exv99w1
Exhibit 99.1
UPC Holding B.V.
UPC Holding B.V. Provides Selected Financial Information for
the Three Months Ended March 31, 2006
Amsterdam, the Netherlands — May 11, 2006: UPC Holding B.V. (“UPC Holding”) is providing
today selected, preliminary financial information for the three months ended March 31, 2006. UPC
Holding is a subsidiary of Liberty Global, Inc. (“Liberty Global”) (NASDAQ: LBTYA, LBTYB, LBTYK). A
copy of this press release will be posted to the investor relations section of the Liberty Global
website (www.lgi.com). In addition, the full financial statements with the accompanying
notes are expected to be posted prior to the end of May. Highlights for the period compared to UPC
Holding’s results for the same period last year, except where specifically noted,
include1:
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• |
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An organic2 increase of approximately 250,000 RGUs3 in the first quarter of 2006 |
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• |
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Revenue growth of 23% to €572 million |
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• |
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Operating cash flow (OCF)4 growth of 18% to €214 million |
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• |
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Operating income decreased by 33% to €29 million |
Operating Results
We had approximately 11.6 million total RGUs from continuing operations as of March 31, 2006,
including an organic increase of approximately 250,000 RGUs from December 31, 2005. The organic RGU
net additions in the first quarter of 2006 represent an approximately 142% increase in organic net
additions over the prior year period’s net additions. In terms of RGU additions by product, during
the first quarter 2006, we added 126,000 broadband Internet subscribers, 90,000 telephony
subscribers and 34,000 video subscribers.
Our broadband Internet subscriber additions were driven by strong results from Central and Eastern
Europe, which accounted for approximately 50% of our Internet subscriber growth, as well as from
the Netherlands where we added more Internet subscribers than in the same period last year. Our
telephony subscriber additions were driven primarily by our VoIP offerings as well as by the
expansion of VoIP into new markets such as Austria, Poland and Romania. Later this year, we also
plan to launch VoIP services in the Slovak Republic and in Ireland.
In terms of video subscribers, we added approximately 169,000 digital and DTH subscribers in the
quarter, with the Netherlands and Ireland driving our digital growth and Hungary and the Czech
Republic adding DTH subscribers. We experienced a reduction in analog cable subscribers primarily
as a result of our strategy to upgrade analog subscribers to our digital offering. In the
Netherlands, where we are implementing our “digital-for-all” (D4A) project5, we added over 120,000
digital
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1 |
|
Results from UPC Sweden and UPC Norway are treated as
discontinued operations in the historical financial figures, thus UPC
Sweden’s and Norway’s revenue and Operating cash flow for all
historical periods are retroactively removed from such figures. We have
separately identified Sweden as a discontinued operation in our historical
subscriber table. We are reporting subscriber metrics excluding the impact of
Sweden and Norway. |
|
2 |
|
Organic figures exclude RGUs at the date of acquisition
but include the impact of changes in RGUs from the date of acquisition. |
|
3 |
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Please see footnote 4 on page 9 for details to the definition
of Revenue Generating Units. |
|
4 |
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Please see page 5 for an explanation of operating cash flow
and its reconciliation. |
|
5 |
|
In our D4A project, we provide a digital interactive
television box and digital service at the analog rate for six months to analog
subscribers who accept the box and agree to accept the service. Upon acceptance
of the box, the subscriber is counted as a digital cable subscriber rather than
an analog cable subscriber. After the six month promotional period, the
subscriber will have the option to discontinue the digital service or pay an
additional amount, on top of the analog rate, to receive the digital service. |
1
subscribers in the quarter. We have seen continued improvement in the acceptance and
installation rates of our digital set-top boxes as compared to those metrics in Q4. More recently
in the Netherlands, we are pleased to have won a gold award for our customer service from the
National Contact Centre, which recognized our significant improvements in customer satisfaction, as
well as our ability to maximize the commercial potential of each customer contact.
Over the last several months, we have been actively and successfully rebalancing our cable
operations to exit sub-scale markets like Norway and Sweden. In France, we have recently reached a
non-binding letter of intent to sell our operation. In each case, we are selling these businesses
at attractive multiples.
Financial Results
Total consolidated revenue for the three months ended March 31, 2006 increased to €572 million, a
23% increase as compared to the same period last year. The increase was primarily due to
acquisitions in Ireland, Austria and Romania as well as the continued growth in our Central and
Eastern European businesses. This represents approximately 9% revenue growth, rebased for
acquisitions and foreign currency effects (rebased)6.
Operating cash flow for the three months ended March 31, 2006 increased 18% to €214 million as
compared to the prior year period. The increase was principally driven by the impact of
acquisitions and the continued growth in our Central and Eastern European businesses, which
experienced rebased OCF growth of approximately 26%. Our total rebased OCF growth for the period
was approximately 5%.
Excluding results of the Netherlands where we have our D4A project underway, our rebased OCF growth
rate for the quarter would improve to 17%. As expected, the Netherlands OCF results reflect higher
operating, marketing and customer care costs of our D4A initiative, which was launched in the
fourth quarter, as we invest in the roll-out of digital boxes to drive future growth in that
market. Although the Netherlands OCF declined over the comparable period last year, it did increase
approximately 4% sequentially over the fourth quarter of 2005.
The OCF margin7 for the three months ended March 31, 2006, was 37% versus 39% for the
comparable period last year. The decline in margins was primarily due to decreasing margins in
Western Europe, particularly in the Netherlands and was partially offset by improving margins in
Central and Eastern Europe.
About UPC Holding B.V.
UPC Holding owns businesses that provide video, high-speed Internet access and telephone services
through broadband networks in 11 European countries. At March 31, 2006, UPC Holding’s networks
passed approximately 15.5 million homes and served approximately 11.6 million revenue generating
units (as customarily defined by Liberty Global), including approximately 9.0 million video
subscribers, 1.7 million broadband Internet subscribers and 0.8 million telephone subscribers.
On July 29, 2005, UPC Holding issued €500 million of 7 3/4% Senior Notes due 2014 and on October
10, 2005, UPC Holding issued a further €300 million of 8 5/8% Senior Notes due 2014. UPC Holding is
required under the terms of the indentures for the foregoing Senior Notes to provide certain
financial information regarding UPC Holding B.V. to bondholders on a quarterly basis. UPC Broadband
Holding B.V., a wholly owned subsidiary of UPC Holding, is the borrower and UPC Holding is the
guarantor of outstanding indebtedness under a senior secured credit facility (the “UPC Broadband
Holding credit
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6 |
|
For purposes of calculating rebased growth rates on a
comparable basis for all businesses that we owned during the first quarter of
2006, we have adjusted our historical Q1 2005 revenue and OCF to (i) include
the pre-acquisition revenue and OCF of certain entities acquired during 2005
and 2006 in our Q1 2005 rebased amounts to the same extent that the revenue and
OCF of such entities are included in our Q1 2006 results and (ii) reflect the
translation of our Q1 2005 rebased amounts at the applicable average exchange
rates that were used to translate our Q1 2006 results. Please see page 7 for
additional information. |
|
7 |
|
OCF margin is calculated by dividing the OCF for the
respective period by total revenue. |
2
facility”) which also requires the provision of certain financial and related
information to the lenders. This press release is being issued at this time, in connection with
those obligations, due to the contemporaneous release by Liberty Global of its first quarter
results. The financial information contained herein is preliminary and subject to possible change.
UPC Holding presently expects to issue its financial statements prior to the end of May, at which
time they will be posted in the investor relations section of the Liberty Global website
(www.lgi.com). Copies will also be available from the Trustee for the Senior Notes.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including our expectations with respect to the pending sales of UPC
Sweden and UPC France, our insights and expectations regarding competition in our markets, the
impact of our M&A activity on our operations and financial performance and other information and
statements that are not historical fact. These forward-looking statements involve certain risks and
uncertainties that could cause actual results to differ materially from those expressed or implied
by these statements. These risks and uncertainties include the continued use by subscribers and
potential subscribers of the Company’s services, changes in technology, regulation and competition,
our ability to achieve expected operational efficiencies and economies of scale, the long-term
success of our digital migration project, our ability to close the sale of UPC Sweden and negotiate
a definitive agreement for and close the sale of UPC France, our ability to generate expected
revenue and operating cash flow and achieve assumed margins including, to the extent annualized
figures imply forward-looking projections, continued performance comparable with the period
annualized, as well as other factors detailed from time to time in Liberty Global’s filings with
the Securities and Exchange Commission including Liberty Global’s most recently filed Form 10-K and
Form 10-Q. These forward-looking statements speak only as of the date of this release. The Company
expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any
guidance and other forward-looking statement contained herein to reflect any change in the
Company’s expectations with regard thereto or any change in events, conditions or circumstances on
which any such statement is based.
For more information, please contact:
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Iván Nash Vila
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Bert Holtkamp |
Investor Relations — Europe
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Corporate Communications — Europe |
+41 44 277 9738
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+31 20 778 9447 |
3
Selected Financial Data
The following table provides selected, preliminary Revenue and Operating Cash Flow data for the
three months ended March 31, 2006 and 2005 for each reportable segment of UPC Holding B.V. The
selected financial data contained herein is preliminary and unaudited and subject to possible
adjustments in connection with the publication of UPC’s first quarter financial statements. In each
case, the tables present (i) the amounts reported by each of our reportable segments for the
comparative periods, (ii) the Euro change and percentage change from period to period, (iii) the
percentage change from period to period, after removing foreign currency effects (FX), and (iv) the
percentage change from period to period, after adjusting the Q1 2005 period to reflect acquisitions
to the extent that they are included in the Q1 2006 results and adjusting the Q1 2005 results to
the applicable Q1 2006 exchange rates (see supplemental information on page 7). The comparison that
excludes FX assumes that exchange rates remained constant during the periods that are included in
each table. Other Western Europe includes our operating segments in Ireland and Belgium. Other
Central and Eastern Europe includes our operating segments in Poland, Czech Republic, Slovak
Republic, Romania and Slovenia.
Revenue
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|
|
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Increase |
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Three months ended |
|
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Increase |
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(decrease) |
|
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|
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|
March 31, |
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(decrease) |
|
|
excluding |
|
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Rebased |
|
First Quarter |
|
2006 |
|
|
2005 |
|
|
€ |
|
|
%8 |
|
|
FX %8 |
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|
% |
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|
amounts in millions, except % amounts |
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|
|
|
|
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|
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|
|
|
|
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The Netherlands |
|
€ |
163.0 |
|
|
€ |
155.8 |
|
|
€ |
7.2 |
|
|
|
4.6 |
|
|
|
4.6 |
|
|
|
— |
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France |
|
|
108.4 |
|
|
|
100.5 |
|
|
|
7.9 |
|
|
|
7.8 |
|
|
|
7.8 |
|
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|
— |
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Austria |
|
|
72.3 |
|
|
|
64.8 |
|
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|
7.5 |
|
|
|
11.7 |
|
|
|
11.7 |
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|
|
— |
|
Other Western Europe |
|
|
59.9 |
|
|
|
25.4 |
|
|
|
34.5 |
|
|
|
134.9 |
|
|
|
134.9 |
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|
— |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total Western Europe |
|
|
403.6 |
|
|
|
346.5 |
|
|
|
57.1 |
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|
16.5 |
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|
16.5 |
|
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|
5.0 |
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|
|
|
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|
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|
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Hungary |
|
|
62.4 |
|
|
|
55.0 |
|
|
|
7.4 |
|
|
|
13.5 |
|
|
|
17.4 |
|
|
|
— |
|
Other Central and Eastern Europe |
|
|
106.2 |
|
|
|
63.9 |
|
|
|
42.3 |
|
|
|
66.2 |
|
|
|
59.7 |
|
|
|
— |
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|
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|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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Total Central and Eastern Europe |
|
|
168.6 |
|
|
|
118.9 |
|
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|
49.7 |
|
|
|
41.8 |
|
|
|
40.1 |
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|
18.9 |
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Corporate and other |
|
|
0.1 |
|
|
|
0.3 |
|
|
|
(0.2 |
) |
|
|
(28.1 |
) |
|
|
(28.1 |
) |
|
|
— |
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|
|
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Total UPC Holding |
|
€ |
572.3 |
|
|
€ |
465.7 |
|
|
€ |
106.6 |
|
|
|
22.9 |
|
|
|
22.5 |
|
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8.8 |
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Operating Cash Flow
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Increase |
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Three months ended |
|
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Increase |
|
|
(decrease) |
|
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|
March 31, |
|
|
(decrease) |
|
|
excluding |
|
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Rebased |
|
First Quarter |
|
2006 |
|
|
2005 |
|
|
€ |
|
|
%8 |
|
|
FX %8 |
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% |
|
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|
amounts in millions, except % amounts |
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The Netherlands |
|
€ |
71.6 |
|
|
€ |
80.3 |
|
|
€ |
(8.7 |
) |
|
|
(10.8 |
) |
|
|
(10.8 |
) |
|
|
— |
|
France |
|
|
19.5 |
|
|
|
19.2 |
|
|
|
0.3 |
|
|
|
2.0 |
|
|
|
2.0 |
|
|
|
— |
|
Austria |
|
|
31.3 |
|
|
|
27.6 |
|
|
|
3.7 |
|
|
|
13.4 |
|
|
|
13.4 |
|
|
|
— |
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Other Western Europe |
|
|
18.3 |
|
|
|
8.4 |
|
|
|
9.9 |
|
|
|
114.1 |
|
|
|
114.1 |
|
|
|
— |
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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Total Western Europe |
|
|
140.7 |
|
|
|
135.5 |
|
|
|
5.2 |
|
|
|
3.8 |
|
|
|
3.8 |
|
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|
(3.9 |
) |
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Hungary |
|
|
27.4 |
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|
|
21.7 |
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|
5.7 |
|
|
|
26.3 |
|
|
|
30.5 |
|
|
|
— |
|
Other Central and Eastern Europe |
|
|
47.0 |
|
|
|
27.1 |
|
|
|
19.9 |
|
|
|
73.4 |
|
|
|
66.8 |
|
|
|
— |
|
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|
|
|
|
|
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|
|
|
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|
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|
|
|
|
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Total Central and Eastern Europe |
|
|
74.4 |
|
|
|
48.8 |
|
|
|
25.6 |
|
|
|
52.5 |
|
|
|
50.6 |
|
|
|
25.7 |
|
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|
|
|
|
|
|
|
|
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|
|
|
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Corporate and other |
|
|
(1.2 |
) |
|
|
(2.5 |
) |
|
|
1.3 |
|
|
|
(55.7 |
) |
|
|
(55.7 |
) |
|
|
— |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total UPC Holding |
|
€ |
213.9 |
|
|
€ |
181.8 |
|
|
€ |
32.1 |
|
|
|
17.7 |
|
|
|
17.2 |
|
|
|
5.3 |
|
|
|
|
|
|
|
|
|
|
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|
8 |
|
These percentages have been calculated
from amounts rounded to the thousands. |
4
Operating Cash Flow Definition and Reconciliation
Operating cash flow is not a GAAP measure. Operating cash flow is the primary measure used by UPC’s
chief operating decision maker to evaluate segment operating performance and to decide how to
allocate resources to segments. As UPC uses the term, operating cash flow is defined as revenue
less operating and SG&A expenses (excluding stock-based compensation, depreciation and
amortization, related party management fees, and impairment, restructuring and other operating
charges or credits). UPC believes operating cash flow is meaningful because it provides investors a
means to evaluate the operating performance of our segments and our company on an ongoing basis
using criteria that are used by our internal decision makers. Our internal decision makers believe
operating cash flow is a meaningful measure and is superior to other available GAAP measures
because it represents a transparent view of our recurring operating performance and allows
management to readily view operating trends, perform analytical comparisons and benchmarking
between segments in the different countries in which we operate and identify strategies to improve
operating performance. For example, our internal decision makers believe that the inclusion of
impairment and restructuring charges within operating cash flow would distort the ability to
efficiently assess and view the core operating trends in our segments. In addition, our internal
decision makers believe our measure of operating cash flow is important because investors use it to
compare our performance to other companies in our industry. A reconciliation of UPC Holding’s total
segment operating cash flow to UPC Holding’s operating income is presented below for the three
months ended March 31, 2006 and 2005, respectively. Investors should view operating cash flow as a
measure of operating performance that is a supplement to, and not a substitute for, operating
income, net earnings, cash flow from operating activities and other GAAP measures of income.
|
|
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|
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|
|
Three months ended |
|
|
|
March 31, |
|
|
|
2006 |
|
|
2005 |
|
|
|
amounts in millions |
|
Total segment operating cash flow |
|
€ |
213.9 |
|
|
€ |
181.8 |
|
Stock-based compensation expense |
|
|
(4.8 |
) |
|
|
(3.0 |
) |
Depreciation and amortization |
|
|
(178.7 |
) |
|
|
(134.1 |
) |
Related party management (fees) credits |
|
|
0.3 |
|
|
|
(1.9 |
) |
Impairment, restructuring and other operating charges |
|
|
(2.1 |
) |
|
|
(0.2 |
) |
|
|
|
|
|
|
|
Operating income |
|
€ |
28.6 |
|
|
€ |
42.6 |
|
|
|
|
|
|
|
|
Summary of Third Party Debt and Cash and Cash Equivalents
The following table details UPC Holding’s consolidated third party debt and cash and cash
equivalents as of March 31, 2006, and December 31, 2005:
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As of |
|
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As of |
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2006 |
|
|
2005 |
|
|
|
amounts in millions |
|
UPC Broadband Holding Bank Facility |
|
€ |
3,277.2 |
|
|
€ |
3,425.1 |
|
UPC Holding 7 3/4% Senior Notes due 2014 |
|
|
500.0 |
|
|
|
500.0 |
|
UPC Holding 8 5/8% Senior Notes due 2014 |
|
|
300.0 |
|
|
|
300.0 |
|
Other debt, including capital lease obligations |
|
|
11.2 |
|
|
|
49.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total third party debt |
|
€ |
4,088.4 |
|
|
€ |
4,274.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
€ |
67.7 |
|
|
€ |
57.6 |
|
|
|
|
|
|
|
|
As of March 31, 2006, total third party debt, including other debt and capital lease
obligations was €4,088 million, while cash and cash equivalents were €68 million. Additionally, we
had approximately €231 million of undrawn commitments available from our €1.0 billion in revolvers
of the UPC Broadband Holding Bank Facility, subject to completion of first quarter bank reporting
requirements. The change in total third party debt from the previous period is primarily due to the
partial repayment of the UPC Broadband Holding Bank Facility with proceeds from the sale of Norway
as well as foreign
5
exchange translation differences from our U.S. dollar denominated facilities. The change in other
debt, including capital lease obligations, is due primarily to the reclassification of capital
lease obligations from UPC Sweden. UPC Sweden is being reported as a discontinued operation and its
debt will be accounted for as a liability of discontinued operations.
On May 10, 2006, the UPC Broadband Holding Bank Facility was amended. In connection with the
amendment, the Facility F, G and H term loans were refinanced and an additional €110 million was
raised for general corporate purposes, with borrowings under new Facility J and K term loans of the
amended UPC Broadband Holding Bank Facility. The amounts borrowed under Facilities J and K
aggregated €1.8 billion and $1.775 billion with each denomination split evenly between Facilities J
and K. Borrowings denominated in Euro under Facility J and K will bear interest at an initial
margin of 2.25% above EURIBOR. Borrowings denominated in U.S. dollars under Facilities J and K will
bear interest at an initial margin of 2.00% above LIBOR. Both facilities are to be repaid in one
installment with the outstanding borrowings under Facilities J and K due and payable on March 31,
2013 and December 31, 2013, respectively. As a result of this refinancing, UPC Broadband reduces
its cost of borrowing and extends its debt maturities such that no term loans under the UPC
Broadband Holding Bank Facility mature prior to 2013.
Following the public offer for all of the outstanding ordinary shares in the capital of Priority
Telecom N.V. (“Priority”) by chellomedia Priority B.V., a wholly owned subsidiary of chellomedia
B.V., Priority and UPC Broadband will conduct a joint review to determine if Priority or all or
part of its activities, after de-listing from Euronext Amsterdam, will be transferred to the UPC
Broadband Group.
Covenant Calculations
Based on the results for March 31, 2006 and subject to the completion of first quarter bank
reporting requirements, the ratio of Senior Debt to Annualised EBITDA (last two quarters
annualized) for UPC Holding, as defined and calculated in accordance with the UPC Broadband Holding
Bank Facility, was 3.73x9. The ratio of Total Debt to Annualised EBITDA (last two
quarters annualized), as defined and calculated in accordance with the UPC Broadband Holding Bank
Facility was 4.67x9.
|
|
|
9 |
|
Debt in the covenant calculations utilize
debt figures which take into account currency swaps. Thus, the debt used in
the calculations may differ from the debt balances reported within the
financial statements. |
6
Capital Expenditure Summary
UPC Holding’s capital expenditures were approximately €129 million and €99 million for the three
months ended March 31, 2006 and 2005, respectively.
Explanation of Calculation of Rebased Q1 2005 Amounts:
For purposes of calculating rebased growth rates on a comparable basis for all businesses that we
owned during the first quarter of 2006, we have adjusted our historical Q1 2005 revenue and OCF to
(i) include the pre-acquisition revenue and OCF of certain entities acquired during 2005 and 2006
in our Q1 2005 rebased amounts to the same extent that the revenue and OCF of such entities are
included in our Q1 2006 results and (ii) reflect the translation of our Q1 2005 rebased amounts at
the applicable average exchange rates that were used to translate our Q1 2006 results. The acquired
entities that have been included in the determination of our rebased revenue and OCF for Q1 2005
are NTL Ireland, Astral, Telemach, INODE and certain Canal+ subscribers purchased by the
Netherlands. We have reflected the revenue and OCF of these acquired entities in our Q1 2005
rebased amounts based on what we believe to be the most reliable information that is currently
available to us (generally pre-acquisition financial statements), as adjusted for the estimated
effects of (i) any significant differences between U.S. GAAP and local GAAP, (ii) any significant
effects of post-acquisition purchase accounting adjustments, (iii) any significant differences
between our accounting policies and those of the acquired entities and (iv) other appropriate
items. As we did not own or operate these 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 Q1 2006 results or that the pre-acquisition financial
statements we have relied upon do not contain undetected errors. The adjustments reflected in our
Q1 2005 rebased amounts have not been prepared with a view towards complying with Article 11 of the
SEC’s Regulation S-X. In addition, the rebased growth percentages are not necessarily indicative
of the revenue and OCF that would have occurred if these transactions had occurred on the dates
assumed for purposes of calculating our rebased Q1 2005 amounts or the revenue and OCF that will
occur in the future. The rebased growth percentages have been presented as a basis for assessing
Q1 2006 growth rates on a comparable basis, and are not presented as a measure of our pro forma
financial performance for Q1 2005. Therefore, we believe our rebased data is not a non-GAAP
measure as contemplated by Regulation G or item 10 of Regulation S-K.
7
Operating Data Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2006 |
|
|
|
|
|
|
|
Two-way |
|
|
|
|
|
|
|
|
|
|
Video |
|
|
Internet |
|
|
Telephone |
|
|
|
Homes |
|
|
Homes |
|
|
Customer |
|
|
Total |
|
|
Analog Cable |
|
|
Digital Cable |
|
|
DTH |
|
|
MMDS |
|
|
Total |
|
|
Homes |
|
|
|
|
|
|
Homes |
|
|
|
|
|
|
Passed (1) |
|
|
Passed (2) |
|
|
Relationships (3) |
|
|
RGUs (4) |
|
|
Subscribers (5) |
|
|
Subscribers (6) |
|
|
Subscribers (7) |
|
|
Subscribers (8) |
|
|
Video |
|
|
Serviceable (9) |
|
|
Subscribers (10) |
|
|
Serviceable (11) |
|
|
Subscribers (12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands |
|
|
2,652,100 |
|
|
|
2,532,900 |
|
|
|
2,224,000 |
|
|
|
3,048,800 |
|
|
|
2,011,200 |
|
|
|
208,900 |
|
|
|
— |
|
|
|
— |
|
|
|
2,220,100 |
|
|
|
2,532,900 |
|
|
|
503,500 |
|
|
|
2,405,700 |
|
|
|
325,200 |
|
France |
|
|
4,614,200 |
|
|
|
3,363,900 |
|
|
|
1,612,000 |
|
|
|
1,987,200 |
|
|
|
941,400 |
|
|
|
572,300 |
|
|
|
— |
|
|
|
— |
|
|
|
1,513,700 |
|
|
|
3,363,900 |
|
|
|
308,200 |
|
|
|
2,589,600 |
|
|
|
165,300 |
|
Austria |
|
|
959,200 |
|
|
|
955,900 |
|
|
|
654,500 |
|
|
|
1,015,700 |
|
|
|
452,500 |
|
|
|
45,300 |
|
|
|
— |
|
|
|
— |
|
|
|
497,800 |
|
|
|
955,900 |
|
|
|
353,300 |
|
|
|
922,000 |
|
|
|
164,600 |
|
Ireland |
|
|
895,100 |
|
|
|
238,700 |
|
|
|
592,600 |
|
|
|
624,100 |
|
|
|
313,200 |
|
|
|
162,000 |
|
|
|
— |
|
|
|
115,900 |
|
|
|
591,100 |
|
|
|
238,700 |
|
|
|
32,700 |
|
|
|
24,200 |
|
|
|
300 |
|
Belgium |
|
|
157,000 |
|
|
|
157,000 |
|
|
|
145,600 |
|
|
|
168,300 |
|
|
|
126,000 |
|
|
|
5,300 |
|
|
|
— |
|
|
|
— |
|
|
|
131,300 |
|
|
|
157,000 |
|
|
|
37,000 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
Total Western Europe |
|
|
9,277,600 |
|
|
|
7,248,400 |
|
|
|
5,228,700 |
|
|
|
6,844,100 |
|
|
|
3,844,300 |
|
|
|
993,800 |
|
|
|
— |
|
|
|
115,900 |
|
|
|
4,954,000 |
|
|
|
7,248,400 |
|
|
|
1,234,700 |
|
|
|
5,941,500 |
|
|
|
655,400 |
|
|
|
|
|
|
|
Poland |
|
|
1,915,000 |
|
|
|
947,100 |
|
|
|
1,024,500 |
|
|
|
1,153,100 |
|
|
|
1,000,900 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,000,900 |
|
|
|
947,100 |
|
|
|
139,900 |
|
|
|
889,900 |
|
|
|
12,300 |
|
Hungary |
|
|
1,044,200 |
|
|
|
908,900 |
|
|
|
1,013,000 |
|
|
|
1,186,900 |
|
|
|
732,700 |
|
|
|
— |
|
|
|
179,600 |
|
|
|
— |
|
|
|
912,300 |
|
|
|
908,900 |
|
|
|
156,300 |
|
|
|
911,500 |
|
|
|
118,300 |
|
Czech Republic |
|
|
745,200 |
|
|
|
408,600 |
|
|
|
441,000 |
|
|
|
501,600 |
|
|
|
298,300 |
|
|
|
— |
|
|
|
119,400 |
|
|
|
— |
|
|
|
417,700 |
|
|
|
408,600 |
|
|
|
83,900 |
|
|
|
— |
|
|
|
— |
|
Romania |
|
|
1,918,100 |
|
|
|
967,800 |
|
|
|
1,328,500 |
|
|
|
1,425,100 |
|
|
|
1,325,000 |
|
|
|
3,400 |
|
|
|
— |
|
|
|
— |
|
|
|
1,328,400 |
|
|
|
842,500 |
|
|
|
69,000 |
|
|
|
661,200 |
|
|
|
27,700 |
|
Slovak Republic |
|
|
431,800 |
|
|
|
242,100 |
|
|
|
301,800 |
|
|
|
322,800 |
|
|
|
253,600 |
|
|
|
— |
|
|
|
17,600 |
|
|
|
27,600 |
|
|
|
298,800 |
|
|
|
226,900 |
|
|
|
24,000 |
|
|
|
— |
|
|
|
— |
|
Slovenia |
|
|
126,000 |
|
|
|
80,000 |
|
|
|
108,500 |
|
|
|
128,200 |
|
|
|
108,500 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
108,500 |
|
|
|
80,000 |
|
|
|
19,700 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
Total Central and
Eastern Europe |
|
|
6,180,300 |
|
|
|
3,554,500 |
|
|
|
4,217,300 |
|
|
|
4,717,700 |
|
|
|
3,719,000 |
|
|
|
3,400 |
|
|
|
316,600 |
|
|
|
27,600 |
|
|
|
4,066,600 |
|
|
|
3,414,000 |
|
|
|
492,800 |
|
|
|
2,462,600 |
|
|
|
158,300 |
|
|
|
|
|
|
|
Total Europe |
|
|
15,457,900 |
|
|
|
10,802,900 |
|
|
|
9,446,000 |
|
|
|
11,561,800 |
|
|
|
7,563,300 |
|
|
|
997,200 |
|
|
|
316,600 |
|
|
|
143,500 |
|
|
|
9,020,600 |
|
|
|
10,662,400 |
|
|
|
1,727,500 |
|
|
|
8,404,100 |
|
|
|
813,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Continuing Operations |
|
|
15,457,900 |
|
|
|
10,802,900 |
|
|
|
9,446,000 |
|
|
|
11,561,800 |
|
|
|
7,563,300 |
|
|
|
997,200 |
|
|
|
316,600 |
|
|
|
143,500 |
|
|
|
9,020,600 |
|
|
|
10,662,400 |
|
|
|
1,727,500 |
|
|
|
8,404,100 |
|
|
|
813,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disc Operations — Sweden |
|
|
421,600 |
|
|
|
289,200 |
|
|
|
300,200 |
|
|
|
394,100 |
|
|
|
236,700 |
|
|
|
63,500 |
|
|
|
— |
|
|
|
— |
|
|
|
300,200 |
|
|
|
289,200 |
|
|
|
93,900 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total |
|
|
15,879,500 |
|
|
|
11,092,100 |
|
|
|
9,746,200 |
|
|
|
11,955,900 |
|
|
|
7,800,000 |
|
|
|
1,060,700 |
|
|
|
316,600 |
|
|
|
143,500 |
|
|
|
9,320,800 |
|
|
|
10,951,600 |
|
|
|
1,821,400 |
|
|
|
8,404,100 |
|
|
|
813,700 |
|
|
|
|
|
|
|
8
Footnotes to Operating Data Table:
|
|
|
(1) |
|
Homes Passed are homes that can be connected to our networks without further extending the
distribution plant, except for direct-to-home (DTH) and Multi-channel Multipoint Distribution
System (MMDS) homes. Our Homes Passed counts are based on census data that can change based on
either revisions to the data or from new census results. We do not count homes passed for DTH.
With respect to MMDS, one home passed is equal to one MMDS subscriber. Due to the fact that
we do not own the unbundled loop and shared access network used by INODE in Austria, we do not
report homes passed for INODE. |
|
(2) |
|
Two-way Homes Passed are homes passed by our networks where customers can request and receive
the installation of a two-way addressable set-top converter, cable modem, transceiver and/or
voice port which, in most cases, allows for the provision of video and Internet services and,
in some cases, telephone services. |
|
(3) |
|
Customer Relationships are the number of customers who receive at least one level of service
without regard to which service(s) they subscribe. We exclude mobile customers from customer
relationships. |
|
(4) |
|
Revenue Generating Unit (RGU) is separately an Analog Cable Subscriber, Digital Cable
Subscriber, DTH Subscriber, MMDS Subscriber, Internet Subscriber or Telephone subscriber. A
home may contain one or more RGUs. For example, if a residential customer in our Austrian
system subscribed to our digital cable service, telephone service and high-speed broadband
Internet access service, the customer would constitute three RGUs. Total RGUs is the sum of
Analog, Digital Cable, DTH, MMDS, Internet and Telephone subscribers. In some cases,
non-paying subscribers are counted as subscribers during their free promotional service
period. Some of these subscribers choose to disconnect after their free service period. |
|
(5) |
|
Analog Cable Subscriber is comprised of video cable customers that are counted on a per
connection basis or an equivalent billing unit (EBU) basis. We have approximately 1.41 million
“lifeline” customers that are counted on a per connection basis, representing the least
expensive regulated tier of basic cable service with only a few channels. An analog cable
subscriber is not counted as a digital cable subscriber. |
|
(6) |
|
Digital Cable Subscriber is a customer with one or more digital converter boxes or an EBU
that receives our digital video service. We count a subscriber with one or more digital
converter boxes that receives our digital video service as just one subscriber. A digital
subscriber is not counted as an analog subscriber. As we migrate customers from analog to
digital video services, we report a decrease in our analog subscribers equal to the increase
in our digital subscribers. In the Netherlands, where our mass digital migration project is
underway, a subscriber is moved from the analog subscriber count to the digital subscriber
count when such subscriber accepts delivery of our digital converter box and agrees to accept
digital video service regardless of when the subscriber begins to receive our digital video
service. The digital video service and the digital converter box are provided at the analog
rate for six months after which the subscriber has the option to discontinue the digital
service or pay an additional amount to continue to receive the digital service. An estimated
13,000 of the Netherlands digital cable subscribers at March 31, 2006 have accepted but not
installed their digital converter boxes. |
|
(7) |
|
DTH Subscriber is a home or commercial unit that receives our video programming broadcast
directly to the home via a geosynchronous satellite. |
|
(8) |
|
MMDS Subscriber is a home or commercial unit that receives our video programming via a
multipoint microwave (wireless) distribution system. |
|
(9) |
|
Internet Homes Serviceable are homes that can be connected to our broadband networks, where
customers can request and receive Internet access services. With respect to INODE, we do not
report Internet homes serviceable as INODE’s service is not delivered over our network but
instead is delivered over an unbundled loop, or in certain cases, over a shared access
network. |
|
(10) |
|
Internet Subscriber is a home or commercial unit or EBU with one or more cable modems
connections to our broadband networks, where a customer has requested and is receiving
high-speed Internet access services. At March 31, 2006, our Internet subscribers in Austria
included 68,900 residential digital subscriber lines or DSL subscribers of INODE, of which
51,400 were serviced over an unbundled loop and the remaining 17,500 subscribers were serviced
over a shared access network. Our Internet subscribers do not include customers that receive
services via resale arrangements or from dial-up connections. |
|
(11) |
|
Telephone Homes Serviceable are homes that can be connected to our networks, where customers
can request and receive voice services. With respect to INODE, we do not report telephone
homes serviceable as service is delivered over an unbundled loop rather than our network. |
|
(12) |
|
Telephone Subscriber is a home or commercial unit or EBU connected to our networks, where a
customer has requested and is receiving voice services. Telephone subscribers as of March 31,
2006, exclude an aggregate of 85,700 mobile telephone subscribers in the Netherlands. Mobile
telephone services generate a significantly lower ARPU than broadband or Voice-over-Internet
Protocol or “VoIP” telephone services. Also, our Telephone subscribers do not include
customers that receive services via resale arrangements. At March 31, 2006, our Telephone
subscribers in Austria included 15,500 residential subscribers of INODE. |
Additional General Notes to the Table:
Table excludes systems owned by affiliates that were not consolidated for financial reporting
purposes as of March 31, 2006, or that were acquired after March 31, 2006. Subscriber information
for recently acquired entities is preliminary and subject to adjustment until we have completed
our review of such information and determined that it is presented in accordance with our
policies.
With respect to commercial establishments, such as bars, hotels and hospitals, to which we
provide video and other services primarily for the patrons of such establishments, the subscriber
count is calculated on an EBU basis by all our subsidiaries. EBU is 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. On a
business-to-business basis, certain of our subsidiaries provide data, telephony and other
services to businesses, primarily in Ireland and Romania. We generally do not count customers of
these services as subscribers, customers or RGUs.
9