[November 01, 2017] |
|
Liberty Global Reports Q3 2017 Results
Liberty Global plc today announced its Q3 financial and operating
results for the Liberty Global Group1 and the LiLAC Group1.
CEO Mike Fries stated, "In Europe, we generated better top-line
growth in the third quarter underpinned by continued double-digit
revenue increases in our B2B2 business and sequential
improvements in the U.K. and Belgium. Rebased3 OCF4
was up 4% in Q3, bringing year-to-date growth to 5% and supporting our
guidance of 'around 5%' in Europe for the full year.
"The European market remains highly competitive, but our investments in
the fastest broadband speeds, the coolest video apps and compelling
quad-play bundles are allowing us to win share across our footprint.
Organic RGU additions have exceeded 600,000 YTD, with a 60%7
improvement in video losses year over year. Meanwhile our mobile
business delivered positive revenue growth in Q3, as we drive
fixed-mobile convergence and upgrade our MNO networks and MVNO platforms.
"Virgin Media continues to gain operating momentum with rebased OCF
growth of 4% in Q3, which represents our best performance this year. We
had another record quarter of Project Lightning construction, which now
reaches nearly 1 million marketable homes. The initial response to our
November 2017 price increase has been encouraging, with reduced NPS8
impact and fewer price-related disconnects than a year ago. Growth
in our Lightning areas and investment in our core subscriber base with
products like the V6 box (now in ~20% of U.K. video homes) and our WiFi
Connect Box (now in >40% of broadband homes), pushed U.K. RGU additions
up to 322,000 YTD, a nearly four-fold increase from two years ago. With
new prices taking effect in the fourth quarter we expect ARPU9
uplift to drive better top-line results in the final months of the year
and into 2018."
Concerning LiLAC, Mike Fries stated, "I am very pleased to have
announced Balan Nair as the new President and CEO of our Latin American
business. He will add tremendous value and focus, especially as we
manage through the damage from Hurricanes Maria and Irma. We've begun
the work of restoring our fixed and mobile networks in the affected
markets, primarily Puerto Rico, as we make good operational strides
elsewhere in the region with 40,000 organic RGU additions in Q3. VTR in
Chile had a particularly strong quarter across the board, adding 19,000
RGUs while delivering 6% rebased revenue and 9% rebased OCF growth.
Our long-term opportunity in Latin America continues to be exciting and
we remain on track for the split-off to LiLAC shareholders around the
end of the year."
Liberty Global Group Highlights
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LiLAC Group Highlights
|
• NEW HOMES BUILT YTD 2017 800k+
|
|
|
• VTR Q3 OCF GROWTH3 +9%
|
• Q3 B2B REVENUE GROWTH3 +13%
|
|
|
• Q3 ORGANIC RGU ADDITIONS 40,000
|
• Q3 ORGANIC RGU6 ADDITIONS 204,000
|
|
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• BALAN NAIR APPOINTED LILAC CEO
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About Liberty Global
Liberty Global is the world's largest international TV and broadband
company, with operations in more than 30 countries across Europe, Latin
America and the Caribbean. We invest in the infrastructure that empowers
our customers to make the most of the digital revolution. Our scale and
commitment to innovation enable us to develop market-leading products
delivered through next-generation networks that connect our over 24
million customers who subscribe to over 50 million television, broadband
internet and telephony services. We also serve over 10 million mobile
subscribers and offer WiFi service across 10 million access points.
Liberty Global's businesses are comprised of two stocks: the Liberty
Global Group (NASDAQ: LBTYA, LBTYB and LBTYK) for our European
operations, and the LiLAC Group (NASDAQ: LILA and LILAK, OTC Link:
LILAB), which consists of our operations in Latin America and the
Caribbean.
The Liberty Global Group operates in 12 European countries under the
consumer brands Virgin Media, Unitymedia, Telenet and UPC. The Liberty
Global Group also owns 50% of VodafoneZiggo, a Dutch joint venture,
which has 4 million customers, 10 million fixed-line subscribers and 5
million mobile subscribers. The LiLAC Group operates in over 20
countries in Latin America and the Caribbean under the consumer brands
VTR, Flow, Liberty, Más Móvil and BTC. In addition, the LiLAC Group
operates a sub-sea fiber network throughout the region connecting over
40 markets.
European Highlights Q3 2017
-
204,000 organic RGU additions as a result of our new build programs
and continued demand for our next-generation10 broadband
and video services across Europe
-
Successful launch of the MySports channel in Switzerland during
September
-
Rebased revenue growth of 2.5% to $3.9 billion; sequential
acceleration came primarily from the U.K. and Belgium
-
Residential fixed11 of $2.7 billion, flat
year-over-year (YoY)
-
Residential mobile (incl. handsets & interconnect) up 1% YoY to
$0.4 billion
-
B2B up 13% year-over-year to $0.5 billion
-
Operating income decreased 30% year-over-year
-
Rebased OCF growth of 4%, supported by 4% rebased OCF
growth at Virgin Media
-
Built 310,000 new premises in Q3, YTD total over 800,000
-
Virgin Media delivered a record quarterly result of 147,000 new
premises in Q3
-
Solid balance sheet with nearly $4.8 billion of liquidity12, 16
-
Net leverage13 of 5.0x at quarter-end
-
Fully-swapped borrowing cost14 of 4.5%, down from 4.8% in
Q3 '16
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group (Europe)
|
|
|
Q3 2017
|
|
|
YoY Growth/(Decline)*
|
|
|
YTD 2017
|
|
|
YoY Growth/(Decline)*
|
Subscribers
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic RGU Net Additions
|
|
|
204,400
|
|
|
|
(23.7
|
%)
|
|
|
610,600
|
|
|
|
(12.9
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial (in USD millions, unless noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
3,879
|
|
|
|
2.5
|
%
|
|
|
$
|
11,061
|
|
|
|
2.1
|
%
|
OCF
|
|
|
$
|
1,836
|
|
|
|
3.9
|
%
|
|
|
$
|
5,174
|
|
|
|
4.6
|
%
|
Operating income
|
|
|
$
|
537
|
|
|
|
(29.7
|
%)
|
|
|
$
|
1,452
|
|
|
|
(19.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted FCF15
|
|
|
$
|
715
|
|
|
|
28.0
|
%
|
|
|
$
|
707
|
|
|
|
(27.1
|
%)
|
Cash provided by operating activities
|
|
|
$
|
1,229
|
|
|
|
|
|
|
$
|
3,640
|
|
|
|
|
Cash provided (used) by investing activities
|
|
|
$
|
(458
|
)
|
|
|
|
|
|
$
|
507
|
|
|
|
|
Cash used by financing activities
|
|
|
$
|
(295
|
)
|
|
|
|
|
|
$
|
(3,740
|
)
|
|
|
|
* For the RGU growth rates, the Netherlands is excluded from the 2016
figures; Revenue and OCF YoY growth rates are on a rebased basis.
LiLAC Highlights Q3 2017
-
Hurricanes Irma and Maria negatively impacted certain operations
during the quarter
-
Q3 organic RGU additions of 40,000
-
Driven by improvements across Cable & Wireless ("C&W") and
continued strength at VTR
-
Rebased revenue flat YoY, with growth in Chile & C&W offset by
hurricane-related declines in Puerto Rico
-
Operating loss of $202 million in Q3 down substantially year-over-year
-
Rebased OCF flat YoY, including $24 million hurricane impact
-
VTR and C&W delivered rebased growth of 9% and 3%, respectively.
C&W growth dampened by $9 million hurricane related OCF reduction
-
Puerto Rico had a rebased OCF contraction of 29% due to minimal
revenue generation after Hurricane Maria and a difficult
year-over-year comparison due to positive legal related one-offs
in Q3 2016
-
Approximately $1.5 billion of liquidity12, 16 across LiLAC
-
Net leverage of 4.1x at quarter-end
-
Simplified capital structure
-
Refinanced Columbus subsidiary debt at C&W
-
Fully-swapped borrowing cost of 6.3% for LiLAC, down from 6.5% in Q3
'16
LiLAC Group Guidance Update
-
~$1.35 billion of U.S. GAAP17 OCF in 2017
-
Adjusted Free Cash Flow for 2017 expected to be negative
-
P&E additions as a percentage of revenue remains at 19%-21% range for
2017
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|
|
|
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|
Liberty Latin America & Caribbean
|
|
Q3 2017
|
|
YoY Growth/(Decline)*
|
|
YTD 2017
|
|
YoY Growth/(Decline)*
|
Subscribers
|
|
|
|
|
|
|
|
|
Organic RGU Net Additions
|
|
39,500
|
|
|
45.2
|
%
|
|
97,100
|
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
Financial (in USD millions, unless noted)
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
908
|
|
|
0.4
|
%
|
|
$
|
2,740
|
|
|
0.7
|
%
|
OCF
|
|
$
|
359
|
|
|
0.2
|
%
|
|
$
|
1,081
|
|
|
(0.2
|
%)
|
Operating income (loss)
|
|
$
|
(202
|
)
|
|
N.M.
|
|
$
|
95
|
|
|
(46.5
|
%)
|
|
|
|
|
|
|
|
|
|
Adjusted FCF
|
|
$
|
(110
|
)
|
|
N.M.
|
|
$
|
(54
|
)
|
|
N.M.
|
Cash provided by operating activities
|
|
$
|
94
|
|
|
|
|
$
|
393
|
|
|
|
Cash used by investing activities
|
|
$
|
(201
|
)
|
|
|
|
$
|
(454
|
)
|
|
|
Cash provided by financing activities
|
|
$
|
35
|
|
|
|
|
$
|
37
|
|
|
|
* Revenue and OCF YoY growth rates are on a rebased basis N.M. -
Not Meaningful
Subscriber Growth - Liberty Global Group (Europe)
|
|
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Organic RGU net additions (losses) by product
|
|
|
|
|
|
(excluding NL7)
|
|
|
|
|
|
(excluding NL7)
|
Video
|
|
|
(30,800
|
)
|
|
|
(19,300
|
)
|
|
|
(62,000
|
)
|
|
|
(156,500
|
)
|
Data
|
|
|
132,900
|
|
|
|
163,700
|
|
|
|
387,400
|
|
|
|
459,700
|
|
Voice
|
|
|
102,300
|
|
|
|
123,400
|
|
|
|
285,200
|
|
|
|
398,100
|
|
Total Liberty Global Group
|
|
|
204,400
|
|
|
|
267,800
|
|
|
|
610,600
|
|
|
|
701,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic RGU net additions (losses) by market
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
|
92,400
|
|
|
|
80,400
|
|
|
|
328,500
|
|
|
|
223,400
|
|
Belgium/Luxembourg
|
|
|
(14,600
|
)
|
|
|
3,700
|
|
|
|
(41,900
|
)
|
|
|
27,600
|
|
Germany
|
|
|
68,100
|
|
|
|
89,400
|
|
|
|
174,300
|
|
|
|
222,300
|
|
Switzerland/Austria
|
|
|
(7,300
|
)
|
|
|
(3,700
|
)
|
|
|
900
|
|
|
|
(25,400
|
)
|
Central and Eastern Europe
|
|
|
65,800
|
|
|
|
98,000
|
|
|
|
148,800
|
|
|
|
253,400
|
|
Total Liberty Global Group
|
|
|
204,400
|
|
|
|
267,800
|
|
|
|
610,600
|
|
|
|
701,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Mobile SIM18 additions (losses)
by product
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
75,400
|
|
|
|
102,200
|
|
|
|
265,300
|
|
|
|
285,500
|
|
Prepaid
|
|
|
(27,600
|
)
|
|
|
(57,000
|
)
|
|
|
(193,500
|
)
|
|
|
(176,000
|
)
|
Total Liberty Global Group
|
|
|
47,800
|
|
|
|
45,200
|
|
|
|
71,800
|
|
|
|
109,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Mobile SIM additions (losses) by market
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
|
(16,200
|
)
|
|
|
8,800
|
|
|
|
(20,300
|
)
|
|
|
18,000
|
|
Belgium
|
|
|
43,400
|
|
|
|
12,100
|
|
|
|
43,800
|
|
|
|
21,200
|
|
Other
|
|
|
20,600
|
|
|
|
24,300
|
|
|
|
48,300
|
|
|
|
70,300
|
|
Total Liberty Global Group
|
|
|
47,800
|
|
|
|
45,200
|
|
|
|
71,800
|
|
|
|
109,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Cable Product Performance: During Q3 we
added 204,000 RGUs, a 24% decline over the prior-year period due to
lower additions in CEE, Germany and Belgium. On the fixed product
side, our video RGU attrition slightly increased year-over-year, while
our broadband and telephony growth slowed
-
U.K./Ireland: Q3 net additions increased
15% year-over-year to 92,000 RGUs driven by new build and a return to
positive growth in Ireland. Within the mix, broadband RGUs grew
57,000, while video growth continued the positive 2017 trend with a
14,000 improvement in additions, as compared with the prior year
-
Belgium: Q3 RGU attrition of 15,000 RGUs
was consistent with prior quarters this year and primarily due to
intensified competition. The sequential trend was relatively flat for
all fixed products. However, our converged quad-play package additions
accelerated sequentially as we gained 41,000 new "WIGO" subscribers
during Q3
-
Germany: Reported 68,000 RGU additions in
Q3, up sequentially but below our Q3 2016 result. RGU additions were
supported by our reintroduced "high-speed weeks" promotion in
September, offering discounts on our core double and triple-play
bundles while still facing a higher than usual backlog of
broadband/voice subscriber installations as a result of prioritizing
truck rolls to existing video subscribers due to a channel line-up
change. Video attrition of 12,000 RGUs improved slightly year-over-year
-
Switzerland/Austria: Net additions in Q3
were slightly below our prior-year performance, reflecting a 21,000
RGU contraction in video, somewhat compensated by 13,000 fixed
telephony gains and a flat broadband performance. We launched our
MySports channel platform in early September featuring exclusive
content and have seen early signs of success, including 26,000
MySports Pro premium subscriptions
-
CEE: Delivered 66,000 RGU additions in
Q3, a softer performance compared to the prior-year period, primarily
related to lower video and fixed telephony results
-
Next-Generation Video Penetration (including
Horizon TV, Horizon-Lite, TiVo, Virgin TV V6 and Yelo TV):
We added 216,000 subscribers to our advanced platforms in Q3 that
reached 7.5 million or 42% of our total cable video base (excluding
DTH)
-
WiFi Connect Box: Deployments of our
latest WiFi Connect box increased by more than 820,000 units in Q3,
ending the quarter with over 5.3 million or 37% of our broadband base
on the platform across Europe
-
Mobile: Added 48,000 mobile subscribers
in Q3, with 75,000 postpaid subscriber additions offset by attrition
in our prepaid base
-
Telenet in Belgium added 43,000 new mobile subscribers during Q3,
a strong year-over-year improvement. The continued success of
"WIGO" and a more competitive BASE19 postpaid
offering generated 40,000 postpaid additions while our prepaid
performance turned slightly positive
-
Virgin Media's mobile subscriber base declined by 16,000 in Q3, as
15,000 postpaid subscriber additions were more than offset by
low-ARPU prepaid losses. The penetration of 4G in the U.K.
increased to over 40% at the end of Q3
-
Switzerland/Austria gained 21,000 mobile subscribers in Q3 on the
back of a refreshed offering in Switzerland including free EU
roaming and continued traction in Austria
Revenue Highlights - Liberty Global Group (Europe)
The following table presents (i) revenue of each of our consolidated
reportable segments for the comparative periods, and (ii) the percentage
change from period to period on both a reported and rebased basis:
|
|
|
Three months ended
|
|
Increase/(decrease)
|
|
Nine months ended
|
|
Increase/(decrease)
|
|
|
|
September 30,
|
|
|
September 30,
|
|
Revenue
|
|
|
2017
|
|
2016
|
|
%
|
|
Rebased %
|
|
2017
|
|
2016
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
|
$
|
1,617.1
|
|
|
$
|
1,581.4
|
|
|
2.3
|
|
|
1.5
|
|
|
$
|
4,687.6
|
|
|
$
|
4,985.6
|
|
|
(6.0
|
)
|
|
1.3
|
|
Belgium
|
|
|
759.1
|
|
|
693.4
|
|
|
9.5
|
|
|
2.5
|
|
|
2,106.5
|
|
|
2,010.9
|
|
|
4.8
|
|
|
1.5
|
|
Germany
|
|
|
703.7
|
|
|
639.4
|
|
|
10.1
|
|
|
4.6
|
|
|
1,988.6
|
|
|
1,900.0
|
|
|
4.7
|
|
|
4.9
|
|
Switzerland/Austria
|
|
|
456.0
|
|
|
439.3
|
|
|
3.8
|
|
|
1.1
|
|
|
1,314.8
|
|
|
1,319.7
|
|
|
(0.4
|
)
|
|
(0.5
|
)
|
The Netherlands
|
|
|
-
|
|
|
681.8
|
|
|
(100.0
|
)
|
|
N.M.
|
|
-
|
|
|
2,030.4
|
|
|
(100.0
|
)
|
|
N.M.
|
Total Western Europe
|
|
|
3,535.9
|
|
|
4,035.3
|
|
|
(12.4
|
)
|
|
2.2
|
|
|
10,097.5
|
|
|
12,246.6
|
|
|
(17.5
|
)
|
|
1.8
|
|
Central and Eastern Europe
|
|
|
306.6
|
|
|
274.5
|
|
|
11.7
|
|
|
4.9
|
|
|
866.5
|
|
|
814.6
|
|
|
6.4
|
|
|
5.5
|
|
Central and other
|
|
|
35.4
|
|
|
(1.9
|
)
|
|
N.M.
|
|
10.3
|
|
|
95.7
|
|
|
(5.2
|
)
|
|
N.M.
|
|
3.9
|
|
Total European Division
|
|
|
3,877.9
|
|
|
4,307.9
|
|
|
(10.0
|
)
|
|
2.5
|
|
|
11,059.7
|
|
|
13,056.0
|
|
|
(15.3
|
)
|
|
2.1
|
|
Corporate and other
|
|
|
0.8
|
|
|
18.0
|
|
|
(95.6
|
)
|
|
(42.9
|
)
|
|
1.7
|
|
|
47.8
|
|
|
(96.4
|
)
|
|
13.3
|
|
Intersegment eliminations
|
|
|
(0.2
|
)
|
|
(12.8
|
)
|
|
N.M.
|
|
N.M.
|
|
(0.2
|
)
|
|
(35.4
|
)
|
|
N.M.
|
|
N.M.
|
Total Liberty Global Group
|
|
|
$
|
3,878.5
|
|
|
$
|
4,313.1
|
|
|
(10.1
|
)
|
|
2.5
|
|
|
$
|
11,061.2
|
|
|
$
|
13,068.4
|
|
|
(15.4
|
)
|
|
2.1
|
|
N.M. - Not Meaningful
-
Reported revenue for the three and nine months ended September 30,
2017, declined 10% and 15% year-over-year in each period, respectively
-
These results were primarily driven by the net impact of (i) the
deconsolidation of our operations in the Netherlands in
connection with the completion of our joint venture with
Vodafone Group plc (the "VodafoneZiggo JV"), (ii) negative
foreign exchange ("FX") movements on a YTD basis, mainly related
to the strengthening of the U.S. dollar against the British
pound and positive FX movements in Q3, mainly related to the
strengthening of the Euro against the U.S. dollar, and (iii)
organic revenue growth
-
Rebased revenue grew 2.5% in Q3 and 2% for the YTD period. The result
for the YTD period included:
-
A reduction in cable subscription revenue of $12 million YTD
resulting from a change in U.K. regulations governing payment
handling fees that we charge our customers
-
The favorable $6 million impact in the YTD period for the expected
recovery of VAT paid in prior periods with respect to copyright
fees in Belgium, which benefited revenue in H1 2017
-
Our B2B business (including SOHO and non-subscription revenue)
reported rebased revenue growth of 13% and 12% in the Q3 and YTD
periods, respectively
-
Our residential mobile business (including interconnect and handset
sales) posted a 1% rebased revenue gain and 5% rebased contraction in
the Q3 and YTD 2017 periods, respectively
Q3 2017 Rebased Revenue Growth - Segment Highlights
-
U.K./Ireland: Rebased revenue grew 1.5%
in Q3. Within the mix, rebased residential cable revenue (72% of total
revenue) grew 2%, driven by increased subscription revenue resulting
from RGU additions and relatively flat year-over-year Q3 ARPU per
customer performance on an FX-neutral basis. Rebased residential
mobile revenue (including interconnect and mobile handset revenue)
decreased 2.5%, reflecting lower mobile subscription revenue that was
only partially offset by higher revenue from mobile handset sales.
Rebased B2B revenue also grew 2%, mainly driven by SOHO revenue that
was partially offset by lower data and voice non-subscription revenue
-
Belgium: Rebased revenue growth of 2.5%
in Q3 was mainly driven by B2B, slightly offset by lower mobile revenue
-
Germany: Q3 rebased revenue growth of 5%
reflects (i) higher residential cable subscription revenue, as a
result of volume growth and an increase in ARPU per RGU, (ii) higher
low-margin mobile handset revenue and (iii) B2B growth, largely in the
SOHO segment. Residential cable growth slowed sequentially due to the
anticipated loss of analog carriage fees, which reduced revenue and
OCF by approximately $7.5 million in Q3
-
Switzerland/Austria: Rebased revenue
increased by 1% in Q3, resulting from the net effect of (i) lower ARPU
per RGU, primarily related to weaker tier-mix and competitive
pressures, (ii) higher growth in B2B and (iii) higher mobile revenue
contribution
-
CEE: Rebased revenue growth was 5% in Q3
due mainly to (i) strong growth in our B2B business and (ii) higher
cable revenue supported by RGU additions and a small decline in ARPU
per RGU on an FX-neutral basis
Operating Income - Liberty Global Group (Europe)
-
Operating income was $537 million and $764 million in Q3 2017 and Q3
2016, respectively, representing a decrease of 30% year over year. For
the nine months ended September 30, 2017, operating income was $1,452
million, reflecting a decline of 19% as compared to $1,799 million in
YTD 2016
-
The decreases in operating income for both periods primarily resulted
from the net effect of lower OCF, as further described below, and for
the nine-month comparison, a decline in depreciation and amortization.
The declines in OCF and depreciation and amortization were primarily
attributable to the fact that our Netherlands segment is not included
in our 2017 consolidated results
Operating Cash Flow Highlights - Liberty Global Group (Europe)
The following table presents (i) OCF of each of our consolidated
reportable segments for the comparative periods, and (ii) the percentage
change from period to period on both a reported and rebased basis:
|
|
|
Three months ended
|
|
Increase/(decrease)
|
|
Nine months ended
|
|
Increase/(decrease)
|
|
|
|
September 30,
|
|
|
September 30,
|
|
OCF
|
|
|
2017
|
|
2016
|
|
%
|
|
Rebased %
|
|
2017
|
|
2016
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
|
$
|
721.2
|
|
|
$
|
696.0
|
|
|
3.6
|
|
|
4.1
|
|
|
$
|
2,079.5
|
|
|
$
|
2,206.1
|
|
|
(5.7
|
)
|
|
3.0
|
|
Belgium
|
|
|
356.7
|
|
|
311.1
|
|
|
14.7
|
|
|
6.1
|
|
|
972.4
|
|
|
892.2
|
|
|
9.0
|
|
|
6.6
|
|
Germany
|
|
|
444.6
|
|
|
408.0
|
|
|
9.0
|
|
|
3.5
|
|
|
1,240.2
|
|
|
1,187.7
|
|
|
4.4
|
|
|
4.6
|
|
Switzerland/Austria
|
|
|
272.3
|
|
|
273.4
|
|
|
(0.4
|
)
|
|
(2.8
|
)
|
|
794.3
|
|
|
795.1
|
|
|
(0.1
|
)
|
|
(0.3
|
)
|
The Netherlands
|
|
|
-
|
|
|
375.5
|
|
|
(100.0
|
)
|
|
N.M.
|
|
-
|
|
|
1,107.5
|
|
|
(100.0
|
)
|
|
N.M.
|
Total Western Europe
|
|
|
1,794.8
|
|
|
2,064.0
|
|
|
(13.0
|
)
|
|
3.3
|
|
|
5,086.4
|
|
|
6,188.6
|
|
|
(17.8
|
)
|
|
3.5
|
|
Central and Eastern Europe
|
|
|
137.6
|
|
|
120.4
|
|
|
14.3
|
|
|
6.8
|
|
|
371.5
|
|
|
345.9
|
|
|
7.4
|
|
|
6.0
|
|
Central and other
|
|
|
(46.0
|
)
|
|
(77.0
|
)
|
|
(40.3
|
)
|
|
12.7
|
|
|
(139.2
|
)
|
|
(243.7
|
)
|
|
(42.9
|
)
|
|
13.9
|
|
Total European Division
|
|
|
1,886.4
|
|
|
2,107.4
|
|
|
(10.5
|
)
|
|
4.0
|
|
|
5,318.7
|
|
|
6,290.8
|
|
|
(15.5
|
)
|
|
4.2
|
|
Corporate and other
|
|
|
(50.7
|
)
|
|
(47.4
|
)
|
|
7.0
|
|
|
(7.6
|
)
|
|
(145.0
|
)
|
|
(162.6
|
)
|
|
(10.8
|
)
|
|
7.7
|
|
Total Liberty Global Group
|
|
|
$
|
1,835.7
|
|
|
$
|
2,060.0
|
|
|
(10.9
|
)
|
|
3.9
|
|
|
$
|
5,173.7
|
|
|
$
|
6,128.2
|
|
|
(15.6
|
)
|
|
4.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OCF Margin20
|
|
|
47.3
|
%
|
|
47.8
|
%
|
|
|
|
|
|
46.8
|
%
|
|
46.9
|
%
|
|
|
|
|
N.M. - Not Meaningful
-
Reported OCF for the three and nine months ended September 30, 2017,
declined 11% and 16% year-over-year, respectively
-
Rebased OCF growth of 4% and 5% in Q3 and YTD 2017, respectively,
included:
-
The net unfavorable impact on our YTD revenue of certain items, as
discussed in the "Revenue Highlights" section above
-
A $10 million (Q3) and $23 million (YTD) network tax increase
following an April 1, 2017 increase in the rateable value of our
existing U.K. and Irish networks
-
The negative impact of a $7 million favorable MVNO settlement in
Belgium in Q2 2016
-
A favorable $32 million benefit in the YTD period associated with
a telecom operator's agreement to compensate Virgin Media for
prior-period contractual breaches related to network charges
-
As compared to the prior-year periods, our Q3 and YTD 2017 OCF margins
were down 50 and 10 basis points to 47.3% and 46.8%, respectively. Our
OCF margins during the 2017 periods were negatively impacted by the
deconsolidation of the Netherlands
Q3 2017 Rebased Operating Cash Flow Growth -
Segment Highlights
-
U.K./Ireland: Rebased OCF growth of 4%
reflected revenue growth and a reduction in total costs, which include
lower marketing and employee costs, offsetting higher network taxes
and programming costs
-
Belgium: Rebased OCF growth of 6% in Q3
was largely driven by lower mobile handset subsidies, lower MVNO costs
(as we are migrating to our own mobile network), lower integration
costs and indirect cost containment following the BASE acquisition
-
Germany: Increased OCF by 3.5% in Q3 on a
rebased basis, primarily due to the net effect of (i) increased
revenue, (ii) higher direct costs, primarily due to higher mobile
handset sales, partially offset by lower fixed-line telephony
interconnect rates and call volumes and (iii) higher indirect costs,
mainly driven by higher call center costs. Growth slowed sequentially
due to the aforementioned loss of analog carriage fees, which reduced
OCF by approximately $7.5 million in Q3
-
Switzerland/Austria: Rebased Segment OCF
contracted 3% in Q3, mainly as a result of increased content costs
related to the launch of our MySports platform that more than offset
revenue growth
-
CEE: Rebased OCF growth of 7% in Q3 was
largely driven by the aforementioned revenue growth as well as cost
efficiencies across the region
Net Loss Attributable to Liberty Global Shareholders - Liberty Global
Group (Europe)
-
Net losses attributable to Liberty Global Group shareholders were $460
million and $168 million for the three months ended September 30, 2017
and 2016, respectively, and $1,390 million and $294 million for the
nine months ended September 30, 2017 and 2016, respectively
Leverage and Liquidity - Liberty Global Group (at September 30, 2017)
-
Total capital leases and principal amount of
third-party debt: $41.9 billion
-
Leverage ratios: Our adjusted gross and
net leverage ratios at September 30, 2017 were 5.2x and 5.0x,
respectively
-
Average debt tenor21 : 7.5
years, with ~88% not due until 2021 or beyond
-
Borrowing costs: Blended fully-swapped
borrowing cost of our third-party debt was 4.5%
-
Liquidity: $4.8 billion, including (i)
$1.6 billion of cash at September 30, 2017 and (ii) aggregate unused
borrowing capacity16 under our credit facilities of
$3.2 billion
|
Subscriber Growth - LiLAC Group*
|
|
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Organic RGU net additions (losses) by product
|
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
(3,900
|
)
|
|
|
4,600
|
|
|
|
7,600
|
|
|
|
17,800
|
|
Data
|
|
|
34,700
|
|
|
|
29,500
|
|
|
|
96,500
|
|
|
|
85,700
|
|
Voice
|
|
|
8,700
|
|
|
|
(6,900
|
)
|
|
|
(7,000
|
)
|
|
|
(9,300
|
)
|
Total LiLAC Group
|
|
|
39,500
|
|
|
|
27,200
|
|
|
|
97,100
|
|
|
|
94,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic RGU net additions by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
C&W
|
|
|
20,200
|
|
|
|
9,200
|
|
|
|
14,500
|
|
|
|
15,700
|
|
Chile
|
|
|
19,000
|
|
|
|
13,200
|
|
|
|
78,200
|
|
|
|
66,200
|
|
Puerto Rico
|
|
|
300
|
|
|
|
4,800
|
|
|
|
4,400
|
|
|
|
12,300
|
|
Total LiLAC Group
|
|
|
39,500
|
|
|
|
27,200
|
|
|
|
97,100
|
|
|
|
94,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Mobile SIM additions (losses) by product
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
6,300
|
|
|
|
18,200
|
|
|
|
28,800
|
|
|
|
29,800
|
|
Prepaid
|
|
|
(36,000
|
)
|
|
|
(38,500
|
)
|
|
|
(53,300
|
)
|
|
|
(44,300
|
)
|
Total LiLAC Group
|
|
|
(29,700
|
)
|
|
|
(20,300
|
)
|
|
|
(24,500
|
)
|
|
|
(14,500
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Mobile SIM additions (losses) by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
C&W
|
|
|
(42,900
|
)
|
|
|
(34,100
|
)
|
|
|
(64,500
|
)
|
|
|
(35,300
|
)
|
Chile
|
|
|
13,200
|
|
|
|
13,800
|
|
|
|
40,000
|
|
|
|
20,800
|
|
Puerto Rico
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total LiLAC Group
|
|
|
(29,700
|
)
|
|
|
(20,300
|
)
|
|
|
(24,500
|
)
|
|
|
(14,500
|
)
|
*For Puerto Rico and certain C&W markets that were significantly
impacted by Hurricanes Irma and Maria, the net additions (losses)
reflected in this section include Q3 activity through August 31, 2017.
For additional information, see note 12 to the subscriber tables at the
end of this release.
-
Product Additions: Organic fixed RGU
additions of 40,000 in Q3 2017
-
C&W: Added 20,000 RGUs during Q3,
including 10,000 internet and 14,000 fixed telephony RGUs
-
Broadband additions were driven by network upgrades and improved
product offerings leading to gains of 4,000 and 6,000 RGUs in
Panama and Jamaica, respectively
-
Fixed voice additions resulted from traction with refreshed
bundles in Jamaica, Trinidad and Panama
-
Video RGUs declined by 4,000 as the benefit from our new bundles
was more than offset by underlying OTT headwinds. In Panama, cable
video gains were offset by DTH losses
-
Mobile: Mobile subscribers declined
by 43,000 in Q3. Subscribers fell by 22,000 in Panama as we
repositioned our offers to focus on higher ARPU customers.
Competition in the Bahamas drove a 19,000 reduction in mobile
subscribers
-
Chile: VTR added 19,000 RGUs driven by
continued strong broadband and video gains, partially offset by
fixed-line voice attrition
-
Mobile: We added 13,000 subscribers
in Q3, primarily by penetrating our fixed subscriber base with our
postpaid mobile product
-
Puerto Rico: Our subscriber activity was
flat up to August 31, 2017, as 4,000 broadband RGU additions were
offset by video losses
Revenue Highlights - LiLAC Group
On May 16, 2016, a subsidiary of Liberty Global acquired C&W.
Accordingly, C&W has been included in our financial results under our
U.S. GAAP accounting policies since the acquisition date. The following
table presents (i) revenue of each of our consolidated reportable
segments for the comparative periods and (ii) the percentage change from
period to period on both a reported and rebased basis:
|
|
|
Three months ended
|
|
Increase/(decrease)
|
|
Nine months ended
|
|
Increase/(decrease)
|
|
|
|
September 30,
|
|
|
September 30,
|
|
Revenue
|
|
|
2017
|
|
2016
|
|
%
|
|
Rebased %
|
|
2017
|
|
2016
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C&W
|
|
|
$
|
578.9
|
|
|
$
|
568.5
|
|
|
1.8
|
|
|
1.2
|
|
|
$
|
1,737.2
|
|
|
$
|
854.1
|
|
|
103.4
|
|
|
(0.8
|
)
|
Chile
|
|
|
242.2
|
|
|
221.3
|
|
|
9.4
|
|
|
6.1
|
|
|
702.6
|
|
|
631.9
|
|
|
11.2
|
|
|
6.9
|
|
Puerto Rico
|
|
|
88.6
|
|
|
104.8
|
|
|
(15.5
|
)
|
|
(15.5
|
)
|
|
303.6
|
|
|
315.6
|
|
|
(3.8
|
)
|
|
(3.8
|
)
|
Total LiLAC Division
|
|
|
909.7
|
|
|
894.6
|
|
|
1.7
|
|
|
0.5
|
|
|
2,743.4
|
|
|
1,801.6
|
|
|
52.3
|
|
|
0.7
|
|
Intersegment eliminations
|
|
|
(1.6
|
)
|
|
(0.5
|
)
|
|
N.M.
|
|
N.M.
|
|
(3.5
|
)
|
|
(0.7
|
)
|
|
N.M.
|
|
N.M.
|
Total LiLAC Group
|
|
|
$
|
908.1
|
|
|
$
|
894.1
|
|
|
1.6
|
|
|
0.4
|
|
|
$
|
2,739.9
|
|
|
$
|
1,800.9
|
|
|
52.1
|
|
|
0.7
|
|
N.M. - Not Meaningful
-
Reported revenue for the three and nine months ended September 30,
2017 increased by 2% and 52%, respectively
-
In September 2017, Hurricanes Irma and Maria impacted a number of our
markets in the Caribbean. During the three months ended September 30,
2017, the effects of the hurricanes negatively impacted Liberty Puerto
Rico's and C&W's revenue by an estimated $19 million and $3 million,
respectively
-
From a rebased perspective, revenue was flat and increased 1% for the
three and nine months ended September 30, 2017, respectively, and
included favorable $1 million and $9 million impacts in Q3 and YTD,
respectively, for wholesale revenue recognized on a cash basis related
to services provided to a significant customer in prior quarters
Q3 2017 Rebased Revenue Growth - Segment Highlights
-
C&W: Rebased revenue grew 1% overall
-
Revenue grew across all regions with the exception of the
Bahamas where we continue to be impacted by the entry of a new
mobile competitor
-
By product: revenue growth was driven by (i) new contracts and
increasing demand for bandwidth in our networks business, (ii)
increased penetration of high-speed services in broadband and
video and (iii) growth in managed services. This growth was
partly offset by: (i) a decline in mobile where the impact of
competition in the Bahamas was greater than our growth in
Jamaica, and (ii) the structural decline in fixed voice services
-
We estimate that the negative impact from Hurricanes Irma and
Maria on C&W's revenue in Q3 2017 was $3 million
-
Chile: Rebased revenue growth of 6% for
Q3 2017 is primarily related to (i) higher residential cable
subscription revenue, mainly from higher ARPU per RGU and an increase
in the average number of subscribers, (ii) higher B2B subscription
revenue driven by SOHO, and (iii) higher mobile subscription revenue,
driven by subscriber growth
-
Puerto Rico: Rebased revenue decline of
15.5% was driven by impacts related to Hurricanes Irma and Maria. We
estimate that the negative impacts from these hurricanes on revenue in
Q3 2017 were approximately $19 million
Operating Income (Loss) - LiLAC Group
-
Operating income (loss) was ($202 million) and $139 million in Q3 2017
and Q3 2016, respectively, and $95 million and $178 million for the
nine months ended September 30, 2017 and 2016, respectively
-
These decreases were primarily driven by the net effect of (i)
increases in OCF, as further described below, (ii) increases in
impairment, restructuring and other operating items, net, primarily
due to impairment charges recorded during Q3 2017 to reflect the
impacts of Hurricanes Irma and Maria, and (iii) for the nine-month
comparison, increases in depreciation and amortization, largely due to
the inclusion of C&W
Operating Cash Flow Highlights - LiLAC Group
The following table presents (i) OCF of each of our consolidated
reportable segments for the comparative periods and (ii) the percentage
change from period to period on both a reported and rebased basis:
|
|
|
Three months ended
|
|
Increase/(decrease)
|
|
Nine months ended
|
|
Increase/(decrease)
|
|
|
|
September 30,
|
|
|
September 30,
|
|
OCF
|
|
|
2017
|
|
2016
|
|
%
|
|
Rebased %
|
|
2017
|
|
2016
|
|
%
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C&W
|
|
|
$
|
223.9
|
|
|
$
|
214.5
|
|
|
4.4
|
|
|
3.6
|
|
|
$
|
661.1
|
|
|
$
|
315.5
|
|
|
109.5
|
|
|
(3.0
|
)
|
Chile
|
|
|
98.0
|
|
|
86.9
|
|
|
12.8
|
|
|
9.4
|
|
|
281.9
|
|
|
245.0
|
|
|
15.1
|
|
|
10.6
|
|
Puerto Rico
|
|
|
39.6
|
|
|
56.1
|
|
|
(29.4
|
)
|
|
(29.4
|
)
|
|
144.7
|
|
|
152.9
|
|
|
(5.4
|
)
|
|
(5.4
|
)
|
Total LiLAC Division
|
|
|
361.5
|
|
|
357.5
|
|
|
1.1
|
|
|
-
|
|
|
1,087.7
|
|
|
713.4
|
|
|
52.5
|
|
|
(0.1
|
)
|
Corporate and other
|
|
|
(2.1
|
)
|
|
(2.9
|
)
|
|
(27.6
|
)
|
|
(27.6
|
)
|
|
(6.4
|
)
|
|
(5.8
|
)
|
|
10.3
|
|
|
10.3
|
|
Total segment OCF
|
|
|
$
|
359.4
|
|
|
$
|
354.6
|
|
|
1.4
|
|
|
0.2
|
|
|
$
|
1,081.3
|
|
|
$
|
707.6
|
|
|
52.8
|
|
|
(0.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OCF Margin
|
|
|
39.6
|
%
|
|
39.7
|
%
|
|
|
|
|
|
39.5
|
%
|
|
39.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Reported OCF for the three and nine months ended September 30, 2017
increased 1% and 53%, respectively. The nine month movement was
primarily as a result of the acquisition of C&W
-
In September 2017, Hurricanes Irma and Maria impacted a number of our
markets in the Caribbean. During the three months ended September 30,
2017, the effects of the hurricanes negatively impacted Liberty Puerto
Rico's and C&W's OCF by an estimated $15 million and $9 million
-
From a rebased perspective, including the aforementioned negative
impact from Hurricanes Irma and Maria, OCF remained flat for the three
and nine months ended September 30, 2017
Q3 2017 Rebased OCF Growth - Segment Highlights
-
C&W: Rebased OCF growth of 4% was
driven by (i) lower marketing costs as the prior year period had
higher sponsorship activities associated with the Summer Olympic
Games, (ii) reductions in other costs, including integration,
consultancy and travel costs, (iii) higher net pension credits at C&W
due primarily to higher expected returns on plan assets, and (iv) an
increased gross margin contribution from our wholesale business. These
factors were partially offset by (i) the reduction in OCF caused by
Hurricanes Irma and Maria and (ii) higher content costs, primarily
related to the Premier League rights
-
Chile: Rebased OCF increase of 9% was
driven by the aforementioned solid revenue growth and ongoing cost
focus
-
Puerto Rico: Rebased OCF declined 29%
driven by the impacts of Hurricanes Irma and Maria, which are
estimated to have reduced OCF by approximately $15 million in Q3 2017,
and the negative impact from the aforementioned legal ruling in the
prior-year period
Net Loss Attributable to Liberty Global Shareholders - LiLAC Group
-
Net losses attributable to LiLAC Group shareholders were $331 million
and $82 million for the three months ended September 30, 2017 and
2016, respectively, and $396 million and $223 million for the nine
months ended September 30, 2017 and 2016, respectively
Leverage and Liquidity - LiLAC Group (at September 30, 2017)
-
Total capital leases and principal amount of
third-party debt: $6.4 billion
-
Leverage ratios: Consolidated gross and
net leverage ratios of 4.5x and 4.1x, respectively
-
Average debt tenor: 6.3 years, with over
90% not due until 2021 or beyond
-
Borrowing costs: Blended, fully-swapped
borrowing cost of our third-party debt was 6.3%
-
Liquidity: Approximately $1.5 billion,
including $531.0 million of cash and $1.0 billion of aggregate unused
borrowing capacity under our credit facilities
Update on Impacts of Hurricanes Irma and Maria
Hurricanes Irma and Maria impacted a number of our markets in the
Caribbean in September of 2017, resulting in varying degrees of damage
to homes, businesses and infrastructure in these markets. The most
extensive damage occurred in Puerto Rico and certain markets within C&W
We are committed to helping people across the Caribbean recover and
rebuild. To that end:
-
We have made good progress with the restoration of our mobile networks
across the impacted region and mobile services have now been largely
restored
-
Our fixed networks suffered significant damage across these markets.
Although we are working to re-establish connectivity as quickly as
possible, we cannot predict when and to what extent we will be able to
restore services across the region. The damage to our sub-sea systems
was limited and they are fully functional today
-
We have provided credits to mobile customers in impacted C&W markets,
as well as establishing free WiFi hotspots and a free mobile "WiFi
tour" in Puerto Rico. The "WiFi tour" features three mobile units
specifically designed for first aid communications after a natural
disaster and are equipped with satellite antennas that provide
internet to rural communities. The three mobile WiFi vehicles are
leading a caravan of services and providers including FEMA, banking,
insurance, food, water, medical supplies and doctors to 29 remote
towns that do not currently have internet connectivity
-
Launched the Cable & Wireless Charitable Foundation and Liberty
Foundation which together have raised over $1.8 million to date and
will distribute funds to assist in hurricane relief across the region
Our assessment of the losses attributable to the hurricanes is ongoing
and we expect to incur additional costs and losses in Q4 2017 and
beyond, as we restore the damaged networks and reconnect customers. We
are uncertain as to the timing and extent of our restoration and
reconnection efforts. The estimates below are preliminary and are
subject to change.
Liberty Puerto Rico
-
We currently estimate that more than $100 million of property and
equipment additions would be required to restore 100% of Liberty
Puerto Rico's broadband communications network
-
We currently estimate that the effects of the hurricanes (before
considering any insurance recoveries) will negatively impact Liberty
Puerto Rico's revenue by between $80 million to $100 million and OCF
by between $60 million to $80 million during the fourth quarter of
2017 and will result in negative OCF for that quarter
Cable & Wireless
-
We currently estimate that more than $50 million of property and
equipment additions would be required to restore 100% of the damaged
networks in the impacted C&W markets
-
We currently estimate that the effects of the hurricanes (before
considering any insurance recoveries) will negatively impact C&W's
revenue and OCF between $15 million to $25 million during the fourth
quarter of 2017
LiLAC Insurance Program
-
We maintain an integrated group property and business interruption
insurance program covering all impacted markets up to a limit of $75
million per occurrence, which is generally subject to approximately
$15 million per occurrence of self-insurance
-
Although we are in the early stages of assessing the alternatives
under our insurance policy, we currently believe that the hurricanes
will result in at least two occurrences. This policy is subject to the
normal terms and conditions applicable to this type of insurance. We
expect that the insurance recovery will only cover a portion of the
incurred losses of each of our impacted businesses
-
We have not recognized any potential insurance proceeds related to the
hurricane losses, and we do not currently expect to receive any
significant reimbursements in 2017
Forward-Looking Statements and Disclaimer
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements with respect to our strategies, future growth
prospects and opportunities; our expectations with respect to
subscribers, revenue, ARPU per RGU, OCF and Adjusted FCF; statements
regarding the impact of Hurricanes Irma and Maria on our operations in
the Caribbean, our plans regarding the markets impacted by the
hurricanes, the time it will take to restore services in the markets
impacted by the hurricanes and the amount and timing of insurance
proceeds; expectations with respect to the development, enhancement and
expansion of our superior networks and innovative and advanced products
and services; statements regarding our planned split-off of the
businesses attributed to the LiLAC Group and the anticipated impacts and
benefits of such transaction; future P&E additions as a percentage of
revenue; expectations regarding our share buyback programs; the strength
of our balance sheet and tenor of our third-party debt; 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
events that are outside of our control, such as hurricanes and other
natural disasters, the continued use by subscribers and potential
subscribers of our and our affiliates' services and their willingness to
upgrade to our more advanced offerings; our and our affiliates' ability
to meet challenges from competition, to manage rapid technological
change or to maintain or increase rates to subscribers or to pass
through increased costs to subscribers; the effects of changes in laws
or regulation; general economic factors; our and our affiliates' ability
to obtain regulatory approval and satisfy regulatory conditions
associated with acquisitions and dispositions; our and affiliates'
ability to successfully acquire and integrate new businesses and realize
anticipated efficiencies from acquired businesses; the availability of
attractive programming for our and our affiliates' video services and
the costs associated with such programming; our and our affiliates'
ability to achieve forecasted financial and operating targets; the
outcome of any pending or threatened litigation; the ability of our
operating companies and affiliates to access cash of their respective
subsidiaries; the impact of our operating companies' and affiliates'
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 and our affiliates' ability to adequately
forecast and plan future network requirements including the costs and
benefits associated with network expansions; and other factors detailed
from time to time in our filings with the Securities and Exchange
Commission, including our most recently filed Form 10-K, as amended, and
Form 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.
Nothing in this press release constitutes an offer of any securities for
sale.
Footnotes
1
|
|
The Liberty Global ordinary shares 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 "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 Form 10-Q. While the LiLAC Group and the
Liberty Global Group have separate collections of businesses, assets
and liabilities attributed to them, neither group is a separate
legal entity. The LiLAC Group comprises our operations in Latin
America and the Caribbean and has attributed to it C&W, VTR and
Liberty Puerto Rico. The Liberty Global Group comprises our
businesses, assets and liabilities not attributed to the LiLAC
Group, including Virgin Media, Unitymedia, UPC Holding, Telenet, our
50% interest in the VodafoneZiggo JV (from December 31, 2016) and
Ziggo Group Holding (up to December 31, 2016). The condensed
consolidated financial statements of Liberty Global are included in
our Form 10-Q. For attributed financial information of the Liberty
Global Group and the LiLAC Group, see Exhibit 99.1 to our Form 10-Q.
|
2
|
|
Total B2B includes subscription (SOHO) and non-subscription revenue.
|
3
|
|
The indicated growth rates are rebased for acquisitions,
dispositions and FX. Please see Revenue and Operating Cash Flow for
information on rebased growth.
|
4
|
|
Please see OCF Definition and Reconciliation for our Operating Cash
Flow ("OCF") definition and the required reconciliations.
|
5
|
|
The Liberty Latin America and Caribbean ("LiLAC") B shares trade on
the Over-the-Counter ("OTC") market.
|
6
|
|
Please see Footnotes for Operating Data and Subscriber Variance
Tables for the definition of RGUs. Organic figures exclude RGUs of
acquired entities at the date of acquisition and other nonorganic
adjustments, 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.
|
7
|
|
As we no longer consolidate the Netherlands effective December 31,
2016, we have removed the Netherlands from certain information
presented for periods prior to December 31, 2016 to enhance
comparability.
|
8
|
|
NPS stands for Net Promoter Score.
|
9
|
|
Average Revenue Per Unit ("ARPU") refers to the average monthly
subscription revenue (subscription revenue excludes interconnect,
channel carriage fees, mobile handset sales, late fees and
installation fees) per average customer relationship or mobile
subscriber, as applicable. ARPU per average customer relationship is
calculated by dividing the average monthly subscription revenue from
residential cable and SOHO services by the average of the opening
and closing balances for customer relationships for the period. ARPU
per average mobile subscriber is calculated by dividing residential
mobile and SOHO revenue for the indicated period by the average of
the opening and closing balances for mobile subscribers for the
period. Unless otherwise indicated, ARPU per customer relationship
or mobile subscriber is not adjusted for currency impacts. ARPU per
RGU refers to average monthly revenue per average RGU, which is
calculated by dividing the average monthly subscription revenue from
residential and SOHO services for the indicated period, by the
average of the opening and closing balances of the applicable RGUs
for the period. Unless otherwise noted, ARPU in this release is
considered to be ARPU per average customer relationship or mobile
subscriber, as applicable. Customer relationships, mobile
subscribers and RGUs of entities acquired during the period are
normalized.
|
10
|
|
Our next-generation video base consists of Horizon TV, TiVo (in the
U.K.), Digital TV with a Horizon-like user interface (Yelo in
Belgium) as well as Horizon-Lite set-top boxes.
|
11
|
|
Our residential fixed business consists of our fixed-line
triple-play and DTH businesses, but excludes SOHO services.
Residential fixed also excludes the framework services revenue from
the VodafoneZiggo JV and our small Irish broadcasting businesses.
|
12
|
|
Liquidity refers to cash and cash equivalents plus the maximum
undrawn commitments under subsidiary borrowing facilities, without
regard to covenant compliance calculations.
|
13
|
|
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 or secured by the shares we hold in
ITV plc, Sumitomo Corporation and Lions Gate Entertainment Corp.
|
14
|
|
Our blended fully-swapped debt borrowing cost represents the
weighted average interest rate on our aggregate variable- and
fixed-rate indebtedness (excluding capital leases and including
vendor financing obligations), including the effects of derivative
instruments, original issue premiums or discounts and commitment
fees, but excluding the impact of financing costs.
|
15
|
|
Please see Adjusted Free Cash Flow Definition and Reconciliation for
information on Adjusted Free Cash Flow ("FCF") and the required
reconciliations. For more detailed information concerning our
operating, investing and financing cash flows, see the condensed
consolidated statements of cash flows included in our Form 10-Q.
|
16
|
|
Our aggregate unused borrowing capacity of $4.2 billion represents
the maximum undrawn commitments under our subsidiaries' applicable
facilities without regard to covenant compliance calculations. This
consists of $3.2 billion attributed to the Liberty Global Group and
$1.0 billion attributed to the LiLAC Group. Upon completion of the
relevant September 30, 2017 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 $4.1 billion. This consists of $3.1
billion attributed to the Liberty Global Group and $1.0 billion
attributed to the LiLAC Group. LiLAC cash of $531 million includes
$286 million of cash held by C&W, substantially all of which is held
by C&W subsidiaries. For information regarding limitations on C&W's
ability to access this cash, see the discussion under "Material
Changes in Financial Condition" in our Form 10-Q.
|
17
|
|
United States Generally Accepted Accounting Principles.
|
18
|
|
Please see Footnotes for Operating Data and Subscriber Variance
Tables for the definition of mobile subscribers.
|
19
|
|
On February 11, 2016, Telenet acquired Telenet Group BVBA ("BASE").
|
20
|
|
OCF margin is calculated by dividing OCF by total revenue for the
applicable period.
|
21
|
|
For purposes of calculating our average tenor, total third-party
debt excludes vendor financing.
|
|
|
|
Balance Sheets, Statements of Operations and Statements of Cash Flows
The consolidated balance sheets, statements of operations and statements
of cash flows of Liberty Global 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.
Rebase Information
For purposes of calculating rebased growth rates on a comparable basis
for all businesses that we owned during 2017, we have adjusted our
historical revenue and OCF for the three and nine months ended September
30, 2016 to (i) include the pre-acquisition revenue and OCF of certain
entities acquired during 2016 and 2017 in our rebased amounts for the
three and nine months ended September 30, 2016 to the same extent that
the revenue and OCF of such entities are included in our results for the
three and nine months ended September 30, 2017, (ii) exclude the revenue
and OCF of Ziggo Group Holding and a sports channel that were
contributed to the VodafoneZiggo JV at the end of December 31, 2016,
(iii) include revenue for the framework services agreement with the
VodafoneZiggo JV and certain associated operating and SG&A expenses that
had been allocated to our Netherlands segment during the 2016 periods in
our rebased amounts for the three and nine months ended September 30,
2016 as if the framework services agreement had been in place at the
beginning of 2016, (iv) exclude the revenue and OCF of multi-channel
multi-point (microwave) distribution system subscribers in Ireland that
have disconnected since we announced the switch-off of this service
effective April 2016 for the nine months ended September 30, 2016 to the
same extent that the revenue and OCF of these subscribers is excluded
from our results for the nine months ended September 30, 2017 (v)
exclude the revenue and OCF of two small disposals made in Belgium
during Q1 2017 to the same extent that the revenue and OCF of these
disposed businesses is excluded from our results for the three and nine
months ended September 30, 2017 and (vi) reflect the translation of our
rebased amounts for the three and nine months ended September 30, 2016
at the applicable average foreign currency exchange rates that were used
to translate our results for the three and nine months ended September
30, 2017. We have included SFR and five small entities in whole or in
part in the determination of our rebased revenue and OCF for the three
months ended September 30, 2016. We have included C&W, SFR, BASE and
five small entities in whole or in part in the determination of our
rebased revenue and OCF for the nine months ended September 30, 2016. We
have reflected the revenue and OCF of the acquired entities in our 2016
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 U.S. 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 nonrecurring items or to give retroactive effect to any
changes in estimates that might be implemented during post-acquisition
periods. As we did not own or operate the acquired businesses during the
pre-acquisition periods, no assurance can be given that we have
identified all adjustments necessary to present the revenue and OCF of
these entities on a basis that is comparable to the corresponding
post-acquisition amounts that are included in our historical results or
that the pre-acquisition financial statements we have relied upon do not
contain undetected errors. The adjustments reflected in our rebased
amounts have not been prepared with a view towards complying with
Article 11 of Regulation S-X. In addition, the rebased growth
percentages are not necessarily indicative of the revenue and OCF that
would have occurred if these transactions had occurred on the dates
assumed for purposes of calculating our rebased amounts or the revenue
and OCF that will occur in the future. The rebased growth percentages
have been presented as a basis for assessing growth rates on a
comparable basis, and are not presented as a measure of our pro
forma financial performance.
The following table provides adjustments made to the 2016 amounts to
derive our rebased growth rates for the Liberty Global Group and the
LiLAC Group:
|
|
|
Revenue
|
|
|
OCF
|
|
|
|
Three months ended September 30,
|
|
|
Nine months ended September 30,
|
|
|
Three months ended September 30,
|
|
|
Nine months ended September 30,
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Liberty Global Group
|
|
|
in millions
|
Acquisitions
|
|
|
$
|
66.6
|
|
|
|
$
|
233.6
|
|
|
|
$
|
36.7
|
|
|
|
$
|
102.7
|
|
Contribution of Ziggo Group Holding to the VodafoneZiggo JV and
other dispositions (a)
|
|
|
(695.4
|
)
|
|
|
(2,067.2
|
)
|
|
|
(377.2
|
)
|
|
|
(1,115.7
|
)
|
Foreign Currency
|
|
|
99.2
|
|
|
|
(402.1
|
)
|
|
|
47.4
|
|
|
|
(171.3
|
)
|
Total decrease
|
|
|
$
|
(529.6
|
)
|
|
|
$
|
(2,235.7
|
)
|
|
|
$
|
(293.1
|
)
|
|
|
$
|
(1,184.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
|
$
|
6.0
|
|
|
|
$
|
908.5
|
|
|
|
$
|
2.1
|
|
|
|
$
|
370.9
|
|
Foreign Currency
|
|
|
4.5
|
|
|
|
12.3
|
|
|
|
2.0
|
|
|
|
4.9
|
|
Total increase
|
|
|
$
|
10.5
|
|
|
|
$
|
920.8
|
|
|
|
$
|
4.1
|
|
|
|
$
|
375.8
|
|
______________________________
(a)
|
|
In connection with the December 31, 2016 closing of the
VodafoneZiggo JV transaction, we entered into a framework services
agreement that provides for the terms under which we provide
services to the VodafoneZiggo JV. These adjustments to revenue and
OCF are net of $34 million and $97 million of revenue for Q3 and YTD
2016, respectively, that we assumed would have been earned if the
framework services agreement had been in place on January 1, 2016.
|
|
|
|
OCF Definition and Reconciliation
As used herein, OCF has the same meaning as the term "Adjusted OIBDA"
that is referenced in our Form 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 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 U.S.
GAAP measures of income or cash flows. A reconciliation of our operating
income to total segment OCF is presented in the following table:
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
in millions
|
Consolidated Liberty Global
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
335.8
|
|
|
|
$
|
902.7
|
|
|
|
$
|
1,546.9
|
|
|
|
$
|
1,977.1
|
|
Share-based compensation expense
|
|
|
26.5
|
|
|
|
62.8
|
|
|
|
121.9
|
|
|
|
206.4
|
|
Depreciation and amortization
|
|
|
1,416.2
|
|
|
|
1,416.9
|
|
|
|
4,109.8
|
|
|
|
4,405.4
|
|
Impairment, restructuring and other operating items, net
|
|
|
416.6
|
|
|
|
32.2
|
|
|
|
476.4
|
|
|
|
246.9
|
|
Total segment OCF
|
|
|
$
|
2,195.1
|
|
|
|
$
|
2,414.6
|
|
|
|
$
|
6,255.0
|
|
|
|
$
|
6,835.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
537.3
|
|
|
|
$
|
763.9
|
|
|
|
$
|
1,451.7
|
|
|
|
$
|
1,799.2
|
|
Share-based compensation expense
|
|
|
23.2
|
|
|
|
57.1
|
|
|
|
110.0
|
|
|
|
195.7
|
|
Inter-group fees and allocations
|
|
|
(3.0
|
)
|
|
|
(2.2
|
)
|
|
|
(9.0
|
)
|
|
|
(6.4
|
)
|
Depreciation and amortization
|
|
|
1,216.5
|
|
|
|
1,216.2
|
|
|
|
3,523.3
|
|
|
|
4,026.3
|
|
Impairment, restructuring and other operating items, net
|
|
|
61.7
|
|
|
|
25.0
|
|
|
|
97.7
|
|
|
|
113.4
|
|
Total segment OCF
|
|
|
$
|
1,835.7
|
|
|
|
$
|
2,060.0
|
|
|
|
$
|
5,173.7
|
|
|
|
$
|
6,128.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
$
|
(201.5
|
)
|
|
|
$
|
138.8
|
|
|
|
$
|
95.2
|
|
|
|
$
|
177.9
|
|
Share-based compensation expense
|
|
|
3.3
|
|
|
|
5.7
|
|
|
|
11.9
|
|
|
|
10.7
|
|
Inter-group fees and allocations
|
|
|
3.0
|
|
|
|
2.2
|
|
|
|
9.0
|
|
|
|
6.4
|
|
Depreciation and amortization
|
|
|
199.7
|
|
|
|
200.7
|
|
|
|
586.5
|
|
|
|
379.1
|
|
Impairment, restructuring and other operating items, net
|
|
|
354.9
|
|
|
|
7.2
|
|
|
|
378.7
|
|
|
|
133.5
|
|
Total segment OCF
|
|
|
$
|
359.4
|
|
|
|
$
|
354.6
|
|
|
|
$
|
1,081.3
|
|
|
|
$
|
707.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Debt, Capital Lease Obligations & Cash and Cash Equivalents
The following table1 details the U.S. dollar equivalent
balances of the outstanding principal amount of our debt, capital lease
obligations and cash and cash equivalents at September 30, 2017:
|
|
|
|
|
|
Capital
|
|
|
Debt & Capital
|
|
|
Cash
|
|
|
|
|
|
|
Lease
|
|
|
Lease
|
|
|
and Cash
|
|
|
|
Debt2
|
|
|
Obligations
|
|
|
Obligations
|
|
|
Equivalents
|
|
|
|
in millions
|
Liberty Global and Liberty Global Group unrestricted subsidiaries
|
|
|
$
|
2,344.7
|
|
|
|
$
|
70.5
|
|
|
|
$
|
2,415.2
|
|
|
|
$
|
1,456.5
|
Virgin Media3
|
|
|
16,858.2
|
|
|
|
78.3
|
|
|
|
16,936.5
|
|
|
|
57.1
|
UPC Holding
|
|
|
7,295.4
|
|
|
|
95.9
|
|
|
|
7,391.3
|
|
|
|
20.1
|
Unitymedia
|
|
|
8,771.7
|
|
|
|
715.1
|
|
|
|
9,486.8
|
|
|
|
1.7
|
Telenet
|
|
|
5,232.2
|
|
|
|
437.9
|
|
|
|
5,670.1
|
|
|
|
43.7
|
Total Liberty Global Group
|
|
|
40,502.2
|
|
|
|
1,397.7
|
|
|
|
41,899.9
|
|
|
|
1,579.1
|
LiLAC Group unrestricted subsidiaries
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
40.6
|
C&W
|
|
|
3,917.8
|
|
|
|
18.0
|
|
|
|
3,935.8
|
|
|
|
285.6
|
VTR Finance
|
|
|
1,487.2
|
|
|
|
0.8
|
|
|
|
1,488.0
|
|
|
|
158.8
|
Liberty Puerto Rico
|
|
|
942.5
|
|
|
|
-
|
|
|
|
942.5
|
|
|
|
46.0
|
Total LiLAC Group
|
|
|
6,347.5
|
|
|
|
18.8
|
|
|
|
6,366.3
|
|
|
|
531.0
|
Total
|
|
|
$
|
46,849.7
|
|
|
|
$
|
1,416.5
|
|
|
|
$
|
48,266.2
|
|
|
|
$
|
2,110.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 reconcile those additions to the capital
expenditures that are presented in the attributed statement of cash
flows information included in Exhibit 99.1 to our 10-Q.
Liberty Global Group
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
in millions, except % amounts
|
Customer premises equipment
|
|
|
$
|
302.9
|
|
|
|
$
|
207.3
|
|
|
|
$
|
903.1
|
|
|
|
$
|
673.4
|
|
New Build & Upgrade
|
|
|
323.7
|
|
|
|
218.8
|
|
|
|
819.0
|
|
|
|
573.4
|
|
Capacity
|
|
|
173.2
|
|
|
|
137.7
|
|
|
|
452.8
|
|
|
|
403.8
|
|
Baseline
|
|
|
291.7
|
|
|
|
208.4
|
|
|
|
648.9
|
|
|
|
602.1
|
|
Product & Enablers
|
|
|
196.7
|
|
|
|
175.4
|
|
|
|
552.6
|
|
|
|
435.7
|
|
Property and equipment additions (excluding the Netherlands)
|
|
|
1,288.2
|
|
|
|
947.6
|
|
|
|
3,376.4
|
|
|
|
2,688.4
|
|
The Netherlands
|
|
|
-
|
|
|
|
138.0
|
|
|
|
-
|
|
|
|
421.2
|
|
Total property and equipment additions
|
|
|
1,288.2
|
|
|
|
1,085.6
|
|
|
|
3,376.4
|
|
|
|
3,109.6
|
|
Reconciliation of property and equipment additions to capital
expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding the Netherlands:
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets acquired under capital-related vendor financing arrangements4
|
|
|
(655.6
|
)
|
|
|
(424.5
|
)
|
|
|
(1,934.1
|
)
|
|
|
(1,247.1
|
)
|
Assets acquired under capital leases
|
|
|
(31.9
|
)
|
|
|
(31.4
|
)
|
|
|
(135.8
|
)
|
|
|
(73.0
|
)
|
Changes in current liabilities related to capital expenditures
|
|
|
(167.9
|
)
|
|
|
(59.6
|
)
|
|
|
70.9
|
|
|
|
(31.1
|
)
|
The Netherlands
|
|
|
-
|
|
|
|
(62.1
|
)
|
|
|
-
|
|
|
|
(155.9
|
)
|
Total capital expenditures5
|
|
|
$
|
432.8
|
|
|
|
$
|
508.0
|
|
|
|
$
|
1,377.4
|
|
|
|
$
|
1,602.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment additions as % of revenue (excluding the
Netherlands)
|
|
|
33.2
|
%
|
|
|
26.1
|
%
|
|
|
30.5
|
%
|
|
|
24.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
in millions, except % amounts
|
Customer premises equipment
|
|
|
$
|
32.6
|
|
|
|
$
|
38.4
|
|
|
|
$
|
114.2
|
|
|
|
$
|
110.1
|
|
New Build & Upgrade
|
|
|
12.8
|
|
|
|
10.3
|
|
|
|
39.4
|
|
|
|
34.8
|
|
Capacity
|
|
|
7.3
|
|
|
|
8.2
|
|
|
|
25.0
|
|
|
|
30.5
|
|
Baseline
|
|
|
10.0
|
|
|
|
8.5
|
|
|
|
26.3
|
|
|
|
30.8
|
|
Product & Enablers
|
|
|
11.0
|
|
|
|
3.4
|
|
|
|
18.0
|
|
|
|
13.9
|
|
C&W P&E Additions
|
|
|
119.7
|
|
|
|
91.3
|
|
|
|
280.6
|
|
|
|
144.9
|
|
Property and equipment additions
|
|
|
193.4
|
|
|
|
160.1
|
|
|
|
503.5
|
|
|
|
365.0
|
|
Assets acquired under capital-related vendor financing arrangements
|
|
|
(13.0
|
)
|
|
|
(16.7
|
)
|
|
|
(47.2
|
)
|
|
|
(33.7
|
)
|
Assets acquired under capital leases
|
|
|
(1.2
|
)
|
|
|
(4.8
|
)
|
|
|
(3.7
|
)
|
|
|
(5.0
|
)
|
Changes in current liabilities and cash derivatives related to
capital expenditures
|
|
|
20.0
|
|
|
|
22.3
|
|
|
|
(5.1
|
)
|
|
|
16.2
|
|
Capital expenditures
|
|
|
$
|
199.2
|
|
|
|
$
|
160.9
|
|
|
|
$
|
447.5
|
|
|
|
$
|
342.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment additions as % of revenue
|
|
|
21.3
|
%
|
|
|
17.9
|
%
|
|
|
18.4
|
%
|
|
|
20.3
|
%
|
______________________________
1
|
|
Except as otherwise indicated, the amounts reported in the table
include the named entity and its subsidiaries.
|
2
|
|
Debt amounts for UPC Holding, Telenet and C&W include notes issued
by special purpose entities that are consolidated by the respective
subsidiary.
|
3
|
|
The Virgin Media borrowing group includes certain subsidiaries of
Virgin Media, but excludes Virgin Media Inc. The cash and cash
equivalents amount includes cash and cash equivalents held by the
Virgin Media borrowing group, but excludes cash and cash equivalents
held by Virgin Media Inc. This amount is included in the amount
shown for Liberty Global and Liberty Global Group unrestricted
subsidiaries.
|
4
|
|
Amounts exclude related VAT of $110 million and $64 million during
the three months ended September 30, 2017 and 2016, respectively,
and $311 million and $193 million during the nine months ended
September 30, 2017 and 2016, respectively, that were also financed
by our vendors under these arrangements.
|
5
|
|
The capital expenditures that we report in our condensed
consolidated statements of cash flows do not include amounts that
are financed under vendor financing or capital lease arrangements.
Instead, these expenditures are reflected as non-cash additions to
our property and equipment when the underlying assets are delivered,
and as repayments of debt when the related principal is repaid.
|
|
|
|
|
|
|
Adjusted Free Cash Flow Definition and Reconciliation
We define Adjusted Free Cash Flow as net cash provided by our operating
activities, plus (i) cash payments for third-party costs directly
associated with successful and unsuccessful acquisitions and
dispositions and (ii) expenses financed by an intermediary, less (a)
capital expenditures, as reported in our 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 Adjusted 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. Adjusted 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
Adjusted Free Cash Flow as a supplement to, and not a substitute for,
U.S. GAAP measures of liquidity included in our consolidated statements
of cash flows. We changed our definition of adjusted free cash flow
effective January 1, 2017 to remove the add-back of excess tax benefits
from share-based compensation. This change, which was given effect for
all periods presented, was made to accommodate our January 1, 2017
adoption of ASU 2016-09, Compensation - Stock Compensation,
Improvements to Employee Share-Based Payment Accounting, pursuant to
which we retrospectively revised the presentation of our condensed
consolidated statements of cash flows to remove the operating cash
outflows and financing cash inflows associated with excess tax benefits
from share-based compensation. The following table provides the
reconciliation of our net cash provided by operating activities to
Adjusted Free Cash Flow for the indicated periods:
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
in millions
|
Consolidated Liberty Global
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
1,322.2
|
|
|
|
$
|
1,375.7
|
|
|
|
$
|
4,033.1
|
|
|
|
$
|
4,045.5
|
|
Cash payments for direct acquisition and disposition costs
|
|
|
2.2
|
|
|
|
3.5
|
|
|
|
9.7
|
|
|
|
89.5
|
|
Expenses financed by an intermediary6
|
|
|
432.0
|
|
|
|
213.8
|
|
|
|
1,124.0
|
|
|
|
607.0
|
|
Capital expenditures
|
|
|
(632.0
|
)
|
|
|
(668.9
|
)
|
|
|
(1,824.9
|
)
|
|
|
(1,945.0
|
)
|
Principal payments on amounts financed by vendors and intermediaries
|
|
|
(493.6
|
)
|
|
|
(375.3
|
)
|
|
|
(2,614.9
|
)
|
|
|
(1,796.2
|
)
|
Principal payments on certain capital leases
|
|
|
(25.7
|
)
|
|
|
(29.8
|
)
|
|
|
(73.4
|
)
|
|
|
(85.7
|
)
|
Adjusted FCF
|
|
|
$
|
605.1
|
|
|
|
$
|
519.0
|
|
|
|
$
|
653.6
|
|
|
|
$
|
915.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
1,228.5
|
|
|
|
$
|
1,254.0
|
|
|
|
$
|
3,640.0
|
|
|
|
$
|
3,818.0
|
|
Cash payments for direct acquisition and disposition costs
|
|
|
0.9
|
|
|
|
1.9
|
|
|
|
6.9
|
|
|
|
26.8
|
|
Expenses financed by an intermediary
|
|
|
422.5
|
|
|
|
212.7
|
|
|
|
1,067.1
|
|
|
|
605.9
|
|
Capital expenditures
|
|
|
(432.8
|
)
|
|
|
(508.0
|
)
|
|
|
(1,377.4
|
)
|
|
|
(1,602.5
|
)
|
Principal payments on amounts financed by vendors and intermediaries
|
|
|
(481.5
|
)
|
|
|
(375.3
|
)
|
|
|
(2,562.8
|
)
|
|
|
(1,796.2
|
)
|
Principal payments on certain capital leases
|
|
|
(23.0
|
)
|
|
|
(27.0
|
)
|
|
|
(66.7
|
)
|
|
|
(82.2
|
)
|
Adjusted FCF
|
|
|
$
|
714.6
|
|
|
|
$
|
558.3
|
|
|
|
$
|
707.1
|
|
|
|
$
|
969.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
93.7
|
|
|
|
$
|
121.7
|
|
|
|
$
|
393.1
|
|
|
|
$
|
227.5
|
|
Cash payments for direct acquisition and disposition costs
|
|
|
1.3
|
|
|
|
1.6
|
|
|
|
2.8
|
|
|
|
62.7
|
|
Expenses financed by an intermediary
|
|
|
9.5
|
|
|
|
1.1
|
|
|
|
56.9
|
|
|
|
1.1
|
|
Capital expenditures
|
|
|
(199.2
|
)
|
|
|
(160.9
|
)
|
|
|
(447.5
|
)
|
|
|
(342.5
|
)
|
Principal payments on amounts financed by vendors and intermediaries
|
|
|
(12.1
|
)
|
|
|
-
|
|
|
|
(52.1
|
)
|
|
|
-
|
|
Principal payments on certain capital leases
|
|
|
(2.7
|
)
|
|
|
(2.8
|
)
|
|
|
(6.7
|
)
|
|
|
(3.5
|
)
|
Adjusted FCF
|
|
|
$
|
(109.5
|
)
|
|
|
$
|
(39.3
|
)
|
|
|
$
|
(53.5
|
)
|
|
|
$
|
(54.7
|
)
|
________________________________
6
|
|
For purposes of our 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
consolidated statements of cash flows. For purposes of our
Adjusted 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.
|
|
|
|
|
|
|
ARPU per Customer Relationship
The following table provides ARPU per customer relationship for the
indicated periods:
|
|
|
Three months ended September 30,
|
|
|
%
|
|
|
FX-Neutral7
|
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Consolidated (excluding the Netherlands)8,9
|
|
|
$
|
44.09
|
|
|
|
$
|
42.44
|
|
|
|
3.9
|
%
|
|
|
1.2
|
%
|
Liberty Global Group (excluding the Netherlands)
|
|
|
€
|
36.64
|
|
|
|
€
|
37.08
|
|
|
|
(1.2
|
%)
|
|
|
1.2
|
%
|
U.K. & Ireland (Virgin Media)
|
|
|
£
|
49.92
|
|
|
|
£
|
49.90
|
|
|
|
-
|
%
|
|
|
(0.4
|
%)
|
Germany (Unitymedia)
|
|
|
€
|
25.25
|
|
|
|
€
|
24.45
|
|
|
|
3.3
|
%
|
|
|
3.3
|
%
|
Belgium (Telenet)
|
|
|
€
|
54.87
|
|
|
|
€
|
53.47
|
|
|
|
2.6
|
%
|
|
|
2.6
|
%
|
Other Europe (UPC Holding)
|
|
|
€
|
26.34
|
|
|
|
€
|
26.96
|
|
|
|
(2.3
|
%)
|
|
|
(1.1
|
%)
|
LiLAC Group8,9
|
|
|
$
|
52.56
|
|
|
|
$
|
50.90
|
|
|
|
3.3
|
%
|
|
|
1.8
|
%
|
Chile (VTR)
|
|
|
CLP
|
33,630
|
|
|
|
CLP
|
33,670
|
|
|
|
(0.1
|
%)
|
|
|
(0.1
|
%)
|
C&W8
|
|
|
$
|
42.12
|
|
|
|
$
|
40.38
|
|
|
|
4.3
|
%
|
|
|
5.0
|
%
|
Puerto Rico9
|
|
|
$
|
77.74
|
|
|
|
$
|
78.12
|
|
|
|
(0.5
|
%)
|
|
|
(0.5
|
%)
|
___________________________
7
|
|
The FX-neutral change represents the percentage change on a
year-over-year basis adjusted for FX impacts and is calculated by
adjusting the prior-year figures to reflect translation at the
foreign currency rates used to translate the current year amounts.
|
8
|
|
As a part of our ongoing effort to conform C&W's subscriber counting
policies to our policies, we have reflected nonorganic reductions
totaling 201,600 to C&W's customer count during the twelve months
ended September 30, 2017. In order to provide a more meaningful
comparison of ARPU, we have reflected all of these nonorganic
reductions in the customer figures used to calculate ARPU for the
three months ended September 30, 2017 and 2016.
|
9
|
|
In order to provide a more meaningful comparison of ARPU, the ARPU
for the three months ended September 30, 2017 for Puerto Rico is
based on the pre-hurricane results through August 31, 2017 only.
|
|
|
|
|
|
|
Mobile ARPU
The following tables provide ARPU per mobile subscriber10 for
the indicated periods:
|
|
|
ARPU per Mobile Subscriber
|
|
|
|
Three months ended September 30,
|
|
|
%
|
|
|
FX-Neutral
|
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
% Change
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
Including interconnect revenue
|
|
|
$
|
19.49
|
|
|
|
$
|
19.12
|
|
|
|
1.9
|
%
|
|
|
(1.0
|
%)
|
Excluding interconnect revenue
|
|
|
$
|
15.89
|
|
|
|
$
|
15.86
|
|
|
|
0.2
|
%
|
|
|
(2.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group8:
|
|
|
|
|
|
|
|
|
|
|
|
|
Including interconnect revenue
|
|
|
$
|
17.23
|
|
|
|
$
|
17.91
|
|
|
|
(3.8
|
%)
|
|
|
(3.9
|
%)
|
Excluding interconnect revenue
|
|
|
$
|
16.01
|
|
|
|
$
|
16.72
|
|
|
|
(4.2
|
%)
|
|
|
(4.4
|
%)
|
_______________________________
10
|
|
Our ARPU per mobile subscriber calculation that excludes
interconnect revenue refers to the average monthly mobile
subscription revenue per average mobile subscriber 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.
|
|
|
|
|
|
|
|
|
Consolidated Operating Data - September 30, 2017
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
|
|
Homes Passed(1)
|
|
Two-way Homes Passed(2)
|
|
Fixed-line Customer Relationships(3)
|
|
Basic Video Subscribers(5)
|
|
Enhanced Video Subscribers(6)
|
|
DTH Subscribers(7)
|
|
Total Video
|
|
Internet Subscribers(8)
|
|
Telephony Subscribers(9)
|
|
Total RGUs(4)
|
|
Total Mobile Subscribers(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
13,798,600
|
|
|
13,786,800
|
|
|
5,418,200
|
|
|
-
|
|
|
3,822,300
|
|
|
-
|
|
|
3,822,300
|
|
|
5,080,100
|
|
|
4,455,800
|
|
|
13,358,200
|
|
|
2,975,500
|
Germany
|
|
12,956,800
|
|
|
12,856,400
|
|
|
7,176,300
|
|
|
4,723,800
|
|
|
1,653,900
|
|
|
-
|
|
|
6,377,700
|
|
|
3,430,800
|
|
|
3,204,800
|
|
|
13,013,300
|
|
|
333,600
|
Belgium/Luxembourg
|
|
3,307,100
|
|
|
3,307,100
|
|
|
2,201,800
|
|
|
255,700
|
|
|
1,791,200
|
|
|
-
|
|
|
2,046,900
|
|
|
1,670,400
|
|
|
1,302,500
|
|
|
5,019,800
|
|
|
2,882,100
|
Switzerland(10)
|
|
2,268,600
|
|
|
2,268,600
|
|
|
1,260,200
|
|
|
542,500
|
|
|
679,800
|
|
|
-
|
|
|
1,222,300
|
|
|
754,800
|
|
|
532,900
|
|
|
2,510,000
|
|
|
105,000
|
Austria
|
|
1,404,300
|
|
|
1,404,300
|
|
|
654,000
|
|
|
95,200
|
|
|
372,600
|
|
|
-
|
|
|
467,800
|
|
|
512,500
|
|
|
450,200
|
|
|
1,430,500
|
|
|
55,700
|
Ireland
|
|
880,400
|
|
|
838,700
|
|
|
455,600
|
|
|
26,400
|
|
|
270,900
|
|
|
-
|
|
|
297,300
|
|
|
371,400
|
|
|
358,200
|
|
|
1,026,900
|
|
|
44,400
|
Total Western Europe
|
|
34,615,800
|
|
|
34,461,900
|
|
|
17,166,100
|
|
|
5,643,600
|
|
|
8,590,700
|
|
|
-
|
|
|
14,234,300
|
|
|
11,820,000
|
|
|
10,304,400
|
|
|
36,358,700
|
|
|
6,396,300
|
Poland
|
|
3,262,700
|
|
|
3,203,900
|
|
|
1,426,400
|
|
|
192,300
|
|
|
1,016,500
|
|
|
-
|
|
|
1,208,800
|
|
|
1,123,000
|
|
|
626,500
|
|
|
2,958,300
|
|
|
4,300
|
Romania
|
|
3,051,500
|
|
|
3,008,100
|
|
|
1,321,900
|
|
|
263,800
|
|
|
663,400
|
|
|
355,100
|
|
|
1,282,300
|
|
|
568,700
|
|
|
519,600
|
|
|
2,370,600
|
|
|
-
|
Hungary
|
|
1,764,400
|
|
|
1,746,900
|
|
|
1,109,200
|
|
|
100,600
|
|
|
577,000
|
|
|
269,900
|
|
|
947,500
|
|
|
664,900
|
|
|
621,700
|
|
|
2,234,100
|
|
|
81,400
|
Czech Republic
|
|
1,515,900
|
|
|
1,482,700
|
|
|
715,900
|
|
|
165,600
|
|
|
355,700
|
|
|
102,200
|
|
|
623,500
|
|
|
492,100
|
|
|
152,700
|
|
|
1,268,300
|
|
|
-
|
Slovakia
|
|
600,800
|
|
|
581,200
|
|
|
269,200
|
|
|
25,700
|
|
|
138,600
|
|
|
75,800
|
|
|
240,100
|
|
|
128,300
|
|
|
76,800
|
|
|
445,200
|
|
|
-
|
Total CEE
|
|
10,195,300
|
|
|
10,022,800
|
|
|
4,842,600
|
|
|
748,000
|
|
|
2,751,200
|
|
|
803,000
|
|
|
4,302,200
|
|
|
2,977,000
|
|
|
1,997,300
|
|
|
9,276,500
|
|
|
85,700
|
Total Liberty Global Group
|
|
44,811,100
|
|
|
44,484,700
|
|
|
22,008,700
|
|
|
6,391,600
|
|
|
11,341,900
|
|
|
803,000
|
|
|
18,536,500
|
|
|
14,797,000
|
|
|
12,301,700
|
|
|
45,635,200
|
|
|
6,482,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
3,360,700
|
|
|
2,868,100
|
|
|
1,395,300
|
|
|
69,900
|
|
|
998,800
|
|
|
-
|
|
|
1,068,700
|
|
|
1,164,500
|
|
|
640,500
|
|
|
2,873,700
|
|
|
206,200
|
Puerto Rico(12)
|
|
1,106,900
|
|
|
1,106,900
|
|
|
408,200
|
|
|
-
|
|
|
255,000
|
|
|
-
|
|
|
255,000
|
|
|
337,800
|
|
|
210,700
|
|
|
803,500
|
|
|
-
|
Panama
|
|
535,100
|
|
|
510,200
|
|
|
186,600
|
|
|
-
|
|
|
45,600
|
|
|
34,000
|
|
|
79,600
|
|
|
105,100
|
|
|
127,100
|
|
|
311,800
|
|
|
1,743,200
|
Jamaica
|
|
433,500
|
|
|
423,500
|
|
|
262,500
|
|
|
-
|
|
|
97,200
|
|
|
-
|
|
|
97,200
|
|
|
153,700
|
|
|
206,600
|
|
|
457,500
|
|
|
930,500
|
Trinidad
|
|
315,100
|
|
|
315,100
|
|
|
157,200
|
|
|
-
|
|
|
108,300
|
|
|
-
|
|
|
108,300
|
|
|
123,400
|
|
|
46,400
|
|
|
278,100
|
|
|
-
|
Barbados
|
|
123,700
|
|
|
123,700
|
|
|
85,000
|
|
|
-
|
|
|
16,800
|
|
|
-
|
|
|
16,800
|
|
|
60,800
|
|
|
74,500
|
|
|
152,100
|
|
|
124,300
|
Bahamas
|
|
128,900
|
|
|
128,900
|
|
|
49,500
|
|
|
-
|
|
|
5,900
|
|
|
-
|
|
|
5,900
|
|
|
26,200
|
|
|
49,500
|
|
|
81,600
|
|
|
266,100
|
Other C&W(12)
|
|
359,000
|
|
|
339,200
|
|
|
206,900
|
|
|
11,300
|
|
|
67,500
|
|
|
-
|
|
|
78,800
|
|
|
124,800
|
|
|
106,100
|
|
|
309,700
|
|
|
394,300
|
Total LiLAC Group
|
|
6,362,900
|
|
|
5,815,600
|
|
|
2,751,200
|
|
|
81,200
|
|
|
1,595,100
|
|
|
34,000
|
|
|
1,710,300
|
|
|
2,096,300
|
|
|
1,461,400
|
|
|
5,268,000
|
|
|
3,664,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
51,174,000
|
|
|
50,300,300
|
|
|
24,759,900
|
|
|
6,472,800
|
|
|
12,937,000
|
|
|
837,000
|
|
|
20,246,800
|
|
|
16,893,300
|
|
|
13,763,100
|
|
|
50,903,200
|
|
|
10,146,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscriber Variance Table - September 30, 2017 vs June 30, 2017
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
|
|
Homes Passed(1)
|
|
Two-way Homes Passed(2)
|
|
Fixed-line Customer Relationships(3)
|
|
Basic Video
Subscribers(5)
|
|
Enhanced Video Subscribers(6)
|
|
DTH Subscribers(7)
|
|
Total Video
|
|
Internet Subscribers(8)
|
|
Telephony Subscribers(9)
|
|
Total RGUs(4)
|
|
Total Mobile Subscribers(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
123,000
|
|
|
123,300
|
|
|
45,200
|
|
|
-
|
|
|
12,500
|
|
|
-
|
|
|
12,500
|
|
|
51,800
|
|
|
18,700
|
|
|
83,000
|
|
|
(20,100
|
)
|
Germany
|
|
21,200
|
|
|
25,300
|
|
|
1,300
|
|
|
(32,900
|
)
|
|
21,100
|
|
|
-
|
|
|
(11,800
|
)
|
|
41,300
|
|
|
38,600
|
|
|
68,100
|
|
|
(6,800
|
)
|
Belgium/Luxembourg
|
|
(20,900
|
)
|
|
(20,900
|
)
|
|
(10,600
|
)
|
|
(9,800
|
)
|
|
(5,300
|
)
|
|
-
|
|
|
(15,100
|
)
|
|
2,000
|
|
|
(1,500
|
)
|
|
(14,600
|
)
|
|
43,400
|
|
Switzerland(10)
|
|
12,700
|
|
|
12,700
|
|
|
(11,200
|
)
|
|
(18,400
|
)
|
|
7,900
|
|
|
-
|
|
|
(10,500
|
)
|
|
2,200
|
|
|
8,600
|
|
|
300
|
|
|
12,500
|
|
Austria
|
|
5,300
|
|
|
5,300
|
|
|
1,600
|
|
|
(4,400
|
)
|
|
100
|
|
|
-
|
|
|
(4,300
|
)
|
|
4,000
|
|
|
8,500
|
|
|
8,200
|
|
|
8,500
|
|
Ireland
|
|
14,500
|
|
|
16,000
|
|
|
3,500
|
|
|
(1,100
|
)
|
|
1,900
|
|
|
-
|
|
|
800
|
|
|
5,300
|
|
|
3,300
|
|
|
9,400
|
|
|
3,900
|
|
Total Western Europe
|
|
155,800
|
|
|
161,700
|
|
|
29,800
|
|
|
(66,600
|
)
|
|
38,200
|
|
|
-
|
|
|
(28,400
|
)
|
|
106,600
|
|
|
76,200
|
|
|
154,400
|
|
|
41,400
|
|
Poland
|
|
38,600
|
|
|
39,900
|
|
|
(2,800
|
)
|
|
(5,900
|
)
|
|
2,600
|
|
|
-
|
|
|
(3,300
|
)
|
|
5,500
|
|
|
(1,400
|
)
|
|
800
|
|
|
(300
|
)
|
Romania
|
|
66,700
|
|
|
67,300
|
|
|
24,800
|
|
|
9,700
|
|
|
8,500
|
|
|
3,000
|
|
|
21,200
|
|
|
15,000
|
|
|
16,400
|
|
|
52,600
|
|
|
-
|
|
Hungary
|
|
15,900
|
|
|
15,900
|
|
|
(2,000
|
)
|
|
(8,800
|
)
|
|
13,300
|
|
|
(8,000
|
)
|
|
(3,500
|
)
|
|
10,300
|
|
|
16,600
|
|
|
23,400
|
|
|
6,700
|
|
Czech Republic
|
|
17,200
|
|
|
17,300
|
|
|
300
|
|
|
6,100
|
|
|
400
|
|
|
(2,900
|
)
|
|
3,600
|
|
|
5,700
|
|
|
-
|
|
|
9,300
|
|
|
-
|
|
Slovakia
|
|
4,700
|
|
|
4,700
|
|
|
300
|
|
|
400
|
|
|
200
|
|
|
(400
|
)
|
|
200
|
|
|
1,300
|
|
|
(400
|
)
|
|
1,100
|
|
|
-
|
|
Total CEE
|
|
143,100
|
|
|
145,100
|
|
|
20,600
|
|
|
1,500
|
|
|
25,000
|
|
|
(8,300
|
)
|
|
18,200
|
|
|
37,800
|
|
|
31,200
|
|
|
87,200
|
|
|
6,400
|
|
Total Liberty Global Group
|
|
298,900
|
|
|
306,800
|
|
|
50,400
|
|
|
(65,100
|
)
|
|
63,200
|
|
|
(8,300
|
)
|
|
(10,200
|
)
|
|
144,400
|
|
|
107,400
|
|
|
241,600
|
|
|
47,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
41,400
|
|
|
50,900
|
|
|
19,800
|
|
|
(3,100
|
)
|
|
6,700
|
|
|
-
|
|
|
3,600
|
|
|
21,100
|
|
|
(5,700
|
)
|
|
19,000
|
|
|
13,200
|
|
Puerto Rico(12)
|
|
3,300
|
|
|
3,300
|
|
|
2,300
|
|
|
-
|
|
|
(3,700
|
)
|
|
-
|
|
|
(3,700
|
)
|
|
3,600
|
|
|
400
|
|
|
300
|
|
|
-
|
|
Panama
|
|
6,700
|
|
|
38,100
|
|
|
(1,000
|
)
|
|
-
|
|
|
400
|
|
|
(2,200
|
)
|
|
(1,800
|
)
|
|
3,800
|
|
|
2,600
|
|
|
4,600
|
|
|
(22,100
|
)
|
Jamaica
|
|
7,000
|
|
|
7,000
|
|
|
1,300
|
|
|
-
|
|
|
2,000
|
|
|
-
|
|
|
2,000
|
|
|
5,500
|
|
|
10,400
|
|
|
17,900
|
|
|
(3,400
|
)
|
Trinidad
|
|
2,200
|
|
|
2,200
|
|
|
(3,900
|
)
|
|
-
|
|
|
(3,300
|
)
|
|
-
|
|
|
(3,300
|
)
|
|
-
|
|
|
8,400
|
|
|
5,100
|
|
|
-
|
|
Barbados
|
|
600
|
|
|
600
|
|
|
(12,400
|
)
|
|
-
|
|
|
(600
|
)
|
|
-
|
|
|
(600
|
)
|
|
(1,100
|
)
|
|
(3,100
|
)
|
|
(4,800
|
)
|
|
(1,300
|
)
|
Bahamas
|
|
-
|
|
|
-
|
|
|
(2,500
|
)
|
|
-
|
|
|
400
|
|
|
-
|
|
|
400
|
|
|
(1,000
|
)
|
|
(2,500
|
)
|
|
(3,100
|
)
|
|
(19,100
|
)
|
Other C&W(12)
|
|
2,700
|
|
|
2,700
|
|
|
200
|
|
|
-
|
|
|
(500
|
)
|
|
-
|
|
|
(500
|
)
|
|
2,800
|
|
|
(1,800
|
)
|
|
500
|
|
|
3,000
|
|
Total LiLAC Group
|
|
63,900
|
|
|
104,800
|
|
|
3,800
|
|
|
(3,100
|
)
|
|
1,400
|
|
|
(2,200
|
)
|
|
(3,900
|
)
|
|
34,700
|
|
|
8,700
|
|
|
39,500
|
|
|
(29,700
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
362,800
|
|
|
411,600
|
|
|
54,200
|
|
|
(68,200
|
)
|
|
64,600
|
|
|
(10,500
|
)
|
|
(14,100
|
)
|
|
179,100
|
|
|
116,100
|
|
|
281,100
|
|
|
18,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continued below
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscriber Variance Table - September 30, 2017 vs June 30, 2017
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
|
|
Homes Passed(1)
|
|
Two-way Homes Passed(2)
|
|
Fixed-line Customer Relationships(3)
|
|
Basic Video Subscribers(5)
|
|
Enhanced Video Subscribers(6)
|
|
DTH Subscribers(7)
|
|
Total Video
|
|
Internet Subscribers(8)
|
|
Telephony Subscribers(9)
|
|
Total RGUs(4)
|
|
Total Mobile Subscribers(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Change Summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
123,000
|
|
|
123,300
|
|
|
45,200
|
|
|
-
|
|
|
12,500
|
|
|
-
|
|
|
12,500
|
|
|
51,800
|
|
|
18,700
|
|
|
83,000
|
|
|
(20,100
|
)
|
Germany
|
|
21,200
|
|
|
25,300
|
|
|
1,300
|
|
|
(32,900
|
)
|
|
21,100
|
|
|
-
|
|
|
(11,800
|
)
|
|
41,300
|
|
|
38,600
|
|
|
68,100
|
|
|
(6,800
|
)
|
Belgium/Luxembourg
|
|
8,500
|
|
|
8,500
|
|
|
(10,600
|
)
|
|
(9,800
|
)
|
|
(5,300
|
)
|
|
-
|
|
|
(15,100
|
)
|
|
2,000
|
|
|
(1,500
|
)
|
|
(14,600
|
)
|
|
43,400
|
|
Other Europe
|
|
153,600
|
|
|
157,100
|
|
|
(6,400
|
)
|
|
(36,200
|
)
|
|
28,100
|
|
|
(8,300
|
)
|
|
(16,400
|
)
|
|
37,800
|
|
|
46,500
|
|
|
67,900
|
|
|
31,300
|
|
Total Liberty Global Group
|
|
306,300
|
|
|
314,200
|
|
|
29,500
|
|
|
(78,900
|
)
|
|
56,400
|
|
|
(8,300
|
)
|
|
(30,800
|
)
|
|
132,900
|
|
|
102,300
|
|
|
204,400
|
|
|
47,800
|
|
Chile
|
|
41,400
|
|
|
50,900
|
|
|
19,800
|
|
|
(3,100
|
)
|
|
6,700
|
|
|
-
|
|
|
3,600
|
|
|
21,100
|
|
|
(5,700
|
)
|
|
19,000
|
|
|
13,200
|
|
Puerto Rico(12)
|
|
3,300
|
|
|
3,300
|
|
|
2,300
|
|
|
-
|
|
|
(3,700
|
)
|
|
-
|
|
|
(3,700
|
)
|
|
3,600
|
|
|
400
|
|
|
300
|
|
|
-
|
|
Panama
|
|
6,700
|
|
|
38,100
|
|
|
(1,000
|
)
|
|
-
|
|
|
400
|
|
|
(2,200
|
)
|
|
(1,800
|
)
|
|
3,800
|
|
|
2,600
|
|
|
4,600
|
|
|
(22,100
|
)
|
Jamaica
|
|
7,000
|
|
|
7,000
|
|
|
1,300
|
|
|
-
|
|
|
2,000
|
|
|
-
|
|
|
2,000
|
|
|
5,500
|
|
|
10,400
|
|
|
17,900
|
|
|
(3,400
|
)
|
Trinidad
|
|
2,200
|
|
|
2,200
|
|
|
(3,900
|
)
|
|
-
|
|
|
(3,300
|
)
|
|
-
|
|
|
(3,300
|
)
|
|
-
|
|
|
8,400
|
|
|
5,100
|
|
|
-
|
|
Barbados
|
|
600
|
|
|
600
|
|
|
(12,400
|
)
|
|
-
|
|
|
(600
|
)
|
|
-
|
|
|
(600
|
)
|
|
(1,100
|
)
|
|
(3,100
|
)
|
|
(4,800
|
)
|
|
(1,300
|
)
|
Bahamas
|
|
-
|
|
|
-
|
|
|
(2,500
|
)
|
|
-
|
|
|
400
|
|
|
-
|
|
|
400
|
|
|
(1,000
|
)
|
|
(2,500
|
)
|
|
(3,100
|
)
|
|
(19,100
|
)
|
Other C&W(12)
|
|
2,700
|
|
|
2,700
|
|
|
200
|
|
|
-
|
|
|
(500
|
)
|
|
-
|
|
|
(500
|
)
|
|
2,800
|
|
|
(1,800
|
)
|
|
500
|
|
|
3,000
|
|
Total LiLAC Group
|
|
63,900
|
|
|
104,800
|
|
|
3,800
|
|
|
(3,100
|
)
|
|
1,400
|
|
|
(2,200
|
)
|
|
(3,900
|
)
|
|
34,700
|
|
|
8,700
|
|
|
39,500
|
|
|
(29,700
|
)
|
Total Organic Change
|
|
370,200
|
|
|
419,000
|
|
|
33,300
|
|
|
(82,000
|
)
|
|
57,800
|
|
|
(10,500
|
)
|
|
(34,700
|
)
|
|
167,600
|
|
|
111,000
|
|
|
243,900
|
|
|
18,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2017 Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2017 Acquisition - Switzerland
|
|
-
|
|
|
-
|
|
|
6,000
|
|
|
-
|
|
|
5,800
|
|
|
-
|
|
|
5,800
|
|
|
5,900
|
|
|
4,100
|
|
|
15,800
|
|
|
-
|
|
Q3 2017 Acquisition - Hungary
|
|
2,000
|
|
|
2,000
|
|
|
1,200
|
|
|
100
|
|
|
1,000
|
|
|
-
|
|
|
1,100
|
|
|
800
|
|
|
1,000
|
|
|
2,900
|
|
|
-
|
|
Q3 2017 Acquisition - Romania
|
|
20,000
|
|
|
20,000
|
|
|
13,700
|
|
|
13,700
|
|
|
-
|
|
|
-
|
|
|
13,700
|
|
|
4,800
|
|
|
-
|
|
|
18,500
|
|
|
-
|
|
Q3 2017 Belgium adjustments
|
|
(29,400
|
)
|
|
(29,400
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Net Adjustments
|
|
(7,400
|
)
|
|
(7,400
|
)
|
|
20,900
|
|
|
13,800
|
|
|
6,800
|
|
|
-
|
|
|
20,600
|
|
|
11,500
|
|
|
5,100
|
|
|
37,200
|
|
|
-
|
|
Net Adds (Reductions)
|
|
362,800
|
|
|
411,600
|
|
|
54,200
|
|
|
(68,200
|
)
|
|
64,600
|
|
|
(10,500
|
)
|
|
(14,100
|
)
|
|
179,100
|
|
|
116,100
|
|
|
281,100
|
|
|
18,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 homes.
Certain of 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. Due to the fact that
we do not own the partner networks (defined below) used in
Switzerland (see note 10) we do not report homes passed for
Switzerland's 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
|
|
Fixed-line 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
|
|
RGU is separately a Basic Video Subscriber, Enhanced Video
Subscriber, DTH Subscriber, Internet Subscriber or Telephony
Subscriber (each as defined and described below). A home,
residential multiple dwelling unit, or commercial unit may contain
one or more RGUs. For example, if a residential customer in our
Austrian market subscribed to our enhanced video service, fixed-line
telephony service and broadband internet service, the customer would
constitute three RGUs. Total RGUs is the sum of Basic Video,
Enhanced Video, DTH, 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 or free service
to employees) generally are not counted as RGUs. We do not include
subscriptions to mobile services in our externally reported RGU
counts. In this regard, our September 30, 2017 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 186,400 "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 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
|
|
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 40,700 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 86,500 subscribers who have requested and
received this service.
|
9
|
|
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 31,300 subscribers within Austria 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
122,900 subscribers who have requested and received this service.
|
10
|
|
Pursuant to service agreements, Switzerland offers 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 September 30, 2017, Switzerland's partner
networks account for 139,300 Customer Relationships, 313,000 RGUs,
112,800 Enhanced Video Subscribers, 115,600 Internet Subscribers,
and 84,600 Telephony Subscribers.
|
11
|
|
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. In a number of countries, our mobile subscribers receive
mobile services pursuant to prepaid contracts. As of September 30,
2017, the prepaid mobile subscriber count included the following:
Panama (1,581,400), Jamaica (911,200), Belgium (623,300), U.K.
(544,700), Bahamas (238,200), Barbados (96,900), Chile (6,900) and
twelve remaining C&W geographies (336,100).
|
12
|
|
During September 2017, Hurricanes Irma and Maria caused significant
damage to our operations in Puerto Rico, as well as certain
geographies within CWC, including the British Virgin Islands and
Dominica, and to a lesser extent Turks & Caicos, the Bahamas,
Anguilla, Antigua and other smaller markets, resulting in
disruptions to our telecommunications services within these islands.
With the exception of the Bahamas, all of these CWC markets are
included in the "Other LiLAC Group" category in the accompanying
table. The homes passed and subscriber counts for Puerto Rico,
British Virgin Islands, Dominica, Anguilla and Turks & Caicos
reflect the pre-hurricane homes passed and subscriber counts as of
August 31, 2017 as we are still in the process of assessing the
impacts of the hurricanes on our networks and subscriber counts in
these markets. As of October 25, 2017, we estimate that we have been
able to restore services to a small portion of our fixed-line
customers in Puerto Rico, and to less than half of our aggregate
fixed-line customers in the British Virgin Islands, Dominica,
Anguilla and Turks & Caicos. While mobile services have been largely
restored in these markets, we are still in the process of completing
the restoration of our mobile network infrastructure.
|
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." To the extent our
existing customers upgrade from a residential product offering to a SOHO
product offering, the number of SOHO RGUs or SOHO customers will
increase, but there is no impact to our total RGU or customer counts.
Due to system limitations, SOHO customers of C&W are not included in our
respective RGU and customer counts as of September 30, 2017. 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, including C&W, 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171101006911/en/
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