Published:
Liberty Global Reports Third Quarter 2009 Results
ENGLEWOOD, Colo. - (BUSINESS WIRE) - Liberty Global, Inc. ("Liberty Global," "LGI," or the "Company" )
(NASDAQ: LBTYA) (NASDAQ: LBTYB) (NASDAQ: LBTYK), today announces
financial and operating results for the third quarter ("Q" ) ended
September 30, 2009. Highlights for the quarter compared to the same
period for 2008 (unless noted), include:
-
Revenue of $2.82 billion, reflecting 4% rebased1 growth
-
Operating Cash Flow ("OCF" )2 of $1.28 billion, representing
8% rebased growth
-
Operating income improved by 14% to $464 million
-
Free Cash Flow ("FCF" )3 of $167 million, an increase of 65%
-
Organic RGU4 additions of 199,000
-
Repurchased approximately $200 million of equity since June 30, 2009
President and CEO Mike Fries said, "Through the first three quarters of
the year, we are pleased with our ability to demonstrate consistent
growth. We delivered rebased OCF growth of 8% for both the three and
nine months ended September 30, 2009, which is above our full-year
guidance range of 5 - 7%. We expect to be at the high end of that range
for the full year due in part to increased marketing and subscriber
acquisition costs in Q4, our busiest selling season. Meanwhile, free
cash flow increased 24% year-to-date to $662 million, and we expect to
meet or exceed our 2009 guidance target on this key metric. In addition,
rebased revenue growth remained steady on a sequential basis from Q2'09
helped by improved performance in Europe and Japan, while scale
efficiencies drove our consolidated OCF margin5 to 45.3% for
the three-month period, an increase of 130 basis points compared to the
same period last year."
"In terms of subscriber activity, our third quarter RGU additions were
consistent with our Q2'09 additions despite the fact that we typically
experience a sequential decline from Q2 to Q3 due to seasonality. Our Q3
performance was due in part to an improvement in broadband subscriber
additions as we have accelerated our deployment of next-generation
'Fiber Power' services across Europe. We've launched 100+ Mbps tiers in
seven of ten European markets and, including Japan, we have enabled
approximately 20 million '3.0' homes worldwide. As we ramp our marketing
activity and our fall campaigns kick into high gear, we expect Q4 will
be our strongest quarter of the year for subscriber additions."
"In terms of our other key value drivers, namely M&A and capital
structure, we had an active quarter. On the M&A front, we entered into
strategic transactions with CBS and Scripps that enhance our pay TV
channels business in Europe. On the balance sheet, we have been actively
extending debt maturities throughout the year, and in Q3 we completed
over $2.5 billion of additional extensions. As a result, we have now
pushed out over $8.0 billion of long-term debt this year and the average
duration of our debt is over 5.5 years. Our liquidity position remains
strong, as we had $2.0 billion of cash and equivalents at September 30,
2009, including $874 million at LGI and its non-operating subsidiaries,
and total liquidity available to the parent6 of approximately
$1.4 billion. We remain poised to use our excess capital for strategic
M&A opportunities or continued buybacks of our own stock."
Disposition of UPC Slovenia
On July 15, 2009, we completed the sale of UPC Slovenia to Mid Europa
Partners for a cash purchase price of €119.5 million ($168.4 million at
the transaction date), before working capital adjustments. In our
condensed consolidated financial statements, UPC Slovenia is classified
as a discontinued operation. Therefore, our revenue, OCF, FCF and
subscriber metrics exclude UPC Slovenia's results for all periods
presented.7
Subscriber Statistics
Our base of 26.8 million RGUs consists of 15.2 million video, 6.5
million broadband internet and 5.1 million telephony subscribers at
September 30, 2009. We have increased our RGUs by 2.0 million or 8%
since September 30, 2008, as a result of both organic and acquisition
activity. Over this same timeframe, we have expanded our customer base
by over 500,000, ending the third quarter with 16.6 million customers.
In terms of bundling, we have added over 800,000 multi-play customers in
the last twelve months and now have 41% of our customer base subscribing
to two or more products.
Similar to Q2 2009, we added 199,000 organic RGUs in the third quarter.
From a regional perspective, our operations in Japan, Europe, the
Americas and Australia contributed 85,000, 66,000, 38,000 and 10,000
organic additions, respectively. Our European markets, which are
typically adversely impacted by the summer holiday season, experienced
an 85% increase in organic additions, as compared to our Q2 2009 organic
gains of 35,000. This increase resulted from a marked improvement at our
UPC Broadband Division ("UPC").
Our third quarter organic additions included broadband internet and
telephony additions of 130,000 and 124,000 RGUs, respectively, and video
losses of 55,000 RGUs. Organic broadband internet additions were
modestly higher than both Q2 2009 and Q3 2008 additions. This
improvement was driven in part by the Netherlands and Ireland, which
added 15,000 and 13,000 broadband internet subscribers, respectively, in
the third quarter. The Netherlands reported its best broadband internet
quarter since 2007, reflecting early success with its "Fiber Power"
products. We currently have next-generation broadband internet services
in seven of nine UPC markets, four of which launched in September
(Switzerland, Czech Republic, Slovakia, and Poland). Over 60% of UPC's
two-way footprint is now capable of supporting speeds of 100+ Mbps and
we estimate that we are marketing to approximately 80% of this footprint.
Our third quarter organic video loss compares favorably to Q1 2009 and
Q2 2009, as it was better by 41,000 and 25,000 subscribers,
respectively. This result was aided by Austar's highest organic gain in
2009 and improved video churn in Belgium and the Netherlands, as
evidenced by their lowest video losses of the year. At September 30,
2009, our 15.2 million video subscribers consisted of 7.7 million analog
(including MMDS), 6.3 million digital cable and 1.2 million
direct-to-home ("DTH" ) RGUs. In the last twelve months, our digital
cable RGUs have grown by 42% or 1.9 million, resulting in consolidated
digital penetration8 of 45%.
For the three and nine months ended September 30, 2009, we added 327,000
and 1.2 million digital cable RGUs, respectively, on an organic basis.
As compared to the corresponding prior year periods, we were flat
compared to Q3 2008, but had an increase of 28% over the nine-month 2008
period. Year-to-date, our organic growth in digital cable subscribers
was led by our Belgian, Central and Eastern European ("CEE" ) and Chilean
operations, which grew by 87%, 37% and 34%, respectively, over the prior
year period. Within our digital subscriber base, the digital video
recorder ("DVR" ) continues to appeal to our customers. At UPC, we have
added over 400,000 DVR cable RGUs in the last twelve months, an increase
of approximately 88% since September 30, 2008. We believe our growth
opportunity remains substantial, particularly at UPC, given its digital
penetration of 31% and its analog video base of 5.5 million subscribers.
Revenue
On a reported basis, we increased our revenue by 7% to $2.82 billion and
1% to $8.04 billion for the three and nine months ended September 30,
2009, respectively, as compared to the corresponding prior year periods.
Our reported growth for both 2009 periods continued to be adversely
impacted by the effects of foreign currency ("FX" ) movements, although
the headwind from FX was much less evident in the third quarter.
Adjusting for FX, we realized revenue growth of 8% for both the three
and nine months ended September 30, 2009, as compared to the respective
2008 periods. On a year-over-year basis, our growth stemmed from a
combination of internally-generated activity and the contribution of
acquisitions, led by transactions completed by J:COM and Telenet.
Adjusting for the effects of FX and acquisitions, we delivered 4%
rebased revenue growth for both the three and nine months ended
September 30, 2009, as compared to the respective prior year periods.
With respect to quarterly rebased growth, J:COM, Telenet and UPC all
generated Q3 growth rates that exceeded the comparable Q2 rebased growth
rates. Both our consolidated and UPC quarterly results continue to be
negatively impacted by our Austrian and Hungarian operations. However,
our Romanian operation reported positive revenue growth for the first
time in two years. Similar to recent quarters, we are generating revenue
growth from our advanced services,9 which is being partially
offset by the effects associated with continued ARPU10
compression, analog churn and declines in our business-to-business and
interconnect revenue.
For the three months ended September 30, 2009, our consolidated ARPU per
customer was $47.51, reflecting an increase of 4% on both a reported and
an FX-adjusted basis, as compared to the three months ended September
30, 2008. Our European and Chilean operations experienced local currency
ARPU per customer growth in the third quarter, as UPC, Telenet and VTR
generated 4%, 3% and 3% growth, respectively, as compared to the third
quarter of 2008. On the other hand, J:COM reported a 1% decline in ARPU
per customer, as its year-over-year comparison continues to be adversely
impacted by 2008 acquisitions.
Operating Cash Flow
For the three months ended September 30, 2009, our OCF increased 10% to
$1.28 billion, as compared to $1.16 billion for the three months ended
September 30, 2008. For the nine-month period, we grew OCF to $3.57
billion from $3.40 billion, reflecting year-to-date growth of 5%. On an
FX-neutralized basis, our 2009 results represent year-over-year growth
of 11% and 12% for the three and nine months ended September 30, 2009,
respectively.
Adjusting for both FX and acquisition impacts, we achieved rebased OCF
growth of 8% for each of the three and nine months ended September 30,
2009, as compared to the corresponding 2008 periods. In the third
quarter, our rebased results were supported by continued double-digit
growth from our Belgian, Polish and Australian operations, and the
strongest rebased growth quarters of the year from our Chilean and
Romanian operations. Based upon our year-to-date performance and outlook
for the fourth quarter, we are reconfirming our 2009 OCF guidance for
5-7% rebased growth and expect to finish 2009 at the upper end of this
range. In this regard, we would expect that our rebased OCF growth in Q4
would be lower than the growth we have reported in the previous three
quarters, reflecting in part more difficult year-over-year Q4
comparisons in some markets and higher marketing and subscriber
acquisition costs in Q4 to support our fall campaigns.
Consolidated OCF margins were 45.3% and 44.4% for the three and nine
months ended September 30, 2009, respectively, and reflect improvements
of 130 and 160 basis points compared to prior year periods,
respectively. Our operating expenses and selling, general and
administrative costs ("SG&A" ) have contributed to our margin
improvements, as they are lower as a percentage of revenue in both 2009
periods versus the three and nine months ended September 30, 2008. With
respect to our third quarter results, UPC reached a 50.0% OCF margin,
representing a 140 basis point increase over the comparable OCF margin
in Q3 2008. This improvement was driven largely by UPC's Western
European markets, particularly Switzerland and the Netherlands.
Additionally, our three other key reporting segments, J:COM, VTR and
Telenet, each realized OCF margin gains over the third quarter of 2008,
with J:COM and VTR driving 160 and 140 basis point margin improvements,
respectively.
Operating Income
For the three and nine months ended September 30, 2009, we reported
operating income of $464 million and $1.17 billion, respectively, as
compared to $408 million and $1.12 billion for the three and nine months
ended September 30, 2008, respectively. For the 2009 three-month period,
operating income grew by 14% over the comparable 2008 period, as our
increase in revenue more than offset increases in operating, SG&A and
depreciation and amortization expenses. For the 2009 nine-month period,
operating income was 4% higher than the comparable 2008 period,
resulting from the net effect of a modest increase in revenue,
year-over-year reductions in operating and SG&A expenses, and
year-over-year increases in depreciation and amortization expenses and
impairment charges.
Net Loss Attributable to LGI Stockholders
For the three months ended September 30, 2009, we recognized a net loss
attributable to LGI stockholders ("Net Loss") of $120 million ($0.45 per
diluted share), a significant improvement from our Net Loss of $309
million ($1.01 per diluted share) for the three months ended September
30, 2008. This improvement was driven in large part by a 14% increase in
operating income, as well as the net impact of lower FX transaction
losses, lower interest expense, lower losses from changes in fair values
of certain investments and debt and higher losses on derivative
instruments. For the nine months ended September 30, 2009, we realized a
Net Loss of $512 million ($1.89 per diluted share), as compared to a Net
Loss of $36 million ($0.11 per diluted share) for the respective prior
year period. The higher Net Loss stemmed primarily from increases in
losses on derivative instruments that were only partially offset by
lower interest and income taxes. Our gains and losses associated with FX
transactions and changes in fair values of investments and debt are
predominantly non-cash.
In terms of our basic and diluted per share calculations, we utilized
weighted average common shares outstanding of 265 and 306 million for
the three months ended September 30, 2009 and 2008, respectively, and
270 and 324 million for the nine months ended September 30, 2009 and
2008, respectively. As of October 30, 2009, we had 261 million common
shares outstanding.
Capital Expenditures and Free Cash Flow
Our capital expenditures declined by 11% or $67 million from $592
million for the three months ended September 30, 2008, to $525 million
for the three months ended September 30, 2009. As a percentage of
revenue, capital expenditures decreased from 22% in the third quarter of
2008 to 19% in the third quarter of 2009. On a year-to-date basis,
capital expenditures fell from $1.7 billion for the nine months ended
September 30, 2008, to $1.6 billion for the nine months ended September
30, 2009, reflecting a beneficial impact from FX. For the 2008 and 2009
nine-month periods ended September 30, our capital expenditures as a
percentage of revenue were 21% and 20%, respectively. Of our capital
expenditures for the nine months ended September 30, 2009, approximately
62% related to customer premise equipment and scalable infrastructure,
23% related to line extensions, network upgrade and rebuild activity,
and the remaining 15% related primarily to support capital.
For the three and nine months ended September 30, 2009, our FCF
increased 65% to $167 million and 24% to $662 million, respectively, as
compared to FCF of $101 million and $534 million for the three and nine
months ended September 30, 2008, respectively. The increase in FCF for
the third quarter of 2009 over the corresponding prior year period was
due to lower capital expenditures in the 2009 period, while the increase
in year-to-date FCF as compared to the nine-month period of 2008, was
due to a combination of higher net cash provided by continuing
operations and a reduction in capital expenditures. In both 2009
periods, our FCF growth was enhanced by favorable FX, particularly in
the third quarter. We remain on track to achieve our full-year FCF
guidance target of at least 25% growth on a year-over-year basis.
Leverage and Liquidity
At September 30, 2009, we reported $21.7 billion of debt and $2.4
billion of cash and cash equivalents (including restricted cash related
to our debt instruments), resulting in net debt11 of $19.3
billion. In comparison to the second quarter, our debt balance increased
$1.0 billion due largely to FX translation, reflecting the weakening of
the U.S. dollar relative to our local currencies. Our cash balance
increased by over $200 million since June 30, 2009, due in part to our
FCF generation and the proceeds from the disposal of our Slovenian
operation. In terms of our leverage position at September 30, 2009, our
gross and net leverage ratios12 declined from the previous
quarter to 4.2x and 3.8x, respectively.
In the third quarter, we continued to build upon the opportunistic steps
that we took in the first half of the year in terms of improving our
consolidated debt maturity schedule. We extended a portion of our debt
maturities at Telenet, Austar and UPC in the third quarter, including
over $2.5 billion of debt commitments at Telenet from maturities of 2012
- 2015 to 2014 - 2017. As a result of our year-to-date refinancing
activity, we have minimal near-term amortizations, with over 99% of our
debt at the UPC borrowing group maturing in 2013 and beyond, and over
85% of our consolidated debt maturing in 2013 and beyond.
We ended the quarter with a consolidated liquidity position13
of $3.6 billion, which was an increase of approximately $500 million
over June 30, 2009, levels. The $3.6 billion breaks down as follows:
$2.0 billion of unrestricted cash, including $874 million at the parent
and our non-operating subsidiaries and $1.1 billion at our operating
subsidiaries; and $1.6 billion of unused borrowing capacity,14
as represented by the maximum undrawn commitment under each of our
credit facilities, including those at UPC Broadband Holding, Telenet and
J:COM. Approximately 42% of our unused borrowing capacity is at the UPC
Broadband Holding credit facility and upon completion of our third
quarter bank reporting requirement, we estimate that approximately €318
million ($466 million) of the €456 million ($667 million) of capacity
will be available at UPC Broadband Holding.
About Liberty Global
Liberty Global is the leading international cable operator offering
advanced video, voice and broadband internet services to connect its
customers to the world of entertainment, communications and information.
As of September 30, 2009, Liberty Global operated state-of-the-art
networks that served approximately 17 million customers across 14
countries principally located in Europe, Japan, Chile, and Australia.
Liberty Global's operations also include significant programming
businesses such as Chellomedia in Europe.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including our expectations with respect to our 2009 outlook including
rebased operating cash flow and free cash flow growth for the full year
and subscriber additions in the fourth quarter, our future growth
prospects, including our continued ability to generate free cash flow,
expand our RGUs and increase our ARPU per customer, and our liquidity
and access to capital markets, including our borrowing availability,
ability to repay near-term debt amortizations and potential uses of our
excess capital; our expectations with respect to the timing and impact
of our roll-out of advanced products and services, including the success
of our EuroDOCSIS 3.0 deployment and our digital cable growth
opportunity; our insight and expectations regarding competitive and
economic factors in our markets; the impact of our M&A activity on our
operations and financial performance; 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 the Company's services
and willingness to upgrade to our more advanced offerings, our ability
to meet challenges from competition and economic factors, the continued
growth in services for digital television at a reasonable cost, the
effects of changes in technology and regulation, our ability to achieve
expected operational efficiencies and economies of scale, our ability to
generate expected revenue and operating cash flow, control capital
expenditures as measured by percentage of revenue and achieve assumed
margins, 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, as well as other
factors detailed from time to time in the Company's filings with the
Securities and Exchange Commission ("SEC" ) including our most recently
filed Forms 10-K and 10-Q. These forward-looking statements speak only
as of the date of this release. The Company expressly disclaims any
obligation or undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in the
Company's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
For more information, please visit www.lgi.com.
1 For purposes of calculating rebased growth rates on a
comparable basis for all businesses that we owned during the respective
period in 2009, we have adjusted our historical 2008 revenue and OCF to
(i) include the pre-acquisition revenue and OCF of certain entities
acquired during 2008 and 2009 in the respective 2008 rebased amounts to
the same extent that the revenue and OCF of such entities are included
in our 2009 results, (ii) exclude the pre-disposition revenue and OCF of
certain entities that were disposed of during 2008 from our rebased
amounts for the nine months ended September 30, 2008, and (iii) reflect
the translation of our 2008 rebased amounts at the applicable average
exchange rates that were used to translate our 2009 results. Please see
page 10 for supplemental information.
2 Please see page 13 for our operating cash flow definition
and the required reconciliation.
3 Free cash flow or FCF is defined as net cash provided by
the operating activities of our continuing operations less capital
expenditures of our continuing operations, each as reported in our
consolidated statements of cash flows. Please see page 14 for more
information on FCF and the required reconciliation.
4 Please see page 19 for the definition of revenue generating
units ("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. Organic figures represent additions on a net basis.
5 OCF margin is calculated by dividing OCF by total revenue
for the applicable period.
6 Liquidity available to the parent refers to the total of
our cash at the parent and our non-operating subsidiaries, cash at UPC
Holding B.V., and its subsidiaries (excluding VTR), and the amount
available to borrow at our UPC Broadband Holding credit facility upon
completion of our third quarter bank reporting requirements.
7 UPC Slovenia was sold on July 15, 2009, and we have treated
UPC Slovenia as a discontinued operation in our condensed consolidated
financial statements. Thus, the results of operations and cash flows of
UPC Slovenia have been reclassified to discontinued operations for all
periods presented. Additionally, we are reporting subscriber metrics
excluding the impact of this discontinued operation.
8 Digital penetration is calculated by dividing digital cable
RGUs by the total of digital and analog cable RGUs.
9 Advanced services represent our services related to digital
video, including digital cable and DTH, broadband internet and telephony.
10 ARPU or ARPU per RGU refers to the average monthly
subscription revenue per average RGU. ARPU per customer relationship
refers to the average monthly subscription revenue per average customer
relationship. In both cases, the amounts are calculated by dividing the
average monthly subscription revenue (excluding installation, late fees
and mobile telephony revenue) for the indicated period, by the average
of the opening and closing balances for RGUs or customer relationships,
as the case may be, for the period. The growth rate for ARPU per
customer relationship for LGI and UPC is not adjusted for currency
impacts unless otherwise noted.
11 Total debt includes capital lease obligations. Total cash
and cash equivalents includes $471 million of restricted cash that is
related to our debt instruments. Net debt is defined as total debt less
cash and cash equivalents including our restricted cash balances related
to our debt instruments.
12 Our gross and net leverage ratios are defined as total
debt and net debt to annualized operating cash flow of the latest
quarter.
13 Consolidated liquidity position refers to the total of our
cash and cash equivalents and the maximum undrawn commitment under each
of our credit facilities other than the VTR Bank Facility.
14 The $1.6 billion amount reflects the aggregate unused
borrowing capacity, as represented by the maximum undrawn commitments
under our subsidiaries' applicable facilities without regard to covenant
compliance calculations. This amount excludes approximately $248 million
related to unused borrowing capacity associated with the VTR Bank
Facility. Pursuant to the deposit arrangements with the lender in
relation to the VTR Bank Facility, we are required to fund a cash
collateral account in an amount equal to the outstanding principal and
interest under the VTR Bank Facility.
|
Liberty Global, Inc.
Condensed Consolidated Balance Sheets
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|
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September 30,
2009
|
|
December 31,
2008
|
|
|
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in millions
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,968.8
|
|
$
|
1,374.0
|
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Trade receivables, net
|
|
|
807.3
|
|
|
1,002.8
|
|
Deferred income taxes
|
|
|
267.9
|
|
|
280.8
|
|
Derivative instruments
|
|
|
77.3
|
|
|
193.6
|
|
Other current assets
|
|
|
363.8
|
|
|
382.5
|
|
Total current assets
|
|
|
3,485.1
|
|
|
3,233.7
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
466.1
|
|
|
470.8
|
|
Investments
|
|
|
1,049.6
|
|
|
979.8
|
|
Property and equipment, net
|
|
|
12,228.6
|
|
|
12,035.4
|
|
Goodwill
|
|
|
13,548.3
|
|
|
13,144.7
|
|
Intangible assets subject to amortization, net
|
|
|
2,141.6
|
|
|
2,405.0
|
|
Other assets, net
|
|
|
1,687.6
|
|
|
1,716.7
|
|
|
|
|
|
|
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Total assets
|
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$
|
34,606.9
|
|
$
|
33,986.1
|
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LIABILITIES AND EQUITY
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
719.9
|
|
$
|
735.0
|
|
Deferred revenue and advance payments from subscribers and others
|
|
|
708.0
|
|
|
918.4
|
|
Current portion of debt and capital lease obligations
|
|
|
499.3
|
|
|
513.0
|
|
Derivative instruments
|
|
|
590.4
|
|
|
441.7
|
|
Other accrued and current liabilities
|
|
|
1,628.6
|
|
|
1,634.0
|
|
Total current liabilities
|
|
|
4,146.2
|
|
|
4,242.1
|
|
|
|
|
|
|
|
Long-term debt and capital lease obligations
|
|
|
21,239.7
|
|
|
19,989.9
|
|
Deferred tax liabilities
|
|
|
753.4
|
|
|
902.7
|
|
Other long-term liabilities
|
|
|
2,458.3
|
|
|
2,356.7
|
|
Total liabilities
|
|
|
28,597.6
|
|
|
27,491.4
|
|
|
|
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Commitments and contingencies
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Equity:
|
|
|
|
|
|
Total Liberty Global, Inc. stockholders
|
|
|
2,763.9
|
|
|
3,393.0
|
|
Noncontrolling interests
|
|
|
3,245.4
|
|
|
3,101.7
|
|
Total equity
|
|
|
6,009.3
|
|
|
6,494.7
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
34,606.9
|
|
$
|
33,986.1
|
|
|
|
|
|
|
|
|
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Liberty Global, Inc.
Condensed Consolidated Statements of Operations
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Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
in millions, except per share amounts
|
|
|
|
|
|
|
|
|
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Revenue
|
|
$
|
2,824.2
|
|
|
$
|
2,633.3
|
|
|
$
|
8,040.1
|
|
|
$
|
7,942.2
|
|
|
|
|
|
|
|
|
|
|
|
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Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
Operating (other than depreciation and amortization) (including
stock-based compensation)
|
|
|
1,059.2
|
|
|
|
1,004.1
|
|
|
|
3,031.6
|
|
|
|
3,079.2
|
|
|
Selling, general and administrative (SG&A) (including stock-based
compensation)
|
|
|
523.8
|
|
|
|
511.4
|
|
|
|
1,536.0
|
|
|
|
1,590.4
|
|
|
Depreciation and amortization
|
|
|
775.4
|
|
|
|
708.0
|
|
|
|
2,178.7
|
|
|
|
2,148.3
|
|
|
Impairment, restructuring and other operating charges, net
|
|
|
2.0
|
|
|
|
1.4
|
|
|
|
126.2
|
|
|
|
3.3
|
|
|
|
|
|
2,360.4
|
|
|
|
2,224.9
|
|
|
|
6,872.5
|
|
|
|
6,821.2
|
|
|
Operating income
|
|
|
463.8
|
|
|
|
408.4
|
|
|
|
1,167.6
|
|
|
|
1,121.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(232.3
|
)
|
|
|
(293.4
|
)
|
|
|
(655.3
|
)
|
|
|
(863.7
|
)
|
|
Interest and dividend income
|
|
|
13.4
|
|
|
|
23.5
|
|
|
|
41.5
|
|
|
|
75.3
|
|
|
Realized and unrealized gains (losses) on derivative instruments, net
|
|
|
(226.8
|
)
|
|
|
18.2
|
|
|
|
(772.4
|
)
|
|
|
89.2
|
|
|
Foreign currency transaction gains (losses), net
|
|
|
6.7
|
|
|
|
(286.7
|
)
|
|
|
91.5
|
|
|
|
96.3
|
|
|
Realized and unrealized gains (losses) due to changes in fair values
of certain investments and debt, net
|
|
|
(51.0
|
)
|
|
|
(129.2
|
)
|
|
|
16.2
|
|
|
|
(84.4
|
)
|
|
Losses on debt modifications
|
|
|
(9.7
|
)
|
|
|
-
|
|
|
|
(34.0
|
)
|
|
|
-
|
|
|
Share of results of affiliates, net
|
|
|
0.4
|
|
|
|
2.4
|
|
|
|
1.4
|
|
|
|
5.2
|
|
|
Other income (expense), net
|
|
|
7.0
|
|
|
|
(0.8
|
)
|
|
|
5.9
|
|
|
|
(0.1
|
)
|
|
|
|
|
(492.3
|
)
|
|
|
(666.0
|
)
|
|
|
(1,305.2
|
)
|
|
|
(682.2
|
)
|
|
Earnings (loss) from continuing operations before income taxes
|
|
|
(28.5
|
)
|
|
|
(257.6
|
)
|
|
|
(137.6
|
)
|
|
|
438.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
(30.9
|
)
|
|
|
(24.6
|
)
|
|
|
(170.0
|
)
|
|
|
(314.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations
|
|
|
(59.4
|
)
|
|
|
(282.2
|
)
|
|
|
(307.6
|
)
|
|
|
124.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from discontinued operations, net of taxes
|
|
|
(2.0
|
)
|
|
|
3.9
|
|
|
|
3.5
|
|
|
|
13.1
|
|
|
Gain on disposal of discontinued operations
|
|
|
25.7
|
|
|
|
-
|
|
|
|
25.7
|
|
|
|
-
|
|
|
|
|
|
23.7
|
|
|
|
3.9
|
|
|
|
29.2
|
|
|
|
13.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
|
(35.7
|
)
|
|
|
(278.3
|
)
|
|
|
(278.4
|
)
|
|
|
137.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to noncontrolling interests
|
|
|
(84.6
|
)
|
|
|
(30.6
|
)
|
|
|
(233.7
|
)
|
|
|
(173.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Liberty Global, Inc. stockholders
|
|
$
|
(120.3
|
)
|
|
$
|
(308.9
|
)
|
|
$
|
(512.1
|
)
|
|
$
|
(36.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) per share attributable to Liberty
Global, Inc. stockholders:
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
(0.54
|
)
|
|
$
|
(1.02
|
)
|
|
$
|
(1.99
|
)
|
|
$
|
(0.15
|
)
|
|
Discontinued operations
|
|
|
0.09
|
|
|
|
0.01
|
|
|
|
0.10
|
|
|
|
0.04
|
|
|
|
|
$
|
(0.45
|
)
|
|
$
|
(1.01
|
)
|
|
$
|
(1.89
|
)
|
|
$
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global, Inc.
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
|
|
|
2009
|
|
2008
|
|
|
|
in millions
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net earnings (loss)
|
|
$
|
(278.4
|
)
|
|
$
|
137.3
|
|
|
Earnings from discontinued operations
|
|
|
(29.2
|
)
|
|
|
(13.1
|
)
|
|
Earnings (loss) from continuing operations
|
|
|
(307.6
|
)
|
|
|
124.2
|
|
|
Adjustments to reconcile earnings (loss) from continuing operations
to net cash provided by operating activities
|
|
|
2,576.4
|
|
|
|
2,078.8
|
|
|
Net cash provided by operating activities of discontinued operations
|
|
|
11.6
|
|
|
|
21.1
|
|
|
Net cash provided by operating activities
|
|
|
2,280.4
|
|
|
|
2,224.1
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expended for property and equipment
|
|
|
(1,606.8
|
)
|
|
|
(1,669.2
|
)
|
|
Proceeds received upon disposition of discontinued operations, net
of disposal costs
|
|
|
167.0
|
|
|
|
-
|
|
|
Cash paid in connection with acquisitions, net of cash acquired
|
|
|
(13.9
|
)
|
|
|
(243.7
|
)
|
|
Other investing activities, net
|
|
|
(7.7
|
)
|
|
|
21.3
|
|
|
Net cash used by investing activities of discontinued operations
|
|
|
(9.3
|
)
|
|
|
(17.7
|
)
|
|
Net cash used by investing activities
|
|
|
(1,470.7
|
)
|
|
|
(1,909.3
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Borrowings of debt
|
|
|
2,166.5
|
|
|
|
1,971.9
|
|
|
Repayments and repurchases of debt and capital lease obligations
|
|
|
(1,911.9
|
)
|
|
|
(747.3
|
)
|
|
Repurchase of Liberty Global, Inc. common stock
|
|
|
(366.3
|
)
|
|
|
(1,955.5
|
)
|
|
Payment of financing costs
|
|
|
(103.1
|
)
|
|
|
(27.2
|
)
|
|
Distributions by subsidiaries to noncontrolling interests
|
|
|
(91.6
|
)
|
|
|
(33.6
|
)
|
|
Other financing activities, net
|
|
|
2.9
|
|
|
|
37.8
|
|
|
Net cash used by financing activities
|
|
|
(303.5
|
)
|
|
|
(753.9
|
)
|
|
|
|
|
|
|
|
Effect of exchange rates on cash
|
|
|
88.6
|
|
|
|
(15.0
|
)
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents:
|
|
|
|
|
|
Continuing operations
|
|
|
592.5
|
|
|
|
(457.5
|
)
|
|
Discontinued operations
|
|
|
2.3
|
|
|
|
3.4
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
594.8
|
|
|
|
(454.1
|
)
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
1,374.0
|
|
|
|
2,035.5
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
1,968.8
|
|
|
$
|
1,581.4
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
606.3
|
|
|
$
|
1,042.0
|
|
|
Net cash paid for taxes
|
|
$
|
209.2
|
|
|
$
|
130.7
|
|
|
|
|
|
|
|
Revenue and Operating Cash Flow
The following tables present revenue and operating cash flow by
reportable segment for the three and nine months ended September 30,
2009, as compared to the corresponding prior year period. All of the
reportable segments derive their revenue primarily from broadband
communications services, including video, voice and broadband internet
services. Certain segments also provide competitive local exchange
carrier and other business-to-business services and J:COM provides
certain programming distribution services. At September 30, 2009, our
operating segments in the UPC Broadband Division provided services in
nine European countries. Our Other Central and Eastern Europe segment
includes our operating segments in the Czech Republic, Poland, Romania
and Slovakia. Telenet, J:COM and VTR provide broadband communications
services in Belgium, Japan and Chile, respectively. Our corporate and
other category includes (i) Austar, (ii) other less significant
consolidated operating segments that provide broadband communications
services in Puerto Rico and video programming and other services in
Europe and Argentina and (iii) our corporate category. Intersegment
eliminations primarily represent the elimination of intercompany
transactions between our broadband communications and programming
operations, primarily in Europe.
During the first quarter of 2009, we changed our reporting such that we
no longer include video-on-demand costs within the central and corporate
operations category of UPC. Instead, we present these costs within the
individual operating segments of UPC. Segment information for all
periods presented has been recast to reflect the reclassification of
these costs. Additionally, our reportable segments have been
reclassified for all periods to present UPC Slovenia as a discontinued
operation. Previously, UPC Slovenia was included in our Other Central
and Eastern Europe segment. We present only the reportable segments of
our continuing operations in the following tables.
For purposes of calculating rebased growth rates on a comparable basis
for all businesses that we owned during 2009, we have adjusted our
historical revenue and OCF for the three and nine months ended September
30, 2008 to (i) include the pre-acquisition revenue and OCF of certain
entities acquired during 2008 and 2009 in our rebased amounts for the
three and nine months ended September 30, 2008 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, 2009, (ii) exclude the
pre-disposition revenue and OCF of certain entities that were disposed
of during 2008 from our rebased amounts for the nine months ended
September 30, 2008, and (iii) reflect the translation of our rebased
amounts for the three and nine months ended September 30, 2008 at the
applicable average exchange rates that were used to translate our
results for the three and nine months ended September 30, 2009. The
acquired entities that have been included in whole or in part in the
determination of our rebased revenue and OCF for the three months ended
September 30, 2008 include Interkabel, Mediatti, three small
acquisitions in Europe and two small acquisitions in Japan. The acquired
entities that have been included in whole or in part in the
determination of our rebased revenue and OCF for the nine months ended
September 30, 2008 include Interkabel, Mediatti, six small acquisitions
in Europe and four small acquisitions in Japan. Additionally, the
disposed entity that was excluded from the determination of our rebased
revenue and OCF for the nine months ended September 30, 2008 was
Chellomedia's Liveshop operation. In terms of acquired entities, we have
reflected the revenue and OCF of these acquired entities in our 2008
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 U.S. ("GAAP" ) and local generally accepted accounting principles,
(ii) any significant effects of post-acquisition purchase accounting
adjustments, (iii) any significant differences between our accounting
policies and those of the acquired entities and (iv) other items we deem
appropriate. 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 2008
results or that the pre-acquisition financial statements we have relied
upon do not contain undetected errors. The adjustments reflected in our
2008 rebased amounts have not been prepared with a view towards
complying with Article 11 of the SEC's 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 2008 amounts or the revenue and OCF that will occur in the
future. The rebased growth percentages have been presented as a basis
for assessing 2009 growth rates on a comparable basis, and are
not presented as a measure of our pro forma financial performance for
2008. 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, (iii)
the percentage change from period to period, after removing FX, and (iv)
the percentage change from period to period on a rebased basis. The
comparisons that exclude FX assume that exchange rates remained constant
during the periods that are included in each table.
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Increase
(decrease)
|
|
Increase
(decrease)
excluding FX
|
|
Increase
(decrease)
|
|
|
|
2009
|
|
2008
|
|
$
|
|
%
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
UPC Broadband Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands
|
|
$
|
288.4
|
|
|
$
|
297.3
|
|
|
$
|
(8.9
|
)
|
|
(3.0
|
)
|
|
1.9
|
|
|
-
|
|
Switzerland
|
|
|
259.1
|
|
|
|
255.6
|
|
|
|
3.5
|
|
|
1.4
|
|
|
0.3
|
|
|
-
|
|
Austria
|
|
|
123.4
|
|
|
|
136.0
|
|
|
|
(12.6
|
)
|
|
(9.3
|
)
|
|
(4.8
|
)
|
|
-
|
|
Ireland
|
|
|
88.1
|
|
|
|
91.1
|
|
|
|
(3.0
|
)
|
|
(3.3
|
)
|
|
1.7
|
|
|
-
|
|
Total Western Europe
|
|
|
759.0
|
|
|
|
780.0
|
|
|
|
(21.0
|
)
|
|
(2.7
|
)
|
|
0.2
|
|
|
0.2
|
|
Hungary
|
|
|
84.6
|
|
|
|
110.0
|
|
|
|
(25.4
|
)
|
|
(23.1
|
)
|
|
(7.2
|
)
|
|
-
|
|
Other Central and Eastern Europe
|
|
|
207.3
|
|
|
|
235.4
|
|
|
|
(28.1
|
)
|
|
(11.9
|
)
|
|
6.8
|
|
|
-
|
|
Total Central and Eastern Europe
|
|
|
291.9
|
|
|
|
345.4
|
|
|
|
(53.5
|
)
|
|
(15.5
|
)
|
|
2.4
|
|
|
1.9
|
|
Central and corporate operations
|
|
|
2.1
|
|
|
|
2.8
|
|
|
|
(0.7
|
)
|
|
(25.0
|
)
|
|
(16.7
|
)
|
|
-
|
|
Total UPC Broadband Division
|
|
|
1,053.0
|
|
|
|
1,128.2
|
|
|
|
(75.2
|
)
|
|
(6.7
|
)
|
|
0.8
|
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telenet (Belgium)
|
|
|
439.4
|
|
|
|
374.8
|
|
|
|
64.6
|
|
|
17.2
|
|
|
23.0
|
|
|
7.7
|
|
J:COM (Japan)
|
|
|
891.2
|
|
|
|
686.0
|
|
|
|
205.2
|
|
|
29.9
|
|
|
12.9
|
|
|
5.1
|
|
VTR (Chile)
|
|
|
179.7
|
|
|
|
179.7
|
|
|
|
-
|
|
|
-
|
|
|
5.5
|
|
|
5.5
|
|
Corporate and other
|
|
|
281.0
|
|
|
|
284.2
|
|
|
|
(3.2
|
)
|
|
(1.1
|
)
|
|
6.3
|
|
|
-
|
|
Intersegment eliminations
|
|
|
(20.1
|
)
|
|
|
(19.6
|
)
|
|
|
(0.5
|
)
|
|
(2.6
|
)
|
|
(9.2
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total LGI
|
|
$
|
2,824.2
|
|
|
$
|
2,633.3
|
|
|
$
|
190.9
|
|
|
7.2
|
|
|
8.0
|
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
|
Increase
(decrease)
|
|
Increase
(decrease)
excluding FX
|
|
Increase
(decrease)
|
|
|
|
2009
|
|
2008
|
|
$
|
|
%
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
UPC Broadband Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands
|
|
$
|
832.7
|
|
|
$
|
909.0
|
|
|
$
|
(76.3
|
)
|
|
(8.4
|
)
|
|
2.1
|
|
|
-
|
|
Switzerland
|
|
|
745.9
|
|
|
|
776.5
|
|
|
|
(30.6
|
)
|
|
(3.9
|
)
|
|
0.5
|
|
|
-
|
|
Austria
|
|
|
356.2
|
|
|
|
419.7
|
|
|
|
(63.5
|
)
|
|
(15.1
|
)
|
|
(5.4
|
)
|
|
-
|
|
Ireland
|
|
|
252.3
|
|
|
|
275.1
|
|
|
|
(22.8
|
)
|
|
(8.3
|
)
|
|
2.2
|
|
|
-
|
|
Total Western Europe
|
|
|
2,187.1
|
|
|
|
2,380.3
|
|
|
|
(193.2
|
)
|
|
(8.1
|
)
|
|
0.2
|
|
|
0.2
|
|
Hungary
|
|
|
240.5
|
|
|
|
318.5
|
|
|
|
(78.0
|
)
|
|
(24.5
|
)
|
|
(3.7
|
)
|
|
-
|
|
Other Central and Eastern Europe
|
|
|
572.0
|
|
|
|
692.0
|
|
|
|
(120.0
|
)
|
|
(17.3
|
)
|
|
6.0
|
|
|
-
|
|
Total Central and Eastern Europe
|
|
|
812.5
|
|
|
|
1,010.5
|
|
|
|
(198.0
|
)
|
|
(19.6
|
)
|
|
2.9
|
|
|
2.3
|
|
Central and corporate operations
|
|
|
6.4
|
|
|
|
8.4
|
|
|
|
(2.0
|
)
|
|
(23.8
|
)
|
|
(14.5
|
)
|
|
-
|
|
Total UPC Broadband Division
|
|
|
3,006.0
|
|
|
|
3,399.2
|
|
|
|
(393.2
|
)
|
|
(11.6
|
)
|
|
1.0
|
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telenet (Belgium)
|
|
|
1,216.5
|
|
|
|
1,137.1
|
|
|
|
79.4
|
|
|
7.0
|
|
|
19.0
|
|
|
6.8
|
|
J:COM (Japan)
|
|
|
2,593.3
|
|
|
|
2,056.4
|
|
|
|
536.9
|
|
|
26.1
|
|
|
12.9
|
|
|
4.6
|
|
VTR (Chile)
|
|
|
508.2
|
|
|
|
560.8
|
|
|
|
(52.6
|
)
|
|
(9.4
|
)
|
|
7.2
|
|
|
7.2
|
|
Corporate and other
|
|
|
773.0
|
|
|
|
854.1
|
|
|
|
(81.1
|
)
|
|
(9.5
|
)
|
|
6.9
|
|
|
-
|
|
Intersegment eliminations
|
|
|
(56.9
|
)
|
|
|
(65.4
|
)
|
|
|
8.5
|
|
|
13.0
|
|
|
2.8
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total LGI
|
|
$
|
8,040.1
|
|
|
$
|
7,942.2
|
|
|
$
|
97.9
|
|
|
1.2
|
|
|
7.8
|
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Increase
(decrease)
|
|
Increase
(decrease)
excluding FX
|
|
Increase
(decrease)
|
|
|
|
2009
|
|
2008
|
|
$
|
|
%
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
UPC Broadband Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands
|
|
$
|
174.8
|
|
|
$
|
173.2
|
|
|
$
|
1.6
|
|
|
0.9
|
|
|
5.9
|
|
|
-
|
|
Switzerland
|
|
|
147.8
|
|
|
|
137.4
|
|
|
|
10.4
|
|
|
7.6
|
|
|
6.4
|
|
|
-
|
|
Austria
|
|
|
64.3
|
|
|
|
70.6
|
|
|
|
(6.3
|
)
|
|
(8.9
|
)
|
|
(4.5
|
)
|
|
-
|
|
Ireland
|
|
|
35.0
|
|
|
|
35.6
|
|
|
|
(0.6
|
)
|
|
(1.7
|
)
|
|
3.4
|
|
|
-
|
|
Total Western Europe
|
|
|
421.9
|
|
|
|
416.8
|
|
|
|
5.1
|
|
|
1.2
|
|
|
4.1
|
|
|
4.1
|
|
Hungary
|
|
|
41.7
|
|
|
|
57.6
|
|
|
|
(15.9
|
)
|
|
(27.6
|
)
|
|
(12.5
|
)
|
|
-
|
|
Other Central and Eastern Europe
|
|
|
112.3
|
|
|
|
126.9
|
|
|
|
(14.6
|
)
|
|
(11.5
|
)
|
|
7.3
|
|
|
-
|
|
Total Central and Eastern Europe
|
|
|
154.0
|
|
|
|
184.5
|
|
|
|
(30.5
|
)
|
|
(16.5
|
)
|
|
1.1
|
|
|
0.6
|
|
Central and corporate operations
|
|
|
(49.0
|
)
|
|
|
(52.8
|
)
|
|
|
3.8
|
|
|
7.2
|
|
|
2.8
|
|
|
-
|
|
Total UPC Broadband Division
|
|
|
526.9
|
|
|
|
548.5
|
|
|
|
(21.6
|
)
|
|
(3.9
|
)
|
|
3.7
|
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telenet (Belgium)
|
|
|
220.5
|
|
|
|
186.7
|
|
|
|
33.8
|
|
|
18.1
|
|
|
24.2
|
|
|
14.2
|
|
J:COM (Japan)
|
|
|
391.6
|
|
|
|
290.0
|
|
|
|
101.6
|
|
|
35.0
|
|
|
17.4
|
|
|
9.5
|
|
VTR (Chile)
|
|
|
74.5
|
|
|
|
72.0
|
|
|
|
2.5
|
|
|
3.5
|
|
|
8.9
|
|
|
8.9
|
|
Corporate and other
|
|
|
67.2
|
|
|
|
62.6
|
|
|
|
4.6
|
|
|
7.3
|
|
|
15.5
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,280.7
|
|
|
$
|
1,159.8
|
|
|
$
|
120.9
|
|
|
10.4
|
|
|
11.4
|
|
|
8.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
|
Increase
(decrease)
|
|
Increase
(decrease)
excluding FX
|
|
Increase
(decrease)
|
|
|
|
2009
|
|
2008
|
|
$
|
|
%
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
UPC Broadband Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands
|
|
$
|
486.7
|
|
|
$
|
507.9
|
|
|
$
|
(21.2
|
)
|
|
(4.2
|
)
|
|
6.6
|
|
|
-
|
|
Switzerland
|
|
|
417.2
|
|
|
|
407.2
|
|
|
|
10.0
|
|
|
2.5
|
|
|
7.1
|
|
|
-
|
|
Austria
|
|
|
181.3
|
|
|
|
215.0
|
|
|
|
(33.7
|
)
|
|
(15.7
|
)
|
|
(6.1
|
)
|
|
-
|
|
Ireland
|
|
|
101.1
|
|
|
|
105.2
|
|
|
|
(4.1
|
)
|
|
(3.9
|
)
|
|
7.0
|
|
|
-
|
|
Total Western Europe
|
|
|
1,186.3
|
|
|
|
1,235.3
|
|
|
|
(49.0
|
)
|
|
(4.0
|
)
|
|
4.6
|
|
|
4.6
|
|
Hungary
|
|
|
120.1
|
|
|
|
163.8
|
|
|
|
(43.7
|
)
|
|
(26.7
|
)
|
|
(6.4
|
)
|
|
-
|
|
Other Central and Eastern Europe
|
|
|
295.6
|
|
|
|
360.5
|
|
|
|
(64.9
|
)
|
|
(18.0
|
)
|
|
5.0
|
|
|
-
|
|
Total Central and Eastern Europe
|
|
|
415.7
|
|
|
|
524.3
|
|
|
|
(108.6
|
)
|
|
(20.7
|
)
|
|
1.4
|
|
|
0.7
|
|
Central and corporate operations
|
|
|
(143.4
|
)
|
|
|
(168.0
|
)
|
|
|
24.6
|
|
|
14.6
|
|
|
3.4
|
|
|
-
|
|
Total UPC Broadband Division
|
|
|
1,458.6
|
|
|
|
1,591.6
|
|
|
|
(133.0
|
)
|
|
(8.4
|
)
|
|
4.4
|
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telenet (Belgium)
|
|
|
619.5
|
|
|
|
551.5
|
|
|
|
68.0
|
|
|
12.3
|
|
|
25.1
|
|
|
14.4
|
|
J:COM (Japan)
|
|
|
1,123.9
|
|
|
|
849.4
|
|
|
|
274.5
|
|
|
32.3
|
|
|
18.5
|
|
|
9.4
|
|
VTR (Chile)
|
|
|
206.1
|
|
|
|
229.5
|
|
|
|
(23.4
|
)
|
|
(10.2
|
)
|
|
6.1
|
|
|
6.1
|
|
Corporate and other
|
|
|
163.3
|
|
|
|
175.9
|
|
|
|
(12.6
|
)
|
|
(7.2
|
)
|
|
13.1
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
3,571.4
|
|
|
$
|
3,397.9
|
|
|
$
|
173.5
|
|
|
5.1
|
|
|
11.8
|
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow Definition and Reconciliation
Operating cash flow is not a GAAP measure. Operating cash flow is the
primary measure used by our chief operating decision maker to evaluate
segment operating performance. Operating cash flow 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, operating cash flow is defined as revenue
less operating and SG&A expenses (excluding stock-based compensation,
depreciation and amortization, provisions for litigation, and
impairment, restructuring and other operating charges or credits). Other
operating charges or credits include gains and losses on the disposition
of long-lived assets and due diligence, legal, advisory and other
third-party costs directly related to our efforts to acquire controlling
interests in entities. Our internal decision makers believe operating
cash flow is a meaningful measure and is superior to other 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 (i) readily view operating trends, (ii) perform
analytical comparisons and benchmarking between segments and (iii)
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. Operating
cash flow 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
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
in millions
|
|
|
|
|
|
|
|
|
|
|
|
Total segment operating cash flow
|
|
$
|
1,280.7
|
|
|
$
|
1,159.8
|
|
|
$
|
3,571.4
|
|
|
$
|
3,397.9
|
|
|
Stock-based compensation expense
|
|
|
(39.5
|
)
|
|
|
(42.0
|
)
|
|
|
(98.9
|
)
|
|
|
(125.3
|
)
|
|
Depreciation and amortization
|
|
|
(775.4
|
)
|
|
|
(708.0
|
)
|
|
|
(2,178.7
|
)
|
|
|
(2,148.3
|
)
|
|
Impairment, restructuring and other operating charges, net
|
|
|
(2.0
|
)
|
|
|
(1.4
|
)
|
|
|
(126.2
|
)
|
|
|
(3.3
|
)
|
|
Operating income
|
|
$
|
463.8
|
|
|
$
|
408.4
|
|
|
$
|
1,167.6
|
|
|
$
|
1,121.0
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Debt, Capital Lease Obligations and Cash and Cash
Equivalents
The following table1 details the U.S. dollar equivalent
balances of our consolidated debt, capital lease obligations and cash
and cash equivalents at September 30, 2009:
|
|
|
|
|
Capital
|
|
Debt and
|
|
Cash
|
|
|
|
|
|
Lease
|
|
Capital Lease
|
|
and Cash
|
|
|
|
Debt
|
|
Obligations
|
|
Obligations
|
|
Equivalents2
|
|
|
|
in millions
|
|
LGI and its non-operating subsidiaries
|
|
$
|
2,428.7
|
|
$
|
-
|
|
$
|
2,428.7
|
|
$
|
874.0
|
|
UPC Holding (excluding VTR)
|
|
|
11,321.4
|
|
|
32.9
|
|
|
11,354.3
|
|
|
49.9
|
|
Telenet
|
|
|
3,000.3
|
|
|
451.8
|
|
|
3,452.1
|
|
|
191.0
|
|
J:COM
|
|
|
2,128.1
|
|
|
703.6
|
|
|
2,831.7
|
|
|
661.6
|
|
VTR
|
|
|
460.8
|
|
|
1.5
|
|
|
462.3
|
|
|
66.4
|
|
Austar
|
|
|
750.1
|
|
|
-
|
|
|
750.1
|
|
|
93.9
|
|
Chellomedia
|
|
|
283.5
|
|
|
-
|
|
|
283.5
|
|
|
23.2
|
|
Liberty Puerto Rico
|
|
|
176.3
|
|
|
-
|
|
|
176.3
|
|
|
5.7
|
|
Other operating subsidiaries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3.1
|
|
Total LGI
|
|
$
|
20,549.2
|
|
$
|
1,189.8
|
|
$
|
21,739.0
|
|
$
|
1,968.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Except as otherwise indicated, the amounts reported in the
table include the named entity and its subsidiaries.
2 Excludes $471 million of restricted cash related to our
debt instruments.
Capital Expenditures and Capital Lease Additions
The following table highlights our capital expenditures per category, as
well as capital lease additions for the indicated periods:
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
in millions
|
|
Customer premises equipment
|
|
$
|
268.9
|
|
|
$
|
270.3
|
|
|
$
|
814.2
|
|
|
$
|
738.5
|
|
|
Scalable infrastructure
|
|
|
69.8
|
|
|
|
78.1
|
|
|
|
190.5
|
|
|
|
232.3
|
|
|
Line extensions
|
|
|
50.7
|
|
|
|
57.1
|
|
|
|
152.6
|
|
|
|
136.7
|
|
|
Upgrade/rebuild
|
|
|
57.9
|
|
|
|
100.0
|
|
|
|
210.5
|
|
|
|
272.6
|
|
|
Support capital
|
|
|
75.6
|
|
|
|
80.2
|
|
|
|
231.8
|
|
|
|
271.9
|
|
|
Other including Chellomedia
|
|
|
2.0
|
|
|
|
5.8
|
|
|
|
7.2
|
|
|
|
17.2
|
|
|
Total capital expenditures ("capex" )
|
|
$
|
524.9
|
|
|
$
|
591.5
|
|
|
$
|
1,606.8
|
|
|
$
|
1,669.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
$
|
524.9
|
|
|
$
|
591.5
|
|
|
$
|
1,606.8
|
|
|
$
|
1,669.2
|
|
|
Capital lease additions
|
|
|
57.2
|
|
|
|
37.4
|
|
|
|
155.4
|
|
|
|
109.0
|
|
|
Total capex and capital leases
|
|
$
|
582.1
|
|
|
$
|
628.9
|
|
|
$
|
1,762.2
|
|
|
$
|
1,778.2
|
|
|
|
|
|
|
|
|
|
|
|
|
As % of revenue
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
18.6
|
%
|
|
|
22.5
|
%
|
|
|
20.0
|
%
|
|
|
21.0
|
%
|
|
Capex and capital leases
|
|
|
20.6
|
%
|
|
|
23.9
|
%
|
|
|
21.9
|
%
|
|
|
22.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow Definition and Reconciliation
FCF is defined as net cash provided by the operating activities of our
continuing operations less the capital expenditures of our continuing
operations, each as reported in our consolidated statements of cash
flows. Adjusted FCF represents FCF less the non-cash capital lease
additions of our continuing operations. FCF and Adjusted FCF are not
GAAP measures of liquidity.
We believe that our presentation of FCF and Adjusted FCF provides useful
information to our investors because these measures can be used to gauge
our ability to service debt and fund new investment opportunities. FCF
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 FCF as a supplement to, and not a
substitute for, GAAP measures of liquidity included in our consolidated
cash flow statements. The following table highlights the reconciliation
of our continuing operations' net cash provided by operating activities
to FCF and FCF to Adjusted FCF for the indicated periods:
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
in millions
|
|
Net cash provided by operating activities
|
|
$
|
691.4
|
|
|
$
|
692.6
|
|
|
$
|
2,268.8
|
|
|
$
|
2,203.0
|
|
|
Capital expenditures
|
|
|
(524.9
|
)
|
|
|
(591.5
|
)
|
|
|
(1,606.8
|
)
|
|
|
(1,669.2
|
)
|
|
FCF
|
|
$
|
166.5
|
|
|
$
|
101.1
|
|
|
$
|
662.0
|
|
|
$
|
533.8
|
|
|
|
|
|
|
|
|
|
|
|
|
FCF
|
|
$
|
166.5
|
|
|
$
|
101.1
|
|
|
$
|
662.0
|
|
|
$
|
533.8
|
|
|
Capital lease additions
|
|
|
(57.2
|
)
|
|
|
(37.4
|
)
|
|
|
(155.4
|
)
|
|
|
(109.0
|
)
|
|
Adjusted FCF
|
|
$
|
109.3
|
|
|
$
|
63.7
|
|
|
$
|
506.6
|
|
|
$
|
424.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer Breakdown and Bundling
The following table provides information on the geography of our
customer base and highlights our customer bundling metrics at September
30, 2009, June 30, 2009 and September 30, 2008:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2009
|
|
June 30,
2009
|
|
September 30,
2008
|
|
Q3'09 / Q2'09
(% Change)
|
|
Q3'09 / Q3'08
(% Change)
|
|
Total Customers
|
|
|
|
|
|
|
|
|
|
|
|
UPC Broadband
|
|
9,099,400
|
|
|
9,164,400
|
|
|
9,365,200
|
|
|
(0.7
|
)%
|
|
(2.8
|
)%
|
|
Telenet
|
|
2,363,200
|
|
|
2,374,000
|
|
|
1,968,900
|
|
|
(0.5
|
)%
|
|
20.0
|
%
|
|
J:COM
|
|
3,247,300
|
|
|
3,219,200
|
|
|
2,903,300
|
|
|
0.9
|
%
|
|
11.8
|
%
|
|
VTR
|
|
1,051,000
|
|
|
1,038,800
|
|
|
1,027,800
|
|
|
1.2
|
%
|
|
2.3
|
%
|
|
Other
|
|
868,500
|
|
|
857,600
|
|
|
833,200
|
|
|
1.3
|
%
|
|
4.2
|
%
|
|
Liberty Global Consolidated
|
|
16,629,400
|
|
|
16,654,000
|
|
|
16,098,400
|
|
|
(0.1
|
)%
|
|
3.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Single-Play Customers
|
|
9,882,900
|
|
|
10,046,100
|
|
|
10,191,700
|
|
|
(1.6
|
)%
|
|
(3.0
|
)%
|
|
Total Double-Play Customers
|
|
3,295,300
|
|
|
3,240,000
|
|
|
3,040,700
|
|
|
1.7
|
%
|
|
8.4
|
%
|
|
Total Triple-Play Customers
|
|
3,451,200
|
|
|
3,367,900
|
|
|
2,866,000
|
|
|
2.5
|
%
|
|
20.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Double-Play Customers
|
|
|
|
|
|
|
|
|
|
|
|
UPC Broadband
|
|
17.3
|
%
|
|
16.8
|
%
|
|
15.9
|
%
|
|
3.0
|
%
|
|
8.8
|
%
|
|
Telenet
|
|
23.1
|
%
|
|
22.7
|
%
|
|
26.5
|
%
|
|
1.8
|
%
|
|
(12.8
|
)%
|
|
J:COM
|
|
28.1
|
%
|
|
28.0
|
%
|
|
27.5
|
%
|
|
0.4
|
%
|
|
2.2
|
%
|
|
VTR
|
|
21.2
|
%
|
|
20.8
|
%
|
|
19.7
|
%
|
|
1.9
|
%
|
|
7.6
|
%
|
|
Liberty Global Consolidated
|
|
19.8
|
%
|
|
19.5
|
%
|
|
18.9
|
%
|
|
1.5
|
%
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Triple-Play Customers
|
|
|
|
|
|
|
|
|
|
|
|
UPC Broadband
|
|
16.5
|
%
|
|
16.1
|
%
|
|
14.1
|
%
|
|
2.5
|
%
|
|
17.0
|
%
|
|
Telenet
|
|
26.5
|
%
|
|
25.5
|
%
|
|
18.9
|
%
|
|
3.9
|
%
|
|
40.2
|
%
|
|
J:COM
|
|
26.2
|
%
|
|
25.7
|
%
|
|
25.9
|
%
|
|
1.9
|
%
|
|
1.2
|
%
|
|
VTR
|
|
42.4
|
%
|
|
42.1
|
%
|
|
39.6
|
%
|
|
0.7
|
%
|
|
7.1
|
%
|
|
Liberty Global Consolidated
|
|
20.8
|
%
|
|
20.2
|
%
|
|
17.8
|
%
|
|
3.0
|
%
|
|
16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RGUs per Customer Relationship
|
|
|
|
|
|
|
|
|
|
|
|
UPC Broadband
|
|
1.50
|
|
|
1.49
|
|
|
1.44
|
|
|
0.7
|
%
|
|
4.2
|
%
|
|
Telenet
|
|
1.76
|
|
|
1.74
|
|
|
1.64
|
|
|
1.1
|
%
|
|
7.3
|
%
|
|
J:COM
|
|
1.81
|
|
|
1.79
|
|
|
1.79
|
|
|
1.1
|
%
|
|
1.1
|
%
|
|
VTR
|
|
2.06
|
|
|
2.05
|
|
|
1.99
|
|
|
0.5
|
%
|
|
3.5
|
%
|
|
Liberty Global Consolidated
|
|
1.61
|
|
|
1.60
|
|
|
1.54
|
|
|
0.6
|
%
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU per Customer Relationship Table3
The following table provides ARPU per customer relationship for the
indicated periods:
|
|
|
Three months ended September 30,
|
|
|
|
|
|
2009
|
|
2008
|
|
% Change
|
|
UPC Broadband
|
|
€
|
|
23.79
|
|
€
|
|
23.64
|
|
0.6
|
%
|
|
Telenet
|
|
€
|
|
36.05
|
|
€
|
|
35.14
|
|
2.6
|
%
|
|
J:COM
|
|
Â¥
|
|
7,244
|
|
Â¥
|
|
7,295
|
|
(0.7
|
%)
|
|
VTR
|
|
CLP
|
|
28,554
|
|
CLP
|
|
27,820
|
|
2.6
|
%
|
|
Liberty Global Consolidated
|
|
$
|
|
47.51
|
|
$
|
|
45.76
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 ARPU per customer relationship 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 and mobile telephony 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. ARPU per customer
relationship for UPC Broadband and Liberty Global Consolidated are not
adjusted for currency impacts.
Fixed Income Overview
The following tables provide preliminary financial information for UPC
Holding B.V. ("UPC Holding" ) and Chellomedia Programming Financing
HoldCo B.V. ("Chellomedia Programming" ) and are subject to completion of
the respective financial statements and to finalization of the
respective compliance certificates for the third quarter of 2009.
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
in millions
|
|
UPC Holding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
€
|
861.5
|
|
€
|
870.7
|
|
€
|
2,571.0
|
|
€
|
2,601.7
|
|
OCF
|
|
|
420.6
|
|
|
413.1
|
|
|
1,217.4
|
|
|
1,196.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chellomedia Programming:4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
€
|
53.7
|
|
€
|
52.7
|
|
€
|
154.7
|
|
€
|
156.5
|
|
OCF
|
|
|
12.9
|
|
|
14.8
|
|
|
36.9
|
|
|
41.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt, Cash and Leverage at September 30, 20095
|
|
|
|
|
Total Debt6
|
|
|
Cash7
|
|
|
Sr. Leverage
|
|
|
Total Leverage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in millions
|
|
|
|
UPC Holding
|
|
€
|
8,069.6
|
|
€
|
79.4
|
|
|
3.81x
|
|
|
4.78x
|
|
Chellomedia Programming
|
|
|
193.6
|
|
|
8.4
|
|
|
3.70x
|
|
|
3.70x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow Definition and Reconciliations
Operating cash flow is not a GAAP measure. As UPC Holding and
Chellomedia Programming use the term, operating cash flow is defined as
revenue less operating and SG&A expenses (excluding stock-based
compensation, depreciation and amortization, and other charges or
credits outlined in the respective tables below). For additional
discussion of OCF, please see page 13. The following tables provide the
appropriate reconciliations:
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
UPC Holding
|
|
in millions
|
|
Total segment operating cash flow
|
|
€
|
420.6
|
|
€
|
413.1
|
|
€
|
1,217.4
|
|
|
€
|
1,196.8
|
|
Stock-based compensation expense
|
|
|
(10.9
|
)
|
|
|
(10.4
|
)
|
|
|
(23.4
|
)
|
|
|
|
(28.6
|
)
|
|
Depreciation and amortization
|
|
|
(265.6
|
)
|
|
|
(269.2
|
)
|
|
|
(790.9
|
)
|
|
|
|
(810.7
|
)
|
|
Related-party fees and allocations, net
|
|
|
4.5
|
|
|
|
7.4
|
|
|
|
15.1
|
|
|
|
|
15.5
|
|
|
Impairment, restructuring and other operating charges (credits), net
|
|
|
0.4
|
|
|
|
(1.0
|
)
|
|
|
(89.1
|
)
|
|
|
|
(5.9
|
)
|
|
Operating income
|
|
€
|
149.0
|
|
€
|
139.9
|
|
|
€ 329.1
|
|
|
€
|
367.1
|
|
Chellomedia Programming
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment operating cash flow
|
|
€
|
12.9
|
|
€
|
14.8
|
|
€
|
36.9
|
|
|
€
|
41.9
|
|
Stock-based compensation expense
|
|
|
(0.2
|
)
|
|
|
(0.1
|
)
|
|
|
(0.6
|
)
|
|
|
|
(0.3
|
)
|
|
Depreciation and amortization
|
|
|
(4.4
|
)
|
|
|
(4.3
|
)
|
|
|
(13.1
|
)
|
|
|
|
(12.7
|
)
|
|
Related-party management fees
|
|
|
(1.1
|
)
|
|
|
(1.7
|
)
|
|
|
(5.7
|
)
|
|
|
|
(2.9
|
)
|
|
Impairment, restructuring and other operating charges
|
|
|
(1.0
|
)
|
|
|
(0.1
|
)
|
|
|
(2.4
|
)
|
|
|
|
(0.4
|
)
|
|
Operating income
|
|
€
|
6.2
|
|
€
|
8.6
|
|
€
|
15.1
|
|
|
€
|
25.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 The amounts for the three and nine months ended September
30, 2008 reflect a transfer between entities under common control as if
the transfer had occurred on September 1, 2008, the date the transferred
business was acquired by LGI.
5 In the covenant calculations for UPC Holding, we utilize
debt figures that take into account currency swaps. Reported OCF and
debt may differ from what is used in the calculation of the respective
covenants. The ratios for each of the two entities are based on
September 30, 2009 results, and are subject to completion of our third
quarter bank reporting requirements. The ratios for each entity are
defined and calculated in accordance with the applicable credit
agreement. As defined and calculated in accordance with the UPC
Broadband Holding Bank Facility, senior leverage refers to Senior Debt
to Annualized EBITDA (last two quarters annualized) and total leverage
refers to Total Debt to Annualized EBITDA (last two quarters annualized)
for UPC Holding. For Chellomedia Programming, senior leverage refers to
Senior Net Debt to Annualized EBITDA (last two quarters annualized) and
total leverage refers to Total Net Debt to Annualized EBITDA (last two
quarters annualized).
6 Total debt includes capital lease obligations. Debt for UPC
Holding reflects only third-party debt. Debt for Chellomedia Programming
reflects third-party debt and a loan payable to a related-party of €7.6
million.
7 Cash includes cash and cash equivalents and excludes
restricted cash.
|
|
|
Consolidated Operating Data - September 30, 2009
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
Internet
|
|
Telephony
|
|
|
|
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
|
|
Homes
Serviceable(9)
|
|
Subscribers(10)
|
|
Homes
Serviceable(11)
|
|
Subscribers(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UPC Broadband Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands(13)
|
|
2,756,600
|
|
2,649,800
|
|
1,968,600
|
|
3,272,300
|
|
1,255,300
|
|
710,700
|
|
-
|
|
-
|
|
1,966,000
|
|
2,649,800
|
|
707,900
|
|
2,603,100
|
|
598,400
|
|
Switzerland(13)
|
|
1,983,300
|
|
1,629,000
|
|
1,590,300
|
|
2,344,600
|
|
1,192,100
|
|
362,300
|
|
-
|
|
-
|
|
1,554,400
|
|
1,979,500
|
|
485,100
|
|
1,977,000
|
|
305,100
|
|
Austria
|
|
1,157,500
|
|
1,157,500
|
|
721,000
|
|
1,238,600
|
|
323,600
|
|
217,600
|
|
-
|
|
-
|
|
541,200
|
|
1,157,500
|
|
424,300
|
|
1,157,500
|
|
273,100
|
|
Ireland
|
|
876,400
|
|
572,000
|
|
537,000
|
|
697,800
|
|
169,600
|
|
263,500
|
|
-
|
|
76,800
|
|
509,900
|
|
572,000
|
|
134,900
|
|
473,100
|
|
53,000
|
|
Total Western Europe
|
|
6,773,800
|
|
6,008,300
|
|
4,816,900
|
|
7,553,300
|
|
2,940,600
|
|
1,554,100
|
|
-
|
|
76,800
|
|
4,571,500
|
|
6,358,800
|
|
1,752,200
|
|
6,210,700
|
|
1,229,600
|
|
Hungary
|
|
1,229,400
|
|
1,209,500
|
|
905,300
|
|
1,369,700
|
|
476,600
|
|
140,600
|
|
182,900
|
|
-
|
|
800,100
|
|
1,209,500
|
|
325,100
|
|
1,211,900
|
|
244,500
|
|
Romania
|
|
2,070,500
|
|
1,732,000
|
|
1,237,300
|
|
1,638,200
|
|
872,800
|
|
202,900
|
|
161,600
|
|
-
|
|
1,237,300
|
|
1,606,600
|
|
256,400
|
|
1,544,800
|
|
144,500
|
|
Poland
|
|
2,013,100
|
|
1,859,100
|
|
1,081,500
|
|
1,619,800
|
|
819,500
|
|
193,900
|
|
-
|
|
-
|
|
1,013,400
|
|
1,859,100
|
|
437,800
|
|
1,858,200
|
|
168,600
|
|
Czech Republic
|
|
1,313,200
|
|
1,203,400
|
|
771,700
|
|
1,137,800
|
|
171,500
|
|
361,600
|
|
107,600
|
|
-
|
|
640,700
|
|
1,203,400
|
|
344,900
|
|
1,199,300
|
|
152,200
|
|
Slovakia
|
|
489,400
|
|
430,900
|
|
286,700
|
|
365,200
|
|
189,700
|
|
53,800
|
|
31,100
|
|
4,300
|
|
278,900
|
|
393,000
|
|
59,800
|
|
|
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