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 |
• | Total RGU base surpassed 11.5 million RGUs during Q3 2013 |
• | Increased subscriber base by 124,300 RGUs during Q3 2013, consistent with our Q2 2013 performance |
• | Strong momentum in broadband internet and telephony services while focused on customer economics: |
◦ | Added 86,900 internet and 59,100 telephony RGUs during Q3 2013 with average promotional period halved year-over-year |
◦ | Approximately 40% of our total broadband base subscribed to at least 50 Mbps |
• | Further enhanced value proposition of our bundled product portfolio in September: |
◦ | Launched next-generation “Horizon TV” platform in our Unitymedia footprint and added over 25,000 subscribers through the end of October |
◦ | Further strengthened speed leadership compared to the competition by offering 100 Mbps in our core bundles and 150 Mbps in top tiers, 3x maximum VDSL download speeds |
• | Revenue increased 7% to €485 million in Q3 2013 and 8% to €1,433 million YTD |
• | Monthly ARPU per customer grew 8% to €20.47 during Q3 |
• | Adjusted EBITDA increased 9% to €296 million in Q3 2013 and €851 million YTD, representing margins of 61% and 59%, respectively |
• | Net loss was €28 million in Q3 2013 and €222 million YTD |
• | Property, equipment and intangible asset additions were 32% of revenue for Q3 2013 and 25% YTD, both impacted by our Horizon TV launch in September |
* | For definitions and reconciliations of certain financial and subscriber metrics, please see pages 8-11. |
As of and for the three months ended September 30, | |||||||
2013 | 2012 | ||||||
Footprint | |||||||
Homes Passed(1) | 12,620,900 | 12,566,500 | |||||
Two-way Homes Passed(2) | 12,217,300 | 12,109,900 | |||||
Subscribers (RGUs)(3)(12) | |||||||
Analog Cable(4) | 4,413,500 | 4,564,900 | |||||
Digital Cable(5) | 2,214,300 | 2,148,800 | |||||
Total Video | 6,627,800 | 6,713,700 | |||||
Internet(6) | 2,490,700 | 2,111,400 | |||||
Telephony(7) | 2,444,500 | 2,133,800 | |||||
Total RGUs | 11,563,000 | 10,598,900 | |||||
Q3 organic RGU net additions (losses) | |||||||
Analog Cable | (31,000 | ) | (50,200 | ) | |||
Digital Cable | 9,300 | 24,300 | |||||
Total Video | (21,700 | ) | (25,900 | ) | |||
Internet | 86,900 | 94,500 | |||||
Telephony | 59,100 | 88,600 | |||||
Total RGU Net Additions | 124,300 | 157,200 | |||||
Penetration | |||||||
Digital Cable as % of Total Video Subs(8) | 33.4 | % | 32.0 | % | |||
Internet as % of Two-way Homes Passed(9) | 20.4 | % | 17.4 | % | |||
Telephony as % of Two-way Homes Passed(9) | 20.0 | % | 17.6 | % | |||
Customer relationships(12) | |||||||
Customer Relationships(10) | 7,070,900 | 6,988,700 | |||||
RGUs per Customer Relationship | 1.64 | 1.57 | |||||
Customer bundling | |||||||
Single-Play | 64.7 | % | 69.0 | % | |||
Double-Play | 7.2 | % | 5.1 | % | |||
Triple-Play | 28.1 | % | 25.9 | % | |||
ARPU(11) | |||||||
Q3 Monthly ARPU per Customer Relationship | € | 20.47 | € | 19.02 | |||
Three months ended September 30, | |||||||||||
2013 | 2012 | Change | |||||||||
in millions | |||||||||||
Revenue | € | 484.6 | € | 453.9 | 7 | % | |||||
Adjusted EBITDA(13) | € | 295.7 | € | 272.9 | 9 | % | |||||
Property, equipment and intangible asset additions (14) | € | 156.4 | € | 128.8 | 21 | % | |||||
As % of Revenue | |||||||||||
Adjusted EBITDA | 61.0 | % | 59.9 | % | 110bp | ||||||
Property, equipment and intangible asset additions | 32.3 | % | 28.4 | % | 390bp |
Nine months ended September 30, | |||||||||||
2013 | 2012 | Change | |||||||||
in millions | |||||||||||
Revenue | € | 1,433.2 | € | 1,327.5 | 8 | % | |||||
Adjusted EBITDA(13) | € | 851.2 | € | 783.0 | 9 | % | |||||
Property, equipment and intangible asset additions (14) | € | 363.9 | € | 377.4 | (4 | %) | |||||
As % of Revenue | |||||||||||
Adjusted EBITDA | 59.4 | % | 59.0 | % | 40bp | ||||||
Property, equipment and intangible asset additions | 25.4 | % | 28.4 | % | (300bp) |
* | International Financial Reporting Standards, as adopted by the European Union (“EU-IFRS”). |
Description | Maturity date | Interest rate | Nominal value | Carrying value | ||||||||||||
in millions | ||||||||||||||||
New Unitymedia KabelBW Revolving Credit Facility | June 30, 2017 | Euribor + 3.25% | € | 337.5 | € | — | ||||||||||
Unitymedia KabelBW Revolving Credit Facility | June 30, 2017 | Euribor + 2.50% | € | 80.0 | € | — | ||||||||||
2009 UM Euro Senior Secured Notes | Dec. 1, 2017 | 8.125% | € | 446.0 | € | 440.2 | ||||||||||
UM Euro Senior Secured Exchange Notes | March 15, 2019 | 7.500% | € | 735.1 | € | 740.5 | ||||||||||
UM Dollar Senior Secured Exchange Notes | March 15, 2019 | 7.500% | € | 339.4 | (16 | ) | € | 344.8 | (16 | ) | ||||||
September 2012 UM Senior Secured Notes | Sept. 15, 2022 | 5.500% | € | 650.0 | € | 650.0 | ||||||||||
December 2012 UM Dollar Senior Secured Notes | Jan. 15, 2023 | 5.500% | € | 739.0 | (16 | ) | € | 739.0 | (16 | ) | ||||||
December 2012 UM Euro Senior Secured Notes | Jan. 15, 2023 | 5.750% | € | 500.0 | € | 500.0 | ||||||||||
January 2013 UM Senior Secured Notes | Jan. 21, 2023 | 5.125% | € | 500.0 | € | 500.0 | ||||||||||
April 2013 UM Senior Secured Notes | Apr. 15, 2023 | 5.625% | € | 350.0 | € | 350.0 | ||||||||||
2009 UM Senior Notes | Dec. 1, 2019 | 9.625% | € | 665.0 | € | 653.7 | ||||||||||
UM Senior Exchange Notes | March 15, 2021 | 9.500% | € | 618.0 | € | 616.4 |
Investor Relations – Unitymedia KabelBW | Corporate Communications – Unitymedia KabelBW | |||
Christian Fangmann | +49 221.8462.5151 | Katrin Köster | +49 221.8462.5159 | |
Investor Relations – Liberty Global | ||||
Christopher Noyes | +1 303.220.6693 | |||
Oskar Nooij | +1 303.220.4218 |
Three months ended September 30, | ||||||||
2013 | 2012 | |||||||
in millions | ||||||||
Revenue | € | 484.6 | € | 453.9 | ||||
Adjusted EBITDA(13) | 295.7 | 272.1 | ||||||
Depreciation and amortization | (173.4 | ) | (159.1 | ) | ||||
Impairment, restructuring and other operating items, net | (4.8 | ) | (11.3 | ) | ||||
Share-based compensation | (0.6 | ) | (0.4 | ) | ||||
Related-party fees and allocations(18) | (17.8 | ) | (15.1 | ) | ||||
Earnings before interest and taxes ("EBIT") | 99.1 | 86.2 | ||||||
Net financial and other expense | (124.9 | ) | (144.9 | ) | ||||
Income tax benefit (expense) | (2.0 | ) | 8.1 | |||||
Net loss | € | (27.8 | ) | € | (50.6 | ) | ||
Property, equipment and intangible asset additions (14) | € | 156.4 | € | 128.8 | ||||
As % of Revenue | ||||||||
Adjusted EBITDA | 61.0 | % | 59.9 | % | ||||
Property, equipment and intangible asset additions | 32.3 | % | 28.4 | % |
Nine months ended September 30, | ||||||||
2013 | 2012 | |||||||
in millions | ||||||||
Revenue | € | 1,433.2 | € | 1,327.5 | ||||
Adjusted EBITDA(13) | 851.2 | 783.0 | ||||||
Depreciation and amortization | (502.2 | ) | (471.0 | ) | ||||
Impairment, restructuring and other operating items, net | (8.5 | ) | (13.8 | ) | ||||
Share-based compensation | (1.3 | ) | (0.9 | ) | ||||
Related-party fees and allocations(18) | (54.2 | ) | (42.7 | ) | ||||
EBIT | 285.0 | 254.6 | ||||||
Net financial and other expense | (456.1 | ) | (375.8 | ) | ||||
Income tax benefit (expense) | (51.0 | ) | 27.8 | |||||
Net loss | € | (222.1 | ) | € | (93.4 | ) | ||
Property, equipment and intangible asset additions (14) | € | 363.9 | € | 377.4 | ||||
As % of Revenue | ||||||||
Adjusted EBITDA | 59.4 | % | 59.0 | % | ||||
Property, equipment and intangible asset additions | 25.4 | % | 28.4 | % |
Three months ended September 30, | |||||||
2013 | 2012 | ||||||
in millions | |||||||
Customer premises equipment | € | 60.8 | € | 38.3 | |||
Scalable infrastructure | 13.0 | 11.9 | |||||
Line extensions / new build | 10.6 | 11.5 | |||||
Upgrade / rebuild / network improvement | 34.1 | 36.4 | |||||
Support capital | 6.9 | 7.5 | |||||
Capitalized subscriber acquisition costs | 18.0 | 18.3 | |||||
Software and licenses | 13.0 | 4.9 | |||||
Property, equipment and intangible asset additions (14) | 156.4 | 128.8 | |||||
Assets acquired under capital-related vendor financing and capital lease arrangements (including related-party amounts) | (11.3 | ) | (3.4 | ) | |||
Changes in liabilities related to capital expenditures (including related-party amounts) | (26.4 | ) | (10.1 | ) | |||
Total capital expenditures | € | 118.7 | € | 115.3 | |||
Nine months ended September 30, | |||||||
2013 | 2012 | ||||||
in millions | |||||||
Customer premises equipment | € | 99.3 | € | 102.2 | |||
Scalable infrastructure | 38.2 | 41.0 | |||||
Line extensions / new build | 32.5 | 41.0 | |||||
Upgrade / rebuild / network improvement | 101.3 | 108.8 | |||||
Support capital | 13.6 | 24.1 | |||||
Capitalized subscriber acquisition costs | 52.0 | 54.3 | |||||
Software and licenses | 27.0 | 6.0 | |||||
Property, equipment and intangible asset additions (14) | 363.9 | 377.4 | |||||
Assets acquired under capital-related vendor financing and capital lease arrangements (including related-party amounts) | (19.7 | ) | (8.6 | ) | |||
Changes in liabilities related to capital expenditures (including related-party amounts) | (32.4 | ) | (16.3 | ) | |||
Total capital expenditures | € | 311.8 | € | 352.5 | |||
(1) | Homes Passed are homes, residential multiple dwelling units or commercial units that can be connected to our network without materially extending the distribution plant. Our Homes Passed counts are based on census data that can change based on either revisions to the data or from new census results. |
(2) | Two-way Homes Passed are Homes Passed by those sections of our network that are technologically capable of providing two-way services, including video, internet and telephony services, 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, success-based basis. |
(3) | Revenue Generating Unit or RGU is separately an Analog Cable Subscriber, Digital Cable 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 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, 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. We do not include subscriptions to mobile services in our externally reported RGU counts. In this regard, our September 30, 2013 RGU count excludes 196,900 postpaid mobile subscribers. Our mobile subscriber count represents the number of subscriber identification module (“SIM”) cards in service. |
(4) | Analog Cable Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our analog cable service over our broadband network. The Analog Cable Subscriber count also includes 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 unencrypted in our KabelBW footprint and, effective January 1, 2013, our basic digital cable channels are also unencrypted in our Unitymedia footprint. |
(5) | Digital Cable Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our digital cable service over our broadband 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 4 above, Basic Digital Cable Subscribers are not included in our Digital Cable Subscriber count. |
(6) | Internet Subscriber is a home, residential multiple dwelling unit or commercial unit that receives internet services over our network. Our Internet Subscribers do not include customers that receive services from dial-up connections. In our Unitymedia footprint, we offer a 128 Kbps wholesale internet service to housing associations on a bulk basis. As of September 30, 2013, our Internet Subscribers include approximately 6,800 subscribers within such housing associations who have requested and received a modem that enables the receipt of this 128 Kbps wholesale internet service. |
(7) | Telephony Subscriber is a home, residential multiple dwelling unit or commercial unit that receives voice services over our network. Telephony subscribers exclude mobile telephony subscribers. |
(8) | Digital cable penetration is calculated by dividing the number of digital cable RGUs by the total number of digital and analog cable RGUs. |
(9) | Internet and telephony penetration is calculated by dividing the number of internet and telephony RGUs by the number of two-way homes passed. |
(10) | Customer Relationships are the number of customers who receive at least one of our video, internet or telephony services that we count as RGUs, without regard to which, or to how many services they subscribe. Customer Relationships generally are counted on a unique premises basis. Accordingly, if an individual receives our services in two premises (e.g., primary home and vacation home), that individual generally will count as two Customer Relationships. We exclude mobile customers from Customer Relationships. |
(11) | ARPU per Customer Relationship refers to the average monthly subscription revenue per average Customer Relationship. The amount is calculated by dividing the average monthly subscription revenue (excluding fees from interconnection, installation, late fees and carriage) for the indicated period, by the average of the opening and closing balances for Customer Relationships for the period. |
(12) | Our business-to-business (“B2B”) revenue primarily is derived from small office/home office (“SOHO”) subscribers that pay a premium price to receive enhanced service levels along with internet and 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 our RGU and customer counts, with only those services provided at premium prices considered to be “SOHO RGUs” or “SOHO customers”. With the exception of our B2B SOHO subscribers, we generally do not count customers of B2B services as customers or RGUs for external reporting purposes. |
(13) | Adjusted EBITDA is the primary measure used by our management to evaluate the company’s performance. Adjusted EBITDA is also a key factor that is used by our internal decision makers to evaluate the effectiveness of our management for purposes of annual and other incentive compensation plans. We define EBITDA as earnings before net finance expense, income taxes, depreciation and amortization. As we use the term, Adjusted EBITDA is defined as EBITDA |
(14) | Property, equipment and intangible asset additions include our capital expenditures on an accrual basis and our vendor financing, capital lease and other non-cash additions. |
(15) | We define Adjusted EBITDA margin to mean Adjusted EBITDA as a percentage of revenue. |
(16) | Based on a USD/EUR exchange rate of 1.3531 as of September 30, 2013. |
(17) | Net debt represents the carrying value of total third-party debt, vendor financing and financial lease obligations less cash and cash equivalents. Net debt is not a defined term under EU-IFRS and may not therefore be comparable with other similarly titled measures reported by other companies. |
(18) | Represents charges from parent for general support and administration services rendered. |
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