Q2 rebased OCF Growth of 4% in Europe
Rebased OCF Growth of 13% for LiLAC Group in Q2
Liberty 3.0 Expected to Meaningfully Enhance Growth Prospects
All Full-Year 2015 Guidance Targets Confirmed
Liberty Global plc (NASDAQ: LBTYA, LBTYB, LBTYK, LILA and LILAK), today
announces financial and operating results1 for the three
months ("Q2") and six months ("YTD" or "H1") ended June 30, 2015 for the
Liberty Global Group and the LiLAC Group2.
Key highlights for the consolidated operations of Liberty Global plc:
-
Organic RGU3 additions of 207,000 YTD, including 138,000 in
Q2
-
Rebased4 revenue growth of 3% for both YTD and Q2, reaching
$9.1 billion YTD
-
YTD OCF5 of $4.3 billion, reflecting YTD and Q2 rebased
growth of 3% and 4%, respectively
-
Free Cash Flow ("FCF")6 of $592 million in Q2,
increasing YTD total FCF to $922 million
Operating and financial highlights for the Liberty Global Group7,
our European business:
-
Organic RGU additions of 95,000 in Q2, negatively impacted by Dutch
performance
-
Unitymedia regained RGU momentum with 92,000 net additions in
Germany
-
Substantial year-over-year improvement in RGU performance across
all products in U.K.
-
RGU loss of 87,000 at Ziggo in the Netherlands, expect H2
performance to improve
-
Initiated new build program in Manchester (150,000 HP) and new build
trials in Germany
-
EuroDocsis 3.1 testing to begin in H2 2015, expected to result in
broadband speeds of 1Gbps+
-
Rebased revenue growth of 3% and rebased OCF growth of 4% in Q2
-
4% rebased revenue growth in the U.K. and 6% growth in both
Germany & Belgium
-
OCF performance fueled by 12% rebased growth in Belgium and 8% in
the U.K./IE
-
Balance sheet geared at 5.0x net leverage8 with over $4.2
billion in total liquidity9
-
FCF of $539 million in Q2 and $894 million YTD
Operating and financial highlights for the LiLAC Group10:
-
Added 43,000 organic RGUs and increased customer relationships by
14,000 in Q2
-
Delivered Q2 rebased revenue growth of 7%, our best quarterly result
in two years
-
Rebased OCF up 13% to $128 million in Q2, resulting in margin
expansion of 240 bps to 41%
-
Chile and Puerto Rico with Q2 rebased OCF growth of 14% and 12%,
respectively
-
Completed acquisition of Choice in Puerto Rico in June, creating
island-wide scale
-
Finished Q2 with net leverage of 3.5x, including over $230 million of
cash
CEO Mike Fries commented, "Subscriber additions and OCF growth each
accelerated in Q2, with most of our markets delivering improved
sequential performance as compared to Q1. Strong demand for our triple-
and quad-play bundles continues to support our results despite
difficulties in the Netherlands, which continued to face competitive and
integration challenges. We have taken measures to improve our results in
that market and our H2 OCF growth should benefit from the positive
impact of Ziggo synergies. Despite the headwinds in the Netherlands, we
are confirming all of our 2015 guidance targets.”
"Rebased revenue growth of 3% for the Liberty Global Group in Q2 was
underpinned by strong top line performances in the U.K., Germany and
Belgium. Operating leverage and strong cost controls drove 4% rebased
OCF growth in Europe, despite the challenges in Holland. We expect OCF
growth in Europe to continue ramping in the second half of the year
based on our expectation for significantly improved net add numbers,
accelerating rebased revenue growth from our residential and B2B11
services and our continued focus on controlling costs.”
"In early July we launched our LiLAC tracking stock, which tracks our
market-leading cable assets in Chile and Puerto Rico. Investors can now
directly participate in the economic performance of VTR and Liberty
Puerto Rico, which together reported 7% rebased revenue growth, 13%
rebased OCF growth and 43,000 organic RGU additions in Q2. We see LiLAC
as a great platform for future M&A opportunities given the fragmented
nature of media assets in this region of the world and along these lines
we recently closed the Choice acquisition in Puerto Rico. Over the
medium term, we expect LiLAC to generate mid- to high-single-digit
rebased OCF growth."
“We recently finalized the blueprint for our Liberty 3.0 program, and
we're excited about the substantial growth opportunity that lies ahead
of us. This transformational effort is expected to enhance our revenue
and OCF growth over the next several years as we unlock efficiencies and
reinvest the majority of those savings to drive even faster revenue and
operating cash flow growth. The 3.0 initiative will involve a number of
changes to our operating model and organization, and we are confident in
our ability to deliver high-single-digit OCF growth over the medium
term.”
"We have continued to make steady progress with our capital structure,
refinancing nearly $4 billion of debt in Q2 after a very active first
quarter. As a result, our average tenor at quarter end has been extended
to nearly eight years, at a blended, fully-swapped interest cost of
5.4%. In terms of our repurchase activity, we bought nearly $500 million
of our equity during Q2, increasing our total to over $900 million of
buybacks during the first six months of the year. As a result, we remain
on track to return $3 billion of capital to shareholders through stock
repurchases over the next 18 months."
Subscriber Statistics - Liberty Global Group
At the end of Q2 2015, we provided our 25.7 million unique customers
with 52.9 million subscription services ("RGUs") across our footprint of
48.6 million homes passed in Europe. On a product level, our RGU base
for the Liberty Global Group consisted of 22.8 million video, 16.4
million broadband internet and 13.7 million telephony subscriptions. In
terms of quarterly net additions, we increased our RGUs by 115,000
during Q2, including 95,000 organic RGU additions and small in-market
acquisitions in Romania. At the end of Q2 2015, over 60% or 15.7 million
of our customers took more than one product from us. This represents a
bundling ratio of nearly 2.1, providing ample headroom for growth,
including in Germany where the average customer subscribes to 1.7
products.
Geographically, our Q2 organic additions consisted of 43,000 RGUs in
Western Europe and 52,000 in Central and Eastern Europe ("CEE"). While
the RGU performance in our CEE region more than doubled versus Q2 2014,
the results in Western Europe were particularly impacted by a weak
performance in the Netherlands, as Ziggo lost 87,000 RGUs during the
quarter. We experienced both lower sales and higher churn in the Dutch
market, due in part to continued operational challenges associated with
our network and product harmonization and integration work. In addition,
our Q2 RGU performance in Holland was adversely impacted by the
continued competitive environment, in combination with price increases
across our existing customer base and acquisition portfolio. We have
taken additional measures to improve our Dutch operational performance,
including a quality improvement program and the launch of a summer
promotion in mid-July, centered around Horizon TV.
In Germany, the Q2 results of Unitymedia rebounded with 92,000 RGU
additions in Q2, supported by reduced churn across all three products,
as compared to our Q1 RGU performance, which was partly impacted by a
price increase for 1.3 million of our broadband internet subscribers.
Virgin Media added 2,000 RGUs in the seasonably slow second quarter,
marking its best Q2 RGU performance in five years. This improvement in
the U.K. was driven by our superior products and bundles, resulting in
our fourth consecutive quarter of record low churn. At UPC Cablecom in
Switzerland, we grew organic RGUs by 16,000 in Q2 versus 9,000 RGU
additions in Q2 2014. Rounding out the top five Western European
markets, our Belgian operation added 14,000 organic RGUs, which was flat
sequentially, but below the prior-year period.
From a product perspective, broadband internet remained the primary
source of our organic subscriber growth in Europe with 110,000 RGU
additions, driven largely by our German and Swiss operations, with
56,000 and 16,000 adds, respectively. The 51,000 year-over-year decrease
in broadband internet additions, as compared to Q2 2014, was mainly
attributable to Germany (26,000 RGUs), following the implementation of
our higher-priced product portfolio in March, and the Netherlands
(24,000 RGUs), impacted by the aforementioned challenges. Of particular
note, we added 7,000 broadband RGUs at Virgin Media, its best Q2 result
since 2010. Moving to our telephony performance, we added 99,000 new
fixed-line telephony subscribers in Q2 2015, which is slightly below Q2
2014, as improvements in Switzerland and the U.K. were more than offset
by declines in the Netherlands and Ireland.
Our video attrition of 113,000 organic RGUs in Europe during Q2 2015 was
higher than the 82,000 RGUs we lost in the comparable prior-year period.
The negative variance was primarily a result of our Dutch business,
which lost 45,000 more video subscribers than in the prior-year period.
When excluding the Netherlands for both periods, video attrition
improved by 13,000 RGUs year-over-year, primarily driven by improvements
in Romania, Poland and the U.K. We ended the second quarter with 14.0
million enhanced video subscribers, representing enhanced video
penetration12 of 64%, and 8.0 million basic video
subscribers. In terms of our innovative Horizon TV and TiVo products, we
converted over 230,000 video customers into next-generation TV
subscribers during Q2, of which Horizon TV contributed over 150,000 and
TiVo 80,000, bringing the combined base to nearly four million.
Multi-screen services have now been launched in all of our European
markets under the brands "Virgin TV Anywhere" in the U.K., "Yelo TV" in
Belgium and "Horizon Go" in all of our other European markets. These
multi-screen services are typically included in our bundles, offering
easy access to catch-up and video-on-demand content as well as over 100
live TV channels, of which the vast majority are also available
out-of-home.
With respect to our wireless business in Europe, we finished Q2 2015
with 4.5 million mobile subscribers13, which represents an
increase of 84,000 during the quarter. This growth was driven by
quarterly additions in all of our Western European markets, including
increases of 29,000, 20,000 and 14,000 in Belgium, the Netherlands and
Germany, respectively. Virgin Media added 7,000 mobile subscribers in
the quarter, including 36,000 postpaid additions, driven by our
successful Freestyle14 proposition. This offer enables
customers to purchase a handset independent of the mobile airtime
contract, and will be introduced in other European markets later this
year. Other developments include mobile trials in Ireland, which are
currently underway, and preparations for 4G launches in Switzerland and
the Netherlands later in the year.
Revenue - Liberty Global Group
Liberty Global Group revenue of $4.3 billion and $8.5 billion for the
three and six months ended June 30, 2015, respectively, was slightly
down as compared to the corresponding prior-year periods. For both
periods, the reported declines in revenue were driven by negative
foreign currency ("FX") movements related to the strengthening of the
U.S. dollar against all of our functional currencies, largely offset by
the inclusion of Ziggo and, to a lesser extent, organic revenue growth.
Adjusted for acquisitions, dispositions and FX, our operations
attributed to the Liberty Global Group achieved year-over-year rebased
revenue growth of 3% during each of the Q2 and YTD 2015 periods, in line
with both prior-period results in 2014.
Cable subscription revenue remains the primary driver of overall rebased
revenue growth. The two other key contributors to our rebased growth
were mobile (including interconnect and handset sales) and B2B
(including SOHO), which delivered rebased revenue growth rates in Q2 of
15%15 and 6%, respectively.
On a year-to-date basis, our 3% rebased growth for the Liberty Global
Group included the net effects of certain non-recurring and
non-operational items, the most significant of which were: (i) the $63
million negative impact of increased VAT obligations, including $55
million in the U.K., (ii) the $41 million net positive impact from the
upfront recognition of revenue in connection with our Freestyle mobile
promotion in the U.K., (iii) the $13 million favorable impact of higher
amortization of deferred upfront B2B fees in the U.K. and (iv) the $12
million negative impact of a favorable revenue settlement in Germany
during Q1 2014. In Q2, the upfront recognition of revenue in connection
with our Freestyle mobile proposition in the U.K. was largely offset by
the negative impact of higher VAT obligations.
From a geographic perspective, Western Europe delivered 3% rebased
revenue growth for Q2, while our operations in the CEE region posted 1%
rebased revenue growth, which represents an improvement for CEE versus
the flat rebased revenue result in the prior-year period.
Our Q2 performance in Western Europe, which represents over 90% of the
Liberty Global Group's revenue, was led by our operations in Belgium and
Germany, each delivering 6% rebased revenue growth, primarily driven by
an increase in subscribers, higher ARPU16 and, in the case of
Telenet, increases in mobile subscription and B2B revenue. Of particular
note, Virgin Media in the U.K. delivered 4% rebased revenue growth,
which helped our U.K./Ireland segment post rebased revenue growth of 3%.
Our U.K. result was driven primarily by increases in cable subscription
revenue, due largely to subscriber growth, ARPU improvements that were
supported by price rises and higher revenue from mobile handset sales.
These positive factors more than offset the aforementioned impacts of
increased VAT obligations. Meanwhile, our operation in
Switzerland/Austria posted 3% rebased revenue growth in Q2, mainly
supported by an increase in cable subscription revenue that was driven
by ARPU and subscriber growth.
Finally, our revenue results in Western Europe were partially offset by
a weak quarter for our business in the Netherlands, which experienced a
2% rebased revenue decline as a result of the aforementioned challenges.
Given the lack of recent subscriber growth and the current competitive
environment, we expect the second half of 2015 to remain challenging in
the Netherlands, especially with respect to rebased revenue growth. Our
new promotions highlight the value of our bundles and brand, and we
will continue to invest in product development to strengthen our
position in the Dutch market.
Operating Cash Flow - Liberty Global Group
Reported OCF for our operations attributed to the Liberty Global Group
increased 2% to $2.1 billion for the three months ended 2015 and
remained flat at $4.0 billion for the six months ended 2015, each as
compared to the corresponding prior-year period. These comparisons were
impacted by FX, acquisitions, dispositions and the aforementioned
contributors to our reported top-line results. On a rebased basis, we
delivered 4% and 2% OCF growth for the three and six months ended June
30, 2015, respectively.
Our rebased OCF performance for the Liberty Global Group in Q2 2015
included the favorable net impact of certain items, the most significant
of which included the $12 million non-recurring and $7 million recurring
impact of reduced network infrastructure charges in U.K./Ireland and a
favorable $10 million non-recurring settlement of an operational
contingency at Telenet, partially offset by $9 million of additional
expenses in the Netherlands associated with the integration of Ziggo.
For the YTD period, the Ziggo integration costs and other non-recurring
and non-operational items had a net negative impact on our OCF growth
rate as the Q1 detriment from the impact of these non-operational and
non-recurring items was only partially offset by the Q2 benefit.
In terms of regional results for Q2, our operations in Western Europe
delivered 5% rebased OCF growth, while CEE experienced a 1% OCF
contraction during the same period. The CEE result was negatively
affected by a recurring $4 million quarterly increase in VAT payments
related to our Luxembourg-based direct-to-home ("DTH") operation that
took effect on January 1, 2015.
In our five largest segments, our Q2 OCF performance was led by Telenet
in Belgium, which delivered 12% rebased growth in Q2 including the
non-recurring settlement mentioned above. Our operations in U.K./Ireland
posted 8% rebased OCF growth in Q2, fueled by 8.5% rebased growth in the
U.K., supported by the aforementioned revenue drivers, continued cost
controls and full run-rate synergies, along with the previously
mentioned reduction in network infrastructure charges. In Germany, our
rebased OCF growth of 5% in Q2 was driven by revenue growth, partially
offset by increases in staff-related costs and programming and copyright
costs. In Switzerland/Austria, rebased OCF growth of 2% was impacted by
increases in programming and copyright costs and marketing and sales
costs. Rounding out Western Europe, in the Netherlands, our Q2 OCF
declined 5% on a rebased basis primarily due to the previously mentioned
revenue contraction and integration costs. We have made significant
progress on the Ziggo synergy plan and we expect the program to
favorably impact the Dutch OCF in the second half of 2015.
As compared to the corresponding periods in 2014, our OCF margin17
increased 120 basis points to 48.4% in Q2 and 30 basis points to 47.7%
for the first half of 2015.
Property and Equipment Additions - Liberty Global Group
For the three months ended June 30, 2015, the Liberty Global Group
reported property and equipment ("P&E") additions18
of $971 million or 22.8% of revenue as compared to $895 million or 20.8%
of revenue in Q2 2014. For the YTD period, the Liberty Global Group
incurred P&E additions of $1.8 billion or 21.7% of revenue as compared
to $1.7 billion or 20.5% of revenue for the corresponding prior-year
period. The year-over-year increase in P&E additions in absolute terms
for both the Q2 and H1 periods is primarily related to increases
associated with the acquisition of Ziggo and higher spending for support
capital. These increases were partially offset by the impact of the
weakening of all of our European currencies against the U.S. dollar. In
terms of a breakdown for our H1 2015 spend, 48% was related to CPE and
scalable infrastructure, 24% was related to line extensions and
upgrade/rebuild activity, and 28% was related to support capital,
including IT upgrades and general support systems. Going forward, we
expect our network costs to increase as we begin to increase the pace of
construction associated with Project Lightning, our network extension
program in the U.K.
Free Cash Flow - Liberty Global Group
For the three and six months ended June 30, 2015, our operations
attributed to the Liberty Global Group generated FCF of $539 million and
$894 million, respectively, which compares to the $707 million and $990
million that we generated in the prior-year periods, respectively. The
declines in our Q2 and H1 FCF, as compared to the corresponding 2014
periods, are attributable to the net effects of decreases associated
with adverse movements in FX and working capital and increases
associated with the inclusion of Ziggo, as well as organic OCF growth.
In addition to these factors, our H1 performance also includes the
impact of higher tax payments, primarily in Belgium.
Leverage, Liquidity & Shares Outstanding - Liberty Global Group
At June 30, 2015, we attributed to the Liberty Global Group total
third-party debt19 of $43.7 billion and cash and cash
equivalents of $587 million. As compared to Q1 2015, such debt increased
by $1.7 billion primarily due to the strengthening of our borrowing
currencies against the U.S. dollar. At the end of the second quarter, a
Liberty Global Group entity contributed $100 million of cash to a LiLAC
Group entity in order to provide liquidity to fund ongoing operating
costs and potential acquisitions.
Excluding $1.5 billion of debt backed by shares we hold in Sumitomo
Corporation and ITV plc, the Liberty Global Group ended Q2 2015 with
consolidated adjusted gross and net leverage ratios of 5.1x and 5.0x,
respectively. During the quarter, we improved our maturity profile
through the refinancing of approximately $3.7 billion principal amount
of debt, primarily at Virgin Media and the UPC credit pool. As a result,
at the end of Q2, the average tenor of third-party debt attributed to
the Liberty Global Group was nearly eight years, less than 10% of which
is due before 2020, and the blended fully-swapped borrowing cost20
of such debt was 5.2%.
With respect to liquidity, we finished Q2 with approximately $4.2
billion, including $587 million of cash as noted above and aggregate
borrowing capacity of $3.6 billion, as represented by the maximum
undrawn commitments under each of the credit facilities21
attributed to the Liberty Global Group.
At July 29, 2015, we had 875 million Liberty Global Group shares
outstanding, including 253 million Class A ordinary shares, 10 million
Class B ordinary shares and 612 million Class C ordinary shares.
Subscriber Statistics - LiLAC Group
At June 30, 2015, we provided a total of 3.5 million subscription
services to the 1.6 million unique customers across our cable footprint
of 4.1 million homes passed within Chile and Puerto Rico. These services
consisted of 1.3 million video, 1.3 million broadband internet and 0.9
million telephony subscriptions. During Q2, we increased our RGUs by
199,000, driven by our acquisition of Choice in Puerto Rico and 43,000
organic RGU additions, of which 37,000 were gained at VTR and 6,000 at
Liberty Puerto Rico. At June 30, 2015, 66% of our customers were bundled
and our bundling ratio was 2.1.
Our Q2 organic additions of 43,000 RGUs represent an increase of
approximately 20% over our Q1 2015 additions of 36,000 RGUs, and a 14%
decline over our Q2 2014 additions of 50,000 RGUs. From a product
perspective, our Q2 additions consisted of 13,000 video, 26,000
broadband and 4,000 telephony RGUs. As compared to the prior-year
quarter, we delivered slightly higher net adds in both video and
broadband, as we continue to capitalize on our speed leadership and
high-value bundles in both markets. In video, VTR gained 15,000
subscribers in the quarter, its best quarterly result in two years. This
compares favorably to a loss of 5,000 in Q1 2015 and a gain of 9,000 in
Q2 2014. A key driver behind this improved performance was the February
launch of the “Vive Más” bundles and an expanded HD line-up. In Chile,
we had a slight decline in telephony RGUs during Q2, which compares to a
gain of 11,000 in Q2 2014, with the strong prior year performance
supported by promotions that are no longer in effect.
In addition to our triple-play business, VTR added 12,000 mobile
subscribers during Q2, increasing our total number of subscribers at
quarter end to 129,000. At June 30, 2015, 90% of our mobile base
subscribed to a postpaid product in Chile.
Revenue - LiLAC Group
For the operations attributed to the LiLAC Group, our reported revenue
increased 2% to $311 million and declined 1% to $599 million for the
three and six months ended June 30, 2015, respectively, as compared to
the corresponding prior-year periods. The comparison for the three-month
period was positively impacted by organic revenue growth and our
acquisition of Choice in Puerto Rico, partially offset by the negative
impact of FX movements related to an 11% weakening of the Chilean peso
against the U.S. dollar. Similarly, our six-month result was positively
impacted by organic revenue growth and the Choice acquisition, but was
more than offset by a 12% decline in the Chilean peso against the U.S.
dollar. When adjusting for acquisitions and FX, the operations
attributed to the LiLAC Group achieved year-over-year rebased revenue
growth of 7% in Q2 and 6% for the year-to-date period.
VTR posted rebased revenue growth of 7% and 6% for the three and six
months ended June 30, 2015, respectively. These increases were primarily
attributable to increases in (i) cable subscription revenue, driven by
growth in subscribers and an increase in ARPU, and (ii) mobile
subscription revenue, due to growth in overall subscribers and higher
mobile ARPU resulting from an increase in the proportion of postpaid
subscribers. The revenue increase during the six-month period included a
Q1 adjustment to reflect the retroactive application of lower proposed
tariffs on ancillary services and fixed-line termination rates, which
reduced our Q1 revenue by $3.5 million.
Turning to our Puerto Rican operation, we delivered rebased revenue
growth of 8% in Q2 and 7% for the year-to-date period. In particular,
our second quarter results reflect the positive contribution of 45,000
net subscriber additions over the last twelve months.
Operating Cash Flow - LiLAC Group
Reported OCF for the LiLAC Group increased 8% to $128 million in Q2 2015
and 3% to $236 million for the six months ended 2015, as compared to the
corresponding prior-year periods. These increases, which would have been
higher if not for the FX headwinds related to the Chilean peso (as noted
above), are driven by organic growth and the inclusion of Choice's
results for one month. On a rebased basis, we delivered 13% and 10% OCF
growth for the LiLAC Group for the three and six months ended June 30,
2015, respectively.
VTR, which represents approximately 70% of the LiLAC Group's segment
OCF, posted rebased OCF growth of 14% in Q2 and 9% YTD, while Liberty
Puerto Rico generated rebased OCF growth of 12% in Q2 and 13% YTD. OCF
growth for each business was largely due to the aforementioned revenue
growth drivers and improved operational leverage. VTR's rebased OCF
growth for both the Q2 and H1 periods was adversely affected by the
negative FX impacts of approximately $2 million and $4 million,
respectively, related to programming and other expenses denominated in
U.S. dollars.
From an OCF margin perspective, the LiLAC Group's margin increased 240
basis points to 41.0% in Q2 and 150 basis points to 39.4% in H1 2015,
supported by year-over-year improvements in operational leverage in both
countries.
Property and Equipment Additions - LiLAC Group
For the three months ended June 30, 2015, the operations attributed to
the LiLAC Group reported P&E additions of $70 million or 22.4% of
revenue as compared to $76 million or 24.6% of revenue in Q2 2014. For
the YTD period, such operations incurred P&E additions of $126 million
or 21.0% of revenue during 2015 as compared to $135 million or 22.2% of
revenue for the corresponding prior-year period. The declines in our P&E
additions in absolute terms were due in part to the negative impact of
the Chilean peso FX movements noted above. In terms of a breakdown of
our YTD 2015 spend, 62% was related to CPE and scalable infrastructure,
26% was related to line extensions and upgrade/rebuild activity and 12%
was related to support capital, including IT upgrades and general
support systems.
Free Cash Flow - LiLAC Group
For the three and six months ended June 30, 2015, the operations
attributed to the LiLAC Group generated FCF of $54 million and $28
million, respectively, as compared to $9 million and $63 million,
respectively, in the corresponding prior-year periods. The improvement
in Q2 2015 can be attributed to positive movements in trade working
capital and OCF growth. In the YTD period, the negative variance was
primarily due to higher interest payments, partially offset by positive
movements in trade working capital. The lower FCF on a YTD basis as
compared to the prior-year period was directly attributable to interest
and related derivative payments of approximately $67 million in January
2015 on the $1.4 billion in bonds at VTR Finance B.V., as similar
payments were not required to be made in the corresponding prior year
period.
Leverage, Liquidity & Shares Outstanding - LiLAC Group
At June 30, 2015, we had total debt attributed to the LiLAC
Group of $2.3 billion and cash and cash equivalents of $233 million. As
compared to March 31, 2015, the carrying value of our debt attributed to
the LiLAC Group increased by $261 million, reflecting the impact of
incremental borrowings in Puerto Rico to fund the Choice acquisition.
The cash balance attributed to the LiLAC Group increased by $153 million
in the quarter, reflecting the contribution of $100 million of cash by
an entity attributed to the Liberty Global Group, as well as recent cash
flow generation at each of VTR and Liberty Puerto Rico.
Giving pro forma effect to the OCF impact of the Choice transaction, the
LiLAC Group ended Q2 2015 with adjusted gross and net leverage ratios of
3.9x and 3.5x, respectively. These ratios take into account the impact
of a cross-currency derivative that synthetically swaps VTR Finance
B.V.'s $1.4 billion debt into CLP 760.3 billion. At June 30, 2015, our
net leverage ratio in Chile was 3.5x and our pro forma net leverage
ratio in Puerto Rico was 4.8x. At June 30, 2015, the average tenor of
our third-party debt attributed to the LiLAC Group was nearly eight
years, none of which is due prior to 2022, and the blended fully-swapped
borrowing cost of such debt was 8.7%.
At July 29, 2015, we had 44 million LiLAC shares outstanding, including
13 million Class A ordinary shares, 0.5 million Class B ordinary shares
and 31 million Class C ordinary shares.
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 operations, strategies, future growth
prospects and opportunities (in particular with respect to upselling and
bundling of products) and measures to improve the performance of certain
of our operating companies; our expected revenue, OCF and FCF growth;
subscriber and RGU growth, including our expectations for organic
subscriber additions in 2015; our expectations with respect to the
impact of the Liberty 3.0 program on our results of operations and
growth prospects; the development and expansion of our superior network
and innovative products and services, including commencement of
EuroDocsis 3.1 testing; future M&A opportunities; our mobile and
wireless strategy, including anticipated 4G launches; our share
repurchase program; the strength of our balance sheet and tenor of our
third-party debt; our expectations with respect to Project Lightning;
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
or to pass through increased costs to our subscribers; the effects of
changes in laws or regulation; general economic factors; 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 suppliers and vendors
(including our third-party wireless network providers under our MVNO
arrangements) to timely deliver quality products, equipment, software,
services and access; our ability to adequately forecast and plan future
network requirements including the costs and benefits associated with
network expansions like Project Lightning; and other factors detailed
from time to time in our filings with the Securities and Exchange
Commission, including the most recently filed Forms 10-K 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. We connect people to the digital world and
enable them to discover and experience its endless possibilities. Our
market-leading products are provided through next-generation networks
and innovative technology platforms that connected 27 million customers
subscribing to 56 million television, broadband internet and telephony
services at June 30, 2015. In addition, we served five million mobile
subscribers and offered WiFi service across six million access points.
Liberty Global’s businesses are currently attributed to two tracking
stock groups: the Liberty Global Group (NASDAQ: LBTYA, LBTYB and LBTYK),
which primarily comprises our European operations, and the LiLAC Group
(NASDAQ: LILA and LILAK, OTC Link: LILAB), which comprises our
operations in Latin America and the Caribbean.
Liberty Global's consumer brands are Virgin Media, Ziggo, Unitymedia,
Telenet, UPC, VTR and Liberty. Our operations also include Liberty
Global Business Services and Liberty Global Ventures. For more
information, please visit www.libertyglobal.com.
_______________________________________
|
1
|
|
We sold substantially all of our legacy content business on
January 31, 2014 (the "Chellomedia Sale"). Accordingly, we have
presented the disposed business as a discontinued operation for
the six months ended June 30, 2014.
|
|
2
|
|
On July 1, 2015, Liberty Global completed the "LiLAC
Transaction" pursuant to which each holder of Liberty Global’s
then-outstanding ordinary shares remained a holder of the same
amount and class of Liberty Global ordinary shares and received
one share of the corresponding class of LiLAC ordinary shares for
each 20 then-outstanding Liberty Global ordinary shares held as of
the record date for such distribution, with cash issued in lieu of
fractional LiLAC ordinary shares. The Liberty Global ordinary
shares following the LiLAC Transaction and the LiLAC Ordinary
Shares are tracking shares. Tracking shares are intended by the
issuing company to reflect or “track” the economic performance of
a particular business or “group,” rather than the economic
performance of the company as a whole. The Liberty Global Ordinary
Shares and the LiLAC Ordinary Shares are intended to reflect or
“track” the economic performance of the Liberty Global Group and
the LiLAC Group, respectively (each as defined and described
below). For more information regarding the tracking shares, see
note 1 to our condensed consolidated financial statements included
in our quarterly report on Form 10-Q filed August 4, 2015 (the
"10-Q").
|
|
3
|
|
Please see page 25 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.
|
|
4
|
|
Please see page 13 for information on rebased growth.
|
|
5
|
|
Please see page 16 for our Operating Cash Flow ("OCF")
definition and the required reconciliation.
|
|
6
|
|
Please see page 19 for information on Free Cash Flow (“FCF”)
and the required reconciliations.
|
|
7
|
|
“Liberty Global Group” does not represent a separate legal
entity, rather it represents those businesses, assets and
liabilities that have been attributed to that group. The Liberty
Global Group comprises our businesses, assets and liabilities not
attributed to the LiLAC Group, including Virgin Media, Unitymedia,
UPC Holding BV ("UPC Holding"), Telenet and Ziggo Group Holding.
|
|
8
|
|
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 is measured using swapped foreign
currency rates, consistent with the covenant calculation
requirements of our subsidiary debt agreements, and, in the case
of the Liberty Global Group, excludes the loans backed by the
shares we hold in Sumitomo Corp. and ITV plc.
|
|
9
|
|
Liquidity refers to cash and cash equivalents plus the
maximum undrawn commitments under subsidiary borrowing facilities,
without regard to covenant compliance calculations.
|
|
10
|
|
“LiLAC Group” does not represent a separate legal entity,
rather it represents those businesses, assets and liabilities that
have been attributed to that group. The LiLAC Group comprises our
operations in Latin America and the Caribbean and has attributed
to it VTR and Liberty Puerto Rico.
|
|
11
|
|
Total B2B includes subscription (SOHO) and non-subscription
revenue. Non-subscription revenue includes the amortization of
deferred upfront installation fees and deferred non-recurring fees
received on B2B contracts where we maintain ownership of the
installed equipment. Most of this deferred revenue relates to
Virgin Media's B2B contracts, and in connection with the
application of the Virgin Media acquisition accounting, we
eliminated all of Virgin Media's B2B deferred revenue as of the
June 7, 2013 acquisition date. Due primarily to this acquisition
accounting, the amortization of Virgin Media's deferred revenue is
accounting for $6 million and $13 million of the rebased increases
in Liberty Global Group's total B2B revenue for the three and six
months ended June 30, 2015, respectively.
|
|
12
|
|
Enhanced video penetration is calculated by dividing the
number of enhanced video RGUs by the total number of basic and
enhanced video RGUs.
|
|
13
|
|
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.
|
|
14
|
|
In November 2014, Virgin Media introduced a new mobile
program in the U.K. whereby customers can elect to purchase a
mobile handset pursuant to a contract that is independent of a
mobile airtime services contract (the "Freestyle" mobile
proposition). Under Freestyle contractual agreements, we generally
recognize the full sales price for the mobile handset upon
delivery as a component of other revenue, regardless of whether
the sales price is received upfront or in installments. Revenue
associated with the airtime services is recognized as mobile
subscription revenue over the contractual term of the airtime
services contract. Prior to the launch of Freestyle contracts in
November 2014, handsets were generally provided to customers on a
subsidized basis. As a result, revenue associated with the handset
was only recognized upfront to the extent of cash collected at the
time of sale, and the monthly amounts collected for both the
handset and airtime were included in mobile subscription revenue
over the term of the contract. Handset costs associated with
Freestyle handset revenue are expensed at the point of sale.
|
|
15
|
|
Liberty Global Group's 15% rebased mobile revenue growth for
each of the Q2 and H1 2015 periods includes the positive impact of
our Freestyle mobile promotion in the U.K., as further described
in footnote 14. Excluding the impact of mobile handset revenue
(which includes a $31 million and $52 million benefit from our
Freestyle mobile promotion in Q2 and H1 2015, respectively), our
rebased mobile revenue growth would have been 3% and 5%,
respectively.
|
|
16
|
|
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 mobile services, B2B services, interconnect, channel
carriage fees, mobile handset sales and installation fees) 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 Group and LiLAC Group are not
adjusted for currency impacts.
|
|
17
|
|
OCF margin is calculated by dividing OCF by total revenue for
the applicable period.
|
|
18
|
|
Our property and equipment additions include our capital
expenditures on an accrual basis and amounts financed under vendor
financing or capital lease arrangements.
|
|
19
|
|
Total debt includes capital lease obligations.
|
|
20
|
|
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.
|
|
21
|
|
Our aggregate unused borrowing capacity of $3.9 billion
represents the maximum undrawn commitments under our subsidiaries'
applicable facilities without regard to covenant compliance
calculations. This consists of $3.6 billion attributed to the
Liberty Global Group and $234 million attributed to LiLAC Group.
Upon completion of the relevant June 30, 2015 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 $3.3 billion. This
consists of $3.1 billion attributed to the Liberty Global Group
and $234 million attributed to the LiLAC Group.
|
|
|
|
|
Balance Sheets, Statements of Operations and Statement of Cash Flows
The condensed consolidated balance sheets, statements of operations and
statements of cash flows of Liberty Global plc are included in our 10-Q.
For attributed financial information of the Liberty Global Group and the
LiLAC Group, see Exhibit 99.1 to our 10-Q.
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 six
months ended June 30, 2015, as compared to the corresponding prior-year
period. 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 and mobile services. For detailed information
regarding the composition of our reportable segments, including
information regarding certain changes to our reportable segments that we
made during the fourth quarter of 2014 and the second quarter of 2015,
see note 14 to our condensed consolidated financial statements included
in our 10-Q.
For purposes of calculating rebased growth rates on a comparable basis
for all businesses that we owned during 2015, we have adjusted our
historical revenue and OCF for the three and six months ended June 30,
2014 to (i) include the pre-acquisition revenue and OCF of certain
entities acquired during 2014 and 2015 in our rebased amounts for the
three and six months ended June 30, 2014 to the same extent that the
revenue and OCF of such entities are included in our results for the
three and six months ended June 30, 2015, (ii) remove intercompany
eliminations for the applicable periods in 2014 to conform to the
presentation during the 2015 periods following the disposal of the
Chellomedia operations, which resulted in previously eliminated
intercompany costs becoming third-party costs, (iii) exclude the
pre-disposition revenue and OCF of "offnet" subscribers in the U.K. that
were disposed in the fourth quarter of 2014 and the first half of 2015
from our rebased amounts for the three and six months ended June 30,
2014 to the same extent that the revenue and OCF of these disposed
subscribers is excluded from our results for the three and six months
ended June 30, 2015, (iv) exclude the revenue and OCF related to a
partner network agreement that was terminated shortly after the Ziggo
acquisition from our rebased amounts for the three and six months ended
June 30, 2014 to the same extent that the revenue and OCF from this
partner network is excluded from our results for the three and six
months ended June 30, 2015 and (v) reflect the translation of our
rebased amounts for the three and six months ended June 30, 2014 at the
applicable average foreign currency exchange rates that were used to
translate our results for the three and six months ended June 30, 2015.
We have included Ziggo, Choice and two small entities in whole or in
part in the determination of our rebased revenue and OCF for the three
months ended June 30, 2014. We have included Ziggo, Choice and three
small entities in whole or in part in the determination of our rebased
revenue and OCF for the six months ended June 30, 2014. We have
reflected the revenue and OCF of the acquired entities in our 2014
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 (a) any
significant differences between Generally Accepted Accounting Principles
in the United States (“GAAP”) and local generally accepted accounting
principles, (b) any significant effects of acquisition accounting
adjustments, (c) any significant differences between our accounting
policies and those of the acquired entities and (d) other items we deem
appropriate. We do not adjust pre-acquisition periods to eliminate
non-recurring 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
|
|
|
|
June 30,
|
|
(decrease)
|
|
(decrease)
|
|
Revenue
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Operations Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
$
|
1,759.6
|
|
|
$
|
1,896.7
|
|
|
$
|
(137.1
|
)
|
|
(7.2
|
)
|
|
3.4
|
|
|
The Netherlands
|
|
683.9
|
|
|
316.3
|
|
|
367.6
|
|
|
116.2
|
|
|
(2.2
|
)
|
|
Germany
|
|
591.0
|
|
|
688.8
|
|
|
(97.8
|
)
|
|
(14.2
|
)
|
|
6.3
|
|
|
Belgium
|
|
500.3
|
|
|
582.4
|
|
|
(82.1
|
)
|
|
(14.1
|
)
|
|
6.4
|
|
|
Switzerland/Austria
|
|
448.8
|
|
|
476.7
|
|
|
(27.9
|
)
|
|
(5.9
|
)
|
|
2.8
|
|
|
Total Western Europe
|
|
3,983.6
|
|
|
3,960.9
|
|
|
22.7
|
|
|
0.6
|
|
|
3.1
|
|
|
Central and Eastern Europe
|
|
267.2
|
|
|
324.5
|
|
|
(57.3
|
)
|
|
(17.7
|
)
|
|
1.4
|
|
|
Central and other
|
|
(1.0
|
)
|
|
(1.2
|
)
|
|
0.2
|
|
|
N.M.
|
|
|
*
|
|
|
Total European Operations Division
|
|
4,249.8
|
|
|
4,284.2
|
|
|
(34.4
|
)
|
|
(0.8
|
)
|
|
3.0
|
|
|
Corporate and other
|
|
12.8
|
|
|
17.6
|
|
|
(4.8
|
)
|
|
(27.3
|
)
|
|
*
|
|
|
Intersegment eliminations
|
|
(7.5
|
)
|
|
(6.0
|
)
|
|
(1.5
|
)
|
|
N.M.
|
|
|
*
|
|
|
Total Liberty Global Group
|
|
4,255.1
|
|
|
4,295.8
|
|
|
(40.7
|
)
|
|
(0.9
|
)
|
|
3.0
|
|
|
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
220.8
|
|
|
229.8
|
|
|
(9.0
|
)
|
|
(3.9
|
)
|
|
7.1
|
|
|
Puerto Rico
|
|
90.6
|
|
|
76.6
|
|
|
14.0
|
|
|
18.3
|
|
|
7.9
|
|
|
Total LiLAC Group
|
|
311.4
|
|
|
306.4
|
|
|
5.0
|
|
|
1.6
|
|
|
7.3
|
|
|
Total
|
|
$
|
4,566.5
|
|
|
$
|
4,602.2
|
|
|
$
|
(35.7
|
)
|
|
(0.8
|
)
|
|
3.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - Omitted; N.M. - Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
|
Increase
|
|
Increase
|
|
|
|
June 30,
|
|
(decrease)
|
|
(decrease)
|
|
Revenue
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Operations Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
$
|
3,471.0
|
|
|
$
|
3,744.2
|
|
|
$
|
(273.2
|
)
|
|
(7.3
|
)
|
|
2.9
|
|
|
The Netherlands
|
|
1,391.3
|
|
|
634.4
|
|
|
756.9
|
|
|
119.3
|
|
|
(0.8
|
)
|
|
Germany
|
|
1,188.9
|
|
|
1,384.7
|
|
|
(195.8
|
)
|
|
(14.1
|
)
|
|
5.4
|
|
|
Belgium
|
|
1,003.0
|
|
|
1,156.6
|
|
|
(153.6
|
)
|
|
(13.3
|
)
|
|
6.5
|
|
|
Switzerland/Austria
|
|
888.1
|
|
|
940.5
|
|
|
(52.4
|
)
|
|
(5.6
|
)
|
|
3.3
|
|
|
Total Western Europe
|
|
7,942.3
|
|
|
7,860.4
|
|
|
81.9
|
|
|
1.0
|
|
|
3.1
|
|
|
Central and Eastern Europe
|
|
535.4
|
|
|
648.4
|
|
|
(113.0
|
)
|
|
(17.4
|
)
|
|
1.1
|
|
|
Central and other
|
|
(3.8
|
)
|
|
(2.0
|
)
|
|
(1.8
|
)
|
|
N.M.
|
|
|
*
|
|
|
Total European Operations Division
|
|
8,473.9
|
|
|
8,506.8
|
|
|
(32.9
|
)
|
|
(0.4
|
)
|
|
3.0
|
|
|
Corporate and other
|
|
25.6
|
|
|
36.0
|
|
|
(10.4
|
)
|
|
(28.9
|
)
|
|
*
|
|
|
Intersegment eliminations
|
|
(15.3
|
)
|
|
(13.2
|
)
|
|
(2.1
|
)
|
|
N.M.
|
|
|
*
|
|
|
Total Liberty Global Group
|
|
8,484.2
|
|
|
8,529.6
|
|
|
(45.4
|
)
|
|
(0.5
|
)
|
|
2.9
|
|
|
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
429.6
|
|
|
455.1
|
|
|
(25.5
|
)
|
|
(5.6
|
)
|
|
6.0
|
|
|
Puerto Rico
|
|
169.6
|
|
|
151.3
|
|
|
18.3
|
|
|
12.1
|
|
|
6.9
|
|
|
Total LiLAC Group
|
|
599.2
|
|
|
606.4
|
|
|
(7.2
|
)
|
|
(1.2
|
)
|
|
6.2
|
|
|
Inter-group eliminations
|
|
—
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
N.M.
|
|
|
*
|
|
|
Total
|
|
$
|
9,083.4
|
|
|
$
|
9,135.9
|
|
|
$
|
(52.5
|
)
|
|
(0.6
|
)
|
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - Omitted; N.M. - Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Increase
|
|
Increase
|
|
|
|
June 30,
|
|
(decrease)
|
|
(decrease)
|
|
OCF
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Operations Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
$
|
805.6
|
|
|
$
|
829.5
|
|
|
$
|
(23.9
|
)
|
|
(2.9
|
)
|
|
7.7
|
|
|
The Netherlands
|
|
371.0
|
|
|
185.1
|
|
|
185.9
|
|
|
100.4
|
|
|
(4.9
|
)
|
|
Germany
|
|
366.9
|
|
|
431.0
|
|
|
(64.1
|
)
|
|
(14.9
|
)
|
|
5.4
|
|
|
Belgium
|
|
260.8
|
|
|
287.9
|
|
|
(27.1
|
)
|
|
(9.4
|
)
|
|
12.2
|
|
|
Switzerland/Austria
|
|
259.7
|
|
|
277.4
|
|
|
(17.7
|
)
|
|
(6.4
|
)
|
|
1.8
|
|
|
Total Western Europe
|
|
2,064.0
|
|
|
2,010.9
|
|
|
53.1
|
|
|
2.6
|
|
|
4.6
|
|
|
Central and Eastern Europe
|
|
118.4
|
|
|
147.2
|
|
|
(28.8
|
)
|
|
(19.6
|
)
|
|
(0.8
|
)
|
|
Central and other
|
|
(72.7
|
)
|
|
(71.9
|
)
|
|
(0.8
|
)
|
|
N.M.
|
|
|
*
|
|
|
Total European Operations Division
|
|
2,109.7
|
|
|
2,086.2
|
|
|
23.5
|
|
|
1.1
|
|
|
3.7
|
|
|
Corporate and other
|
|
(52.3
|
)
|
|
(59.6
|
)
|
|
7.3
|
|
|
12.2
|
|
|
*
|
|
|
Total Liberty Global Group
|
|
2,057.4
|
|
|
2,026.6
|
|
|
30.8
|
|
|
1.5
|
|
|
3.9
|
|
|
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
87.6
|
|
|
85.8
|
|
|
1.8
|
|
|
2.1
|
|
|
13.9
|
|
|
Puerto Rico
|
|
40.8
|
|
|
33.4
|
|
|
7.4
|
|
|
22.2
|
|
|
11.5
|
|
|
Total LiLAC Division
|
|
128.4
|
|
|
119.2
|
|
|
9.2
|
|
|
7.7
|
|
|
13.1
|
|
|
Corporate and other
|
|
(0.8
|
)
|
|
(0.9
|
)
|
|
0.1
|
|
|
N.M.
|
|
|
*
|
|
|
Total LiLAC Group
|
|
127.6
|
|
|
118.3
|
|
|
9.3
|
|
|
7.9
|
|
|
13.3
|
|
|
Total
|
|
$
|
2,185.0
|
|
|
$
|
2,144.9
|
|
|
$
|
40.1
|
|
|
1.9
|
|
|
4.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - Omitted; N.M. - Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
|
Increase
|
|
Increase
|
|
|
|
June 30,
|
|
(decrease)
|
|
(decrease)
|
|
OCF
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Operations Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
$
|
1,568.9
|
|
|
$
|
1,621.1
|
|
|
$
|
(52.2
|
)
|
|
(3.2
|
)
|
|
7.1
|
|
|
The Netherlands
|
|
738.9
|
|
|
368.4
|
|
|
370.5
|
|
|
100.6
|
|
|
(4.3
|
)
|
|
Germany
|
|
730.9
|
|
|
860.0
|
|
|
(129.1
|
)
|
|
(15.0
|
)
|
|
4.4
|
|
|
Belgium
|
|
507.8
|
|
|
590.0
|
|
|
(82.2
|
)
|
|
(13.9
|
)
|
|
5.8
|
|
|
Switzerland/Austria
|
|
508.5
|
|
|
541.8
|
|
|
(33.3
|
)
|
|
(6.1
|
)
|
|
2.2
|
|
|
Total Western Europe
|
|
4,055.0
|
|
|
3,981.3
|
|
|
73.7
|
|
|
1.9
|
|
|
3.6
|
|
|
Central and Eastern Europe
|
|
236.5
|
|
|
305.4
|
|
|
(68.9
|
)
|
|
(22.6
|
)
|
|
(5.1
|
)
|
|
Central and other
|
|
(140.6
|
)
|
|
(142.8
|
)
|
|
2.2
|
|
|
N.M.
|
|
|
*
|
|
|
Total European Operations Division
|
|
4,150.9
|
|
|
4,143.9
|
|
|
7.0
|
|
|
0.2
|
|
|
2.6
|
|
|
Corporate and other
|
|
(104.4
|
)
|
|
(105.1
|
)
|
|
0.7
|
|
|
0.7
|
|
|
*
|
|
|
Intersegment eliminations
|
|
—
|
|
|
4.0
|
|
|
(4.0
|
)
|
|
N.M.
|
|
|
*
|
|
|
Total Liberty Global Group
|
|
4,046.5
|
|
|
4,042.8
|
|
|
3.7
|
|
|
0.1
|
|
|
2.4
|
|
|
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
163.6
|
|
|
168.5
|
|
|
(4.9
|
)
|
|
(2.9
|
)
|
|
8.9
|
|
|
Puerto Rico
|
|
74.3
|
|
|
62.7
|
|
|
11.6
|
|
|
18.5
|
|
|
12.7
|
|
|
Total LiLAC Division
|
|
237.9
|
|
|
231.2
|
|
|
6.7
|
|
|
2.9
|
|
|
10.1
|
|
|
Corporate and other
|
|
(2.1
|
)
|
|
(1.6
|
)
|
|
(0.5
|
)
|
|
N.M.
|
|
|
*
|
|
|
Total LiLAC Group
|
|
235.8
|
|
|
229.6
|
|
|
6.2
|
|
|
2.7
|
|
|
9.9
|
|
|
Total
|
|
$
|
4,282.3
|
|
|
$
|
4,272.4
|
|
|
$
|
9.9
|
|
|
0.2
|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - Omitted; N.M. - Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow Definition and Reconciliation
As used herein, OCF has the same meaning as the term "Adjusted OIBDA"
that is referenced in our 10-Q. 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 operating income before depreciation and amortization,
share-based compensation, 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 OCF 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 OCF 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 or 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
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
in millions
|
|
Total segment operating cash flow
|
|
$
|
2,185.0
|
|
|
$
|
2,144.9
|
|
|
$
|
4,282.3
|
|
|
$
|
4,272.4
|
|
|
Share-based compensation expense
|
|
(56.6
|
)
|
|
(54.4
|
)
|
|
(128.0
|
)
|
|
(109.5
|
)
|
|
Depreciation and amortization
|
|
(1,477.8
|
)
|
|
(1,393.4
|
)
|
|
(2,929.2
|
)
|
|
(2,770.5
|
)
|
|
Impairment, restructuring and other operating items, net
|
|
(25.7
|
)
|
|
(27.6
|
)
|
|
(42.7
|
)
|
|
(141.2
|
)
|
|
Operating income
|
|
$
|
624.9
|
|
|
$
|
669.5
|
|
|
$
|
1,182.4
|
|
|
$
|
1,251.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
Debt & Capital
|
|
Cash
|
|
|
|
|
|
Lease
|
|
Lease
|
|
and Cash
|
|
|
|
Debt2
|
|
Obligations
|
|
Obligations
|
|
Equivalents
|
|
|
|
in millions
|
|
Liberty Global and Liberty Global Group
unrestricted
subsidiaries
|
|
$
|
1,567.1
|
|
|
$
|
66.4
|
|
|
$
|
1,633.5
|
|
|
$
|
253.3
|
|
Virgin Media3
|
|
14,536.5
|
|
|
215.6
|
|
|
14,752.1
|
|
|
29.9
|
|
UPC Holding
|
|
6,559.7
|
|
|
27.5
|
|
|
6,587.2
|
|
|
30.3
|
|
Unitymedia
|
|
7,581.8
|
|
|
734.4
|
|
|
8,316.2
|
|
|
3.5
|
|
Ziggo Group Holding
|
|
8,269.3
|
|
|
0.2
|
|
|
8,269.5
|
|
|
11.0
|
|
Telenet
|
|
3,777.3
|
|
|
383.8
|
|
|
4,161.1
|
|
|
258.6
|
|
Total Liberty Global Group
|
|
42,291.7
|
|
|
1,427.9
|
|
|
43,719.6
|
|
|
586.6
|
|
LiLAC Group unrestricted subsidiaries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100.0
|
|
VTR Finance
|
|
1,400.0
|
|
|
0.4
|
|
|
1,400.4
|
|
|
95.0
|
|
Liberty Puerto Rico
|
|
933.2
|
|
|
0.8
|
|
|
934.0
|
|
|
37.9
|
|
Total LiLAC Group
|
|
2,333.2
|
|
|
1.2
|
|
|
2,334.4
|
|
|
232.9
|
|
Total
|
|
$
|
44,624.9
|
|
|
$
|
1,429.1
|
|
|
$
|
46,054.0
|
|
|
$
|
819.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and Equipment Additions and Capital Expenditures
The tables below highlight the categories of the property and equipment
additions attributed to the Liberty Global Group and the LiLAC Group for
the indicated periods and reconciles those additions to the capital
expenditures that are presented in the attributed statements of cash
flows included in Exhibit 99.1 to our 10-Q:
Liberty Global Group
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
in millions, except % amounts
|
|
Customer premises equipment
|
|
$
|
283.3
|
|
|
$
|
308.9
|
|
|
$
|
551.6
|
|
|
$
|
623.3
|
|
|
Scalable infrastructure
|
|
181.1
|
|
|
166.5
|
|
|
328.0
|
|
|
328.9
|
|
|
Line extensions
|
|
106.5
|
|
|
85.6
|
|
|
200.5
|
|
|
180.8
|
|
|
Upgrade/rebuild
|
|
129.2
|
|
|
129.5
|
|
|
248.5
|
|
|
260.6
|
|
|
Support capital & other
|
|
270.7
|
|
|
204.8
|
|
|
511.0
|
|
|
352.9
|
|
|
Property and equipment additions
|
|
970.8
|
|
|
895.3
|
|
|
1,839.6
|
|
|
1,746.5
|
|
|
Assets acquired under capital-related vendor financing arrangements
|
|
(380.9
|
)
|
|
(231.3
|
)
|
|
(675.9
|
)
|
|
(401.8
|
)
|
|
Assets acquired under capital leases
|
|
(12.5
|
)
|
|
(40.8
|
)
|
|
(74.5
|
)
|
|
(89.8
|
)
|
|
Changes in current liabilities related to capital expenditures
|
|
(37.8
|
)
|
|
(23.7
|
)
|
|
61.8
|
|
|
39.5
|
|
|
Capital expenditures4
|
|
$
|
539.6
|
|
|
$
|
599.5
|
|
|
$
|
1,151.0
|
|
|
$
|
1,294.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment additions as % of revenue
|
|
22.8
|
%
|
|
20.8
|
%
|
|
21.7
|
%
|
|
20.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
in millions, except % amounts
|
|
Customer premises equipment
|
|
|
|
$
|
31.8
|
|
|
$
|
36.9
|
|
|
$
|
61.2
|
|
|
$
|
62.2
|
|
|
Scalable infrastructure
|
|
|
|
11.0
|
|
|
8.9
|
|
|
16.8
|
|
|
16.3
|
|
|
Line extensions
|
|
|
|
17.9
|
|
|
12.3
|
|
|
31.5
|
|
|
30.3
|
|
|
Upgrade/rebuild
|
|
|
|
0.5
|
|
|
6.0
|
|
|
1.0
|
|
|
7.8
|
|
|
Support capital & other
|
|
|
|
8.6
|
|
|
11.4
|
|
|
15.4
|
|
|
17.9
|
|
|
Property and equipment additions
|
|
|
|
69.8
|
|
|
75.5
|
|
|
125.9
|
|
|
134.5
|
|
|
Changes in current liabilities related to capital expenditures
|
|
|
|
(8.2
|
)
|
|
(8.0
|
)
|
|
(14.5
|
)
|
|
(26.9
|
)
|
|
Capital expenditures4
|
|
|
|
$
|
61.6
|
|
|
$
|
67.5
|
|
|
$
|
111.4
|
|
|
$
|
107.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment additions as % of revenue
|
|
|
|
22.4
|
%
|
|
24.6
|
%
|
|
21.0
|
%
|
|
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, Ziggo Group Holding and Telenet
include notes issued by special purpose entities that are
consolidated by each.
|
|
3
|
|
The Virgin Media borrowing group includes certain
subsidiaries of 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 $0.7
million of cash and cash equivalents held by Virgin Media. This
amount is included in the amount shown for Liberty Global and
Liberty Global Group 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 Liberty
Global Group unrestricted subsidiaries.
|
|
4
|
|
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 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, (ii) cash payments for third-party costs
directly associated with successful and unsuccessful acquisitions and
dispositions and (iii) expenses financed by an intermediary, less (a)
capital expenditures, as reported in our condensed consolidated
statements of cash flows, (b) principal payments on amounts financed by
vendors and intermediaries 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 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 condensed consolidated statements of cash flows. The
following table provides the reconciliation of our continuing
operations' net cash provided by operating activities to FCF for the
indicated periods:
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
in millions
|
|
Consolidated Liberty Global
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities of our continuing
operations
|
|
$
|
1,311.9
|
|
|
$
|
1,596.3
|
|
|
$
|
2,685.8
|
|
|
$
|
2,916.7
|
|
|
Increases (decreases) in excess tax benefits from share-based
compensation5
|
|
(2.1
|
)
|
|
—
|
|
|
17.9
|
|
|
—
|
|
|
Cash payments for direct acquisition and disposition costs6
|
|
231.2
|
|
|
9.2
|
|
|
238.8
|
|
|
20.4
|
|
|
Expenses financed by an intermediary7
|
|
42.6
|
|
|
7.4
|
|
|
51.7
|
|
|
14.3
|
|
|
Capital expenditures
|
|
(601.2
|
)
|
|
(667.0
|
)
|
|
(1,262.4
|
)
|
|
(1,402.0
|
)
|
|
Principal payments on amounts financed by vendors and intermediaries
|
|
(350.4
|
)
|
|
(178.6
|
)
|
|
(732.1
|
)
|
|
(399.4
|
)
|
|
Principal payments on certain capital leases
|
|
(39.7
|
)
|
|
(50.8
|
)
|
|
(77.4
|
)
|
|
(97.2
|
)
|
|
FCF
|
|
$
|
592.3
|
|
|
$
|
716.5
|
|
|
$
|
922.3
|
|
|
$
|
1,052.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities of our continuing
operations
|
|
$
|
1,198.2
|
|
|
$
|
1,519.4
|
|
|
$
|
2,552.1
|
|
|
$
|
2,746.6
|
|
|
Increases (decreases) in excess tax benefits from share-based
compensation
|
|
(0.8
|
)
|
|
—
|
|
|
16.0
|
|
|
—
|
|
|
Cash payments for direct acquisition and disposition costs
|
|
228.2
|
|
|
9.1
|
|
|
234.8
|
|
|
20.0
|
|
|
Expenses financed by an intermediary
|
|
42.6
|
|
|
7.4
|
|
|
51.7
|
|
|
14.3
|
|
|
Capital expenditures
|
|
(539.6
|
)
|
|
(599.5
|
)
|
|
(1,151.0
|
)
|
|
(1,294.4
|
)
|
|
Principal payments on amounts financed by vendors and intermediaries
|
|
(350.4
|
)
|
|
(178.6
|
)
|
|
(732.1
|
)
|
|
(399.4
|
)
|
|
Principal payments on certain capital leases
|
|
(39.6
|
)
|
|
(50.5
|
)
|
|
(77.2
|
)
|
|
(96.8
|
)
|
|
FCF
|
|
$
|
538.6
|
|
|
$
|
707.3
|
|
|
$
|
894.3
|
|
|
$
|
990.3
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities of our continuing
operations
|
|
$
|
113.7
|
|
|
$
|
76.9
|
|
|
$
|
133.7
|
|
|
$
|
170.1
|
|
|
Increases (decreases) in excess tax benefits from share-based
compensation
|
|
(1.3
|
)
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
Cash payments for direct acquisition and disposition costs
|
|
3.0
|
|
|
0.1
|
|
|
4.0
|
|
|
0.4
|
|
|
Capital expenditures
|
|
(61.6
|
)
|
|
(67.5
|
)
|
|
(111.4
|
)
|
|
(107.6
|
)
|
|
Principal payments on certain capital leases
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
(0.4
|
)
|
|
FCF
|
|
$
|
53.7
|
|
|
$
|
9.2
|
|
|
$
|
28.0
|
|
|
$
|
62.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________
|
5
|
|
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 condensed consolidated statements of cash flows.
|
|
6
|
|
Represents costs paid during the period to third parties
directly related to acquisitions and dispositions.
|
|
7
|
|
For purposes of our condensed consolidated statements of cash
flows, expenses financed by an intermediary are treated as
hypothetical operating cash outflows and hypothetical financing
cash inflows when the expenses are incurred. When we pay the
financing intermediary, we record financing cash outflows in our
condensed consolidated statements of cash flows. For purposes of
our free cash flow definition, we add back the hypothetical
operating cash outflow when these financed expenses are incurred
and deduct the financing cash outflows when we pay the financing
intermediary. The inclusion of this adjustment represents a change
in our definition of free cash flow that we implemented effective
January 1, 2015. The free cash flow reported for the 2014 period
has been revised to calculate free cash flow on a basis that is
consistent with the new definition.
|
|
|
|
|
ARPU per Customer Relationship8
The following table provides ARPU per customer relationship for the
indicated periods:
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
|
|
%
|
|
FX-Neutral9
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
% Change
|
|
Liberty Global Consolidated
|
|
$
|
44.91
|
|
|
$
|
49.84
|
|
|
(9.9)
|
%
|
|
4.4
|
%
|
|
Liberty Global Group
|
|
€
|
39.78
|
|
|
€
|
35.76
|
|
|
11.2
|
%
|
|
4.6
|
%
|
|
U.K. & Ireland (Virgin Media)
|
|
£
|
49.49
|
|
|
£
|
49.27
|
|
|
0.4
|
%
|
|
1.4
|
%
|
|
Germany (Unitymedia)
|
|
€
|
22.80
|
|
|
€
|
21.36
|
|
|
6.7
|
%
|
|
6.7
|
%
|
|
Belgium (Telenet)
|
|
€
|
50.43
|
|
|
€
|
48.01
|
|
|
5.0
|
%
|
|
5.0
|
%
|
|
The Netherlands
|
|
€
|
44.52
|
|
|
€
|
43.63
|
|
|
2.0
|
%
|
|
2.0
|
%
|
|
Other Europe
|
|
€
|
27.68
|
|
|
€
|
25.10
|
|
|
10.3
|
%
|
|
2.2
|
%
|
|
LiLAC Group
|
|
$
|
59.52
|
|
|
$
|
62.24
|
|
|
(4.4)
|
%
|
|
3.5
|
%
|
|
Chile (VTR)
|
|
CLP
|
32,682
|
|
|
CLP
|
31,699
|
|
|
3.1
|
%
|
|
3.1
|
%
|
|
Liberty Puerto Rico
|
|
$
|
85.10
|
|
|
$
|
84.75
|
|
|
0.4
|
%
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile Statistics10
The following tables provide ARPU per mobile subscriber11 and
mobile subscribers12 for the indicated periods:
|
|
|
ARPU per Mobile Subscriber
|
|
|
|
Three months ended June 30,
|
|
%
|
|
FX-Neutral
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
% Change
|
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
Including interconnect revenue
|
|
$
|
22.54
|
|
|
$
|
26.72
|
|
|
(15.6)
|
%
|
|
(4.2)
|
%
|
|
Excluding interconnect revenue
|
|
$
|
18.67
|
|
|
$
|
21.67
|
|
|
(13.8)
|
%
|
|
(2.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
Including interconnect revenue
|
|
$
|
27.70
|
|
|
$
|
25.08
|
|
|
10.4
|
%
|
|
23.0
|
%
|
|
Excluding interconnect revenue
|
|
$
|
24.96
|
|
|
$
|
22.24
|
|
|
12.2
|
%
|
|
25.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile Subscribers
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
March 31, 2015
|
|
|
Change
|
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
|
|
|
|
|
3,014,400
|
|
|
|
3,007,300
|
|
|
|
7,100
|
|
|
Belgium
|
|
|
|
|
|
|
953,700
|
|
|
|
924,500
|
|
|
|
29,200
|
|
|
Germany
|
|
|
|
|
|
|
336,300
|
|
|
|
322,700
|
|
|
|
13,600
|
|
|
The Netherlands
|
|
|
|
|
|
|
178,800
|
|
|
|
158,400
|
|
|
|
20,400
|
|
|
Switzerland
|
|
|
|
|
|
|
19,500
|
|
|
|
14,600
|
|
|
|
4,900
|
|
|
Austria
|
|
|
|
|
|
|
4,900
|
|
|
|
500
|
|
|
|
4,400
|
|
|
Total Western Europe
|
|
|
|
|
|
|
4,507,600
|
|
|
|
4,428,000
|
|
|
|
79,600
|
|
|
Hungary
|
|
|
|
|
|
|
20,400
|
|
|
|
15,100
|
|
|
|
5,300
|
|
|
Poland
|
|
|
|
|
|
|
8,600
|
|
|
|
9,400
|
|
|
|
(800
|
)
|
|
Total CEE
|
|
|
|
|
|
|
29,000
|
|
|
|
24,500
|
|
|
|
4,500
|
|
|
Liberty Global Group
|
|
|
|
|
|
|
4,536,600
|
|
|
|
4,452,500
|
|
|
|
84,100
|
|
|
LiLAC Group - Chile
|
|
|
|
|
|
|
129,200
|
|
|
|
117,500
|
|
|
|
11,700
|
|
|
Grand Total
|
|
|
|
|
|
|
4,665,800
|
|
|
|
4,570,000
|
|
|
|
95,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________________________
|
8
|
|
Please see page 11 for the definition of ARPU per customer.
|
|
9
|
|
Please see page 11 for information regarding the FX-Neutral
change in ARPU.
|
|
10
|
|
Please see page 11 for the definition of mobile subscriber.
|
|
11
|
|
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 fees, handset sales 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.
|
|
12
|
|
With the exception of the U.K. and Chile, all of our mobile
subscribers receive mobile services pursuant to postpaid
contracts. As of June 30, 2015 and March 31, 2015, the mobile
subscriber count in the U.K. included 850,500 and 879,100 prepaid
mobile subscribers, respectively, and the mobile subscriber count
in Chile included 13,200 and 12,800 prepaid mobile subscribers,
respectively. In Germany, the Q2 organic increase in our mobile
subscribers of 22,100 was reduced by a non-organic correction of
8,500 subscribers.
|
|
|
|
|
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 June
30, 2015, March 31, 2015 and June 30, 2014: 13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2015
|
|
March 31,
2015
|
|
June 30,
2014
|
|
Q2’15 / Q1’15
(% Change)
|
|
Q2’15 / Q2’14
(% Change)
|
|
Liberty Global Group
|
|
|
|
|
|
|
|
|
|
|
|
Total RGUs
|
|
|
|
|
|
|
|
|
|
|
|
Video RGUs
|
|
22,849,400
|
|
|
22,949,300
|
|
|
20,434,900
|
|
|
(0.4
|
%)
|
|
11.8
|
%
|
|
Broadband Internet RGUs
|
|
16,372,000
|
|
|
16,255,600
|
|
|
13,701,900
|
|
|
0.7
|
%
|
|
19.5
|
%
|
|
Telephony RGUs
|
|
13,650,300
|
|
|
13,551,500
|
|
|
11,568,900
|
|
|
0.7
|
%
|
|
18.0
|
%
|
|
Total Liberty Global Group
|
|
52,871,700
|
|
|
52,756,400
|
|
|
45,705,700
|
|
|
0.2
|
%
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customers
|
|
|
|
|
|
|
|
|
|
|
|
Single-Play Customers
|
|
10,084,900
|
|
|
10,265,000
|
|
|
9,798,700
|
|
|
(1.8
|
%)
|
|
2.9
|
%
|
|
Dual-Play Customers
|
|
4,194,600
|
|
|
4,173,900
|
|
|
3,608,500
|
|
|
0.5
|
%
|
|
16.2
|
%
|
|
Triple-Play Customers
|
|
11,465,900
|
|
|
11,381,200
|
|
|
9,563,300
|
|
|
0.7
|
%
|
|
19.9
|
%
|
|
Total Liberty Global Group
|
|
25,745,400
|
|
|
25,820,100
|
|
|
22,970,500
|
|
|
(0.3
|
%)
|
|
12.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Single-Play Customers
|
|
39.2
|
%
|
|
39.7
|
%
|
|
42.7
|
%
|
|
(1.3
|
%)
|
|
(8.2
|
%)
|
|
% of Dual-Play Customers
|
|
16.3
|
%
|
|
16.2
|
%
|
|
15.7
|
%
|
|
0.6
|
%
|
|
3.8
|
%
|
|
% of Triple-play Customers
|
|
44.5
|
%
|
|
44.1
|
%
|
|
41.6
|
%
|
|
0.9
|
%
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RGUs per customer relationship
|
|
2.05
|
|
|
2.04
|
|
|
1.99
|
|
|
0.5
|
%
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
|
|
|
|
|
|
|
|
|
Total RGUs
|
|
|
|
|
|
|
|
|
|
|
|
Video RGUs
|
|
1,290,700
|
|
|
1,228,800
|
|
|
1,223,300
|
|
|
5.0
|
%
|
|
5.5
|
%
|
|
Broadband Internet RGUs
|
|
1,285,900
|
|
|
1,168,900
|
|
|
1,120,400
|
|
|
10.0
|
%
|
|
14.8
|
%
|
|
Telephony RGUs
|
|
888,000
|
|
|
868,100
|
|
|
856,000
|
|
|
2.3
|
%
|
|
3.7
|
%
|
|
Total LiLAC Group
|
|
3,464,600
|
|
|
3,265,800
|
|
|
3,199,700
|
|
|
6.1
|
%
|
|
8.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customers
|
|
|
|
|
|
|
|
|
|
|
|
Single-Play Customers
|
|
559,400
|
|
|
485,100
|
|
|
492,500
|
|
|
15.3
|
%
|
|
13.6
|
%
|
|
Dual-Play Customers
|
|
365,100
|
|
|
327,300
|
|
|
316,500
|
|
|
11.5
|
%
|
|
15.4
|
%
|
|
Triple-Play Customers
|
|
725,000
|
|
|
708,700
|
|
|
691,400
|
|
|
2.3
|
%
|
|
4.9
|
%
|
|
Total LiLAC Group
|
|
1,649,500
|
|
|
1,521,100
|
|
|
1,500,400
|
|
|
8.4
|
%
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Single-Play Customers
|
|
33.9
|
%
|
|
31.9
|
%
|
|
32.8
|
%
|
|
6.3
|
%
|
|
3.4
|
%
|
|
% of Dual-Play Customers
|
|
22.1
|
%
|
|
21.5
|
%
|
|
21.1
|
%
|
|
2.8
|
%
|
|
4.7
|
%
|
|
% of Triple-play Customers
|
|
44.0
|
%
|
|
46.6
|
%
|
|
46.1
|
%
|
|
(5.6
|
%)
|
|
(4.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RGUs per customer relationship
|
|
2.10
|
|
2.15
|
|
2.13
|
|
(2.3
|
%)
|
|
(1.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________________________
|
13
|
|
The June 30, 2014 amounts do not include the impact of the
Ziggo acquisition. The March 31, 2015 and June 30, 2014 figures do
not include the impact of the Choice acquisition.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Data — June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
Homes
Passed(1)
|
|
Two-way
Homes
Passed(2)
|
|
Customer
Relationships(3)
|
|
Total
RGUs(4)
|
|
Basic Video
Subscribers(5)
|
|
Enhanced
Video
Subscribers(6)
|
|
DTH
Subscribers(7)
|
|
MMDS
Subscribers(8)
|
|
Total
Video
|
|
Internet
Subscribers(9)
|
|
Telephony
Subscribers(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
12,705,500
|
|
|
12,684,100
|
|
|
5,018,600
|
|
|
12,538,500
|
|
|
—
|
|
|
3,736,800
|
|
|
—
|
|
|
—
|
|
|
3,736,800
|
|
|
4,570,300
|
|
|
4,231,400
|
|
Germany
|
|
12,732,800
|
|
|
12,460,500
|
|
|
7,120,300
|
|
|
12,322,700
|
|
|
5,112,200
|
|
|
1,405,200
|
|
|
—
|
|
|
—
|
|
|
6,517,400
|
|
|
2,986,600
|
|
|
2,818,700
|
|
The Netherlands(11)
|
|
7,006,900
|
|
|
6,992,300
|
|
|
4,185,300
|
|
|
9,798,100
|
|
|
835,500
|
|
|
3,347,800
|
|
|
—
|
|
|
—
|
|
|
4,183,300
|
|
|
3,065,700
|
|
|
2,549,100
|
|
Belgium
|
|
2,926,000
|
|
|
2,926,000
|
|
|
2,181,400
|
|
|
4,794,700
|
|
|
369,900
|
|
|
1,693,900
|
|
|
—
|
|
|
—
|
|
|
2,063,800
|
|
|
1,543,400
|
|
|
1,187,500
|
|
Switzerland(11)
|
|
2,194,500
|
|
|
2,193,900
|
|
|
1,402,000
|
|
|
2,606,200
|
|
|
665,300
|
|
|
687,700
|
|
|
—
|
|
|
—
|
|
|
1,353,000
|
|
|
755,700
|
|
|
497,500
|
|
Austria
|
|
1,361,300
|
|
|
1,361,300
|
|
|
650,300
|
|
|
1,357,900
|
|
|
143,600
|
|
|
363,900
|
|
|
—
|
|
|
—
|
|
|
507,500
|
|
|
475,200
|
|
|
375,200
|
|
Ireland
|
|
853,100
|
|
|
759,900
|
|
|
505,200
|
|
|
1,099,000
|
|
|
34,800
|
|
|
318,900
|
|
|
—
|
|
|
25,600
|
|
|
379,300
|
|
|
367,300
|
|
|
352,400
|
|
Total Western Europe
|
|
39,780,100
|
|
|
39,378,000
|
|
|
21,063,100
|
|
|
44,517,100
|
|
|
7,161,300
|
|
|
11,554,200
|
|
|
—
|
|
|
25,600
|
|
|
18,741,100
|
|
|
13,764,200
|
|
|
12,011,800
|
|
Poland
|
|
2,826,100
|
|
|
2,750,000
|
|
|
1,418,400
|
|
|
2,764,800
|
|
|
259,300
|
|
|
925,500
|
|
|
—
|
|
|
—
|
|
|
1,184,800
|
|
|
1,010,700
|
|
|
569,300
|
|
Hungary
|
|
1,588,700
|
|
|
1,572,200
|
|
|
1,080,400
|
|
|
2,001,300
|
|
|
193,700
|
|
|
448,500
|
|
|
282,900
|
|
|
—
|
|
|
925,100
|
|
|
567,900
|
|
|
508,300
|
|
Romania
|
|
2,531,100
|
|
|
2,434,200
|
|
|
1,192,400
|
|
|
1,971,100
|
|
|
301,000
|
|
|
568,600
|
|
|
312,800
|
|
|
—
|
|
|
1,182,400
|
|
|
460,800
|
|
|
327,900
|
|
Czech Republic
|
|
1,399,000
|
|
|
1,329,000
|
|
|
714,600
|
|
|
1,186,900
|
|
|
92,200
|
|
|
363,700
|
|
|
117,700
|
|
|
—
|
|
|
573,600
|
|
|
448,400
|
|
|
164,900
|
|
Slovakia
|
|
507,800
|
|
|
485,100
|
|
|
276,500
|
|
|
430,500
|
|
|
31,300
|
|
|
143,600
|
|
|
67,000
|
|
|
500
|
|
|
242,400
|
|
|
120,000
|
|
|
68,100
|
|
Total CEE
|
|
8,852,700
|
|
|
8,570,500
|
|
|
4,682,300
|
|
|
8,354,600
|
|
|
877,500
|
|
|
2,449,900
|
|
|
780,400
|
|
|
500
|
|
|
4,108,300
|
|
|
2,607,800
|
|
|
1,638,500
|
|
Total Liberty Global
Group
|
|
48,632,800
|
|
|
47,948,500
|
|
|
25,745,400
|
|
|
52,871,700
|
|
|
8,038,800
|
|
|
14,004,100
|
|
|
780,400
|
|
|
26,100
|
|
|
22,849,400
|
|
|
16,372,000
|
|
|
13,650,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
2,999,300
|
|
|
2,481,200
|
|
|
1,250,600
|
|
|
2,701,500
|
|
|
102,200
|
|
|
920,700
|
|
|
—
|
|
|
—
|
|
|
1,022,900
|
|
|
977,700
|
|
|
700,900
|
|
Puerto Rico
|
|
1,065,200
|
|
|
1,065,200
|
|
|
398,900
|
|
|
763,100
|
|
|
—
|
|
|
267,800
|
|
|
—
|
|
|
—
|
|
|
267,800
|
|
|
308,200
|
|
|
187,100
|
|
Total LiLAC Group
|
|
4,064,500
|
|
|
3,546,400
|
|
|
1,649,500
|
|
|
3,464,600
|
|
|
102,200
|
|
|
1,188,500
|
|
|
—
|
|
|
—
|
|
|
1,290,700
|
|
|
1,285,900
|
|
|
888,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
52,697,300
|
|
|
51,494,900
|
|
|
27,394,900
|
|
|
56,336,300
|
|
|
8,141,000
|
|
|
15,192,600
|
|
|
780,400
|
|
|
26,100
|
|
|
24,140,100
|
|
|
17,657,900
|
|
|
14,538,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscriber Variance Table - June 30, 2015 vs. March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
Homes
Passed(1)
|
|
Two-way Homes
Passed(2)
|
|
Customer
Relationships(3)
|
|
Total
RGUs(4)
|
|
Basic Video
Subscribers(5,12)
|
|
Enhanced Video
Subscribers(6,12)
|
|
DTH
Subscribers(7)
|
|
MMDS
Subscribers(8)
|
|
Total
Video
|
|
Internet
Subscribers(9)
|
|
Telephony
Subscribers(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
44,900
|
|
|
51,600
|
|
|
(7,700
|
)
|
|
2,000
|
|
|
—
|
|
|
(12,200
|
)
|
|
—
|
|
|
—
|
|
|
(12,200
|
)
|
|
6,600
|
|
|
7,600
|
|
|
Germany
|
|
10,400
|
|
|
44,700
|
|
|
8,700
|
|
|
91,700
|
|
|
(19,300
|
)
|
|
11,800
|
|
|
—
|
|
|
—
|
|
|
(7,500
|
)
|
|
55,600
|
|
|
43,600
|
|
|
The Netherlands(11)
|
|
13,300
|
|
|
13,100
|
|
|
(56,600
|
)
|
|
(86,700
|
)
|
|
(36,300
|
)
|
|
(20,300
|
)
|
|
—
|
|
|
—
|
|
|
(56,600
|
)
|
|
(10,600
|
)
|
|
(19,500
|
)
|
|
Belgium
|
|
4,900
|
|
|
4,900
|
|
|
(5,200
|
)
|
|
14,300
|
|
|
(13,400
|
)
|
|
5,800
|
|
|
—
|
|
|
—
|
|
|
(7,600
|
)
|
|
8,900
|
|
|
13,000
|
|
|
Switzerland(11)
|
|
700
|
|
|
700
|
|
|
(15,900
|
)
|
|
15,600
|
|
|
(23,000
|
)
|
|
5,700
|
|
|
—
|
|
|
—
|
|
|
(17,300
|
)
|
|
15,900
|
|
|
17,000
|
|
|
Austria
|
|
5,600
|
|
|
5,600
|
|
|
800
|
|
|
9,300
|
|
|
(3,100
|
)
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
(2,100
|
)
|
|
6,400
|
|
|
5,000
|
|
|
Ireland
|
|
(200
|
)
|
|
2,800
|
|
|
(6,600
|
)
|
|
(2,900
|
)
|
|
(2,700
|
)
|
|
(2,600
|
)
|
|
—
|
|
|
(1,900
|
)
|
|
(7,200
|
)
|
|
1,500
|
|
|
2,800
|
|
|
Total Western Europe
|
|
79,600
|
|
|
123,400
|
|
|
(82,500
|
)
|
|
43,300
|
|
|
(97,800
|
)
|
|
(10,800
|
)
|
|
—
|
|
|
(1,900
|
)
|
|
(110,500
|
)
|
|
84,300
|
|
|
69,500
|
|
|
Poland
|
|
31,200
|
|
|
31,200
|
|
|
(6,800
|
)
|
|
12,600
|
|
|
(7,300
|
)
|
|
3,800
|
|
|
—
|
|
|
—
|
|
|
(3,500
|
)
|
|
6,700
|
|
|
9,400
|
|
|
Hungary
|
|
8,100
|
|
|
8,000
|
|
|
2,300
|
|
|
15,500
|
|
|
(8,000
|
)
|
|
9,100
|
|
|
1,700
|
|
|
—
|
|
|
2,800
|
|
|
5,600
|
|
|
7,100
|
|
|
Romania
|
|
78,600
|
|
|
94,000
|
|
|
14,600
|
|
|
43,600
|
|
|
4,800
|
|
|
11,800
|
|
|
(4,400
|
)
|
|
—
|
|
|
12,200
|
|
|
16,800
|
|
|
14,600
|
|
|
Czech Republic
|
|
2,100
|
|
|
2,200
|
|
|
(100
|
)
|
|
2,000
|
|
|
1,800
|
|
|
(2,200
|
)
|
|
2,400
|
|
|
—
|
|
|
2,000
|
|
|
1,800
|
|
|
(1,800
|
)
|
|
Slovakia
|
|
2,800
|
|
|
2,500
|
|
|
(2,200
|
)
|
|
(1,700
|
)
|
|
(4,100
|
)
|
|
700
|
|
|
600
|
|
|
(100
|
)
|
|
(2,900
|
)
|
|
1,200
|
|
|
—
|
|
|
Total CEE
|
|
122,800
|
|
|
137,900
|
|
|
7,800
|
|
|
72,000
|
|
|
(12,800
|
)
|
|
23,200
|
|
|
300
|
|
|
(100
|
)
|
|
10,600
|
|
|
32,100
|
|
|
29,300
|
|
|
Total Liberty Global
Group
|
|
202,400
|
|
|
261,300
|
|
|
(74,700
|
)
|
|
115,300
|
|
|
(110,600
|
)
|
|
12,400
|
|
|
300
|
|
|
(2,000
|
)
|
|
(99,900
|
)
|
|
116,400
|
|
|
98,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
13,500
|
|
|
14,200
|
|
|
12,700
|
|
|
36,600
|
|
|
(3,900
|
)
|
|
18,400
|
|
|
—
|
|
|
—
|
|
|
14,500
|
|
|
22,800
|
|
|
(700
|
)
|
|
Puerto Rico
|
|
358,300
|
|
|
358,300
|
|
|
115,700
|
|
|
162,200
|
|
|
—
|
|
|
47,400
|
|
|
—
|
|
|
—
|
|
|
47,400
|
|
|
94,200
|
|
|
20,600
|
|
|
Total LiLAC Group
|
|
371,800
|
|
|
372,500
|
|
|
128,400
|
|
|
198,800
|
|
|
(3,900
|
)
|
|
65,800
|
|
|
—
|
|
|
—
|
|
|
61,900
|
|
|
117,000
|
|
|
19,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
574,200
|
|
|
633,800
|
|
|
53,700
|
|
|
314,100
|
|
|
(114,500
|
)
|
|
78,200
|
|
|
300
|
|
|
(2,000
|
)
|
|
(38,000
|
)
|
|
233,400
|
|
|
118,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Change Summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
44,900
|
|
|
51,600
|
|
|
(7,700
|
)
|
|
2,000
|
|
|
—
|
|
|
(12,200
|
)
|
|
—
|
|
|
—
|
|
|
(12,200
|
)
|
|
6,600
|
|
|
7,600
|
|
|
Germany
|
|
10,400
|
|
|
44,700
|
|
|
8,700
|
|
|
91,700
|
|
|
(19,300
|
)
|
|
11,800
|
|
|
—
|
|
|
—
|
|
|
(7,500
|
)
|
|
55,600
|
|
|
43,600
|
|
|
The Netherlands
|
|
13,300
|
|
|
13,100
|
|
|
(56,600
|
)
|
|
(86,700
|
)
|
|
(36,300
|
)
|
|
(20,300
|
)
|
|
—
|
|
|
—
|
|
|
(56,600
|
)
|
|
(10,600
|
)
|
|
(19,500
|
)
|
|
Belgium
|
|
4,900
|
|
|
4,900
|
|
|
(5,200
|
)
|
|
14,300
|
|
|
(13,400
|
)
|
|
5,800
|
|
|
—
|
|
|
—
|
|
|
(7,600
|
)
|
|
8,900
|
|
|
13,000
|
|
|
Other Europe
|
|
102,000
|
|
|
123,100
|
|
|
(29,600
|
)
|
|
74,100
|
|
|
(55,100
|
)
|
|
27,300
|
|
|
300
|
|
|
(2,000
|
)
|
|
(29,500
|
)
|
|
49,500
|
|
|
54,100
|
|
|
Total Liberty Global Group
|
|
175,500
|
|
|
237,400
|
|
|
(90,400
|
)
|
|
95,400
|
|
|
(124,100
|
)
|
|
12,400
|
|
|
300
|
|
|
(2,000
|
)
|
|
(113,400
|
)
|
|
110,000
|
|
|
98,800
|
|
|
Chile
|
|
13,500
|
|
|
14,200
|
|
|
12,700
|
|
|
36,600
|
|
|
(3,900
|
)
|
|
18,400
|
|
|
—
|
|
|
—
|
|
|
14,500
|
|
|
22,800
|
|
|
(700
|
)
|
|
Puerto Rico
|
|
3,000
|
|
|
3,000
|
|
|
800
|
|
|
6,300
|
|
|
—
|
|
|
(1,200
|
)
|
|
—
|
|
|
—
|
|
|
(1,200
|
)
|
|
2,800
|
|
|
4,700
|
|
|
Total LiLAC Group
|
|
16,500
|
|
|
17,200
|
|
|
13,500
|
|
|
42,900
|
|
|
(3,900
|
)
|
|
17,200
|
|
|
—
|
|
|
—
|
|
|
13,300
|
|
|
25,600
|
|
|
4,000
|
|
|
Total Organic Change
|
|
192,000
|
|
|
254,600
|
|
|
(76,900
|
)
|
|
138,300
|
|
|
(128,000
|
)
|
|
29,600
|
|
|
300
|
|
|
(2,000
|
)
|
|
(100,100
|
)
|
|
135,600
|
|
|
102,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2015 Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition - Puerto Rico
|
|
355,300
|
|
|
355,300
|
|
|
114,900
|
|
|
155,900
|
|
|
—
|
|
|
48,600
|
|
|
—
|
|
|
—
|
|
|
48,600
|
|
|
91,400
|
|
|
15,900
|
|
|
Acquisition - Romania
|
|
26,900
|
|
|
23,900
|
|
|
15,700
|
|
|
19,900
|
|
|
13,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,500
|
|
|
6,400
|
|
|
—
|
|
|
Net Adjustments
|
|
382,200
|
|
|
379,200
|
|
|
130,600
|
|
|
175,800
|
|
|
13,500
|
|
|
48,600
|
|
|
—
|
|
|
—
|
|
|
62,100
|
|
|
97,800
|
|
|
15,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Adds (Reductions)
|
|
574,200
|
|
|
633,800
|
|
|
53,700
|
|
|
314,100
|
|
|
(114,500
|
)
|
|
78,200
|
|
|
300
|
|
|
(2,000
|
)
|
|
(38,000
|
)
|
|
233,400
|
|
|
118,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-only customers from Customer Relationships.
|
|
(4)
|
|
Revenue Generating Unit or "RGU" is separately a Basic Video
Subscriber, Enhanced Video 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 enhanced video service,
telephony service and broadband internet service, the customer
would constitute three RGUs. Total RGUs is the sum of Basic Video,
Enhanced Video, 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 June 30, 2015 RGU counts exclude our separately reported
postpaid and prepaid mobile subscribers.
|
|
(5)
|
|
Basic Video Subscriber is a home, residential multiple
dwelling unit or commercial unit that receives our video service
over our broadband network either via an analog video signal or
via a digital video signal without subscribing to any recurring
monthly service that requires the use of encryption-enabling
technology. Encryption-enabling technology includes smart cards,
or other integrated or virtual technologies that we use to provide
our enhanced service offerings. With the exception of RGUs that we
count on an EBU basis, we count RGUs on a unique premises basis.
In other words, a subscriber with multiple outlets in one premises
is counted as one RGU and a subscriber with two homes and a
subscription to our video service at each home is counted as two
RGUs. In Europe, we have approximately 110,400 “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)
|
|
Enhanced Video Subscriber is a home, residential multiple
dwelling unit or commercial unit that receives our video service
over our broadband network or through a partner network via a
digital video signal while subscribing to any recurring monthly
service that requires the use of encryption-enabling technology.
Enhanced Video Subscribers that are not counted on an EBU basis
are counted on a unique premises basis. For example, a subscriber
with one or more set-top boxes that receives our video service in
one premises is generally counted as just one subscriber. An
Enhanced Video Subscriber is not counted as a Basic Video
Subscriber. As we migrate customers from basic to enhanced video
services, we report a decrease in our Basic Video Subscribers
equal to the increase in our Enhanced Video Subscribers.
Subscribers to enhanced video services provided by our operations
in Switzerland and the Netherlands over partner networks receive
basic video 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 a
Multi-channel Multipoint ("microwave") Distribution System.
|
|
(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 300 asymmetric digital subscriber
line (“ADSL”) subscribers within the U.K. and 62,100 digital
subscriber line (“DSL”) subscribers within Austria 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 Basic
and Enhanced Video Subscribers without an incremental recurring
fee. Our Internet Subscribers in Switzerland include 92,400
subscribers who have requested and received this 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 500 and 46,000 subscribers within the U.K. and
Austria, respectively, that are not serviced over our networks. In
Switzerland, we offer a basic phone service to our Basic and
Enhanced Video Subscribers without an incremental recurring fee.
Our Telephony Subscribers in Switzerland include 39,900
subscribers who have requested and received this service.
|
|
(11)
|
|
Pursuant to service agreements, Switzerland and, to a much
lesser extent, the Netherlands offer enhanced video, 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 June 30, 2015, Switzerland's partner networks account
for 141,200 Customer Relationships, 281,300 RGUs, 105,100 Enhanced
Video Subscribers, 104,400 Internet Subscribers, and 71,800
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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