[February 14, 2018] |
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Liberty Global Reports Q4 and Full-Year 2017 Results
Liberty Global plc today announced its Q4 and full-year 2017 financial
results1. Please note that as a result of the completion of
the LatAm split-off, the information included in this release represents
our continuing operations, unless otherwise noted.
CEO Mike Fries stated, "We ended 2017 on a high note, as we
delivered our best rebased revenue growth of the year in Q4, along with
4.5% rebased2 OCF3 growth for the full year and
$1.6 billion of Adjusted Free Cash Flow4. These results were
driven by solid performances in Germany and the U.K., together with
continued cost efficiencies from our Liberty GO program."
"Virgin Media, our largest operation, steadily improved throughout 2017
and posted 5% rebased OCF growth in Q4, its best performance of the
year. We successfully executed the price increase last November and
continued rolling out cutting-edge products like our WiFi Connect and V6
set-top boxes, which we will continue to aggressively deploy in 2018.
Early last year, we overhauled Project Lightning and subsequently
reported progressively improved new build totals, including the delivery
of nearly 160,000 premises in Q4 2017, a quarterly record.
In Switzerland, Q4 and full-year OCF results were impacted by costs
associated with the launch of MySports, our new sports channel that is
available exclusively to cable customers. This investment has
transformed UPC Switzerland into the premier provider of televised
athletic events, featuring access to Swiss ice hockey and Bundesliga
matches. We expect that our OCF results in this market will continue to
be under pressure in the coming quarters, as we continue to invest in
MySports."
"Our balance sheet remains in great shape with an average long-term debt
tenor9 of nearly eight years, a fully-swapped borrowing cost
of 4.2% and substantial liquidity10 of $5 billion. We
recently announced a stock repurchase plan of $2 billion for 2018 which,
when completed, will push our total buybacks since 2005 above $20
billion.
On the M&A front, a couple transactions have highlighted our continued
focus on shareholder value creation. At the end of the year we completed
the split-off of our Latin American business, which created two
attractive, asset-backed securities. In December, we announced the sale
of UPC Austria to T-Mobile Austria at an ~11x EV/OCF exit multiple,
highlighting the strategic value of our networks in a rapidly converging
world.
Looking ahead, in 2018 we expect to deliver around 5% rebased OCF
growth, Adjusted Free Cash Flow of $1.6 billion and P&E additions of
$5.1 billion, including $1.2 billion8 of spend for new build
and upgrade for the full year. These investments, which underpin our
customer-centric focus, leave us well placed to deliver long-term
sustainable growth."
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Full-Year 2017 Highlights
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2018 Guidance Targets
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NEW PREMISES BUILT OVER 1.1 MM
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•
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REBASED OCF GROWTH ~5%7
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•
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B2B5 REVENUE GROWTH2
+12%
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•
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ADJUSTED FREE CASH FLOW $1.6BN8
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•
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ORGANIC RGU6 ADDITIONS 760,000
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P&E ADDITIONS OF $5.1 BN8
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About Liberty Global
Liberty Global (NASDAQ: LBTYA, LBTYB and LBTYK) is the world's largest
international TV and broadband company, with operations in 12 European
countries under the consumer brands Virgin Media, Unitymedia, Telenet
and UPC. We invest in the infrastructure and digital platforms that
empower our customers to make the most of the video, internet and
communications revolution. Our substantial scale and commitment to
innovation enable us to develop market-leading products delivered
through next-generation networks that connect over 22 million customers
subscribing to 46 million TV, broadband internet and telephony services.
We also serve over 6 million mobile subscribers and offer WiFi service
through 10 million access points across our footprint.
In addition, Liberty Global owns 50% of VodafoneZiggo, a joint venture
in the Netherlands with 4 million customers subscribing to 10 million
fixed-line and 5 million mobile services, as well as significant content
investments in ITV, All3Media, LionsGate, the Formula E racing series
and several regional sports networks.
Highlights
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Full-year rebased revenue growth of 2%, including 3% growth in Q4
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Q4 rebased revenue growth was driven by a 4% increase at Virgin
Media
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Q4 residential cable business11 of $3.0 billion was up
1% year-over-year
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Q4 residential mobile business11 up 5% year-over-year
to $0.5 billion
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Q4 B2B business11 increased 13% year-over-year to $0.5
billion
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Full-year operating income decreased 22% year-over-year, down 27% in Q4
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Full-year rebased OCF growth of 4.5% to $7.1 billion
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Q4 rebased OCF growth of 4%, supported by 5% growth at
Virgin Media
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760,000 organic RGU additions in 2017, including 149,000 in Q4
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Results supported by new build initiatives and continued
penetration of our next-generation broadband and video products
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Built over 350,000 new premises in Q4, YTD total exceeded 1.1 million
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Virgin Media delivered 159,000 new premises in Q4 and 536,000 for
2017
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Solid balance sheet with $5 billion of liquidity
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Net leverage12 of 4.9x at December 31, 2017
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Fully-swapped borrowing cost of 4.2%, down from 4.7% in Q4 '16
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Liberty Global
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Q4 2017
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YoY Growth/ (Decline)*
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FY 2017
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YoY Growth/ (Decline)*
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Subscribers
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Organic RGU Net Additions
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149,200
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(45.3
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%)
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759,800
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(22.0
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%)
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Financial (in USD millions)
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Revenue
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$
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3,988
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2.9
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%
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$
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15,049
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2.3
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%
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OCF
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$
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1,912
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4.3
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%
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$
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7,086
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4.5
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%
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Operating income
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$
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496
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(27.4
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%)
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$
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1,947
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(21.6
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%)
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Adjusted FCF
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$
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844
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(16.4
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%)
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$
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1,551
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(21.6
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%)
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Cash provided by operating activities^
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$
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1,495
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$
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5,135
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Cash provided (used) by investing activities^
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$
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(428
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)
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$
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79
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Cash used by financing activities^
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$
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(927
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$
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(4,721
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)
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*
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For the RGU growth rates, the Netherlands is excluded from our 2016
figures; Revenue and OCF YoY growth rates are on a rebased basis.
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^
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Cash flow from continuing operations
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Subscriber Growth
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Three months ended
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Year ended
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December 31,
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December 31,
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2017
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2016
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2017
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2016
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Organic RGU net additions (losses) by product
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(excluding NL13)
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(excluding NL13)
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Video
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(54,500
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(7,500
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)
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(116,500
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)
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(164,000
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)
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Data
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116,000
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174,800
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503,400
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634,500
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Voice
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87,700
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105,300
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372,900
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503,400
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Total
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149,200
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272,600
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759,800
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973,900
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Organic RGU net additions (losses) by market
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U.K./Ireland
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7,700
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28,200
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336,200
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251,600
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Belgium
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(11,800
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700
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(53,700
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)
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28,300
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Germany
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55,100
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98,000
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229,400
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320,300
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Switzerland/Austria
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(19,100
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25,000
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(18,200
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)
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(400
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Central and Eastern Europe
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117,300
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120,700
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266,100
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374,100
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Total
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149,200
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272,600
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759,800
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973,900
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Organic Mobile SIM additions (losses) by product
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Postpaid
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118,700
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57,700
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384,000
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343,200
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Prepaid
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(23,400
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(69,200
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(216,900
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(245,200
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)
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Total
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95,300
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(11,500
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167,100
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98,000
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Organic Mobile SIM additions (losses) by market
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U.K./Ireland
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32,800
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(1,800
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)
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12,500
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16,200
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Belgium
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50,800
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(28,100
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94,600
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(6,900
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)
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Other
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11,700
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18,400
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60,000
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88,700
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Total
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95,300
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(11,500
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167,100
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98,000
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-
Cable Product Performance: During Q4 we
added 149,000 RGUs, a 45% decline over the prior-year period due to
lower gross additions across all European operations. On the fixed
product side, all three products showed year-over-year declines
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U.K./Ireland: Q4 RGU additions of 8,000
were lower than the prior year, as improved performance in new build
areas was offset by reduced growth in our existing footprint,
reflecting our structured approach to promotions. As a result,
broadband net additions of 25,000, were down year-over-year, while our
RGU performance improved across video and fixed-telephony
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Belgium: RGU attrition of 12,000 in Q4,
consistent with prior 2017 quarters, was primarily due to intensified
competition. However, our converged quad-play package additions
continued to grow, as we gained nearly 39,000 new "WIGO" subscribers
during Q4
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Germany: Reported 55,000 RGU additions in
Q4, which was below our Q4 2016 result. The prior-year period was
boosted by a successful "high-speed weeks" promotion, which offered
higher discounts on our core double and triple-play bundles.
Additionally, video attrition of 37,000 RGUs was driven by a large MDU
contract disconnect
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Switzerland/Austria: Lost 19,000 RGUs in
Q4, compared to a Q4 2016 gain of 25,000, which was largely due to the
launch of Connect&Play. The performance was largely due to losses of
29,000 video and 2,000 broadband subscribers, partially offset by
12,000 telephony RGU additions
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CEE: Delivered 117,000 RGU additions in
Q4, largely in-line with the prior-year period
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Next-Generation Video Penetration (including
Horizon TV, Horizon-Lite, TiVo, Virgin TV V6 and Yelo TV):
Added 210,000 subscribers to our advanced platforms in Q4 and reached
7.7 million or 43% of our total cable video base (excluding DTH) by
the end of the year
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WiFi Connect Box: Deployments of our
latest WiFi Connect box increased by more than 1 million in Q4, ending
the quarter with an installed base of over 6.4 million or 43% of
broadband subscribers across Europe
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Mobile: Added 95,000 mobile subscribers
in Q4, as 119,000 postpaid additions were partially offset by
continued attrition in our low-ARPU prepaid base
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Belgium added 51,000 new mobile subscribers during Q4, a strong
year-over-year improvement. This was driven by the continued
success of our converged "WIGO" offers and a competitive BASE14
postpaid proposition
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UK/Ireland added 63,000 postpaid mobile subscribers in Q4, 10x
higher than the prior-year result, driven by exceptionally strong
take-up of innovative 36-month Freestyle contracts. Total mobile
net additions increased by 33,000 in the quarter as postpaid
growth was partially offset by low-ARPU prepaid losses. The
penetration of 4G at Virgin Media increased to 55% at the end of Q4
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Switzerland/Austria gained 18,000 mobile subscribers in Q4, as our
Swiss offerings (including free EU roaming since June) continue to
gain traction. Also announced a new MVNO contract with Swisscom
with subscriber transition by early 2019
Revenue Highlights
The following table presents (i) revenue of each of our consolidated
reportable segments for the comparative periods and (ii) the percentage
change from period to period on both a reported and rebased basis:
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Three months ended
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Increase/(decrease)
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Year ended
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Increase/(decrease)
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December 31,
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December 31,
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Revenue
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2017
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2016
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%
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Rebased %
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2017
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2016
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%
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Rebased %
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in millions, except % amounts
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U.K./Ireland
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$
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1,711.1
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$
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1,523.2
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12.3
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4.4
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$
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6,398.7
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$
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6,508.8
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(1.7
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)
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2.1
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Belgium
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758.8
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680.2
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11.6
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0.9
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2,865.3
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2,691.1
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6.5
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1.2
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Germany
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716.8
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639.7
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12.1
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2.5
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2,705.4
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2,539.7
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6.5
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4.3
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Switzerland/Austria
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451.2
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435.9
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3.5
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0.4
|
|
|
|
1,766.0
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1,755.6
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0.6
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(0.3
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)
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Central and Eastern Europe
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317.1
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|
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273.8
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|
|
|
15.8
|
|
|
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4.6
|
|
|
|
1,183.6
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|
|
|
1,088.4
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|
|
|
8.7
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|
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5.2
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The Netherlands
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|
-
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660.4
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(100.0
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)
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N.M.
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|
|
-
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2,690.8
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(100.0
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)
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N.M.
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Central and Corporate
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38.7
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20.7
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87.0
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|
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0.5
|
|
|
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144.8
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73.2
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|
|
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97.8
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|
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2.1
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Intersegment eliminations
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(6.0
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)
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(17.3
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)
|
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|
N.M.
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|
|
N.M.
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|
|
(14.9
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)
|
|
|
(62.6
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)
|
|
|
N.M.
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|
|
N.M.
|
Total
|
|
|
$
|
3,987.7
|
|
|
|
$
|
4,216.6
|
|
|
|
(5.4
|
)
|
|
|
2.9
|
|
|
|
$
|
15,048.9
|
|
|
|
$
|
17,285.0
|
|
|
|
(12.9
|
)
|
|
|
2.3
|
|
N.M. - Not Meaningful
-
Reported revenue for the three months and full-year ended December 31,
2017, declined 5% and 13% year-over-year in each period, respectively
-
These Q4 results were primarily driven by the net impact of (i)
the deconsolidation of our operations in the Netherlands in
connection with the completion of our joint venture with Vodafone
Group plc (the "VodafoneZiggo JV"), (ii) positive foreign exchange
("FX") movements, mainly related to the strengthening of the Euro
and British Pound against the U.S. dollar, and (iii) organic
revenue growth
-
These full-year 2017 results were primarily driven by the net
impact of (i) the deconsolidation of our operations in the
Netherlands in connection with the VodafoneZiggo JV transaction,
(ii) negative foreign exchange ("FX") movements, mainly related to
the strengthening of the U.S. dollar against the British Pound,
and (iii) organic revenue growth
-
Rebased revenue grew 3% in Q4 and 2% for the full-year 2017 period.
These results included:
-
A reduction in cable subscription revenue of $12 million for the
full-year 2017 period resulting from a change in U.K. regulations
governing payment handling fees that we charge our customers
-
The favorable $7 million YTD impact due to the release of
unclaimed customer credits in Switzerland
-
A reduction in channel carriage fee revenue primarily related to
the June 2017 discontinuation of our analog video service in
Germany, which resulted in revenue decreases of $7 million in Q4
and $18 million in the full-year 2017 period
-
The favorable $6 million impact in the full-year 2017 period for
the expected recovery of VAT paid in prior periods with respect to
copyright fees in Belgium, which benefited revenue in H1 2017
-
Our B2B business (including SOHO and non-subscription revenue)
reported rebased revenue growth of 13% and 12% in the Q4 and full-year
2017 periods, respectively
-
Our residential mobile business (including interconnect and handset
sales) posted a 6% rebased revenue gain and 2% rebased contraction in
the Q4 and full-year 2017 periods, respectively
Q4 2017 Rebased Revenue Growth - Segment Highlights
-
U.K./Ireland: Rebased revenue growth of
4% in Q4 reflects (i)17% rebased growth in residential mobile revenue
(including interconnect and mobile handset revenue), reflecting higher
revenue from mobile handset sales that was partially offset by lower
mobile subscription revenue (ii) 2% rebased growth in our residential
cable business, and (iii) 6% rebased revenue growth in our B2B
business, largely driven by continued growth in the SOHO segment
-
Belgium: Rebased revenue growth of 1% in
Q4 was mainly driven by the net effect of (i) growth in our B2B
segment, driven by increased MVNO revenue on Telenet's mobile network
and (ii) lower mobile and cable revenue
-
Germany: Q4 rebased revenue growth of
2.5% reflects the net effect of (i) higher residential cable
subscription revenue as a result of increases in subscribers and
higher ARPU per RGU, (ii) B2B revenue growth, largely driven by an
increase in B2B non-subscription revenue, (iii) lower analog video
channel carriage revenue of $7 million and (iv) lower fixed-line
telephony interconnect revenue.
-
Switzerland/Austria: Rebased revenue
growth in Q4 was relatively flat, primarily related to the net effect
of (i) lower ARPU per RGU, mainly due to competitive pressures, (ii)
higher revenue from the distribution of MySports channels and (iii)
increased mobile revenue
-
CEE: Rebased revenue growth of 5% in Q4,
driven by the net effect of (i) growth in our B2B business, (ii)
higher cable revenue supported by solid RGU additions throughout 2017,
and (iii) a small decline in ARPU per RGU
Operating Income
-
Operating income was $496 million and $683 million in Q4 2017 and Q4
2016, respectively, representing a decrease of 27% year over year. For
the year ended December 31, 2017, operating income was $1,948 million,
reflecting a decline of 22% as compared to $2,482 million in YTD 2016
-
The decreases in operating income for both periods primarily resulted
from the net effect of lower OCF, as further described below, and for
the twelve-month comparison, a decline in depreciation and
amortization. The declines in OCF and depreciation and amortization
were primarily attributable to the fact that our Netherlands segment
is not included in our 2017 consolidated results
Operating Cash Flow Highlights
The following table presents (i) OCF of each of our consolidated
reportable segments for the comparative periods, and (ii) the percentage
change from period to period on both a reported and rebased basis:
|
|
|
Three months ended
|
|
|
Increase/(decrease)
|
|
|
Year ended
|
|
|
Increase/(decrease)
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
OCF
|
|
|
2017
|
|
|
2016
|
|
|
%
|
|
|
Rebased %
|
|
|
2017
|
|
|
2016
|
|
|
%
|
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
|
$
|
815.0
|
|
|
|
$
|
724.8
|
|
|
|
12.4
|
|
|
|
5.2
|
|
|
|
$
|
2,894.5
|
|
|
|
$
|
2,930.9
|
|
|
|
(1.2
|
)
|
|
|
3.6
|
|
Belgium
|
|
|
327.3
|
|
|
|
281.2
|
|
|
|
16.4
|
|
|
|
4.9
|
|
|
|
1,299.7
|
|
|
|
1,173.4
|
|
|
|
10.8
|
|
|
|
6.1
|
|
Germany
|
|
|
460.1
|
|
|
|
398.7
|
|
|
|
15.4
|
|
|
|
5.6
|
|
|
|
1,700.3
|
|
|
|
1,586.4
|
|
|
|
7.2
|
|
|
|
4.9
|
|
Switzerland/Austria
|
|
|
260.0
|
|
|
|
274.2
|
|
|
|
(5.2
|
)
|
|
|
(8.0
|
)
|
|
|
1,054.3
|
|
|
|
1,069.3
|
|
|
|
(1.4
|
)
|
|
|
(2.3
|
)
|
Central and Eastern Europe
|
|
|
144.7
|
|
|
|
125.6
|
|
|
|
15.2
|
|
|
|
3.4
|
|
|
|
516.2
|
|
|
|
471.5
|
|
|
|
9.5
|
|
|
|
5.4
|
|
The Netherlands
|
|
|
-
|
|
|
|
365.2
|
|
|
|
(100.0
|
)
|
|
|
N.M.
|
|
|
-
|
|
|
|
1,472.7
|
|
|
|
(100.0
|
)
|
|
|
N.M.
|
Central and Corporate
|
|
|
(95.2
|
)
|
|
|
(134.2
|
)
|
|
|
(29.1
|
)
|
|
|
12.3
|
|
|
|
(379.4
|
)
|
|
|
(540.5
|
)
|
|
|
(29.8
|
)
|
|
|
11.4
|
|
Total
|
|
|
$
|
1,911.9
|
|
|
|
$
|
2,035.5
|
|
|
|
(6.1
|
)
|
|
|
4.3
|
|
|
|
$
|
7,085.6
|
|
|
|
$
|
8,163.7
|
|
|
|
(13.2
|
)
|
|
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OCF Margin
|
|
|
47.9
|
%
|
|
|
48.3
|
%
|
|
|
|
|
|
|
|
|
47.1
|
%
|
|
|
47.2
|
%
|
|
|
|
|
|
|
N.M. - Not Meaningful
-
Reported OCF for the three months and year ended December 31, 2017,
declined 6% and 13% year-over-year, respectively
-
These results were primarily driven by the net impact of (i) the
deconsolidation of our operations in the Netherlands, (ii) organic
OCF growth and (iii) the aforementioned impact of FX movements
-
Rebased OCF growth of 4% and 4.5% in Q4 and full-year 2017,
respectively, included:
-
The net unfavorable impact on our revenue of certain items, as
discussed in the "Revenue Highlights" section above
-
An unfavorable $11 million (Q4) and $34 million (full year)
network tax increase following an April 1, 2017 increase in the
rateable value of our existing U.K. and Irish networks
-
A favorable $10 million (Q4) and $42 million (full year) benefit
associated with a telecom operator's agreement to compensate
Virgin Media for prior-period contractual breaches related to
network charges
-
A favorable $13 million benefit in both the Q4 and full-year
period due to our decision to issue Liberty Global shares to
satisfy a portion of our 2017 annual incentive compensation
-
A $6 million headwind from the settlement of an operational
contingency in the U.K. during Q1 2016
-
As compared to the prior-year periods, our Q4 and full-year 2017 OCF
margins were down 30 and 10 basis points to 47.9% and 47.1%,
respectively. Our OCF margins during the 2017 periods were negatively
impacted by the deconsolidation of the Netherlands
Q4 2017 Rebased Operating Cash Flow Growth -
Segment Highlights
-
U.K./Ireland: Rebased OCF growth of 5%
reflects the net effect of (i) revenue growth, (ii) higher handset and
programming costs, (iii) increased network taxes, (iv) the
aforementioned compensation for prior-period contractual breaches
related to network charges and (v) lower marketing spend
-
Belgium: Rebased OCF growth of 5% in Q4,
largely driven by the net effect of (i) lower MVNO costs (migrating
subscribers to our own mobile network), (ii) higher network related
costs and (iii) lower integration costs associated with the BASE
acquisition
-
Germany: Increased OCF by 6% in Q4 on a
rebased basis, primarily due to the net effect of (i) an increase in
revenue, (ii) lower SG&A costs, primarily due to lower spend for
marketing and advertising, (iii) higher direct costs, due to higher
programming and copyright cost and interconnect and access cost and
(iv) lower indirect costs, due to the net effect of higher outsourced
call center costs, lower bad debt expense and lower staff-related
costs. Growth was adversely impacted by the aforementioned loss of
analog carriage fees, which reduced OCF by approximately $7 million in
Q4
-
Switzerland/Austria: Rebased OCF declined
8% in Q4, primarily due to continuing competition and an increase in
the net expenses associated with the MySports Platform. These net
expenses are more heavily weighted to the first and fourth quarters of
the year
-
CEE: Rebased OCF grew by 3% in Q4,
largely driven by the aforementioned revenue growth, partially offset
by higher direct and staff-related costs
Net Earnings (Loss) Attributable to Liberty Global Shareholders
-
Net earnings (loss) attributable to Liberty Global shareholders
(including discontinued operations) were ($992 million) and $2,223
million for the three months ended December 31, 2017 and 2016,
respectively, and ($2,778 million) and $1,705 million for the twelve
months ended December 31, 2017 and 2016, respectively
Leverage and Liquidity
-
Total capital leases and principal amount of
third-party debt: $42.4 billion
-
Leverage ratios: Our adjusted gross and
net leverage ratios at December 31, 2017 were 5.1x and 4.9x,
respectively
-
Average debt tenor : Nearly 8
years, with ~88% not due until 2021 or beyond
-
Borrowing costs: Blended fully-swapped
borrowing cost of our third-party debt was 4.2%
-
Liquidity: $4.9 billion, including (i)
$1.7 billion of cash at December 31, 2017 and (ii) aggregate unused
borrowing capacity15 under our credit facilities of
$3.2 billion
Forward-Looking Statements and Disclaimer
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements with respect to our strategies, future growth
prospects and opportunities; expectations with respect to our OCF
growth, as well as OCF results in Switzerland, our Adjusted FCF and our
P&E additions, including P&E additions attributable to new build and
upgrades; expectations with respect to the development, enhancement and
deployment of our innovative and advanced products and services,
including WiFi Connect and V6 set-top boxes at Virgin Media;
expectations with respect to our new MVNO arrangement in Switzerland;
expectations regarding our share buyback program; the strength of our
balance sheet and tenor of our third-party debt; and other information
and statements that are not historical fact. These forward-looking
statements involve certain risks and uncertainties that could cause
actual results to differ materially from those expressed or implied by
these statements. These risks and uncertainties include events that are
outside of our control, such as the continued use by subscribers and
potential subscribers of our and our affiliates' services and their
willingness to upgrade to our more advanced offerings; our and our
affiliates' ability to meet challenges from competition, to manage rapid
technological change or to maintain or increase rates to subscribers or
to pass through increased costs to subscribers; the effects of changes
in laws or regulation; general economic factors; our and our affiliates'
ability to obtain regulatory approval and satisfy regulatory conditions
associated with acquisitions and dispositions; our and affiliates'
ability to successfully acquire and integrate new businesses and realize
anticipated efficiencies from acquired businesses; the availability of
attractive programming for our and our affiliates' video services and
the costs associated with such programming; our and our affiliates'
ability to achieve forecasted financial and operating targets; the
outcome of any pending or threatened litigation; the ability of our
operating companies and affiliates to access cash of their respective
subsidiaries; the impact of our operating companies' and affiliates'
future financial performance, or market conditions generally, on the
availability, terms and deployment of capital; fluctuations in currency
exchange and interest rates; the ability of suppliers and vendors
(including our third-party wireless network providers under our MVNO
arrangements) to timely deliver quality products, equipment, software,
services and access; our and our affiliates' ability to adequately
forecast and plan future network requirements including the costs and
benefits associated with network expansions; and other factors detailed
from time to time in our filings with the Securities and Exchange
Commission, including our most recently filed Form 10-K ("10-K"). These
forward-looking statements speak only as of the date of this release. We
expressly disclaim any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statement contained herein
to reflect any change in our expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based.
Nothing in this press release constitutes an offer of any securities for
sale.
Balance Sheets, Statements of Operations and Statements of Cash Flows
The consolidated balance sheets, statements of operations and statements
of cash flows of Liberty Global are in our 10-K.
Rebase Information
For purposes of calculating rebased growth rates on a comparable basis
for all businesses that we owned during 2017, we have adjusted our
historical revenue and OCF for the three months and year ended December
31, 2016 to (i) include the pre-acquisition revenue and OCF of certain
entities acquired during 2016 and 2017 in our rebased amounts for the
three months and year ended December 31, 2016 to the same extent that
the revenue and OCF of such entities are included in our results for the
three months and year ended December 31, 2017, (ii) exclude the revenue
and OCF of Ziggo Group Holding and a sports channel that were
contributed to the VodafoneZiggo JV at the end of December 31, 2016,
(iii) include revenue for the framework services agreement with the
VodafoneZiggo JV and certain associated operating and SG&A expenses that
had been allocated to our Netherlands segment during the 2016 periods in
our rebased amounts for the three months and year ended December 31,
2016 as if the framework services agreement had been in place at the
beginning of 2016, (iv) exclude the revenue and OCF of multi-channel
multi-point (microwave) distribution system subscribers in Ireland that
have disconnected since we announced the switch-off of this service
effective April 2016 for the year ended December 31, 2016 to the same
extent that the revenue and OCF of these subscribers is excluded from
our results for the year ended December 31, 2017 (v) exclude the revenue
and OCF of two small disposals made in Belgium during Q1 2017 to the
same extent that the revenue and OCF of these disposed businesses is
excluded from our results for the three months and year ended December
31, 2017 and (vi) reflect the translation of our rebased amounts for the
three months and year ended December 31, 2016 at the applicable average
foreign currency exchange rates that were used to translate our results
for the three months and year ended December 31, 2017. We have included
SFR and three small entities in whole or in part in the determination of
our rebased revenue and OCF for the three months ended December 31,
2016. We have included SFR, BASE and four small entities in whole or in
part in the determination of our rebased revenue and OCF for the year
ended December 31, 2016. We have reflected the revenue and OCF of the
acquired entities in our 2016 rebased amounts based on what we believe
to be the most reliable information that is currently available to us
(generally pre-acquisition financial statements), as adjusted for the
estimated effects of (a) any significant differences between U.S. GAAP
and local generally accepted accounting principles, (b) any significant
effects of acquisition accounting adjustments, (c) any significant
differences between our accounting policies and those of the acquired
entities and (d) other items we deem appropriate. We do not adjust
pre-acquisition periods to eliminate nonrecurring items or to give
retroactive effect to any changes in estimates that might be implemented
during post-acquisition periods. As we did not own or operate the
acquired businesses during the pre-acquisition periods, no assurance can
be given that we have identified all adjustments necessary to present
the revenue and OCF of these entities on a basis that is comparable to
the corresponding post-acquisition amounts that are included in our
historical results or that the pre-acquisition financial statements we
have relied upon do not contain undetected errors. The adjustments
reflected in our rebased amounts have not been prepared with a view
towards complying with Article 11 of Regulation S-X. In addition,
the rebased growth percentages are not necessarily indicative of the
revenue and OCF that would have occurred if these transactions had
occurred on the dates assumed for purposes of calculating our rebased
amounts or the revenue and OCF that will occur in the future. The
rebased growth percentages have been presented as a basis for assessing
growth rates on a comparable basis, and are not presented as a
measure of our pro forma financial performance.
The following table provides adjustments made to the 2016 amounts to
derive our rebased growth rates:
|
|
|
Revenue
|
|
|
OCF
|
|
|
|
Three months ended December 31,
|
|
|
Full year ended December 31,
|
|
|
Three months ended December 31,
|
|
|
Full year ended December 31,
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
|
in millions
|
Acquisitions
|
|
|
$
|
57.6
|
|
|
|
$
|
291.2
|
|
|
|
$
|
35.2
|
|
|
|
$
|
137.9
|
|
Contribution of Ziggo Group Holding to the VodafoneZiggo JV
and other dispositions (i)
|
|
|
(674.4
|
)
|
|
|
(2,741.6
|
)
|
|
|
(362.7
|
)
|
|
|
(1,478.4
|
)
|
Foreign Currency
|
|
|
275.0
|
|
|
|
(127.5
|
)
|
|
|
125.9
|
|
|
|
(45.6
|
)
|
Total decrease
|
|
|
$
|
(341.8
|
)
|
|
|
$
|
(2,577.9
|
)
|
|
|
$
|
(201.6
|
)
|
|
|
$
|
(1,386.1
|
)
|
______________________________
|
(i)
|
|
In connection with the December 31, 2016 closing of the
VodafoneZiggo JV transaction, we entered into a framework services
agreement that provides for the terms under which we provide
services to the VodafoneZiggo JV. These adjustments to revenue and
OCF are net of $34 million and $131 million of revenue for Q4 and
full-year 2016, respectively, that we assumed would have been earned
if the framework services agreement had been in place on January 1,
2016.
|
|
|
|
Summary of Debt, Capital Lease Obligations & Cash and Cash Equivalents
The following table(i) details the U.S. dollar equivalent
balances of the outstanding principal amount of our debt, capital lease
obligations and cash and cash equivalents at December 31, 2017:
|
|
|
|
|
Capital
|
|
Debt & Capital
|
|
Cash
|
|
|
|
|
|
Lease
|
|
Lease
|
|
and Cash
|
|
|
|
Debt(ii)
|
|
Obligations
|
|
Obligations
|
|
Equivalents
|
|
|
|
in millions
|
Liberty Global and unrestricted subsidiaries
|
|
|
$
|
2,404.1
|
|
|
$
|
67.2
|
|
|
$
|
2,471.3
|
|
|
$
|
1,557.6
|
Virgin Media(iii)
|
|
|
17,218.7
|
|
|
79.1
|
|
|
17,297.8
|
|
|
32.0
|
Unitymedia
|
|
|
8,776.4
|
|
|
722.4
|
|
|
9,498.8
|
|
|
2.8
|
UPC Holding
|
|
|
7,304.3
|
|
|
95.7
|
|
|
7,400.0
|
|
|
33.1
|
Telenet
|
|
|
5,314.1
|
|
|
456.1
|
|
|
5,770.2
|
|
|
46.9
|
Total
|
|
|
$
|
41,017.6
|
|
|
$
|
1,420.5
|
|
|
$
|
42,438.1
|
|
|
$
|
1,672.4
|
______________________________
|
(i)
|
|
Except as otherwise indicated, the amounts reported in the table
include the named entity and its subsidiaries.
|
(ii)
|
|
Debt amounts for UPC Holding and Telenet include notes issued by
special purpose entities that are consolidated by the respective
subsidiary.
|
(iii)
|
|
The Virgin Media borrowing group includes certain subsidiaries of
Virgin Media, but excludes the parent entity, Virgin Media Inc. The
cash and cash equivalents amount includes cash and cash equivalents
held by the Virgin Media borrowing group, but excludes cash and cash
equivalents held by Virgin Media Inc. This amount is included in the
amount shown for Liberty Global and unrestricted subsidiaries.
|
|
|
|
Property and Equipment Additions and Capital Expenditures
The tables below highlight the categories of the property and equipment
additions for the indicated periods and reconcile those additions to the
capital expenditures that are presented in the statement of cash flows
information in our 10-K.
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
in millions, except % amounts
|
Customer premises equipment
|
|
|
$
|
258.3
|
|
|
|
$
|
247.0
|
|
|
|
$
|
1,161.4
|
|
|
|
$
|
920.4
|
|
New Build & Upgrade
|
|
|
339.0
|
|
|
|
356.7
|
|
|
|
1,158.0
|
|
|
|
930.1
|
|
Capacity
|
|
|
190.9
|
|
|
|
233.2
|
|
|
|
625.9
|
|
|
|
637.0
|
|
Product & Enablers
|
|
|
305.4
|
|
|
|
238.5
|
|
|
|
875.8
|
|
|
|
674.2
|
|
Baseline
|
|
|
294.8
|
|
|
|
284.9
|
|
|
|
943.7
|
|
|
|
887.0
|
|
Property and equipment additions (excluding the Netherlands)
|
|
|
1,388.4
|
|
|
|
1,360.3
|
|
|
|
4,764.8
|
|
|
|
4,048.7
|
|
The Netherlands
|
|
|
-
|
|
|
|
168.7
|
|
|
|
-
|
|
|
|
589.9
|
|
Total property and equipment additions
|
|
|
1,388.4
|
|
|
|
1,529.0
|
|
|
|
4,764.8
|
|
|
|
4,638.6
|
|
Reconciliation of property and equipment additions to capital
expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
Excluding the Netherlands:
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets acquired under capital-related vendor financing arrangements(i)
|
|
|
(701.7
|
)
|
|
|
(571.8
|
)
|
|
|
(2,635.8
|
)
|
|
|
(1,818.9
|
)
|
Assets acquired under capital leases
|
|
|
(34.0
|
)
|
|
|
(31.2
|
)
|
|
|
(169.8
|
)
|
|
|
(104.2
|
)
|
Changes in current liabilities related to capital expenditures
|
|
|
(77.0
|
)
|
|
|
(310.2
|
)
|
|
|
(6.1
|
)
|
|
|
(341.3
|
)
|
The Netherlands
|
|
|
-
|
|
|
|
(64.4
|
)
|
|
|
-
|
|
|
|
(220.3
|
)
|
Total capital expenditures(ii)
|
|
|
$
|
575.7
|
|
|
|
$
|
551.4
|
|
|
|
$
|
1,953.1
|
|
|
|
$
|
2,153.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment additions as % of revenue (excluding the
Netherlands)
|
|
|
34.8
|
%
|
|
|
38.3
|
%
|
|
|
31.7
|
%
|
|
|
27.7
|
%
|
______________________________
|
(i)
|
|
Amounts exclude related VAT of $112 million and $84 million during
the three months ended December 31, 2017 and 2016, respectively, and
$420 million and $278 million during the year ended December 31,
2017 and 2016, respectively, that were also financed by our vendors
under these arrangements.
|
(ii)
|
|
The capital expenditures that we report in our consolidated
statements of cash flows do not include amounts that are financed
under vendor financing or capital lease arrangements. Instead, these
expenditures are reflected as non-cash additions to our property and
equipment when the underlying assets are delivered, and as
repayments of debt when the related principal is repaid.
|
|
|
|
ARPU per Cable Customer Relationship
The following table provides ARPU per cable customer relationship for
the indicated periods:
|
|
|
Three months ended December 31,
|
|
|
%
|
|
|
Rebased
|
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global (excluding the Netherlands)
|
|
|
$
|
43.41
|
|
|
|
$
|
39.97
|
|
|
|
8.6
|
%
|
|
|
0.9
|
%
|
U.K. & Ireland (Virgin Media)
|
|
|
£
|
50.29
|
|
|
|
£
|
50.37
|
|
|
|
(0.2
|
%)
|
|
|
(0.5
|
%)
|
Germany (Unitymedia)
|
|
|
€
|
25.35
|
|
|
|
€
|
24.64
|
|
|
2.9
|
%
|
|
|
2.9
|
%
|
Belgium (Telenet)
|
|
|
€
|
55.01
|
|
|
|
€
|
53.96
|
|
|
|
1.9
|
%
|
|
|
3.2
|
%
|
Other Europe (UPC Holding)
|
|
|
€
|
25.94
|
|
|
|
€
|
26.98
|
|
|
|
(3.9
|
%)
|
|
|
(1.2
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile ARPU
The following tables provide ARPU per mobile subscriber for the
indicated periods:
|
|
|
ARPU per Mobile Subscriber
|
|
|
|
Three months ended December 31,
|
|
|
%
|
|
|
Rebased
|
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
% Change
|
Liberty Global (excluding the Netherlands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Including interconnect revenue
|
|
|
$
|
19.03
|
|
|
|
$
|
18.04
|
|
|
|
5.5
|
%
|
|
|
(4.7
|
%)
|
Excluding interconnect revenue
|
|
|
$
|
15.25
|
|
|
|
$
|
14.77
|
|
|
|
3.2
|
%
|
|
|
(5.1
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Data - December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes Passed
|
|
|
Two-way Homes Passed
|
|
|
Cable Customer Relationships
|
|
|
Basic Video Subscribers(i)
|
|
|
Enhanced Video Subscribers
|
|
|
DTH Subscribers
|
|
|
Total Video
|
|
|
Internet Subscribers(ii)
|
|
|
Telephony Subscribers(iii)
|
|
|
Total RGUs
|
|
|
Total Mobile Subscribers(iv)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
|
13,979,000
|
|
|
|
13,967,200
|
|
|
|
5,432,600
|
|
|
|
-
|
|
|
|
3,827,200
|
|
|
|
-
|
|
|
|
3,827,200
|
|
|
|
5,104,300
|
|
|
|
4,440,100
|
|
|
|
13,371,600
|
|
|
|
3,002,800
|
Germany
|
|
|
12,981,300
|
|
|
|
12,900,400
|
|
|
|
7,160,200
|
|
|
|
4,687,200
|
|
|
|
1,653,600
|
|
|
|
-
|
|
|
|
6,340,800
|
|
|
|
3,476,600
|
|
|
|
3,251,000
|
|
|
|
13,068,400
|
|
|
|
320,400
|
Belgium
|
|
|
3,317,100
|
|
|
|
3,317,100
|
|
|
|
2,190,400
|
|
|
|
244,700
|
|
|
|
1,786,600
|
|
|
|
-
|
|
|
|
2,031,300
|
|
|
|
1,674,100
|
|
|
|
1,302,600
|
|
|
|
5,008,000
|
|
|
|
2,803,800
|
Switzerland(v)
|
|
|
2,281,600
|
|
|
|
2,281,600
|
|
|
|
1,236,800
|
|
|
|
520,600
|
|
|
|
679,900
|
|
|
|
-
|
|
|
|
1,200,500
|
|
|
|
749,300
|
|
|
|
537,700
|
|
|
|
2,487,500
|
|
|
|
114,800
|
Austria
|
|
|
1,410,800
|
|
|
|
1,410,800
|
|
|
|
654,100
|
|
|
|
93,200
|
|
|
|
367,500
|
|
|
|
-
|
|
|
|
460,700
|
|
|
|
515,600
|
|
|
|
457,600
|
|
|
|
1,433,900
|
|
|
|
64,100
|
Ireland
|
|
|
893,900
|
|
|
|
855,300
|
|
|
|
454,300
|
|
|
|
24,600
|
|
|
|
268,100
|
|
|
|
-
|
|
|
|
292,700
|
|
|
|
372,200
|
|
|
|
356,300
|
|
|
|
1,021,200
|
|
|
|
49,900
|
Poland
|
|
|
3,354,100
|
|
|
|
3,296,900
|
|
|
|
1,434,900
|
|
|
|
188,800
|
|
|
|
1,023,800
|
|
|
|
-
|
|
|
|
1,212,600
|
|
|
|
1,139,700
|
|
|
|
629,900
|
|
|
|
2,982,200
|
|
|
|
4,000
|
Romania
|
|
|
3,077,100
|
|
|
|
3,034,200
|
|
|
|
1,345,600
|
|
|
|
260,700
|
|
|
|
673,200
|
|
|
|
365,900
|
|
|
|
1,299,800
|
|
|
|
581,700
|
|
|
|
535,400
|
|
|
|
2,416,900
|
|
|
|
-
|
Hungary
|
|
|
1,789,400
|
|
|
|
1,772,000
|
|
|
|
1,110,900
|
|
|
|
92,200
|
|
|
|
590,900
|
|
|
|
265,900
|
|
|
|
949,000
|
|
|
|
675,300
|
|
|
|
638,700
|
|
|
|
2,263,000
|
|
|
|
88,400
|
Czech Republic
|
|
|
1,533,900
|
|
|
|
1,509,400
|
|
|
|
717,000
|
|
|
|
171,600
|
|
|
|
356,000
|
|
|
|
100,600
|
|
|
|
628,200
|
|
|
|
497,500
|
|
|
|
163,100
|
|
|
|
1,288,800
|
|
|
|
-
|
Slovakia
|
|
|
604,100
|
|
|
|
589,400
|
|
|
|
270,500
|
|
|
|
25,400
|
|
|
|
140,600
|
|
|
|
76,400
|
|
|
|
242,400
|
|
|
|
131,100
|
|
|
|
78,700
|
|
|
|
452,200
|
|
|
|
-
|
Total
|
|
|
45,222,300
|
|
|
|
44,934,300
|
|
|
|
22,007,300
|
|
|
|
6,309,000
|
|
|
|
11,367,400
|
|
|
|
808,800
|
|
|
|
18,485,200
|
|
|
|
14,917,400
|
|
|
|
12,391,100
|
|
|
|
45,793,700
|
|
|
|
6,448,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscriber Variance Table - December 31, 2017 vs September 30,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes Passed
|
|
|
Two-way Homes Passed
|
|
|
Cable Customer Relationships
|
|
|
Basic Video Subscribers(i)
|
|
|
Enhanced Video Subscribers
|
|
|
DTH Subscribers
|
|
|
Total Video
|
|
|
Internet Subscribers(ii)
|
|
|
Telephony Subscribers(iii)
|
|
|
Total RGUs
|
|
|
Total Mobile Subscribers(iv)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
|
180,400
|
|
|
|
180,400
|
|
|
|
14,400
|
|
|
|
-
|
|
|
|
4,900
|
|
|
|
-
|
|
|
|
4,900
|
|
|
|
24,200
|
|
|
|
(15,700
|
)
|
|
|
13,400
|
|
|
|
27,300
|
|
Germany
|
|
|
24,500
|
|
|
|
44,000
|
|
|
|
(16,100
|
)
|
|
|
(36,600
|
)
|
|
|
(300
|
)
|
|
|
-
|
|
|
|
(36,900
|
)
|
|
|
45,800
|
|
|
|
46,200
|
|
|
|
55,100
|
|
|
|
(13,200
|
)
|
Belgium
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
(11,400
|
)
|
|
|
(11,000
|
)
|
|
|
(4,600
|
)
|
|
|
-
|
|
|
|
(15,600
|
)
|
|
|
3,700
|
|
|
|
100
|
|
|
|
(11,800
|
)
|
|
|
(78,300
|
)
|
Switzerland(v)
|
|
|
13,000
|
|
|
|
13,000
|
|
|
|
(23,400
|
)
|
|
|
(21,900
|
)
|
|
|
100
|
|
|
|
-
|
|
|
|
(21,800
|
)
|
|
|
(5,500
|
)
|
|
|
4,800
|
|
|
|
(22,500
|
)
|
|
|
9,800
|
|
Austria
|
|
|
6,500
|
|
|
|
6,500
|
|
|
|
100
|
|
|
|
(2,000
|
)
|
|
|
(5,100
|
)
|
|
|
-
|
|
|
|
(7,100
|
)
|
|
|
3,100
|
|
|
|
7,400
|
|
|
|
3,400
|
|
|
|
8,400
|
|
Ireland
|
|
|
13,500
|
|
|
|
16,600
|
|
|
|
(1,300
|
)
|
|
|
(1,800
|
)
|
|
|
(2,800
|
)
|
|
|
-
|
|
|
|
(4,600
|
)
|
|
|
800
|
|
|
|
(1,900
|
)
|
|
|
(5,700
|
)
|
|
|
5,500
|
|
Poland
|
|
|
91,400
|
|
|
|
93,000
|
|
|
|
8,500
|
|
|
|
(3,500
|
)
|
|
|
7,300
|
|
|
|
-
|
|
|
|
3,800
|
|
|
|
16,700
|
|
|
|
3,400
|
|
|
|
23,900
|
|
|
|
(300
|
)
|
Romania
|
|
|
25,600
|
|
|
|
26,100
|
|
|
|
23,700
|
|
|
|
(3,100
|
)
|
|
|
9,800
|
|
|
|
10,800
|
|
|
|
17,500
|
|
|
|
13,000
|
|
|
|
15,800
|
|
|
|
46,300
|
|
|
|
-
|
|
Hungary
|
|
|
25,000
|
|
|
|
25,100
|
|
|
|
1,700
|
|
|
|
(8,400
|
)
|
|
|
13,900
|
|
|
|
(4,000
|
)
|
|
|
1,500
|
|
|
|
10,400
|
|
|
|
17,000
|
|
|
|
28,900
|
|
|
|
7,000
|
|
Czech Republic
|
|
|
18,000
|
|
|
|
26,700
|
|
|
|
1,100
|
|
|
|
6,000
|
|
|
|
300
|
|
|
|
(1,600
|
)
|
|
|
4,700
|
|
|
|
5,400
|
|
|
|
10,400
|
|
|
|
20,500
|
|
|
|
-
|
|
Slovakia
|
|
|
3,300
|
|
|
|
8,200
|
|
|
|
1,300
|
|
|
|
(300
|
)
|
|
|
2,000
|
|
|
|
600
|
|
|
|
2,300
|
|
|
|
2,800
|
|
|
|
1,900
|
|
|
|
7,000
|
|
|
|
-
|
|
Total
|
|
|
411,200
|
|
|
|
449,600
|
|
|
|
(1,400
|
)
|
|
|
(82,600
|
)
|
|
|
25,500
|
|
|
|
5,800
|
|
|
|
(51,300
|
)
|
|
|
120,400
|
|
|
|
89,400
|
|
|
|
158,500
|
|
|
|
(33,800
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscriber Variance Table - December 31, 2017 vs September 30,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes Passed
|
|
|
Two-way Homes Passed
|
|
|
Cable Customer Relationships
|
|
|
Basic Video Subscribers(i)
|
|
|
Enhanced Video Subscribers
|
|
|
DTH Subscribers
|
|
|
Total Video
|
|
|
Internet Subscribers(ii)
|
|
|
Telephony Subscribers(iii)
|
|
|
Total RGUs
|
|
|
Total Mobile Subscribers(iv)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Change Summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
|
180,400
|
|
|
|
180,400
|
|
|
|
14,400
|
|
|
|
-
|
|
|
|
4,900
|
|
|
|
-
|
|
|
|
4,900
|
|
|
|
24,200
|
|
|
|
(15,700
|
)
|
|
|
13,400
|
|
|
|
27,300
|
|
Germany
|
|
|
24,500
|
|
|
|
44,000
|
|
|
|
(16,100
|
)
|
|
|
(36,600
|
)
|
|
|
(300
|
)
|
|
|
-
|
|
|
|
(36,900
|
)
|
|
|
45,800
|
|
|
|
46,200
|
|
|
|
55,100
|
|
|
|
(13,200
|
)
|
Belgium
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
(11,400
|
)
|
|
|
(11,000
|
)
|
|
|
(4,600
|
)
|
|
|
-
|
|
|
|
(15,600
|
)
|
|
|
3,700
|
|
|
|
100
|
|
|
|
(11,800
|
)
|
|
|
50,800
|
|
Other Europe
|
|
|
192,500
|
|
|
|
202,700
|
|
|
|
6,400
|
|
|
|
(36,300
|
)
|
|
|
23,600
|
|
|
|
5,800
|
|
|
|
(6,900
|
)
|
|
|
42,300
|
|
|
|
57,100
|
|
|
|
92,500
|
|
|
|
30,400
|
|
Total Organic Change
|
|
|
407,400
|
|
|
|
437,100
|
|
|
|
(6,700
|
)
|
|
|
(83,900
|
)
|
|
|
23,600
|
|
|
|
5,800
|
|
|
|
(54,500
|
)
|
|
|
116,000
|
|
|
|
87,700
|
|
|
|
149,200
|
|
|
|
95,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2017 Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2017 Acquisitions - Romania
|
|
|
7,600
|
|
|
|
7,600
|
|
|
|
3,300
|
|
|
|
1,200
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,200
|
|
|
|
2,800
|
|
|
|
-
|
|
|
|
4,000
|
|
|
|
-
|
|
Q4 2017 Acquisition - Hungary
|
|
|
4,900
|
|
|
|
4,900
|
|
|
|
2,000
|
|
|
|
100
|
|
|
|
1,900
|
|
|
|
-
|
|
|
|
2,000
|
|
|
|
1,600
|
|
|
|
1,700
|
|
|
|
5,300
|
|
|
|
-
|
|
Q4 2017 Czech Republic Adjustments
|
|
|
(8,700
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Q4 2017 Acquisition - Belgium
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(129,100
|
)
|
Net Adjustments
|
|
|
3,800
|
|
|
|
12,500
|
|
|
|
5,300
|
|
|
|
1,300
|
|
|
|
1,900
|
|
|
|
-
|
|
|
|
3,200
|
|
|
|
4,400
|
|
|
|
1,700
|
|
|
|
9,300
|
|
|
|
(129,100
|
)
|
Net Adds (Reductions)
|
|
|
411,200
|
|
|
|
449,600
|
|
|
|
(1,400
|
)
|
|
|
(82,600
|
)
|
|
|
25,500
|
|
|
|
5,800
|
|
|
|
(51,300
|
)
|
|
|
120,400
|
|
|
|
89,400
|
|
|
|
158,500
|
|
|
|
(33,800
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes for Consolidated Operating Data and
Subscriber Variance Tables
(i)
|
|
We have approximately 192,700 "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.
|
(ii)
|
|
Our Internet Subscribers exclude 39,100 digital subscriber line
("DSL") subscribers within Austria that are not serviced over our
networks. Our Internet Subscribers do not include customers that
receive services from dial-up connections. In Switzerland, we offer
a 2 Mbps internet service to our Basic and Enhanced Video
Subscribers without an incremental recurring fee. Our Internet
Subscribers in Switzerland include 83,900 subscribers who have
requested and received this service.
|
(iii)
|
|
Our Telephony Subscribers exclude 30,000 subscribers within Austria
that are not serviced over our networks. In Switzerland, we offer a
basic phone service to our Basic and Enhanced Video Subscribers
without an incremental recurring fee. Our Telephony Subscribers in
Switzerland include 131,000 subscribers who have requested and
received this service.
|
(iv)
|
|
In a number of countries, our mobile subscribers receive mobile
services pursuant to prepaid contracts. As of December 31, 2017, our
mobile subscriber count included 515,200 and 514,300 prepaid mobile
subscribers in Belgium and the U.K., respectively.
|
(v)
|
|
Pursuant to service agreements, Switzerland offers enhanced video,
broadband internet and telephony services over networks owned by
third-party cable operators ("partner networks"). A partner network
RGU is only recognized if there is a direct billing relationship
with the customer. At December 31, 2017, Switzerland's partner
networks account for 138,100 Cable Customer Relationships, 315,800
RGUs, 113,700 Enhanced Video Subscribers, 116,000 Internet
Subscribers, and 86,100 Telephony Subscribers. Subscribers to
enhanced video services provided by partner networks receive basic
video services from the partner networks as opposed to our
operations. Due to the fact that we do not own these partner
networks, we do not report homes passed for Switzerland's partner
networks.
|
|
|
|
Additional General Notes to Tables:
Most of our broadband communications subsidiaries provide telephony,
broadband internet, data, video or other B2B services. Certain of our
B2B revenue is derived from SOHO subscribers that pay a premium price to
receive enhanced service levels along with video, internet or telephony
services that are the same or similar to the mass marketed products
offered to our residential subscribers. All mass marketed products
provided to SOHOs, whether or not accompanied by enhanced service levels
and/or premium prices, are included in the respective RGU and customer
counts of our broadband communications operations, with only those
services provided at premium prices considered to be "SOHO RGUs" or
"SOHO customers." To the extent our existing customers upgrade from a
residential product offering to a SOHO product offering, the number of
SOHO RGUs or SOHO customers will increase, but there is no impact to our
total RGU or customer counts. 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.
In Germany, homes passed reflect the footprint and two-way homes passed
reflect the technological capability of our network up to the street
cabinet, with drops from the street cabinet to the building generally
added, and in-home wiring generally upgraded, on an as needed or
success-based basis. In Belgium, Telenet leases a portion of its network
under a long-term capital lease arrangement. These tables include
operating statistics for Telenet's owned and leased networks.
While we take appropriate steps to ensure that subscriber statistics are
presented on a consistent and accurate basis at any given balance sheet
date, the variability from country to country in (i) the nature and
pricing of products and services, (ii) the distribution platform, (iii)
billing systems, (iv) bad debt collection experience and (v) other
factors add complexity to the subscriber counting process. We
periodically review our subscriber counting policies and underlying
systems to improve the accuracy and consistency of the data reported on
a prospective basis. Accordingly, we may from time to time make
appropriate adjustments to our subscriber statistics based on those
reviews.
Subscriber information for acquired entities 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.
Footnotes
1
|
|
The former LiLAC Group has been treated as a discontinued operation
and accordingly, the information in this release focuses only on our
continuing operations unless otherwise noted. For additional
information, see note 5 to the consolidated financial statements
included in our 10-K.
|
2
|
|
The indicated growth rates are rebased for acquisitions,
dispositions and FX. Please see Rebase Information for information
on rebased growth.
|
3
|
|
Please see Glossary for our Operating Cash Flow ("OCF") definition
and the required reconciliations.
|
4
|
|
Please see Glossary for information on Adjusted Free Cash Flow
("FCF") and the required reconciliations. For more detailed
information concerning our operating, investing and financing cash
flows, see the consolidated statements of cash flows included in our
10-K.
|
5
|
|
Total B2B includes subscription (SOHO) and non-subscription revenue.
B2B and SOHO growth rates include upsell from our residential
businesses.
|
6
|
|
Please see Glossary for the definition of RGUs. Organic figures
exclude RGUs of acquired entities at the date of acquisition and
other nonorganic adjustments, but include the impact of changes in
RGUs from the date of acquisition. All subscriber/RGU additions or
losses refer to net organic changes, unless otherwise noted.
|
7
|
|
For purposes of measuring our rebased OCF growth in 2018, our 2017
OCF will be rebased to reflect the adoption of the new revenue
recognition guidance that we will begin applying on January 1, 2018.
For additional information, see note 2 to the consolidated financial
statements included in our 10-K.
|
8
|
|
Based on FX rates as of February 13, 2018. New build and upgrade
spend excludes related CPE.
|
9
|
|
For purposes of calculating our average tenor, total third-party
debt excludes vendor financing.
|
10
|
|
Liquidity refers to cash and cash equivalents plus the maximum
undrawn commitments under subsidiary borrowing facilities, without
regard to covenant compliance calculations.
|
11
|
|
Includes subscription and non-subscription revenue. For additional
information regarding how we define our revenue categories, see note
18 to the consolidated financial statements included in our 10-K.
|
12
|
|
Our gross and net debt ratios are defined as total debt and net debt
to annualized OCF of the latest quarter. Net debt is defined as
total debt less cash and cash equivalents. For purposes of these
calculations, debt is measured using swapped foreign currency rates,
consistent with the covenant calculation requirements of our
subsidiary debt agreements, and excludes the loans backed or secured
by the shares we hold in ITV plc, Sumitomo Corporation and Lions
Gate Entertainment Corp.
|
13
|
|
As we no longer consolidate the Netherlands effective December 31,
2016, we have removed the Netherlands from certain information
presented for periods ended on or prior to December 31, 2016 to
enhance comparability.
|
14
|
|
On February 11, 2016, Telenet acquired Telenet Group BVBA ("BASE").
|
15
|
|
Our aggregate unused borrowing capacity of $3.2 billion represents
the maximum undrawn commitments under our subsidiaries' applicable
facilities without regard to covenant compliance calculations. Upon
completion of the relevant December 31, 2017 compliance reporting
requirements for our credit facilities, and assuming no further
changes from quarter-end borrowing levels, we anticipate that our
subsidiaries' borrowing capacity will remain at $3.2 billion.
|
|
|
|
Glossary
Adjusted Free Cash Flow: net cash provided
by our operating activities, plus (i) cash payments for third-party
costs directly associated with successful and unsuccessful acquisitions
and dispositions and (ii) expenses financed by an intermediary, less (a)
capital expenditures, as reported in our consolidated statements of cash
flows, (b) principal payments on amounts financed by vendors and
intermediaries and (c) principal payments on capital leases (exclusive
of the portions of the network lease in Belgium and the duct leases in
Germany that we assumed in connection with certain acquisitions), with
each item excluding any cash provided or used by our discontinued
operations. We believe that our presentation of Adjusted Free Cash Flow
provides useful information to our investors because this measure can be
used to gauge our ability to service debt and fund new investment
opportunities. Adjusted Free Cash Flow should not be understood to
represent our ability to fund discretionary amounts, as we have various
mandatory and contractual obligations, including debt repayments, which
are not deducted to arrive at this amount. Investors should view
Adjusted Free Cash Flow as a supplement to, and not a substitute for,
U.S. GAAP measures of liquidity included in our consolidated statements
of cash flows. We changed our definition of adjusted free cash flow
effective January 1, 2017 to remove the add-back of excess tax benefits
from share-based compensation. This change, which was given effect for
all periods presented, was made to accommodate our January 1, 2017
adoption of ASU 2016-09, Compensation - Stock Compensation,
Improvements to Employee Share-Based Payment Accounting, pursuant to
which we retrospectively revised the presentation of our consolidated
statements of cash flows to remove the operating cash outflows and
financing cash inflows associated with excess tax benefits from
share-based compensation. The following table provides the
reconciliation of our net cash provided by operating activities to
Adjusted Free Cash Flow for the indicated periods:
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities of our continuing
operations
|
|
|
$
|
1,494.6
|
|
|
|
$
|
1,653.7
|
|
|
|
$
|
5,134.6
|
|
|
|
$
|
5,471.7
|
|
Cash payments for direct acquisition and disposition costs
|
|
|
1.8
|
|
|
|
2.5
|
|
|
|
8.7
|
|
|
|
29.3
|
|
Expenses financed by an intermediary(i)
|
|
|
439.8
|
|
|
|
206.1
|
|
|
|
1,506.9
|
|
|
|
812.0
|
|
Capital expenditures
|
|
|
(575.7
|
)
|
|
|
(551.4
|
)
|
|
|
(1,953.1
|
)
|
|
|
(2,153.9
|
)
|
Principal payments on amounts financed by vendors and intermediaries
|
|
|
(496.5
|
)
|
|
|
(278.5
|
)
|
|
|
(3,059.3
|
)
|
|
|
(2,074.7
|
)
|
Principal payments on certain capital leases
|
|
|
(19.9
|
)
|
|
|
(23.3
|
)
|
|
|
(86.6
|
)
|
|
|
(105.5
|
)
|
Adjusted FCF
|
|
|
$
|
844.1
|
|
|
|
$
|
1,009.1
|
|
|
|
$
|
1,551.2
|
|
|
|
$
|
1,978.9
|
|
________________________________
(i)
|
|
For purposes of our consolidated statements of cash flows,
expenses financed by an intermediary are treated as hypothetical
operating cash outflows and hypothetical financing cash inflows when
the expenses are incurred. When we pay the financing intermediary,
we record financing cash outflows in our consolidated statements of
cash flows. For purposes of our Adjusted Free Cash Flow definition,
we add back the hypothetical operating cash outflow when these
financed expenses are incurred and deduct the financing cash
outflows when we pay the financing intermediary.
|
|
|
|
ARPU: Average Revenue Per Unit is the
average monthly subscription revenue (subscription revenue excludes
interconnect fees, channel carriage fees, mobile handset sales, late
fees and installation fees) per average customer relationship or mobile
subscriber, as applicable. ARPU per average customer relationship is
calculated by dividing the average monthly subscription revenue from
residential cable and SOHO services by the average number of customer
relationships for the period. ARPU per average mobile subscriber is
calculated by dividing residential mobile and SOHO revenue for the
indicated period by the average number of mobile subscribers for the
period. Unless otherwise indicated, ARPU per customer relationship or
mobile subscriber is not adjusted for currency impacts. ARPU per RGU
refers to average monthly revenue per average RGU, which is calculated
by dividing the average monthly subscription revenue from residential
and SOHO services for the indicated period, by the average number of the
applicable RGUs for the period. Unless otherwise noted, ARPU in this
release is considered to be ARPU per average customer relationship or
mobile subscriber, as applicable. Customer relationships, mobile
subscribers and RGUs of entities acquired during the period are
normalized. In addition, for purposes of calculating the percentage
change in ARPU on a rebased basis, we adjust the prior-year subscription
revenue, customer relationships, mobile subscribers and RGUs, as
applicable, to reflect acquisitions, dispositions and FX on a comparable
basis with the current year, consistent with how we calculate our
rebased growth for revenue and OCF, as further described in the body of
this release.
ARPU per Mobile Subscriber: Our ARPU per
mobile subscriber calculation that excludes interconnect revenue refers
to the average monthly mobile subscription revenue per average mobile
subscriber and is calculated by dividing the average monthly mobile
subscription revenue (excluding activation fees, handset sales and late
fees) for the indicated period, by the average of the opening and
closing balances of mobile subscribers in service for the period. Our
ARPU per mobile subscriber calculation that includes interconnect
revenue increases the numerator in the above-described calculation by
the amount of mobile interconnect revenue during the period.
Basic Video Subscriber: a home, residential
multiple dwelling unit or commercial unit that receives our video
service over our broadband network either via an analog video signal or
via a digital video signal without subscribing to any recurring monthly
service that requires the use of encryption-enabling technology.
Encryption-enabling technology includes smart cards, or other integrated
or virtual technologies that we use to provide our enhanced service
offerings. With the exception of RGUs that we count on an EBU basis, we
count RGUs on a unique premises basis. In other words, a subscriber with
multiple outlets in one premises is counted as one RGU and a subscriber
with two homes and a subscription to our video service at each home is
counted as two RGUs.
Blended fully-swapped debt borrowing cost:
the weighted average interest rate on our aggregate variable- and
fixed-rate indebtedness (excluding capital leases and including vendor
financing obligations), including the effects of derivative instruments,
original issue premiums or discounts and commitment fees, but excluding
the impact of financing costs.
Cable Customer Relationships: 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. To the extent that RGU counts include EBU
adjustments, we reflect corresponding adjustments to our Cable Customer
Relationship counts. For further information regarding our EBU
calculation, see Footnotes for Consolidated Operating Data and
Subscriber Variance Tables. Cable 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 Cable
Customer Relationships. We exclude mobile-only customers from Cable
Customer Relationships.
DTH Subscriber: a home, residential
multiple dwelling unit or commercial unit that receives our video
programming broadcast directly via a geosynchronous satellite.
EBU: Equivalent Billing Unit. Certain of
our residential and commercial RGUs are counted on an EBU basis,
including residential multiple dwelling units and commercial
establishments (with the exception of Germany and Belgium, where we do
not count any RGUs on an EBU basis). Our EBUs are generally calculated
by dividing the bulk price charged to accounts in an area by the most
prevalent price charged to non-bulk residential customers in that market
for the comparable tier of service. As such, we may experience variances
in our EBU counts solely as a result of changes in rates.
Enhanced Video Subscriber: a home,
residential multiple dwelling unit or commercial unit that receives our
video service over our broadband network or through a partner network
via a digital video signal while subscribing to any recurring monthly
service that requires the use of encryption-enabling technology.
Enhanced Video Subscribers that are not counted on an EBU basis are
counted on a unique premises basis. For example, a subscriber with one
or more set-top boxes that receives our video service in one premises is
generally counted as just one subscriber. An Enhanced Video Subscriber
is not counted as a Basic Video Subscriber. As we migrate customers from
basic to enhanced video services, we report a decrease in our Basic
Video Subscribers equal to the increase in our Enhanced Video
Subscribers.
Homes Passed: homes, residential multiple
dwelling units or commercial units that can be connected to our networks
without materially extending the distribution plant, except for DTH
homes. Certain of our Homes Passed counts are based on census data that
can change based on either revisions to the data or from new census
results. We do not count homes passed for DTH.
Internet Subscriber: 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 do not include customers that receive
services from dial-up connections.
Mobile Subscriber Count: the number of
active 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 would be counted as two mobile subscribers. Customers who do not
pay a recurring monthly fee are excluded from our mobile telephony
subscriber counts after periods of inactivity ranging from 30 to 90
days, based on industry standards within the respective country. In a
number of countries, our mobile subscribers receive mobile services
pursuant to prepaid contracts.
MVNO: Mobile Virtual Network Operator.
NPS: Net Promoter Score.
OCF: As used herein, OCF has the same
meaning as the term "Adjusted OIBDA" that is referenced in our Form
10-K. OCF is the primary measure used by our chief operating decision
maker to evaluate segment operating performance. OCF is also a key
factor that is used by our internal decision makers to (i) determine how
to allocate resources to segments and (ii) evaluate the effectiveness of
our management for purposes of annual and other incentive compensation
plans. As we use the term, OCF is defined as operating income before
depreciation and amortization, share-based compensation, provisions and
provision releases related to significant litigation and impairment,
restructuring and other operating items. Other operating items include
(a) gains and losses on the disposition of long-lived assets, (b)
third-party costs directly associated with successful and unsuccessful
acquisitions and dispositions, including legal, advisory and due
diligence fees, as applicable, and (c) other acquisition-related items,
such as gains and losses on the settlement of contingent
consideration. Our internal decision makers believe OCF is a meaningful
measure because it represents a transparent view of our recurring
operating performance that is unaffected by our capital structure and
allows management to (1) readily view operating trends, (2) perform
analytical comparisons and benchmarking between segments and (3)
identify strategies to improve operating performance in the different
countries in which we operate. We believe our OCF measure is useful to
investors because it is one of the bases for comparing our performance
with the performance of other companies in the same or similar
industries, although our measure may not be directly comparable to
similar measures used by other public companies. OCF should be viewed as
a measure of operating performance that is a supplement to, and not a
substitute for, operating income, net earnings or loss, cash flow from
operating activities and other U.S. GAAP measures of income or cash
flows. A reconciliation of our operating income to total OCF is
presented in the following table:
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
495.8
|
|
|
|
$
|
683.0
|
|
|
|
$
|
1,947.5
|
|
|
|
$
|
2,482.2
|
Share-based compensation expense
|
|
|
63.9
|
|
|
|
85.8
|
|
|
|
173.9
|
|
|
|
|
281.5
|
Depreciation and amortization
|
|
|
1,333.7
|
|
|
|
1,187.5
|
|
|
|
4,857.0
|
|
|
|
5,213.8
|
Impairment, restructuring and other operating items, net
|
|
|
18.5
|
|
|
|
|
79.2
|
|
|
|
107.2
|
|
|
|
186.2
|
Total OCF
|
|
|
$
|
1,911.9
|
|
|
|
$
|
2,035.5
|
|
|
|
$
|
7,085.6
|
|
|
|
$
|
8,163.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OCF margin: calculated by dividing OCF by
total revenue for the applicable period.
Property and equipment additions: includes
capital expenditures on an accrual basis, amounts financed under vendor
financing or capital lease arrangements and other non-cash additions.
RGU: A Revenue Generating Unit is
separately a Basic Video Subscriber, Enhanced Video Subscriber, DTH
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 U.K. market
subscribed to our enhanced video service, fixed-line telephony service
and broadband internet service, the customer would constitute three
RGUs. Total RGUs is the sum of Basic Video, Enhanced Video, DTH,
Internet and Telephony Subscribers. RGUs generally are counted on a
unique premises basis such that a given premises does not count as more
than one RGU for any given service. On the other hand, if an individual
receives one of our services in two premises (e.g., a primary home and a
vacation home), that individual will count as two RGUs for that service.
Each bundled cable, internet or telephony service is counted as a
separate RGU regardless of the nature of any bundling discount or
promotion. Non-paying subscribers are counted as subscribers during
their free promotional service period. Some of these subscribers may
choose to disconnect after their free service period. Services offered
without charge on a long-term basis (e.g., VIP subscribers or free
service to employees) generally are not counted as RGUs. We do not
include subscriptions to mobile services in our externally reported RGU
counts. In this regard, our December 31, 2017 RGU counts exclude our
separately reported postpaid and prepaid mobile subscribers.
SIM: Subscriber Identification Module.
SOHO: Small or Home Office Subscribers.
Telephony Subscriber: 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.
Two-way Homes Passed: homes passed by those
sections of our networks that are technologically capable of providing
two-way services, including video, internet and telephony services.
U.S. GAAP: United States Generally Accepted
Accounting Principles.
YoY: Year over year.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180214006416/en/
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