acquisition amounts have been converted into U.S. dollars at the
average GBP/USD foreign exchange rate for the pre-acquisition period in
2013 as applicable. The combined Liberty Global/Virgin Media results
have not been prepared with a view towards complying with Article 11 of
Regulation S-X. In addition, the combined Liberty Global/Virgin Media
results are not necessarily indicative of the FCF and Adjusted FCF that
would have occurred if the Liberty Global/Virgin Media transaction had
occurred on the dates assumed for purposes of calculating the combined
results, or the FCF and Adjusted FCF that will occur in the future. The
below FCF and Adjusted FCF table should be read in conjunction with the
information included in the footnotes to the tables on page 17.
|
|
|
|
Nine months ended
|
|
|
|
September 30, 2013
|
|
|
|
Liberty Global
|
|
|
Virgin Media Pre-acquisition
|
|
|
Combined
|
|
|
in millions
|
Net cash provided by operating activities of our continuing
operations
|
|
|
$
|
2,451.8
|
|
|
|
$
|
906.1
|
|
|
|
$
|
3,357.9
|
|
Excess tax benefits from share-based compensation
|
|
|
1.7
|
|
|
|
-
|
|
|
|
1.7
|
|
Cash payments for direct acquisition and disposition costs
|
|
|
53.2
|
|
|
|
80.0
|
|
|
|
133.2
|
|
Capital expenditures
|
|
|
(1,791.0
|
)
|
|
|
(483.1
|
)
|
|
|
(2,274.1
|
)
|
Principal payments on capital-related vendor financing obligations
|
|
|
(265.7
|
)
|
|
|
-
|
|
|
|
(265.7
|
)
|
Principal payments on certain capital leases
|
|
|
(47.7
|
)
|
|
|
(69.4
|
)
|
|
|
(117.1
|
)
|
FCF
|
|
|
$
|
402.3
|
|
|
|
$
|
433.6
|
|
|
|
$
|
835.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FCF
|
|
|
$
|
402.3
|
|
|
|
$
|
433.6
|
|
|
|
$
|
835.9
|
|
FCF deficit of VTR Wireless
|
|
|
94.2
|
|
|
|
-
|
|
|
|
94.2
|
|
Virgin Media acquisition adjustments
|
|
|
32.3
|
|
|
|
-
|
|
|
|
32.3
|
|
Adjusted FCF
|
|
|
$
|
528.8
|
|
|
|
$
|
433.6
|
|
|
|
$
|
962.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
September 30, 2013
|
|
|
|
Liberty Global
|
|
Virgin Media Pre-acquisition
|
|
Combined
|
|
|
|
in millions
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
10,006.2
|
|
|
$
|
2,790.1
|
|
|
$
|
12,796.3
|
|
|
|
|
|
|
|
|
|
|
|
|
OCF
|
|
|
$
|
4,688.7
|
|
|
$
|
1,126.1
|
|
|
$
|
5,814.8
|
|
Share-based compensation
|
|
|
(217.9
|
)
|
|
(33.8
|
)
|
|
(251.7
|
)
|
Depreciation and amortization
|
|
|
(2,921.7
|
)
|
|
(667.1
|
)
|
|
(3,588.8
|
)
|
Release of litigation provision
|
|
|
146.0
|
|
|
-
|
|
|
146.0
|
|
Impairment, restructuring and other
|
|
|
(200.6
|
)
|
|
(78.5
|
)
|
|
(279.1
|
)
|
Operating Income
|
|
|
$
|
1,494.5
|
|
|
$
|
346.7
|
|
|
$
|
1,841.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Property & Equipment Additions
|
|
|
$
|
2,221.6
|
|
|
$
|
598.7
|
|
|
$
|
2,820.3
|
|
|
|
|
|
|
|
|
|
|
|
|
OCF Margin
|
|
|
46.9
|
%
|
|
40.4
|
%
|
|
45.4
|
%
|
Property & Equipment Additions as a percentage of Revenue
|
|
|
22.2
|
%
|
|
21.5
|
%
|
|
22.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
ARPU per Customer Relationship
The following table provides ARPU per customer relationship9
for the indicated periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
%
|
|
|
FX-Neutral
|
|
|
|
2014
|
|
|
2013
|
|
|
Change
|
|
|
% Change10
|
Liberty Global Consolidated
|
|
|
$
|
48.58
|
|
|
|
$
|
46.25
|
|
|
|
5.0
|
%
|
|
|
3.3
|
%
|
European Operations Consolidated
|
|
|
€
|
36.08
|
|
|
|
€
|
33.96
|
|
|
|
6.2
|
%
|
|
|
3.4
|
%
|
U.K. (Virgin Media)
|
|
|
£
|
48.98
|
|
|
|
£
|
48.00
|
|
|
|
2.0
|
%
|
|
|
2.0
|
%
|
Germany (Unitymedia KabelBW)
|
|
|
€
|
21.52
|
|
|
|
€
|
20.44
|
|
|
|
5.3
|
%
|
|
|
5.3
|
%
|
Belgium (Telenet)
|
|
|
€
|
51.12
|
|
|
|
€
|
48.36
|
|
|
|
5.7
|
%
|
|
|
5.7
|
%
|
Other Europe
|
|
|
€
|
29.98
|
|
|
|
€
|
29.13
|
|
|
|
2.9
|
%
|
|
|
2.8
|
%
|
VTR
|
|
|
CLP
|
32,006
|
|
|
|
CLP
|
31,382
|
|
|
|
2.0
|
%
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile Statistics11
The following tables provide ARPU per mobile subscriber12 and
mobile subscribers13 for the indicated periods:
|
|
|
ARPU per Mobile Subscriber
|
|
|
|
Three months ended September 30,
|
|
|
%
|
|
|
FX-Neutral
|
|
|
|
2014
|
|
|
2013
|
|
|
Change
|
|
|
% Change10
|
Liberty Global Consolidated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Including interconnect revenue
|
|
|
$
|
26.49
|
|
|
|
$
|
24.71
|
|
|
|
7.2
|
%
|
|
|
2.2
|
%
|
Excluding interconnect revenue
|
|
|
$
|
21.81
|
|
|
|
$
|
20.09
|
|
|
|
8.6
|
%
|
|
|
3.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile Subscribers
|
|
|
|
|
|
September 30, 2014
|
|
|
June 30, 2014
|
|
|
Change
|
|
|
European Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K. (Virgin Media)
|
|
|
3,059,600
|
|
|
|
3,041,300
|
|
|
|
18,300
|
|
|
Germany (Unitymedia KabelBW)14
|
|
|
296,100
|
|
|
|
276,400
|
|
|
|
19,700
|
|
|
Belgium (Telenet)
|
|
|
868,500
|
|
|
|
820,800
|
|
|
|
47,700
|
|
|
The Netherlands
|
|
|
2,000
|
|
|
|
2,500
|
|
|
|
(500
|
)
|
|
Switzerland
|
|
|
3,300
|
|
|
|
500
|
|
|
|
2,800
|
|
|
Total Western Europe
|
|
|
4,229,500
|
|
|
|
4,141,500
|
|
|
|
88,000
|
|
|
Poland
|
|
|
11,900
|
|
|
|
13,300
|
|
|
|
(1,400
|
)
|
|
Hungary
|
|
|
9,600
|
|
|
|
9,300
|
|
|
|
300
|
|
|
Total CEE
|
|
|
21,500
|
|
|
|
22,600
|
|
|
|
(1,100
|
)
|
|
Total European Operations
|
|
|
4,251,000
|
|
|
|
4,164,100
|
|
|
|
86,900
|
|
|
Chile (VTR Wireless)
|
|
|
100,700
|
|
|
|
89,700
|
|
|
|
11,000
|
|
|
Grand Total
|
|
|
4,351,700
|
|
|
|
4,253,800
|
|
|
|
97,900
|
|
|
_________________________________
9
|
|
Average Revenue Per Unit ("ARPU") refers to the average monthly
subscription revenue per average customer relationship and is
calculated by dividing the average monthly subscription revenue
(excluding installation, late fees, interconnect and mobile services
revenue) for the indicated period, by the average of the opening and
closing balances for customer relationships for the period. Customer
relationships of entities acquired during the period are normalized.
Unless otherwise indicated, ARPU per customer relationship for the
Liberty Global Consolidated, the European Operations Division and
Other Europe are not adjusted for currency impacts
|
.
|
10
|
|
The FX-neutral change represents the percentage change on a
year-over-year basis adjusted for FX impacts and is calculated by
adjusting the prior year figures to reflect translation at the
foreign currency rates used to translate the current year amounts.
|
|
11
|
|
Please see page 8 for the definition of mobile subscriber.
|
|
12
|
|
Our ARPU per mobile subscriber calculation that excludes
interconnect revenue refers to the average monthly mobile
subscription revenue per average mobile subscribers in service and
is calculated by dividing the average monthly mobile subscription
revenue (excluding activation, handset fees and late fees) for the
indicated period, by the average of the opening and closing balances
of mobile subscribers in service for the period. Our ARPU per mobile
subscriber calculation that includes interconnect revenue increases
the numerator in the above-described calculation by the amount of
mobile interconnect revenue during the period.
|
|
13
|
|
With the exception of the U.K. and Chile, all of our mobile
subscribers receive mobile services pursuant to postpaid contracts.
As of September 30, 2014 and June 30, 2014, the mobile subscriber
count in the U.K. included 986,100 and 1,021,000 prepaid mobile
subscribers, respectively, and the mobile subscriber count in Chile
included 22,200 and 24,500 prepaid mobile subscribers, respectively.
|
|
14
|
|
The change in our mobile subscribers includes a non-organic
reduction of 2,000 to remove services provided to employees in
Germany.
|
|
|
|
|
|
RGUs, Customers and Bundling
The following table provides information on the breakdown of our RGUs
and customer base and highlights our customer bundling metrics at
September 30, 2014, June 30, 2014 and September 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2014
|
|
|
|
June 30,
2014
|
|
|
|
September 30,
2013
|
|
|
|
Q3'14 / Q2'14 (% Change)
|
|
|
Q3'14 / Q3'13 (% Change)
|
Total RGUs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Video RGUs
|
|
|
21,610,800
|
|
|
|
21,658,200
|
|
|
|
21,828,400
|
|
|
|
(0.2
|
%)
|
|
|
(1.0
|
%)
|
Total Broadband Internet RGUs
|
|
|
15,064,000
|
|
|
|
14,822,300
|
|
|
|
14,094,600
|
|
|
|
1.6
|
%
|
|
|
6.9
|
%
|
Total Telephony RGUs
|
|
|
12,574,300
|
|
|
|
12,424,900
|
|
|
|
11,924,500
|
|
|
|
1.2
|
%
|
|
|
5.4
|
%
|
Liberty Global Consolidated
|
|
|
49,249,100
|
|
|
|
48,905,400
|
|
|
|
47,847,500
|
|
|
|
0.7
|
%
|
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Operations Division
|
|
|
22,990,300
|
|
|
|
22,970,500
|
|
|
|
23,009,000
|
|
|
|
0.1
|
%
|
|
|
(0.1
|
%)
|
VTR
|
|
|
1,229,900
|
|
|
|
1,224,700
|
|
|
|
1,193,800
|
|
|
|
0.4
|
%
|
|
|
3.0
|
%
|
Puerto Rico
|
|
|
278,800
|
|
|
|
275,700
|
|
|
|
271,000
|
|
|
|
1.1
|
%
|
|
|
2.9
|
%
|
Liberty Global Consolidated
|
|
|
24,499,000
|
|
|
|
24,470,900
|
|
|
|
24,473,800
|
|
|
|
0.1
|
%
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Single-Play Customers
|
|
|
10,140,700
|
|
|
|
10,291,200
|
|
|
|
10,825,000
|
|
|
|
(1.5
|
%)
|
|
|
(6.3
|
%)
|
Total Double-Play Customers
|
|
|
3,966,600
|
|
|
|
3,925,000
|
|
|
|
3,924,000
|
|
|
|
1.1
|
%
|
|
|
1.1
|
%
|
Total Triple-Play Customers
|
|
|
10,391,700
|
|
|
|
10,254,700
|
|
|
|
9,724,800
|
|
|
|
1.3
|
%
|
|
|
6.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Double-Play Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Operations Division
|
|
|
15.9
|
%
|
|
|
15.7
|
%
|
|
|
15.7
|
%
|
|
|
1.3
|
%
|
|
|
1.3
|
%
|
VTR
|
|
|
21.7
|
%
|
|
|
21.1
|
%
|
|
|
20.8
|
%
|
|
|
2.8
|
%
|
|
|
4.3
|
%
|
Liberty Global Consolidated
|
|
|
16.2
|
%
|
|
|
16.0
|
%
|
|
|
16.0
|
%
|
|
|
1.3
|
%
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Triple-Play Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Operations Division
|
|
|
42.2
|
%
|
|
|
41.6
|
%
|
|
|
39.4
|
%
|
|
|
1.4
|
%
|
|
|
7.1
|
%
|
VTR
|
|
|
46.8
|
%
|
|
|
47.1
|
%
|
|
|
46.7
|
%
|
|
|
(0.6
|
%)
|
|
|
0.2
|
%
|
Liberty Global Consolidated
|
|
|
42.4
|
%
|
|
|
41.9
|
%
|
|
|
39.7
|
%
|
|
|
1.2
|
%
|
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RGUs per Customer Relationship
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Operations Division
|
|
|
2.00
|
|
|
1.99
|
|
|
1.95
|
|
|
0.5
|
%
|
|
|
2.6
|
%
|
VTR
|
|
|
2.15
|
|
|
2.15
|
|
|
2.14
|
|
|
-
|
|
|
|
0.5
|
%
|
Liberty Global Consolidated
|
|
|
2.01
|
|
|
2.00
|
|
|
1.96
|
|
|
0.5
|
%
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Data - September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
|
|
Homes Passed(1)
|
|
|
Two-way Homes Passed(2)
|
|
|
Customer Relationships(3)
|
|
|
Total RGUs(4)
|
|
|
Analog Cable Subscribers(5)
|
|
|
Digital Cable Subscribers(6)
|
|
|
DTH Subscribers(7)
|
|
|
MMDS Subscribers(8)
|
|
|
Total Video
|
|
|
Internet Subscribers(9)
|
|
|
Telephony Subscribers(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Operations Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
|
12,584,100
|
|
|
|
12,522,700
|
|
|
|
4,947,500
|
|
|
|
12,364,100
|
|
|
|
-
|
|
|
|
3,738,800
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,738,800
|
|
|
|
4,464,100
|
|
|
|
4,161,200
|
Germany
|
|
|
12,687,000
|
|
|
|
12,357,500
|
|
|
|
7,103,300
|
|
|
|
12,065,600
|
|
|
|
4,300,700
|
|
|
|
2,263,800
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,564,500
|
|
|
|
2,818,100
|
|
|
|
2,683,000
|
Belgium
|
|
|
2,910,700
|
|
|
|
2,910,700
|
|
|
|
2,073,800
|
|
|
|
4,720,200
|
|
|
|
508,300
|
|
|
|
1,565,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,073,800
|
|
|
|
1,512,800
|
|
|
|
1,133,600
|
The Netherlands(11)
|
|
|
2,847,100
|
|
|
|
2,833,400
|
|
|
|
1,592,500
|
|
|
|
3,693,300
|
|
|
|
464,300
|
|
|
|
1,125,800
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,590,100
|
|
|
|
1,107,400
|
|
|
|
995,800
|
Switzerland(11)
|
|
|
2,157,600
|
|
|
|
2,157,000
|
|
|
|
1,456,700
|
|
|
|
2,593,200
|
|
|
|
721,800
|
|
|
|
688,700
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,410,500
|
|
|
|
717,200
|
|
|
|
465,500
|
Austria
|
|
|
1,343,800
|
|
|
|
1,343,800
|
|
|
|
650,600
|
|
|
|
1,341,400
|
|
|
|
159,100
|
|
|
|
361,600
|
|
|
|
-
|
|
|
|
-
|
|
|
|
520,700
|
|
|
|
455,100
|
|
|
|
365,600
|
Ireland
|
|
|
855,300
|
|
|
|
753,100
|
|
|
|
522,100
|
|
|
|
1,105,200
|
|
|
|
42,100
|
|
|
|
335,800
|
|
|
|
-
|
|
|
|
31,900
|
|
|
|
409,800
|
|
|
|
359,100
|
|
|
|
336,300
|
Total Western Europe
|
|
|
35,385,600
|
|
|
|
34,878,200
|
|
|
|
18,346,500
|
|
|
|
37,883,000
|
|
|
|
6,196,300
|
|
|
|
10,080,000
|
|
|
|
-
|
|
|
|
31,900
|
|
|
|
16,308,200
|
|
|
|
11,433,800
|
|
|
|
10,141,000
|
Poland
|
|
|
2,741,900
|
|
|
|
2,658,100
|
|
|
|
1,420,600
|
|
|
|
2,708,700
|
|
|
|
291,400
|
|
|
|
902,800
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,194,200
|
|
|
|
970,100
|
|
|
|
544,400
|
Hungary
|
|
|
1,547,800
|
|
|
|
1,532,000
|
|
|
|
1,066,400
|
|
|
|
1,935,800
|
|
|
|
229,900
|
|
|
|
408,000
|
|
|
|
272,500
|
|
|
|
-
|
|
|
|
910,400
|
|
|
|
545,000
|
|
|
|
480,400
|
Romania
|
|
|
2,326,900
|
|
|
|
2,191,800
|
|
|
|
1,165,000
|
|
|
|
1,889,700
|
|
|
|
314,500
|
|
|
|
537,400
|
|
|
|
305,800
|
|
|
|
-
|
|
|
|
1,157,700
|
|
|
|
420,500
|
|
|
|
311,500
|
Czech Republic
|
|
|
1,368,700
|
|
|
|
1,267,000
|
|
|
|
712,500
|
|
|
|
1,179,200
|
|
|
|
88,100
|
|
|
|
370,400
|
|
|
|
106,500
|
|
|
|
-
|
|
|
|
565,000
|
|
|
|
442,500
|
|
|
|
171,700
|
Slovakia
|
|
|
503,900
|
|
|
|
481,200
|
|
|
|
279,300
|
|
|
|
428,300
|
|
|
|
44,200
|
|
|
|
139,100
|
|
|
|
64,500
|
|
|
|
600
|
|
|
|
248,400
|
|
|
|
114,200
|
|
|
|
65,700
|
Total CEE
|
|
|
8,489,200
|
|
|
|
8,130,100
|
|
|
|
4,643,800
|
|
|
|
8,141,700
|
|
|
|
968,100
|
|
|
|
2,357,700
|
|
|
|
749,300
|
|
|
|
600
|
|
|
|
4,075,700
|
|
|
|
2,492,300
|
|
|
|
1,573,700
|
Total Europe
|
|
|
43,874,800
|
|
|
|
43,008,300
|
|
|
|
22,990,300
|
|
|
|
46,024,700
|
|
|
|
7,164,400
|
|
|
|
12,437,700
|
|
|
|
749,300
|
|
|
|
32,500
|
|
|
|
20,383,900
|
|
|
|
13,926,100
|
|
|
|
11,714,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
|
2,968,900
|
|
|
|
2,449,200
|
|
|
|
1,229,900
|
|
|
|
2,647,000
|
|
|
|
116,200
|
|
|
|
892,800
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,009,000
|
|
|
|
932,600
|
|
|
|
705,400
|
Puerto Rico
|
|
|
705,600
|
|
|
|
705,600
|
|
|
|
278,800
|
|
|
|
577,400
|
|
|
|
-
|
|
|
|
217,900
|
|
|
|
-
|
|
|
|
-
|
|
|
|
217,900
|
|
|
|
205,300
|
|
|
|
154,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
|
47,549,300
|
|
|
|
46,163,100
|
|
|
|
24,499,000
|
|
|
|
49,249,100
|
|
|
|
7,280,600
|
|
|
|
13,548,400
|
|
|
|
749,300
|
|
|
|
32,500
|
|
|
|
21,610,800
|
|
|
|
15,064,000
|
|
|
|
12,574,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscriber Variance Table - September 30, 2014 vs. June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
|
|
|
Homes Passed(1)
|
|
|
Two-way Homes Passed(2)
|
|
|
Customer Relationships(3)
|
|
|
Total RGUs(4)
|
|
|
Analog Cable Subscribers(5)
|
|
|
Digital Cable Subscribers(6)
|
|
|
DTH Subscribers(7)
|
|
|
MMDS Subscribers(8)
|
|
|
Total Video
|
|
|
Internet Subscribers(9)
|
|
|
Telephony Subscribers(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Operations Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
|
44,400
|
|
|
|
(17,000
|
)
|
|
|
34,600
|
|
|
|
69,800
|
|
|
|
-
|
|
|
|
5,100
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,100
|
|
|
|
48,600
|
|
|
|
16,100
|
|
Germany
|
|
|
28,300
|
|
|
|
35,900
|
|
|
|
4,500
|
|
|
|
116,400
|
|
|
|
(26,700
|
)
|
|
|
6,300
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(20,400
|
)
|
|
|
75,200
|
|
|
|
61,600
|
|
Belgium
|
|
|
5,700
|
|
|
|
5,700
|
|
|
|
(2,800
|
)
|
|
|
43,400
|
|
|
|
(40,000
|
)
|
|
|
37,200
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,800
|
)
|
|
|
19,900
|
|
|
|
26,300
|
|
The Netherlands(11)
|
|
|
3,400
|
|
|
|
2,700
|
|
|
|
(13,200
|
)
|
|
|
(4,200
|
)
|
|
|
(19,300
|
)
|
|
|
5,900
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(13,400
|
)
|
|
|
9,000
|
|
|
|
200
|
|
Switzerland(11)
|
|
|
1,800
|
|
|
|
3,000
|
|
|
|
2,100
|
|
|
|
11,400
|
|
|
|
(10,400
|
)
|
|
|
5,600
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,800
|
)
|
|
|
16,700
|
|
|
|
(500
|
)
|
Austria
|
|
|
3,600
|
|
|
|
3,600
|
|
|
|
2,100
|
|
|
|
11,400
|
|
|
|
(9,000
|
)
|
|
|
6,600
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,400
|
)
|
|
|
8,100
|
|
|
|
5,700
|
|
Ireland
|
|
|
(900
|
)
|
|
|
1,400
|
|
|
|
(1,800
|
)
|
|
|
13,600
|
|
|
|
(2,400
|
)
|
|
|
(900
|
)
|
|
|
-
|
|
|
|
(1,700
|
)
|
|
|
(5,000
|
)
|
|
|
6,800
|
|
|
|
11,800
|
|
Total Western Europe
|
|
|
86,300
|
|
|
|
35,300
|
|
|
|
25,500
|
|
|
|
261,800
|
|
|
|
(107,800
|
)
|
|
|
65,800
|
|
|
|
-
|
|
|
|
(1,700
|
)
|
|
|
(43,700
|
)
|
|
|
184,300
|
|
|
|
121,200
|
|
Poland
|
|
|
7,600
|
|
|
|
15,100
|
|
|
|
(16,000
|
)
|
|
|
2,400
|
|
|
|
(35,000
|
)
|
|
|
16,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(19,000
|
)
|
|
|
12,000
|
|
|
|
9,400
|
|
Hungary
|
|
|
2,500
|
|
|
|
2,200
|
|
|
|
6,700
|
|
|
|
24,600
|
|
|
|
(10,400
|
)
|
|
|
12,300
|
|
|
|
3,300
|
|
|
|
-
|
|
|
|
5,200
|
|
|
|
9,700
|
|
|
|
9,700
|
|
Romania
|
|
|
25,100
|
|
|
|
55,800
|
|
|
|
6,900
|
|
|
|
27,400
|
|
|
|
(14,800
|
)
|
|
|
22,600
|
|
|
|
(800
|
)
|
|
|
-
|
|
|
|
7,000
|
|
|
|
13,800
|
|
|
|
6,600
|
|
Czech Republic
|
|
|
4,200
|
|
|
|
4,200
|
|
|
|
(1,000
|
)
|
|
|
2,500
|
|
|
|
2,500
|
|
|
|
(1,900
|
)
|
|
|
2,100
|
|
|
|
-
|
|
|
|
2,700
|
|
|
|
2,100
|
|
|
|
(2,300
|
)
|
Slovakia
|
|
|
500
|
|
|
|
500
|
|
|
|
(2,300
|
)
|
|
|
300
|
|
|
|
(4,500
|
)
|
|
|
2,100
|
|
|
|
(800
|
)
|
|
|
-
|
|
|
|
(3,200
|
)
|
|
|
2,300
|
|
|
|
1,200
|
|
Total CEE
|
|
|
39,900
|
|
|
|
77,800
|
|
|
|
(5,700
|
)
|
|
|
57,200
|
|
|
|
(62,200
|
)
|
|
|
51,100
|
|
|
|
3,800
|
|
|
|
-
|
|
|
|
(7,300
|
)
|
|
|
39,900
|
|
|
|
24,600
|
|
Total Europe
|
|
|
126,200
|
|
|
|
113,100
|
|
|
|
19,800
|
|
|
|
319,000
|
|
|
|
(170,000
|
)
|
|
|
116,900
|
|
|
|
3,800
|
|
|
|
(1,700
|
)
|
|
|
(51,000
|
)
|
|
|
224,200
|
|
|
|
145,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
|
20,700
|
|
|
|
21,500
|
|
|
|
5,200
|
|
|
|
9,200
|
|
|
|
(6,000
|
)
|
|
|
7,100
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,100
|
|
|
|
11,600
|
|
|
|
(3,500
|
)
|
Puerto Rico
|
|
|
800
|
|
|
|
800
|
|
|
|
3,100
|
|
|
|
15,500
|
|
|
|
-
|
|
|
|
2,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,500
|
|
|
|
5,900
|
|
|
|
7,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
|
147,700
|
|
|
|
135,400
|
|
|
|
28,100
|
|
|
|
343,700
|
|
|
|
(176,000
|
)
|
|
|
126,500
|
|
|
|
3,800
|
|
|
|
(1,700
|
)
|
|
|
(47,400
|
)
|
|
|
241,700
|
|
|
|
149,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Change Summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe (excl. U.K., DE and BE)
|
|
|
47,800
|
|
|
|
88,500
|
|
|
|
(17,700
|
)
|
|
|
85,300
|
|
|
|
(103,300
|
)
|
|
|
68,300
|
|
|
|
3,800
|
|
|
|
(1,700
|
)
|
|
|
(32,900
|
)
|
|
|
76,400
|
|
|
|
41,800
|
|
U.K.
|
|
|
23,300
|
|
|
|
23,300
|
|
|
|
34,600
|
|
|
|
69,800
|
|
|
|
-
|
|
|
|
5,100
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,100
|
|
|
|
48,600
|
|
|
|
16,100
|
|
Germany
|
|
|
28,300
|
|
|
|
35,900
|
|
|
|
6,100
|
|
|
|
121,000
|
|
|
|
(26,600
|
)
|
|
|
7,800
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,800
|
)
|
|
|
76,700
|
|
|
|
63,100
|
|
Belgium
|
|
|
5,700
|
|
|
|
5,700
|
|
|
|
(2,800
|
)
|
|
|
43,400
|
|
|
|
(40,000
|
)
|
|
|
37,200
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,800
|
)
|
|
|
19,900
|
|
|
|
26,300
|
|
Total Europe
|
|
|
105,100
|
|
|
|
153,400
|
|
|
|
20,200
|
|
|
|
319,500
|
|
|
|
(169,900
|
)
|
|
|
118,400
|
|
|
|
3,800
|
|
|
|
(1,700
|
)
|
|
|
(49,400
|
)
|
|
|
221,600
|
|
|
|
147,300
|
|
Chile
|
|
|
20,700
|
|
|
|
21,500
|
|
|
|
5,200
|
|
|
|
9,200
|
|
|
|
(6,000
|
)
|
|
|
7,100
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,100
|
|
|
|
11,600
|
|
|
|
(3,500
|
)
|
Puerto Rico
|
|
|
800
|
|
|
|
800
|
|
|
|
3,100
|
|
|
|
15,500
|
|
|
|
-
|
|
|
|
2,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,500
|
|
|
|
5,900
|
|
|
|
7,100
|
|
Total Organic Change
|
|
|
126,600
|
|
|
|
175,700
|
|
|
|
28,500
|
|
|
|
344,200
|
|
|
|
(175,900
|
)
|
|
|
128,000
|
|
|
|
3,800
|
|
|
|
(1,700
|
)
|
|
|
(45,800
|
)
|
|
|
239,100
|
|
|
|
150,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2014 Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Germany adjustments
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,600
|
)
|
|
|
(4,600
|
)
|
|
|
(100
|
)
|
|
|
(1,500
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,600
|
)
|
|
|
(1,500
|
)
|
|
|
(1,500
|
)
|
U.K. adjustments
|
|
|
21,100
|
|
|
|
(40,300
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Switzerland adjustments
|
|
|
-
|
|
|
|
-
|
|
|
|
1,200
|
|
|
|
4,100
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,100
|
|
|
|
-
|
|
Net Adjustments
|
|
|
21,100
|
|
|
|
(40,300
|
)
|
|
|
(400
|
)
|
|
|
(500
|
)
|
|
|
(100
|
)
|
|
|
(1,500
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,600
|
)
|
|
|
2,600
|
|
|
|
(1,500
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Adds (Reductions)
|
|
|
147,700
|
|
|
|
135,400
|
|
|
|
28,100
|
|
|
|
343,700
|
|
|
|
(176,000
|
)
|
|
|
126,500
|
|
|
|
3,800
|
|
|
|
(1,700
|
)
|
|
|
(47,400
|
)
|
|
|
241,700
|
|
|
|
149,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes for Operating Data and Subscriber Variance Tables
(1)
|
|
Homes Passed are homes, residential multiple dwelling units or
commercial units that can be connected to our networks without
materially extending the distribution plant, except for DTH and
Multi-channel Multipoint ("microwave") Distribution System ("MMDS")
homes. Our Homes Passed counts are based on census data that can
change based on either revisions to the data or from new census
results. We do not count homes passed for DTH. With respect to MMDS,
one MMDS customer is equal to one Home Passed. Due to the fact that
we do not own the partner networks (defined below) used in
Switzerland and the Netherlands (see note 11) we do not report homes
passed for Switzerland's and the Netherlands' partner networks.
|
(2)
|
|
Two-way Homes Passed are Homes Passed by those sections of our
networks that are technologically capable of providing two-way
services, including video, internet and telephony services.
|
(3)
|
|
Customer Relationships are the number of customers who receive at
least one of our video, internet or telephony services that we count
as Revenue Generating Units ("RGUs"), without regard to which or to
how many services they subscribe. To the extent that RGU counts
include equivalent billing unit ("EBU") adjustments, we reflect
corresponding adjustments to our Customer Relationship counts. For
further information regarding our EBU calculation, see Additional
General Notes to Tables. Customer Relationships generally are
counted on a unique premises basis. Accordingly, if an individual
receives our services in two premises (e.g., a primary home and a
vacation home), that individual generally will count as two Customer
Relationships. We exclude mobile customers from Customer
Relationships. For Belgium, Customer Relationships only include
customers who subscribe to an analog or digital cable service due to
billing system limitations.
|
(4)
|
|
Revenue Generating Unit is separately an Analog Cable Subscriber,
Digital Cable Subscriber, DTH Subscriber, MMDS Subscriber, Internet
Subscriber or Telephony Subscriber. A home, residential multiple
dwelling unit, or commercial unit may contain one or more RGUs. For
example, if a residential customer in our Austrian system subscribed
to our digital cable service, telephony service and broadband
internet service, the customer would constitute three RGUs. Total
RGUs is the sum of Analog Cable, Digital Cable, DTH, MMDS, Internet
and Telephony Subscribers. RGUs generally are counted on a unique
premises basis such that a given premises does not count as more
than one RGU for any given service. On the other hand, if an
individual receives one of our services in two premises (e.g., a
primary home and a vacation home), that individual will count as two
RGUs for that service. Each bundled cable, internet or telephony
service is counted as a separate RGU regardless of the nature of any
bundling discount or promotion. Non-paying subscribers are counted
as subscribers during their free promotional service period. Some of
these subscribers may choose to disconnect after their free service
period. Services offered without charge on a long-term basis (e.g.,
VIP subscribers, free service to employees) generally are not
counted as RGUs. We do not include subscriptions to mobile services
in our externally reported RGU counts. In this regard, our September
30, 2014 RGU counts exclude our separately reported postpaid and
prepaid mobile subscribers in the U.K., Belgium, Germany, Chile,
Poland, Hungary, Switzerland and the Netherlands.
|
(5)
|
|
Analog Cable Subscriber is a home, residential multiple dwelling
unit or commercial unit that receives our analog cable service over
our broadband network. Our Analog Cable Subscriber counts also
include subscribers who may use a purchased set-top box or other
means to receive our basic digital cable channels without
subscribing to any services that would require the payment of
recurring monthly fees in addition to the basic analog service fee
("Basic Digital Cable Subscriber"). Our Basic Digital Cable
Subscribers are attributable to the fact that our basic digital
cable channels are not encrypted in certain portions of our
footprint and the use of purchased digital set-top boxes in Belgium.
In Europe, we have approximately 111,200 "lifeline" customers that
are counted on a per connection basis, representing the least
expensive regulated tier of video cable service, with only a few
channels.
|
(6)
|
|
Digital Cable Subscriber is a home, residential multiple dwelling
unit or commercial unit that receives our digital cable service over
our broadband network or through a partner network. We count a
subscriber with one or more digital converter boxes that receives
our digital cable service in one premises as just one subscriber. A
Digital Cable Subscriber is not counted as an Analog Cable
Subscriber. As we migrate customers from analog to digital cable
services, we report a decrease in our Analog Cable Subscribers equal
to the increase in our Digital Cable Subscribers. As discussed in
further detail in note 5 above, Basic Digital Cable Subscribers are
not included in the respective Digital Cable Subscriber counts.
Subscribers to digital cable services provided by our operations in
Switzerland and the Netherlands over partner networks receive analog
cable services from the partner networks as opposed to our
operations.
|
(7)
|
|
DTH Subscriber is a home, residential multiple dwelling unit or
commercial unit that receives our video programming broadcast
directly via a geosynchronous satellite
|
(8)
|
|
MMDS Subscriber is a home, residential multiple dwelling unit or
commercial unit that receives our video programming via MMDS.
|
(9)
|
|
Internet Subscriber is a home, residential multiple dwelling unit or
commercial unit that receives internet services over our networks,
or that we service through a partner network. Our Internet
Subscribers exclude 97,700 asymmetric digital subscriber line
("ADSL") subscribers within our U.K. segment and 67,400 digital
subscriber line ("DSL") subscribers within our Austria segment that
are not serviced over our networks. Our Internet Subscribers do not
include customers that receive services from dial-up connections. In
Switzerland, we offer a 2 Mbps internet service to our Analog and
Digital Cable Subscribers without an incremental recurring fee. Our
Internet Subscribers in Switzerland include 61,300 subscribers who
have requested and received a modem that enables the receipt of this
2 Mbps internet service.
|
(10)
|
|
Telephony Subscriber is a home, residential multiple dwelling unit
or commercial unit that receives voice services over our networks,
or that we service through a partner network. Telephony Subscribers
exclude mobile telephony subscribers. Our Telephony Subscribers
exclude 65,200 and 49,600 subscribers within our segments in the
U.K. and Austria, respectively, that are not serviced over our
networks.
|
(11)
|
|
Pursuant to service agreements, Switzerland and, to a much lesser
extent, the Netherlands offer digital cable, broadband internet and
telephony services over networks owned by third-party cable
operators ("partner networks"). A partner network RGU is only
recognized if there is a direct billing relationship with the
customer. At September 30, 2014, Switzerland's partner networks
account for 152,400 Customer Relationships, 294,500 RGUs, 115,000
Digital Cable Subscribers, 106,400 Internet Subscribers, and 73,100
Telephony Subscribers.
|
|
|
|
Additional General Notes to Tables:
Most of our broadband communications subsidiaries provide telephony,
broadband internet, data, video or other B2B services. Certain of our
B2B revenue is derived from small or home office ("SOHO") subscribers
that pay a premium price to receive enhanced service levels along with
video, internet or telephony services that are the same or similar to
the mass marketed products offered to our residential subscribers. All
mass marketed products provided to SOHOs, whether or not accompanied by
enhanced service levels and/or premium prices, are included in the
respective RGU and customer counts of our broadband communications
operations, with only those services provided at premium prices
considered to be "SOHO RGUs" or "SOHO customers." With the exception of
our B2B SOHO subscribers, we generally do not count customers of B2B
services as customers or RGUs for external reporting purposes.
Certain of our residential and commercial RGUs are counted on an EBU
basis, including residential multiple dwelling units and commercial
establishments such as bars, hotels and hospitals in Chile and Puerto
Rico and certain commercial and residential multiple dwelling units in
Europe (with the exception of Germany and Belgium, where we do not count
any RGUs on an EBU basis). Our EBUs are generally calculated by dividing
the bulk price charged to accounts in an area by the most prevalent
price charged to non-bulk residential customers in that market for the
comparable tier of service. As such, we may experience variances in our
EBU counts solely as a result of changes in rates. In Germany, homes
passed reflect the footprint and two-way homes passed reflect the
technological capability of our network up to the street cabinet, with
drops from the street cabinet to the building generally added, and
in-home wiring generally upgraded, on an as needed or success-based
basis. In Belgium, Telenet leases a portion of its network under a
long-term capital lease arrangement. These tables include operating
statistics for Telenet's owned and leased networks.
While we take appropriate steps to ensure that subscriber statistics are
presented on a consistent and accurate basis at any given balance sheet
date, the variability from country to country in (i) the nature and
pricing of products and services, (ii) the distribution platform, (iii)
billing systems, (iv) bad debt collection experience and (v) other
factors add complexity to the subscriber counting process. We
periodically review our subscriber counting policies and underlying
systems to improve the accuracy and consistency of the data reported on
a prospective basis. Accordingly, we may from time to time make
appropriate adjustments to our subscriber statistics based on those
reviews.
Subscriber information for acquired entities is preliminary and subject
to adjustment until we have completed our review of such information and
determined that it is presented in accordance with our policies.
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