England and Wales | 001-35961 | 98-1112770 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification #) |
LIBERTY GLOBAL PLC | ||
By: | /s/ RANDY L. LAZZELL | |
Randy L. Lazzell | ||
Vice President |
Exhibit No. | Name |
99.1 | Press Release |
◦ | Liberty Global (excluding Virgin Media ) delivered Q2 rebased revenue and OCF growth of 5% and 4%, respectively |
◦ | Virgin Media (standalone) realized Q2 rebased revenue growth of 1% and rebased OCF growth of 4% |
Investor Relations: | Corporate Communications: | ||
Christopher Noyes | +1 303.220.6693 | Marcus Smith | +44 20 7190 6374 |
Oskar Nooij | +1 303 220 4218 | Bert Holtkamp | +31 20 778 9800 |
John Rea | +1 303 220 4238 | Hanne Wolf | +1 303 220 6678 |
1 | Combined rebased growth rates reflect the combination of our and Virgin Media's revenue and OCF for the full three- and six-month periods ended June 30, 2013 and June 30, 2012. Consistent with our general methodologies for calculating rebased growth rates, the pre-acquisition revenue and OCF reported by Virgin Media during these periods have been adjusted for the estimated effects of (i) significant differences in accounting policies and (ii) significant effects of acquisition accounting. In addition, for purposes of combined rebased growth rate calculations, we have translated the rebased revenue and OCF for the 2012 periods at the applicable average exchange rates for the comparative 2013 periods. For additional information regarding rebased growth calculations, see page 12. |
2 | Please see page 22 for the definition of revenue generating units (“RGUs”). Organic figures exclude RGUs of acquired entities at the date of acquisition, but include the impact of changes in RGUs from the date of acquisition. All subscriber/RGU additions or losses refer to net organic changes, unless otherwise noted. |
3 | For purposes of calculating rebased growth rates on a comparable basis for all businesses that we owned during 2012 and 2013, we have adjusted our historical revenue and OCF for the three and six months ended June 30, 2012 to (i) include the pre-acquisition revenue and OCF of certain entities acquired during 2012 and 2013 in the respective 2012 rebased amounts to the same extent that the revenue and OCF of such entities are included in our 2013 results and (ii) reflect the translation of our rebased amounts for the 2012 period at the applicable average exchange rates that were used to translate our 2013 results. Please see page 12 for supplemental information. |
5 | Free Cash Flow (“FCF”) is defined as net cash provided by our operating activities, plus (i) excess tax benefits related to the exercise of share incentive awards and (ii) cash payments for direct acquisition costs, less (a) capital expenditures, as reported in our consolidated cash flow statements, (b) principal payments on vendor financing obligations and (c) principal payments on capital leases (exclusive of the portions of the network lease in Belgium and the duct leases in Germany that we assumed in connection with certain acquisitions), with each item excluding any cash provided or used by our discontinued operation. We also present Adjusted Free Cash Flow (“Adjusted FCF”), which adjusts FCF to eliminate the incremental FCF deficit associated with the VTR Wireless mobile initiative and certain costs associated with the Virgin Media Acquisition. Please see page 17 for more information on FCF and Adjusted FCF and the required reconciliations. |
6 | Consolidated liquidity refers to our consolidated cash and cash equivalents plus our aggregate unused borrowing capacity, as represented by the maximum undrawn commitments under our subsidiaries' applicable facilities without regard to covenant compliance calculations |
7 | Our gross and net debt ratios are defined as total debt and net debt to annualized OCF of the latest quarter, including Virgin Media for the full quarter. Net debt is defined as total debt less cash and cash equivalents. For purposes of these calculations, debt excludes the loans backed by the shares we hold in Sumitomo Corp. and Ziggo N.V. (“Ziggo”) and is measured using swapped foreign currency rates, consistent with the covenant calculation requirements of our subsidiary debt agreements. |
8 | Latin America includes our broadband communications operations in both Chile and Puerto Rico. |
9 | OCF margin is calculated by dividing OCF by total revenue for the applicable period |
10 | Our property and equipment additions include our capital expenditures on an accrual basis and amounts financed under vendor financing or capital lease arrangements. |
13 | Our fully-swapped debt borrowing cost represents the weighted average interest rate on our aggregate variable and fixed rate indebtedness (excluding capital lease obligations), including the effects of derivative instruments, original issue premiums or discounts and commitment fees, but excluding the impact of financing costs. |
14 | The $3.1 billion reflects the aggregate unused borrowing capacity, as represented by the maximum undrawn commitments under our subsidiaries' applicable facilities without regard to covenant compliance calculations. |
June 30, 2013 | December 31, 2012 | ||||||
in millions | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,125.0 | $ | 2,038.9 | |||
Trade receivables, net | 1,533.8 | 1,031.0 | |||||
Other current assets | 1,355.6 | 655.9 | |||||
Total current assets | 5,014.4 | 3,725.8 | |||||
Restricted cash | 7.0 | 1,516.7 | |||||
Investments | 2,522.4 | 950.1 | |||||
Property and equipment, net | 22,779.0 | 13,437.6 | |||||
Goodwill | 22,382.3 | 13,877.6 | |||||
Intangible assets subject to amortization, net | 6,074.8 | 2,581.3 | |||||
Other assets, net | 4,925.7 | 2,218.6 | |||||
Total assets | $ | 63,705.6 | $ | 38,307.7 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,203.0 | $ | 774.0 | |||
Deferred revenue and advance payments from subscribers and others | 1,272.2 | 849.7 | |||||
Current portion of debt and capital lease obligations | 845.0 | 363.5 | |||||
Derivative instruments | 610.1 | 569.9 | |||||
Accrued interest | 595.5 | 351.8 | |||||
Accrued programming | 357.3 | 251.0 | |||||
Other accrued and current liabilities | 2,268.2 | 1,460.4 | |||||
Total current liabilities | 7,151.3 | 4,620.3 | |||||
Long-term debt and capital lease obligations | 41,059.2 | 27,161.0 | |||||
Other long-term liabilities | 3,947.7 | 4,441.3 | |||||
Total liabilities | 52,158.2 | 36,222.6 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Total Liberty Global shareholders | 12,044.0 | 2,210.0 | |||||
Noncontrolling interests | (496.6 | ) | (124.9 | ) | |||
Total equity | 11,547.4 | 2,085.1 | |||||
Total liabilities and equity | $ | 63,705.6 | $ | 38,307.7 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
in millions, except per share amounts | |||||||||||||||
Revenue | $ | 3,161.9 | $ | 2,524.5 | $ | 5,929.6 | $ | 5,061.5 | |||||||
Operating costs and expenses: | |||||||||||||||
Operating (other than depreciation and amortization) (including share-based compensation) | 1,171.1 | 887.3 | 2,198.1 | 1,785.0 | |||||||||||
Selling, general and administrative (including share-based compensation) | 635.0 | 477.9 | 1,132.9 | 949.3 | |||||||||||
Depreciation and amortization | 864.3 | 668.7 | 1,557.4 | 1,339.4 | |||||||||||
Impairment, restructuring and other operating items, net | 46.3 | 11.6 | 70.6 | 14.5 | |||||||||||
2,716.7 | 2,045.5 | 4,959.0 | 4,088.2 | ||||||||||||
Operating income | 445.2 | 479.0 | 970.6 | 973.3 | |||||||||||
Non-operating income (expense): | |||||||||||||||
Interest expense | (542.4 | ) | (402.1 | ) | (1,012.5 | ) | (820.2 | ) | |||||||
Interest and dividend income | 35.3 | 1.9 | 49.2 | 20.9 | |||||||||||
Realized and unrealized gains (losses) on derivative instruments, net | (4.7 | ) | 237.4 | 191.1 | (376.7 | ) | |||||||||
Foreign currency transaction gains (losses), net | 91.5 | (474.4 | ) | (43.4 | ) | 4.6 | |||||||||
Realized and unrealized gains (losses) due to changes in fair values of certain investments, net | 193.0 | (34.1 | ) | 265.2 | 16.8 | ||||||||||
Losses on debt modification and extinguishment, net | (11.7 | ) | (6.9 | ) | (170.0 | ) | (13.7 | ) | |||||||
Other expense, net | (1.6 | ) | (3.7 | ) | (3.2 | ) | (4.0 | ) | |||||||
(240.6 | ) | (681.9 | ) | (723.6 | ) | (1,172.3 | ) | ||||||||
Earnings (loss) from continuing operations before income taxes | 204.6 | (202.9 | ) | 247.0 | (199.0 | ) | |||||||||
Income tax expense | (195.9 | ) | (11.8 | ) | (216.4 | ) | (44.9 | ) | |||||||
Earnings (loss) from continuing operations | 8.7 | (214.7 | ) | 30.6 | (243.9 | ) | |||||||||
Discontinued operation: | |||||||||||||||
Earnings (loss) from discontinued operation, net of taxes | — | (2.6 | ) | — | 35.5 | ||||||||||
Gain on disposal of discontinued operation, net of taxes | — | 924.1 | — | 924.1 | |||||||||||
— | 921.5 | — | 921.5 | ||||||||||||
Net earnings | 8.7 | 706.8 | 30.6 | 715.7 | |||||||||||
Net earnings attributable to noncontrolling interests | (20.3 | ) | (5.2 | ) | (43.2 | ) | (39.2 | ) | |||||||
Net earnings (loss) attributable to Liberty Global shareholders | $ | (11.6 | ) | $ | 701.6 | $ | (12.6 | ) | $ | 676.5 | |||||
Basic and diluted earnings (loss) attributable to Liberty Global shareholders per share: | |||||||||||||||
Continuing operations | $ | (0.04 | ) | $ | (0.81 | ) | $ | (0.05 | ) | $ | (0.97 | ) | |||
Discontinued operation | — | 3.41 | — | 3.46 | |||||||||||
$ | (0.04 | ) | $ | 2.60 | $ | (0.05 | ) | $ | 2.49 | ||||||
Continuing operations | 2.6 | ||||||||||||||
Discontinued operation |
Six months ended June 30, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | in millions | ||||||
Net earnings | $ | 30.6 | $ | 715.7 | |||
Earnings from discontinued operation | — | (959.6 | ) | ||||
Earnings (loss) from continuing operations | 30.6 | (243.9 | ) | ||||
Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by operating activities | 1,315.6 | 1,637.6 | |||||
Net cash provided by operating activities of discontinued operation | — | 61.2 | |||||
Net cash provided by operating activities | 1,346.2 | 1,454.9 | |||||
Cash flows from investing activities: | |||||||
Cash paid in connection with acquisitions, net of cash acquired | (4,065.2 | ) | (48.7 | ) | |||
Investment in and loans to affiliates and others | (1,202.7 | ) | (18.4 | ) | |||
Capital expenditures | (994.6 | ) | (994.1 | ) | |||
Proceeds received upon disposition of discontinued operation | — | 1,055.6 | |||||
Other investing activities, net | (15.7 | ) | 25.8 | ||||
Net cash used by investing activities of discontinued operation | — | (51.7 | ) | ||||
Net cash used by investing activities | (6,278.2 | ) | (31.5 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings of debt | 8,845.2 | 1,311.9 | |||||
Repayments and repurchases of debt and capital lease obligations | (7,339.3 | ) | (1,858.5 | ) | |||
Decrease in restricted cash related to the Virgin Media Acquisition | 3,594.4 | — | |||||
Decrease in restricted cash related to the Telenet Tender | 1,539.7 | — | |||||
Distributions by subsidiaries to noncontrolling interests | (524.4 | ) | (84.9 | ) | |||
Purchase of additional Telenet shares | (454.5 | ) | — | ||||
Repurchase of Liberty Global and LGI shares | (346.4 | ) | (428.1 | ) | |||
Payment of financing costs and debt premiums | (341.0 | ) | (29.2 | ) | |||
Payment of net settled employee withholding taxes on share-based incentive awards | (34.6 | ) | (28.4 | ) | |||
Other financing activities, net | 76.6 | (27.2 | ) | ||||
Net cash provided (used) by financing activities | 5,015.7 | (1,144.4 | ) | ||||
Effect of exchange rate changes on cash: | |||||||
Continuing operations | 2.4 | (11.9 | ) | ||||
Discontinued operation | — | (9.5 | ) | ||||
Total | 2.4 | (21.4 | ) | ||||
Net increase in cash and cash equivalents: | |||||||
Continuing operations | 86.1 | 257.6 | |||||
Discontinued operation | — | — | |||||
Net increase in cash and cash equivalents | 86.1 | 257.6 | |||||
Cash and cash equivalents: | |||||||
Beginning of period | 2,038.9 | 1,651.2 | |||||
End of period | $ | 2,125.0 | $ | 1,908.8 | |||
Cash paid for interest: | |||||||
Continuing operations | $ | 886.2 | $ | 771.3 | |||
Discontinued operation | — | 29.0 | |||||
Total | $ | 886.2 | $ | 800.3 | |||
Net cash paid (refunded) for taxes - continuing operations | $ | 60.8 | $ | (12.4 | ) |
Revenue | Three months ended June 30, | Increase (decrease) | Increase (decrease) | ||||||||||||||
2013 | 2012 | $ | % | Rebased % | |||||||||||||
in millions, except % amounts | |||||||||||||||||
European Operations Division: | |||||||||||||||||
United Kingdom (Virgin Media) | $ | 401.3 | $ | — | $ | 401.3 | N.M. | (0.7 | ) | ||||||||
Germany (Unitymedia KabelBW) | 624.6 | 566.2 | 58.4 | 10.3 | 8.3 | ||||||||||||
Belgium (Telenet) | 534.4 | 466.2 | 68.2 | 14.6 | 12.5 | ||||||||||||
The Netherlands | 303.2 | 303.7 | (0.5 | ) | (0.2 | ) | (2.0 | ) | |||||||||
Switzerland | 323.9 | 313.0 | 10.9 | 3.5 | 4.1 | ||||||||||||
Other Western Europe | 219.6 | 208.5 | 11.1 | 5.3 | 3.4 | ||||||||||||
Total Western Europe | 2,407.0 | 1,857.6 | 549.4 | 29.6 | 5.2 | ||||||||||||
Central and Eastern Europe | 281.5 | 275.0 | 6.5 | 2.4 | 0.2 | ||||||||||||
Central and other | 31.3 | 28.9 | 2.4 | 8.3 | * | ||||||||||||
Total European Operations Division | 2,719.8 | 2,161.5 | 558.3 | 25.8 | 4.7 | ||||||||||||
Chile (VTR Group) | 252.7 | 226.8 | 25.9 | 11.4 | 9.0 | ||||||||||||
Corporate and other | 210.5 | 149.0 | 61.5 | 41.3 | * | ||||||||||||
Intersegment eliminations | (21.1 | ) | (12.8 | ) | (8.3 | ) | N.M. | * | |||||||||
Total | $ | 3,161.9 | $ | 2,524.5 | $ | 637.4 | 25.2 | 4.4 | |||||||||
Supplemental Information: | |||||||||||||||||
Total Liberty Global (excluding Virgin Media) | 5.2 | ||||||||||||||||
Virgin Media (for full period) | 0.6 | ||||||||||||||||
Combined (with Virgin Media for full period) | 3.5 |
Six months ended June 30, | Increase (decrease) | Increase (decrease) | |||||||||||||||
2013 | 2012 | $ | % | Rebased % | |||||||||||||
in millions, except % amounts | |||||||||||||||||
European Operations Division: | |||||||||||||||||
United Kingdom (Virgin Media) | $ | 401.3 | $ | — | $ | 401.3 | N.M. | (0.7 | ) | ||||||||
Germany (Unitymedia KabelBW) | 1,242.8 | 1,126.9 | 115.9 | 10.3 | 8.9 | ||||||||||||
Belgium (Telenet) | 1,070.6 | 943.7 | 126.9 | 13.4 | 12.0 | ||||||||||||
The Netherlands | 618.0 | 614.4 | 3.6 | 0.6 | (0.7 | ) | |||||||||||
Switzerland | 649.9 | 626.3 | 23.6 | 3.8 | 4.5 | ||||||||||||
Other Western Europe | 442.2 | 420.4 | 21.8 | 5.2 | 3.9 | ||||||||||||
Total Western Europe | 4,424.8 | 3,731.7 | 693.1 | 18.6 | 6.1 | ||||||||||||
Central and Eastern Europe | 569.3 | 555.9 | 13.4 | 2.4 | 0.6 | ||||||||||||
Central and other | 63.3 | 57.1 | 6.2 | 10.9 | * | ||||||||||||
Total European Operations Division | 5,057.4 | 4,344.7 | 712.7 | 16.4 | 5.5 | ||||||||||||
Chile (VTR Group) | 503.1 | 451.3 | 51.8 | 11.5 | 8.4 | ||||||||||||
Corporate and other | 409.7 | 300.0 | 109.7 | 36.4 | * | ||||||||||||
Intersegment eliminations | (41.6 | ) | (35.5 | ) | (6.1 | ) | N.M. | * | |||||||||
Total | $ | 5,929.6 | $ | 5,061.5 | $ | 868.1 | 17.2 | 5.1 | |||||||||
Supplemental Information: | |||||||||||||||||
Total Liberty Global (excluding Virgin Media) | 5.5 | ||||||||||||||||
Virgin Media (for full period) | 1.9 | ||||||||||||||||
Combined (with Virgin Media for full period) | 4.2 |
Operating Cash Flow | Three months ended June 30, | Increase (decrease) | Increase (decrease) | ||||||||||||||
2013 | 2012 | $ | % | Rebased % | |||||||||||||
in millions, except % amounts | |||||||||||||||||
European Operations Division: | |||||||||||||||||
United Kingdom (Virgin Media) | $ | 175.3 | $ | — | $ | 175.3 | N.M. | (3.1 | ) | ||||||||
Germany (Unitymedia KabelBW) | 369.4 | 334.2 | 35.2 | 10.5 | 8.6 | ||||||||||||
Belgium (Telenet) | 269.2 | 236.9 | 32.3 | 13.6 | 11.5 | ||||||||||||
The Netherlands | 171.1 | 178.8 | (7.7 | ) | (4.3 | ) | (5.9 | ) | |||||||||
Switzerland | 189.2 | 179.2 | 10.0 | 5.6 | 6.1 | ||||||||||||
Other Western Europe | 105.6 | 95.9 | 9.7 | 10.1 | 8.4 | ||||||||||||
Total Western Europe | 1,279.8 | 1,025.0 | 254.8 | 24.9 | 4.9 | ||||||||||||
Central and Eastern Europe | 135.1 | 134.9 | 0.2 | 0.1 | (1.8 | ) | |||||||||||
Central and other | (54.4 | ) | (43.0 | ) | (11.4 | ) | (26.5 | ) | * | ||||||||
Total European Operations Division | 1,360.5 | 1,116.9 | 243.6 | 21.8 | 3.5 | ||||||||||||
Chile (VTR Group) | 86.8 | 75.3 | 11.5 | 15.3 | 12.8 | ||||||||||||
Corporate and other | 2.4 | 2.7 | (0.3 | ) | N.M. | * | |||||||||||
Total | $ | 1,449.7 | $ | 1,194.9 | $ | 254.8 | 21.3 | 2.8 | |||||||||
Supplemental Information: | |||||||||||||||||
Total Liberty Global (excluding Virgin Media) | 3.7 | ||||||||||||||||
Virgin Media (for full period) | 3.8 | ||||||||||||||||
Combined (with Virgin Media for full period) | 3.7 |
Six months ended June 30, | Increase (decrease) | Increase (decrease) | |||||||||||||||
2013 | 2012 | $ | % | Rebased % | |||||||||||||
in millions, except % amounts | |||||||||||||||||
European Operations Division: | |||||||||||||||||
United Kingdom (Virgin Media) | $ | 175.3 | * | $ | 175.3 | * | (3.1 | ) | |||||||||
Germany (Unitymedia KabelBW) | 729.4 | 657.2 | 72.2 | 11.0 | 9.6 | ||||||||||||
Belgium (Telenet) | 516.7 | 472.7 | 44.0 | 9.3 | 8.0 | ||||||||||||
The Netherlands | 355.9 | 361.5 | (5.6 | ) | (1.5 | ) | (2.8 | ) | |||||||||
Switzerland | 371.4 | 356.2 | 15.2 | 4.3 | 5.0 | ||||||||||||
Other Western Europe | 210.4 | 194.5 | 15.9 | 8.2 | 6.9 | ||||||||||||
Total Western Europe | 2,359.1 | 2,042.1 | 317.0 | 15.5 | 5.3 | ||||||||||||
Central and Eastern Europe | 275.7 | 272.5 | 3.2 | 1.2 | (0.6 | ) | |||||||||||
Central and other | (100.0 | ) | (80.0 | ) | (20.0 | ) | (25.0 | ) | * | ||||||||
Total European Operations Division | 2,534.8 | 2,234.6 | 300.2 | 13.4 | 4.0 | ||||||||||||
Chile (VTR Group) | 172.0 | 150.5 | 21.5 | 14.3 | 11.2 | ||||||||||||
Corporate and other | 12.5 | 5.4 | 7.1 | N.M. | * | ||||||||||||
Total | $ | 2,719.3 | $ | 2,390.5 | $ | 328.8 | 13.8 | 3.4 | |||||||||
Supplemental Information: | |||||||||||||||||
Total Liberty Global (excluding Virgin Media) | 3.9 | ||||||||||||||||
Virgin Media (for full period) | 6.0 | ||||||||||||||||
Combined (with Virgin Media for full period) | 4.6 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
in millions | |||||||||||||||
Total segment operating cash flow from continuing operations | $ | 1,449.7 | $ | 1,194.9 | $ | 2,719.3 | $ | 2,390.5 | |||||||
Share-based compensation expense | (93.9 | ) | (35.6 | ) | (120.7 | ) | (63.3 | ) | |||||||
Depreciation and amortization | (864.3 | ) | (668.7 | ) | (1,557.4 | ) | (1,339.4 | ) | |||||||
Impairment, restructuring and other operating items, net | (46.3 | ) | (11.6 | ) | (70.6 | ) | (14.5 | ) | |||||||
Operating income | $ | 445.2 | $ | 479.0 | $ | 970.6 | $ | 973.3 |
Capital | Debt and | Cash | |||||||||||||
Lease | Capital Lease | and Cash | |||||||||||||
Debt2 | Obligations | Obligations | Equivalents | ||||||||||||
in millions | |||||||||||||||
Liberty Global and its non-operating subsidiaries | $ | 1,663.0 | $ | 26.3 | $ | 1,689.3 | $ | 1,421.3 | |||||||
Virgin Media | 13,098.7 | 370.2 | 13,468.9 | 415.8 | |||||||||||
UPC Holding (excluding VTR Group) | 12,730.9 | 30.6 | 12,761.5 | 41.6 | |||||||||||
Unitymedia KabelBW | 7,281.0 | 910.7 | 8,191.7 | 18.7 | |||||||||||
Telenet | 4,602.3 | 422.2 | 5,024.5 | 148.3 | |||||||||||
Liberty Puerto Rico | 657.8 | 0.5 | 658.3 | 6.0 | |||||||||||
VTR Group3 | 109.4 | 0.4 | 109.8 | 50.9 | |||||||||||
Other operating subsidiaries | 0.2 | — | 0.2 | 22.4 | |||||||||||
Total Liberty Global | $ | 40,143.3 | $ | 1,760.9 | $ | 41,904.2 | $ | 2,125.0 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
in millions, except % amounts | |||||||||||||||
Customer premises equipment | $ | 209.4 | $ | 258.9 | $ | 452.2 | $ | 466.3 | |||||||
Scalable infrastructure | 160.8 | 92.2 | 236.2 | 171.6 | |||||||||||
Line extensions | 104.6 | 62.3 | 172.0 | 126.9 | |||||||||||
Upgrade/rebuild | 95.0 | 91.1 | 169.8 | 175.7 | |||||||||||
Support capital | 165.7 | 93.4 | 236.3 | 163.6 | |||||||||||
Other, including Chellomedia | 2.4 | 2.2 | 7.2 | 3.4 | |||||||||||
Property and equipment additions | 737.9 | 600.1 | 1,273.7 | 1,107.5 | |||||||||||
Assets acquired under capital-related vendor financing arrangements | (145.5 | ) | (67.2 | ) | (221.6 | ) | (91.9 | ) | |||||||
Assets acquired under capital leases | (26.6 | ) | (14.3 | ) | (44.9 | ) | (27.0 | ) | |||||||
Changes in current liabilities related to capital expenditures | (75.5 | ) | (45.8 | ) | (12.6 | ) | 5.5 | ||||||||
Total capital expenditures4 | $ | 490.3 | $ | 472.8 | $ | 994.6 | $ | 994.1 | |||||||
Property and equipment additions as % of revenue | 23.3 | % | 23.8 | % | 21.5 | % | 21.9 | % | |||||||
Capital expenditures as % of revenue | 15.5 | % | 18.7 | % | 16.8 | % | 19.6 | % |
1 | Except as otherwise indicated, the amounts reported in the table include the named entity and its subsidiaries. |
2 | Debt amounts for UPC Holding and Telenet include senior secured notes issued by special purpose entities that are consolidated by each. |
3 | Of these amounts, VTR Wireless accounts for $109 million of the debt and $11 million of the cash of the VTR Group. |
4 | The capital expenditures that we report in our consolidated cash flow statements 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. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
in millions | |||||||||||||||
Net cash provided by operating activities of continuing operations | $ | 788.5 | $ | 638.9 | $ | 1,346.2 | $ | 1,393.7 | |||||||
Excess tax benefits from share-based compensation5 | (0.8 | ) | 9.5 | 0.5 | 10.0 | ||||||||||
Cash payments for direct acquisition costs6 | 30.7 | 1.5 | 39.2 | 14.4 | |||||||||||
Capital expenditures | (490.3 | ) | (472.8 | ) | (994.6 | ) | (994.1 | ) | |||||||
Principal payments on vendor financing obligations | (130.4 | ) | (24.7 | ) | (167.4 | ) | (26.7 | ) | |||||||
Principal payments on certain capital leases | (5.1 | ) | (3.1 | ) | (8.2 | ) | (6.1 | ) | |||||||
FCF | $ | 192.6 | $ | 149.3 | $ | 215.7 | $ | 391.2 | |||||||
FCF | $ | 192.6 | $ | 149.3 | $ | 215.7 | $ | 391.2 | |||||||
Virgin Media Acquisition adjustments7 | 32.3 | — | 32.3 | — | |||||||||||
FCF deficit of VTR Wireless | 34.0 | 36.9 | 78.4 | 74.3 | |||||||||||
Adjusted FCF | $ | 258.9 | $ | 186.2 | $ | 326.4 | $ | 465.5 |
Virgin Media FCF Using Liberty Global's Definitions and Reconciliations | |||||||||||||||||||
6/8/13- 6/30/13 | 4/1/13- 6/7/13 | Q1 2013 | Q2 2012 | Q1 2012 | |||||||||||||||
in millions | |||||||||||||||||||
Net cash provided (used) by operating activities of continuing operations | $ | (77.0 | ) | $ | 433.8 | $ | 472.3 | $ | 364.8 | $ | 416.8 | ||||||||
Cash payments for direct acquisition costs6 | 0.5 | 76.7 | 3.3 | — | — | ||||||||||||||
Capital expenditures | (59.3 | ) | (213.9 | ) | (269.2 | ) | (293.3 | ) | (288.1 | ) | |||||||||
Principal payments on certain capital leases | (0.7 | ) | (34.4 | ) | (35.0 | ) | (45.7 | ) | (33.5 | ) | |||||||||
Virgin Media Consolidated FCF | $ | (136.5 | ) | $ | 262.2 | $ | 171.4 | $ | 25.8 | $ | 95.2 | ||||||||
Pre-acquisition costs of new Virgin Media capital structure | 19.8 | — | — | — | — | ||||||||||||||
Virgin Media Consolidated Adjusted FCF | $ | (116.7 | ) | $ | 262.2 | $ | 171.4 | $ | 25.8 | $ | 95.2 |
5 | Excess tax benefits from share-based compensation represent the excess of tax deductions over the related financial reporting share-based compensation expense. The hypothetical cash flows associated with these excess tax benefits are reported as an increase to cash flows from financing activities and a corresponding decrease to cash flows from operating activities in our consolidated cash flow statements. |
7 | Represents costs associated with the Virgin Media Acquisition consisting of (i) cash paid of $19.8 million during the period related to the pre-acquisition costs of the new Virgin Media capital structure and (ii) cash paid of $12.5 million during the period for withholding taxes associated with certain intercompany transactions completed in connection with the Virgin Media Acquisition. |
Three months ended June 30, | FX Neutral | ||||||||||||
2013 | 2012 | % Change | % Change9 | ||||||||||
Liberty Global Consolidated | € | 40.74 | € | 35.97 | 13.3 | % | 11.5 | % | |||||
European Operations Consolidated | € | 29.62 | € | 26.63 | 11.2 | % | 11.6 | % | |||||
U.K. (Virgin Media) | £ | 48.66 | £ | — | — | — | |||||||
Germany (Unitymedia KabelBW) | € | 20.24 | € | 18.57 | 9.0 | % | 9.0 | % | |||||
Belgium (Telenet) | € | 48.06 | € | 46.02 | 4.4 | % | 4.4 | % | |||||
Other Europe | € | 28.87 | € | 28.16 | 2.5 | % | 3.2 | % | |||||
VTR | CLP 31,268 | CLP 30,681 | 1.9 | % | 1.9 | % |
ARPU per Mobile Subscriber | |||||||||||||
Three months ended June 30, | FX Neutral | ||||||||||||
Liberty Global Consolidated : | 2013 | 2012 | % Change | % Change9 | |||||||||
Excluding interconnect revenue | $ | 20.30 | $ | 19.03 | 6.7 | % | 4.7 | % | |||||
Including interconnect revenue | $ | 26.58 | $ | 22.98 | 15.7 | % | 13.5 | % |
Mobile Subscribers | |||||
June 30, 2013 | March 31, 2013 | ||||
European Operations: | |||||
U.K. (Virgin Media) | 3,026,600 | — | |||
Germany (Unitymedia KabelBW) | 190,500 | 152,800 | |||
Belgium (Telenet) | 674,900 | 625,000 | |||
The Netherlands | 3,500 | 3,300 | |||
Total Western Europe | 3,895,500 | 781,100 | |||
Poland | 23,300 | 27,600 | |||
Hungary | 5,100 | 4,100 | |||
Total CEE | 28,400 | 31,700 | |||
Total European Operations | 3,923,900 | 812,800 | |||
VTR (Chile) | 140,100 | 140,600 | |||
Grand Total | 4,064,000 | 953,400 |
8 | Our ARPU per customer relationship refers to the average monthly subscription revenue per average customer relationship and is calculated by dividing the average monthly subscription revenue (excluding installation, late fees, interconnect and mobile services revenue) for the indicated period, by the average of the opening and closing balances for customer relationships for the period. Customer relationships of entities acquired during the period are normalized. Unless otherwise indicated, ARPU per customer relationship for the European Operations and Liberty Global Consolidated are not adjusted for currency impacts. ARPU per customer relationship amounts reported for periods prior to January 1, 2013 have not been restated to reflect the April 1, 2013 change in our reporting of DSL internet and telephony RGUs in Austria, which we no longer include in our ARPU calculations. |
9 | 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. |
10 | 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 |
11 | Our ARPU per mobile subscriber calculation that excludes interconnect revenue refers to the average monthly mobile subscription revenue per average mobile subscribers in service and is calculated by dividing the average monthly mobile subscription revenue (excluding activation, handset fees and late fees) for the indicated period, by the average of the opening and closing balances of mobile subscribers in service for the period. Our ARPU per mobile subscriber calculation that includes interconnect revenue increases the numerator in the above-described calculation by the amount of mobile interconnect revenue during the period. |
12 | Our June 30, 2013, mobile subscriber counts for the U.K. and Chile include 1,233,500 and 97,000 prepaid mobile subscribers, respectively. |
June 30, 2013 | March 31, 2013 | June 30, 2012 | Q3’13 / Q1’13 (% Change) | Q2’13 / Q2’12 (% Change) | ||||||||||
Total RGUs | ||||||||||||||
Total Video RGUs | 21,877,900 | 18,210,300 | 18,312,100 | 20.1 | % | 19.5 | % | |||||||
Total Broadband Internet RGUs | 13,881,600 | 9,488,300 | 8,711,300 | 46.3 | % | 59.4 | % | |||||||
Total Telephony RGUs | 11,772,100 | 7,513,300 | 6,792,200 | 56.7 | % | 73.3 | % | |||||||
Liberty Global Consolidated | 47,531,600 | 35,211,900 | 33,815,600 | 35.0 | % | 40.6 | % | |||||||
Total Customers | ||||||||||||||
European Operations Division | 23,019,000 | 16,198,400 | 16,214,400 | 42.1 | % | 42.0 | % | |||||||
VTR | 1,182,900 | 1,167,900 | 1,121,100 | 1.3 | % | 5.5 | % | |||||||
Other | 272,100 | 273,200 | 123,600 | (0.4 | %) | 120.1 | % | |||||||
Liberty Global Consolidated | 24,474,000 | 17,639,500 | 17,459,100 | 38.7 | % | 40.2 | % | |||||||
Total Single-Play Customers | 10,954,400 | 10,466,600 | 11,033,900 | 4.7 | % | (0.7 | %) | |||||||
Total Double-Play Customers | 3,981,600 | 3,092,000 | 2,950,500 | 28.8 | % | 34.9 | % | |||||||
Total Triple-Play Customers | 9,538,000 | 6,187,100 | 5,626,900 | 54.2 | % | 69.5 | % | |||||||
% Double-Play Customers | ||||||||||||||
European Operations Division | 15.9 | % | 13.2 | % | 12.8 | % | 20.5 | % | 24.2 | % | ||||
VTR | 20.9 | % | 20.8 | % | 20.3 | % | 0.5 | % | 3.0 | % | ||||
Liberty Global Consolidated | 16.3 | % | 17.5 | % | 16.9 | % | (6.9 | %) | (3.6 | %) | ||||
% Triple-Play Customers | ||||||||||||||
European Operations Division | 38.7 | % | 29.0 | % | 26.2 | % | 33.4 | % | 47.7 | % | ||||
VTR | 46.5 | % | 46.0 | % | 47.0 | % | 1.1 | % | (1.1 | %) | ||||
Liberty Global Consolidated | 39.0 | % | 35.1 | % | 32.2 | % | 11.1 | % | 21.1 | % | ||||
RGUs per Customer Relationship | ||||||||||||||
European Operations Division | 1.93 | 1.71 | 1.65 | 12.9 | % | 17.0 | % | |||||||
VTR | 2.14 | 2.13 | 2.14 | 0.5 | % | — | ||||||||
Liberty Global Consolidated | 1.94 | 1.78 | 1.72 | 9.0 | % | 12.8 | % |
13 | Both the March 31, 2013 and June 30, 2012 amounts do not include the impact of the Virgin Media Acquisition and the June 30, 2012 amounts do not include the impact of the November 8, 2012 OneLink transaction in Puerto Rico. |
Consolidated Operating Data — June 30, 2013 | ||||||||||||||||||||||||||||||||||||||
Video | Internet | Telephony | ||||||||||||||||||||||||||||||||||||
Homes Passed(1) | Two-way Homes Passed(2) | Customer Relationships(3) | Total RGUs(4) | Analog Cable Subscribers(5) | Digital Cable Subscribers(6) | DTH Subscribers(7) | MMDS Subscribers(8) | Total Video | Homes Serviceable(9) | Subscribers(10) | Homes Serviceable(11) | Subscribers(12) | ||||||||||||||||||||||||||
European Operations Division: | ||||||||||||||||||||||||||||||||||||||
U.K. | 12,490,200 | 12,490,200 | 4,879,300 | 12,237,300 | — | 3,765,800 | — | — | 3,765,800 | 12,349,600 | 4,306,400 | 12,354,100 | 4,165,100 | |||||||||||||||||||||||||
Germany | 12,598,300 | 12,191,900 | 7,067,200 | 11,438,700 | 4,459,800 | 2,189,700 | — | — | 6,649,500 | 12,191,900 | 2,403,800 | 12,191,900 | 2,385,400 | |||||||||||||||||||||||||
Belgium | 2,881,300 | 2,881,300 | 2,097,600 | 4,519,700 | 644,300 | 1,453,300 | — | — | 2,097,600 | 2,881,300 | 1,424,700 | 2,881,300 | 997,400 | |||||||||||||||||||||||||
The Netherlands(13) | 2,830,800 | 2,817,200 | 1,674,400 | 3,675,900 | 578,100 | 1,094,000 | — | — | 1,672,100 | 2,830,200 | 1,042,600 | 2,827,200 | 961,200 | |||||||||||||||||||||||||
Switzerland(13) | 2,090,900 | 1,841,300 | 1,465,300 | 2,500,000 | 808,200 | 617,000 | — | — | 1,425,200 | 2,309,400 | 636,100 | 2,309,400 | 438,700 | |||||||||||||||||||||||||
Austria(14) | 1,317,700 | 1,301,700 | 640,800 | 1,279,500 | 186,300 | 340,800 | — | — | 527,100 | 1,301,700 | 418,300 | 1,301,700 | 334,100 | |||||||||||||||||||||||||
Ireland | 861,600 | 744,600 | 535,700 | 1,021,600 | 56,900 | 335,500 | — | 42,000 | 434,400 | 744,600 | 321,300 | 729,100 | 265,900 | |||||||||||||||||||||||||
Total Western Europe | 35,070,800 | 34,268,200 | 18,360,300 | 36,672,700 | 6,733,600 | 9,796,100 | — | 42,000 | 16,571,700 | 34,608,700 | 10,553,200 | 34,594,700 | 9,547,800 | |||||||||||||||||||||||||
Poland | 2,684,600 | 2,560,900 | 1,449,500 | 2,657,000 | 462,000 | 809,500 | — | — | 1,271,500 | 2,560,900 | 880,000 | 2,553,200 | 505,500 | |||||||||||||||||||||||||
Hungary | 1,531,400 | 1,516,000 | 1,036,800 | 1,795,700 | 276,600 | 350,600 | 253,900 | — | 881,100 | 1,516,000 | 498,800 | 1,518,400 | 415,800 | |||||||||||||||||||||||||
Romania | 2,255,300 | 1,968,400 | 1,153,700 | 1,749,700 | 396,000 | 442,700 | 309,600 | — | 1,148,300 | 1,968,400 | 349,700 | 1,968,400 | 251,700 | |||||||||||||||||||||||||
Czech Republic | 1,349,900 | 1,241,600 | 731,800 | 1,192,500 | 71,700 | 389,600 | 104,600 | — | 565,900 | 1,241,600 | 438,800 | 1,241,400 | 187,800 | |||||||||||||||||||||||||
Slovakia | 496,700 | 466,500 | 286,900 | 428,700 | 71,200 | 129,200 | 58,400 | 700 | 259,500 | 435,900 | 107,500 | 434,100 | 61,700 | |||||||||||||||||||||||||
Total CEE | 8,317,900 | 7,753,400 | 4,658,700 | 7,823,600 | 1,277,500 | 2,121,600 | 726,500 | 700 | 4,126,300 | 7,722,800 | 2,274,800 | 7,715,500 | 1,422,500 | |||||||||||||||||||||||||
Total Europe | 43,388,700 | 42,021,600 | 23,019,000 | 44,496,300 | 8,011,100 | 11,917,700 | 726,500 | 42,700 | 20,698,000 | 42,331,500 | 12,828,000 | 42,310,200 | 10,970,300 | |||||||||||||||||||||||||
VTR | 2,887,400 | 2,361,300 | 1,182,900 | 2,529,500 | 147,700 | 825,400 | — | — | 973,100 | 2,361,300 | 867,100 | 2,353,400 | 689,300 | |||||||||||||||||||||||||
Puerto Rico | 704,200 | 704,200 | 272,100 | 505,800 | — | 206,800 | — | — | 206,800 | 704,200 | 186,500 | 704,200 | 112,500 | |||||||||||||||||||||||||
Grand Total | 46,980,300 | 45,087,100 | 24,474,000 | 47,531,600 | 8,158,800 | 12,949,900 | 726,500 | 42,700 | 21,877,900 | 45,397,000 | 13,881,600 | 45,367,800 | 11,772,100 |
Subscriber Variance Table - June 30, 2013 vs. March 31, 2013 | ||||||||||||||||||||||||||||||||||||||
Video | Internet | Telephony | ||||||||||||||||||||||||||||||||||||
Homes Passed(1) | Two-way Homes Passed(2) | Customer Relationships(3) | Total RGUs(4) | Analog Cable Subscribers(5) | Digital Cable Subscribers(6) | DTH Subscribers(7) | MMDS Subscribers(8) | Total Video | Homes Serviceable(9) | Subscribers(10) | Homes Serviceable(11) | Subscribers(12) | ||||||||||||||||||||||||||
European Operations Division: | ||||||||||||||||||||||||||||||||||||||
U.K. | 12,490,200 | 12,490,200 | 4,879,300 | 12,237,300 | — | 3,765,800 | — | — | 3,765,800 | 12,349,600 | 4,306,400 | 12,354,100 | 4,165,100 | |||||||||||||||||||||||||
Germany | 15,800 | 17,100 | 7,900 | 129,100 | (29,600 | ) | 11,900 | — | — | (17,700 | ) | 17,100 | 84,700 | 17,100 | 62,100 | |||||||||||||||||||||||
Belgium | 6,200 | 6,200 | (8,600 | ) | 16,600 | (28,800 | ) | 20,200 | — | — | (8,600 | ) | 6,200 | 15,500 | 6,200 | 9,700 | ||||||||||||||||||||||
The Netherlands(13) | 2,700 | 2,300 | (24,700 | ) | (6,700 | ) | (29,500 | ) | 4,700 | — | — | (24,800 | ) | 2,600 | 6,400 | 2,400 | 11,700 | |||||||||||||||||||||
Switzerland(13) | 13,200 | 5,800 | (6,300 | ) | 7,300 | (12,000 | ) | 4,000 | — | — | (8,000 | ) | 6,600 | 9,300 | 6,600 | 6,000 | ||||||||||||||||||||||
Austria(14) | 2,200 | 2,200 | (88,300 | ) | (131,200 | ) | (5,600 | ) | 1,500 | — | — | (4,100 | ) | 2,200 | (74,800 | ) | 2,200 | (52,300 | ) | |||||||||||||||||||
Ireland | (1,400 | ) | 2,500 | (4,600 | ) | 9,000 | (3,000 | ) | (2,900 | ) | — | (1,900 | ) | (7,800 | ) | 2,500 | 5,600 | 5,200 | 11,200 | |||||||||||||||||||
Total Western Europe | 12,528,900 | 12,526,300 | 4,754,700 | 12,261,400 | (108,500 | ) | 3,805,200 | — | (1,900 | ) | 3,694,800 | 12,386,800 | 4,353,100 | 12,393,800 | 4,213,500 | |||||||||||||||||||||||
Poland | 12,400 | 16,500 | (16,600 | ) | 2,100 | (32,400 | ) | 12,100 | — | — | (20,300 | ) | 16,500 | 5,200 | 18,400 | 17,200 | ||||||||||||||||||||||
Romania | 3,200 | 4,800 | 1,300 | 11,700 | (11,600 | ) | 8,200 | 3,300 | — | (100 | ) | 4,800 | 5,200 | 4,800 | 6,600 | |||||||||||||||||||||||
Hungary | 170,000 | 252,600 | (15,900 | ) | (500 | ) | (13,300 | ) | 7,600 | (10,200 | ) | — | (15,900 | ) | 252,600 | 6,500 | 314,400 | 8,900 | ||||||||||||||||||||
Czech Republic | 3,100 | 3,200 | (8,400 | ) | (12,400 | ) | 500 | (8,100 | ) | (1,100 | ) | — | (8,700 | ) | 3,200 | (1,100 | ) | 3,100 | (2,600 | ) | ||||||||||||||||||
Slovakia | 500 | 700 | (700 | ) | (300 | ) | (6,500 | ) | 2,900 | 1,800 | — | (1,800 | ) | 1,000 | 1,200 | 900 | 300 | |||||||||||||||||||||
Total CEE | 189,200 | 277,800 | (40,300 | ) | 600 | (63,300 | ) | 22,700 | (6,200 | ) | — | (46,800 | ) | 278,100 | 17,000 | 341,600 | 30,400 | |||||||||||||||||||||
Total Europe | 12,718,100 | 12,804,100 | 4,714,400 | 12,262,000 | (171,800 | ) | 3,827,900 | (6,200 | ) | (1,900 | ) | 3,648,000 | 12,664,900 | 4,370,100 | 12,735,400 | 4,243,900 | ||||||||||||||||||||||
VTR (Chile) | 19,600 | 23,900 | 15,000 | 43,700 | (7,300 | ) | 25,500 | — | — | 18,200 | 23,900 | 20,600 | 24,000 | 4,900 | ||||||||||||||||||||||||
Puerto Rico | 1,200 | 1,200 | (1,100 | ) | 14,000 | — | 1,400 | — | — | 1,400 | 1,200 | 2,600 | 1,200 | 10,000 | ||||||||||||||||||||||||
Grand Total | 12,738,900 | 12,829,200 | 4,728,300 | 12,319,700 | (179,100 | ) | 3,854,800 | (6,200 | ) | (1,900 | ) | 3,667,600 | 12,690,000 | 4,393,300 | 12,760,600 | 4,258,800 | ||||||||||||||||||||||
ORGANIC CHANGE SUMMARY: | ||||||||||||||||||||||||||||||||||||||
Europe (excel. U.K., DE and BE) | 30,500 | 58,800 | (70,500 | ) | 25,700 | (113,400 | ) | 30,000 | 2,500 | (1,900 | ) | (82,800 | ) | 60,200 | 43,800 | 64,300 | 64,700 | |||||||||||||||||||||
U.K. | 5,500 | 5,500 | (22,800 | ) | (37,800 | ) | — | (10,000 | ) | — | — | (10,000 | ) | 6,000 | (18,100 | ) | 5,600 | (9,700 | ) | |||||||||||||||||||
Germany | 15,800 | 17,100 | 7,900 | 129,100 | (27,500 | ) | 9,800 | — | — | (17,700 | ) | 17,100 | 84,700 | 17,100 | 62,100 | |||||||||||||||||||||||
Belgium | 6,200 | 6,200 | (8,600 | ) | 16,600 | (28,800 | ) | 20,200 | — | — | (8,600 | ) | 6,200 | 15,500 | 6,200 | 9,700 | ||||||||||||||||||||||
Total Europe | 58,000 | 87,600 | (94,000 | ) | 133,600 | (169,700 | ) | 50,000 | 2,500 | (1,900 | ) | (119,100 | ) | 89,500 | 125,900 | 93,200 | 126,800 | |||||||||||||||||||||
Chile | 19,600 | 23,900 | 15,000 | 43,700 | (7,300 | ) | 25,500 | — | — | 18,200 | 23,900 | 20,600 | 24,000 | 4,900 | ||||||||||||||||||||||||
Puerto Rico | 1,200 | 1,200 | (1,100 | ) | 14,000 | — | 1,400 | — | — | 1,400 | 1,200 | 2,600 | 1,200 | 10,000 | ||||||||||||||||||||||||
Total Organic Change | 78,800 | 112,700 | (80,100 | ) | 191,300 | (177,000 | ) | 76,900 | 2,500 | (1,900 | ) | (99,500 | ) | 114,600 | 149,100 | 118,400 | 141,700 | |||||||||||||||||||||
Q2 2013 ADJUSTMENTS: | ||||||||||||||||||||||||||||||||||||||
Virgin Media Acquisition | 12,484,700 | 12,484,700 | 4,902,100 | 12,275,100 | — | 3,775,800 | — | — | 3,775,800 | 12,343,600 | 4,324,500 | 12,348,500 | 4,174,800 | |||||||||||||||||||||||||
Romania adjustments | 166,900 | 232,600 | (8,700 | ) | (8,700 | ) | — | — | (8,700 | ) | — | (8,700 | ) | 232,600 | — | 294,500 | — | |||||||||||||||||||||
Switzerland adjustments | 10,000 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Germany adjustments | — | — | — | — | (2,100 | ) | 2,100 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Hungary adjustments | (1,500 | ) | (800 | ) | — | — | — | — | — | — | — | (800 | ) | — | (800 | ) | — | |||||||||||||||||||||
Austria adjustments(14) | — | — | (85,000 | ) | (138,000 | ) | — | — | — | — | — | — | (80,300 | ) | — | (57,700 | ) | |||||||||||||||||||||
Net Adjustments | 12,660,100 | 12,716,500 | 4,808,400 | 12,128,400 | (2,100 | ) | 3,777,900 | (8,700 | ) | — | 3,767,100 | 12,575,400 | 4,244,200 | 12,642,200 | 4,117,100 | |||||||||||||||||||||||
Net Adds (Reductions) | 12,738,900 | 12,829,200 | 4,728,300 | 12,319,700 | (179,100 | ) | 3,854,800 | (6,200 | ) | (1,900 | ) | 3,667,600 | 12,690,000 | 4,393,300 | 12,760,600 | 4,258,800 |
(1) | Homes Passed are homes, residential multiple dwelling units or commercial units that can be connected to our networks without materially extending the distribution plant, except for DTH and Multi-channel Multipoint (“microwave”) Distribution System (“MMDS”) homes. Our Homes Passed counts are based on census data that can change based on either revisions to the data or from new census results. We do not count homes passed for DTH. With respect to MMDS, one MMDS customer is equal to one Home Passed. Due to the fact that we do not own the partner networks (defined below) used in Switzerland and the Netherlands (see note 13) we do not report homes passed for Switzerland's and the Netherlands' partner networks |
(2) | Two-way Homes Passed are Homes Passed by those sections of our networks that are technologically capable of providing two-way services, including video, internet and telephony services. |
(3) | Customer Relationships are the number of customers who receive at least one of our video, internet or telephony services that we count as Revenue Generating Units (“RGUs”), without regard to which or to how many services they subscribe. To the extent that RGU counts include equivalent billing unit (“EBU”) adjustments, we reflect corresponding adjustments to our Customer Relationship counts. For further information regarding our EBU calculation, see Additional General Notes to Tables below. Customer Relationships generally are counted on a unique premises basis. Accordingly, if an individual receives our services in two premises (e.g., a primary home and a vacation home), that individual generally will count as two Customer Relationships. We exclude mobile customers from Customer Relationships. For Belgium, Customer Relationships only include customers who subscribe to an analog or digital cable service due to billing system limitations. |
(4) | Revenue Generating Unit is separately an Analog Cable Subscriber, Digital Cable Subscriber, DTH Subscriber, MMDS Subscriber, Internet Subscriber or Telephony Subscriber. A home, residential multiple dwelling unit, or commercial unit may contain one or more RGUs. For example, if a residential customer in our Austrian system subscribed to our digital cable service, telephony service and broadband internet service, the customer would constitute three RGUs. Total RGUs is the sum of Analog Cable, Digital Cable, DTH, MMDS, Internet and Telephony Subscribers. RGUs generally are counted on a unique premises basis such that a given premises does not count as more than one RGU for any given service. On the other hand, if an individual receives one of our services in two premises (e.g. a primary home and a vacation home), that individual will count as two RGUs for that service. Each bundled cable, internet or telephony service is counted as a separate RGU regardless of the nature of any bundling discount or promotion. Non-paying subscribers are counted as subscribers during their free promotional service period. Some of these subscribers may choose to disconnect after their free service period. Services offered without charge on a long-term basis (e.g., VIP subscribers, free service to employees) generally are not counted as RGUs. We do not include subscriptions to mobile services in our externally reported RGU counts. In this regard, our June 30, 2013 RGU counts exclude our separately reported postpaid and prepaid mobile subscribers in the U.K., Belgium, Germany, Chile, Poland, Hungary and the Netherlands of 3,026,600, 674,900, 190,500, 140,100, 23,300, 5,100 and 3,500, respectively. Our mobile subscriber count represents the number of active SIM cards in service. |
(5) | Analog Cable Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our analog cable service over our broadband network. Our Analog Cable Subscriber counts also include subscribers who may use a purchased set-top box or other means to receive our basic digital cable channels without subscribing to any services that would require the payment of recurring monthly fees in addition to the basic analog service fee (“Basic Digital Cable Subscriber”). Our Basic Digital Cable Subscribers are attributable to the fact that our basic digital cable channels are not encrypted in certain portions of our footprint and the use of purchased digital set-top boxes in Belgium. In Europe, we have approximately 368,800 “lifeline” customers that are counted on a per connection basis, representing the least expensive regulated tier of video cable service, with only a few channels. |
(6) | Digital Cable Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our digital cable service over our broadband network or through a partner network. We count a subscriber with one or more digital converter boxes that receives our digital cable service in one premises as just one subscriber. A Digital Cable Subscriber is not counted as an Analog Cable Subscriber. As we migrate customers from analog to digital cable services, we report a decrease in our Analog Cable Subscribers equal to the increase in our Digital Cable Subscribers. As discussed in further detail in note 5 above, Basic Digital Cable Subscribers are not included in the respective Digital Cable Subscriber counts. Subscribers to digital cable services provided by our operations in Switzerland and the Netherlands over partner networks receive analog cable services from the partner networks as opposed to our operations. |
(7) | DTH Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our video programming broadcast directly via a geosynchronous satellite |
(8) | MMDS Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our video programming via MMDS. |
(9) | Internet Homes Serviceable are Two-way Homes Passed that can be connected to our network, or a partner network with which we have a service agreement, for the provision of broadband internet services if requested by the customer, building owner or housing association, as applicable |
(10) | 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 168,600 asymmetric digital subscriber line (“ADSL”) subscribers within our U.K. segment and 78,300 digital subscriber line (“DSL”) subscribers within our Austria segment that are not serviced over our networks. Our Internet Subscribers do not include customers that receive services from dial-up connections. In Switzerland, we offer a 2 Mbps internet service to our Analog and Digital Cable Subscribers without an incremental recurring fee. Our Internet Subscribers in Switzerland include 20,200 subscribers who have requested and received a modem that enables the receipt of this 2 Mbps internet service. |
(11) | Telephony Homes Serviceable are Two-way Homes Passed that can be connected to our network, or a partner network with which we have a service agreement, for the provision of telephony services if requested by the customer, building owner or housing association, as applicable. |
(12) | 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 114,100 and 56,500 subscribers within our segments in the U.K. and Austria, respectively, that are not serviced over our networks. |
(13) | Pursuant to service agreements, Switzerland and, to a much lesser extent, the Netherlands offer digital cable, broadband internet and telephony services over networks owned by third-party cable operators (“partner networks”). A partner network RGU is only recognized if there is a direct billing relationship with the customer. Homes serviceable for partner networks represent the estimated number of homes that are technologically capable of receiving the applicable service within the geographic regions covered by the applicable service agreements. These estimates may change in future periods as more accurate information becomes available. At June 30, 2013, Switzerland's partner networks account for 129,400 Customer Relationships, 250,600 RGUs, 93,400 Digital Cable Subscribers, 468,100 Internet and Telephony Homes Serviceable, 91,500 Internet Subscribers, and 65,700 Telephony Subscribers. In addition, partner networks account for 439,300 of Switzerland's digital cable homes serviceable that are not included in Homes Passed or Two-way Homes Passed in our June 30, 2013 subscriber table. |
(14) | In connection with the Virgin Media Acquisition, we began excluding, effective April 1, 2013, our DSL internet RGUs and DSL telephony RGUs in Austria from our Internet Subscriber and Telephony Subscriber counts, consistent with how we are treating similar DSL subscribers of our U.K. segment. |
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