XML 49 R38.htm IDEA: XBRL DOCUMENT v3.21.2
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2021
Segment Reporting, Measurement Disclosures [Abstract]  
Revenue and Operating Cash Flow by Segment
The amounts presented below represent 100% of each of our reportable segment’s revenue and Adjusted EBITDA. As we have the ability to control Telenet, we consolidate 100% of Telenet’s revenue and expenses in our condensed consolidated statements of operations despite the fact that third parties own a significant interest. The noncontrolling owners’ interests in the operating results of Telenet and other less significant majority-owned subsidiaries are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations. Similarly, despite only holding a 50% noncontrolling interest in both the VMED O2 JV and the VodafoneZiggo JV, we present 100% of the revenue and Adjusted EBITDA of those entities in the tables below. Our share of the operating results of the VMED O2 JV and the VodafoneZiggo JV are included in share of results of affiliates, net, in our condensed consolidated statements of operations.

Revenue
 Three months ended
June 30,		Six months ended
June 30,
 2021202020212020
 in millions
U.K. (a)$1,101.4 $1,417.3 $2,736.4 $2,913.7 
Belgium774.8 682.5 1,547.5 1,400.6 
Switzerland825.4 299.1 1,667.2 615.9 
Ireland134.1 115.2 270.2 239.8 
Central and Eastern Europe130.2 116.2 258.8 235.3 
Central and Corporate143.7 97.5 250.9 203.1 
Intersegment eliminations(4.1)(4.9)(10.2)(9.7)
Total$3,105.5 $2,722.9 $6,720.8 $5,598.7 
VMED O2 JV (b)
$1,208.5 $— $1,208.5 $— 
VodafoneZiggo JV
$1,215.3 $1,081.6 $2,432.3 $2,178.7 
_______________

(a)Represents the revenue of the U.K. JV Entities through the June 1, 2021 closing of the U.K. JV Transaction.

(b)The 2021 amounts represent the revenue of the VMED O2 JV for the period from June 1, 2021 through June 30, 2021.
Adjusted EBITDA
 Three months ended
June 30,		Six months ended
June 30,
 2021202020212020
 in millions
U.K. (a)$444.9 $601.7 $1,085.3 $1,208.7 
Belgium389.6 354.1 761.4 685.7 
Switzerland298.5 150.9 580.1 285.0 
Ireland54.0 49.2 101.6 93.3 
Central and Eastern Europe59.5 52.7 116.5 107.0 
Central and Corporate6.2 (20.1)(24.9)(40.9)
Total$1,252.7 $1,188.5 $2,620.0 $2,338.8 
VMED O2 JV (b)
$411.0 $— $411.0 $— 
VodafoneZiggo JV
$570.1 $531.5 $1,135.3 $1,034.3 
_______________

(a)Represents the Adjusted EBITDA of the U.K. JV Entities through the June 1, 2021 closing of the U.K. JV Transaction.

(b)The 2021 amounts represent the Adjusted EBITDA of the VMED O2 JV for the period from June 1, 2021 through June 30, 2021.

The following table provides a reconciliation of net earnings (loss) to Adjusted EBITDA:
 Three months ended
June 30,		Six months ended
June 30,
 2021202020212020
 in millions
Net earnings (loss)$11,174.5 $(503.8)$12,614.8 $513.9 
Income tax expense (benefit)282.8 (158.0)453.3 (77.9)
Other income, net
(7.2)(9.5)(17.3)(61.9)
Gain on U.K. JV Transaction
(11,138.0)— (11,138.0)— 
Share of results of affiliates, net 8.1 105.4 6.4 72.0 
Losses on debt extinguishment, net
90.6 165.6 90.6 220.1 
Realized and unrealized losses (gains) due to changes in fair values of certain investments and debt, net (288.1)(152.3)(482.7)377.5 
Foreign currency transaction losses (gains), net (133.3)478.0 (436.4)86.3 
Realized and unrealized losses (gains) gains on derivative instruments, net303.1 319.7 (508.0)(917.6)
Interest expense273.0 281.7 608.1 595.0 
Operating income565.5 526.8 1,190.8 807.4 
Impairment, restructuring and other operating items, net 6.9 32.2 51.3 63.2 
Depreciation and amortization 580.5 545.7 1,214.7 1,329.2 
Share-based compensation expense
99.8 83.8 163.2 139.0 
Adjusted EBITDA$1,252.7 $1,188.5 $2,620.0 $2,338.8 
Property and Equipment Additions of our Reportable Segments
The property and equipment additions of our reportable segments (including capital additions financed under vendor financing or finance lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our condensed consolidated statements of cash flows. For additional information concerning capital additions financed under vendor financing and finance lease arrangements, see notes 8 and 10, respectively.
 Six months ended
June 30,
 20212020
 in millions
U.K. (a)$557.4 $634.3 
Belgium291.2 251.9 
Switzerland278.2 123.8 
Ireland43.3 35.1 
Central and Eastern Europe38.2 39.8 
Central and Corporate (b)145.4 157.5 
Total property and equipment additions1,353.7 1,242.4 
Assets acquired under capital-related vendor financing arrangements(560.1)(702.9)
Assets acquired under finance leases(19.6)(17.2)
Changes in current liabilities related to capital expenditures94.9 127.3 
Total capital expenditures, net$868.9 $649.6 
Property and equipment additions:
VMED O2 JV (c)
$226.3 $— 
VodafoneZiggo JV
$510.4 $472.4 
_______________

(a)Represents the property and equipment additions of the U.K. JV Entities through the June 1, 2021 closing of the U.K. JV Transaction.

(b)Includes (i) property and equipment additions representing centrally-owned assets that benefit our operating segments and (ii) the net impact of certain centrally-procured network equipment that is ultimately transferred to our operating segments.

(c)The 2021 amount represents the property and equipment additions of the VMED O2 JV for the period from June 1, 2021 through June 30, 2021.
Revenue by Major Category
Our revenue by major category for our consolidated reportable segments is set forth below:
 Three months ended
June 30,		Six months ended
June 30,
 2021202020212020
 in millions
Residential revenue:
Residential cable revenue (a):
Subscription revenue (b):
Broadband internet$763.9 $781.0 $1,690.7 $1,577.8 
Video631.5 633.6 1,376.6 1,316.7 
Fixed-line telephony272.0 328.3 629.2 666.5 
Total subscription revenue1,667.4 1,742.9 3,696.5 3,561.0 
Non-subscription revenue47.3 35.6 104.0 88.6 
Total residential cable revenue1,714.7 1,778.5 3,800.5 3,649.6 
Residential mobile revenue (c):
Subscription revenue (b)415.8 227.3 897.1 463.2 
Non-subscription revenue197.2 129.7 477.6 275.0 
Total residential mobile revenue613.0 357.0 1,374.7 738.2 
Total residential revenue2,327.7 2,135.5 5,175.2 4,387.8 
B2B revenue (d):
Subscription revenue191.6 133.1 359.6 268.8 
Non-subscription revenue380.6 328.5 816.8 666.9 
Total B2B revenue572.2 461.6 1,176.4 935.7 
Other revenue (e)205.6 125.8 369.2 275.2 
Total$3,105.5 $2,722.9 $6,720.8 $5,598.7 
_______________

(a)Residential cable subscription revenue includes amounts received from subscribers for ongoing services and the recognition of deferred installation revenue over the associated contract period. Residential cable non-subscription revenue includes, among other items, channel carriage fees, late fees and revenue from the sale of equipment.

(b)Residential subscription revenue from subscribers who purchase bundled services at a discounted rate is generally allocated proportionally to each service based on the standalone price for each individual service. As a result, changes in the standalone pricing of our cable and mobile products or the composition of bundles can contribute to changes in our product revenue categories from period to period.

(c)Residential mobile subscription revenue includes amounts received from subscribers for ongoing services. Residential mobile non-subscription revenue includes, among other items, interconnect revenue and revenue from sales of mobile handsets and other devices.

(d)B2B subscription revenue represents revenue from (i) services provided to certain small or home office (SOHO) subscribers and (ii) mobile services provided to medium and large enterprises. SOHO subscribers pay a premium price to receive expanded service levels along with broadband internet, video, fixed-line telephony or mobile services that are the same or similar to the mass marketed products offered to our residential subscribers. B2B non-subscription revenue includes (a) revenue from business broadband internet, video, fixed-line telephony and data services offered to medium
to large enterprises and, on a wholesale basis, to other operators and (b) revenue from long-term leases of portions of our network.

(e)Other revenue includes, among other items, (i) revenue earned from the U.K. JV Services, the NL JV Services and the sale of customer premises equipment to the VodafoneZiggo JV, (ii) broadcasting revenue in Belgium and Ireland and (iii) revenue earned from transitional and other services provided to various third parties.
Geographic Segments
The revenue of our geographic segments is set forth below:
 Three months ended
June 30,		Six months ended
June 30,
 2021202020212020
 in millions
U.K. (a)$1,101.4 $1,417.3 $2,736.4 $2,913.7 
Belgium774.8 682.5 1,547.5 1,400.6 
Switzerland825.4 299.1 1,667.2 615.9 
Ireland134.1 115.2 270.2 239.8 
Poland116.9 103.7 232.5 210.4 
Slovakia13.3 12.5 26.3 24.9 
Other, including intersegment eliminations139.6 92.6 240.7 193.4 
Total$3,105.5 $2,722.9 $6,720.8 $5,598.7 
VMED O2 JV (U.K.) (b)
$1,208.5 $— $1,208.5 $— 
VodafoneZiggo JV (Netherlands)
$1,215.3 $1,081.6 $2,432.3 $2,178.7 
______________

(a)Represents the revenue of the U.K. JV Entities through the June 1, 2021 closing of the U.K. JV Transaction.
(b)The 2021 amounts represent the revenue of the VMED O2 JV for the period from June 1, 2021 through June 30, 2021.