[February 15, 2017] |
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Liberty Global Reports Fiscal 2016 Results
Liberty Global plc ("Liberty Global") (NASDAQ: LBTYA, LBTYB, LBTYK, LILA
and LILAK) today announces financial and operating results for
the three months ("Q4") and fiscal year ("2016", "FY 2016" or "FY16")
ended December 31, 2016 for the Liberty Global Group1 and the
LiLAC Group1.
CEO Mike Fries stated, "As expected, we finished 2016 on a high note,
delivering rebased2 OCF3 growth in Europe of 7.5%
in the fourth quarter, excluding Ziggo. This performance was driven by
solid results across our European operations, including Virgin Media,
which delivered its best quarterly result in two years with 8% rebased
OCF growth. As promised, the key 2016 drivers of our Liberty Go plan are
kicking in - new build accelerated, B2B performed well and we kept
indirect operating expenses relatively flat. We expect the collective
impact of these drivers to continue ramping in 2017 and beyond,
underpinning accelerating growth over the medium term."
"On the subscriber front, we increased our 2016 RGU4
additions in Europe by 24% year-over-year and finished the year with
946,000 new subscribers. This improved performance can be credited to
the wide range of innovative new products that we've launched, including
our superior and ever-increasing broadband speeds, and our aggressive
network expansion program, which delivered over 1.4 million5
new gigabit-ready homes in 2016, including nearly half a million at
Virgin Media6 alone."
"Looking ahead, we will continue to enrich our bundled portfolios with
compelling 4G mobile offers and the addition of new content and
functionality, including the launch of Netflix across our footprint. We
will also expand the deployment of exciting new products like our 4K
cloud-based set-top and our WiFi Connect Box. Also, in late 2017, we
will start field trials of the unrivaled DOCSIS 3.1 technology, which
will provide gigabit speeds. On the guidance front, we expect to deliver
6% to 7% rebased OCF growth in Europe in 2017, stepping up to 7% to 8%7
annual growth over the medium-term with upside in 2018. Finally, we are
guiding towards Adjusted FCF16 of $1.5 billion8
from our European operations for 2017. This target includes the impact
of our capital plan to connect 1.4 million new homes in 20179,
which will help support our growth ambition over the coming years."
"On the M&A front, 2016 was a busy year. We completed our joint venture
with Vodafone in the Netherlands at year-end, which was a terrific
transaction for shareholders as total cash proceeds were nearly $3
billion10 over 2016 and we now own 50% of the most innovative
converged player in the market. In October, we announced the proposed
acquisition of Multimedia Polska, the third largest cable operator in
Poland, and expect that deal to boost our market-leading position when
it closes around year-end 2017. With regards to LiLAC, our Latin
American and Caribbean business, we closed the acquisition of Cable &
Wireless ('CWC') in May 2016. Despite some initial challenges, we
believe in the prospects for this business as we exploit our organic
growth potential and scale efficiencies across the region."
"The LiLAC Group delivered 6% rebased OCF growth in 2016, including 9%
growth from our legacy LiLAC operations, which exclude Cable & Wireless.
CWC11 delivered $226 million of OCF in Q4, just above the
high-end of our expectations for the quarter. From an organizational
perspective, we have changed CWC's operating model and recently placed a
number of key personnel in critical roles within the business, including
the confirmation of John Reid as CEO. As we head into 2017, we are laser
focused on improving the results at CWC and expect the LiLAC Group to
deliver approximately $1.5 billion12,8 of OCF for the full
year."
"We ended 2016 with a strong balance sheet, purposely geared at 4.8x13
net leverage in Europe and 3.6x in LatAm. Our debt remains hedged
against virtually all currency and interest rate exposures, and we don't
have any material maturities until 2021. With total Liberty Global plc
liquidity14 of $8 billion, we are in a great position heading
into 2017. During Q4, we were active with repurchases of both stocks.
For Liberty Global Group, we purchased over $450 million of equity at
attractive price levels in Q4, ending 2016 with total buybacks of $2
billion. And today, we are announcing a $1 billion increase to our
previously planned $2 billion buyback target for our Liberty Global
Group equity in 2017. For LiLAC, we initiated a $300 million repurchase
program in early November and LiLAC bought over $20 million of stock
before year end. The valuation of LiLAC looks very attractive, and we
are keen to continue repurchasing stock under this $300 million program."
European Highlights
-
2016 RGU additions of 946,000 were up 24% or 186,000 year-over-year on
an organic basis
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Increase driven by materially lower video churn and higher
broadband gains
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YoY improvement fueled by 304,000 U.K. adds and turnaround in the
Netherlands
-
Q4 organic customer relationship15 additions of 46,000
drove full-year increase of 25,000
-
Gained 402,000 organic mobile postpaid subscribers in 2016, driven by
the U.K. and Belgium
-
Q4 Operating income up 22% YoY, rebased OCF growth
excluding Ziggo of 7.5% in Q4
-
2016 Operating income increased 18%, while rebased OCF (excl.
Ziggo) grew 4.3%
-
Delivered $2.0 billion of Adjusted FCF in 2016, beating our guidance
of $1.8 billion16
-
Achieved our new build program17 target of >1.3 million
European homes during 2016
-
Added 1.4 million5 new homes in 2016, including 465,0006
in U.K./Ireland
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Liberty Global Group (Europe)
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Q4 2016
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YOY Growth/ (Decline)*
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FY 2016
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YOY Growth/ (Decline)*
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Subscribers
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Organic RGU Net Additions
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323,700
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(3.6
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%)
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946,100
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24.5
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%
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Financial (in USD millions, unless noted)
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Revenue
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$
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4,217
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2.2
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%
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$
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17,285
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2.5
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%
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Revenue (excluding Ziggo)
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3,556
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2.6
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%
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14,594
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3.3
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%
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OCF
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2,036
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5.0
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%
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8,164
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3.0
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%
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OCF (excluding Ziggo)
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1,670
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7.5
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%
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6,691
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4.3
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%
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Operating income
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683
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22.4
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%
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2,482
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18.1
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%
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Adjusted FCF
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1,009
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29.5
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%
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1,979
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(18.6
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%)
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Cash provided by operating activities
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1,653
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-
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5,467
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-
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Cash used by investing activities
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(642
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)
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-
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(3,475
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)
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-
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Cash used by financing activities
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(420
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)
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-
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(1,634
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-
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* Revenue and OCF YoY growth rates are rebased growth rates
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LiLAC Group Highlights
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Gained 94,000 organic RGUs in 2016, powered by strong broadband
additions
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Reported 47,400 mobile subscriber additions in 2016, with majority on
postpaid
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Stabilized CWC revenue YoY in Q4 2016
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Delivered solid 2016 rebased revenue growth of 6% in Chile
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Operating income for LiLAC Group increased 29% in 2016
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LiLAC Group delivered 6% rebased OCF growth in 2016, including 9%
growth excluding CWC
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CWC Q4 U.S. GAAP OCF reported $226 million, ahead of Q4 target
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Closed CWC deal in May of 2016; integration ongoing
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Expecting $150 million of synergies due to LiLAC/CWC integration
by 2020
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Liberty Latin America & Caribbean
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Q4 2016
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YOY Growth/ (Decline)*
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FY 2016
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YOY Growth/ (Decline)*
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Subscribers
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Organic RGU Net Additions
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(200
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)
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-
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94,000
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(14.4
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%)
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Financial (in USD millions, unless noted)
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Revenue
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$
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923
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1.8
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%
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$
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2,724
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1.2
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%
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OCF
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377
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7.3
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%
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1,084
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5.9
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%
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Operating income
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141
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123.1
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%
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|
|
319
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28.6
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%
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Adjusted FCF
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116
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144.3
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%
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62
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(29.3
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%)
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Cash provided by operating activities
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241
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-
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468
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-
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Cash used by investing activities
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(133
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)
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-
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(441
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)
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-
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Cash provided (used) by financing activities
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(23
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)
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-
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247
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-
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* Revenue and OCF YoY growth rates are rebased growth rates
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Subscriber Growth - Liberty Global Group (Europe)
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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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2016
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2015
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2016
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2015
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Organic RGU net additions (losses) by product
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Video
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(24,400
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)
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(59,100
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)
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(276,900
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)
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(400,300
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)
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Data
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230,600
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207,600
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721,600
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645,600
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Voice
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117,500
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187,300
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501,400
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514,800
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Total Liberty Global Group
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323,700
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335,800
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946,100
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760,100
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Organic RGU net additions (losses) by market
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U.K./Ireland
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28,200
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116,400
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251,600
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202,500
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The Netherlands
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51,100
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(51,900
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)
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(27,800
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)
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(203,200
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)
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Germany
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98,000
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93,800
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320,300
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316,400
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Belgium
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700
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25,800
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28,300
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80,200
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Switzerland/Austria
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25,000
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(13,100
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)
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(400
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)
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15,600
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Central and Eastern Europe
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120,700
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164,800
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374,100
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348,600
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Total Liberty Global Group
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323,700
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335,800
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946,100
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760,100
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Organic Mobile SIM additions (losses) by product
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Postpaid
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72,800
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106,000
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402,100
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433,900
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Prepaid
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(69,200
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)
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(52,600
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)
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(245,200
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)
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(187,800
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)
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Total Liberty Global Group
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|
3,600
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53,400
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156,900
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246,100
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Organic Mobile SIM additions (losses) by market
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U.K./Ireland
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(1,800
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)
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(4,400
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)
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16,200
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(29,000
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)
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Belgium
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(28,100
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)
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24,000
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(6,900
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)
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106,900
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Other
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33,500
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33,800
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147,600
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168,200
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Total Liberty Global Group
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|
|
3,600
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53,400
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156,900
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246,100
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-
Cable Product Additions: for the
full-year 2016, our 31% reduction in video attrition (123,000 RGUs
less) and higher broadband gains (76,000 RGUs more) boosted our
organic RGU performance in Europe by 24% year-over-year to 946,000
additions
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Supported by investments in our next-generation video products and
new build program, the improved video RGU performance in 2016 was
driven by the Netherlands (88,000), Switzerland (43,000) and the
U.K. (35,000)
-
Our superior broadband speeds helped elevate the total broadband
RGU additions across our existing and new footprint, and we
recorded year-over-year increases in the U.K. (64,000), the
Netherlands (52,000) and Central and Eastern European ("CEE")
(21,000)
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Next-Generation TV platforms18
(includes Horizon TV, Horizon-Lite, TiVo and Yelo TV): organically
added 313,000 and 1.2 million subscribers in Q4 and 2016,
respectively. Following the deconsolidation of Ziggo on December 31,
2016, we ended the year with 6.7 million next-generation subscribers,
representing 38% of our total video base, excluding DTH, in Europe
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In Q4 2016, we launched our latest innovation, the new 4K enabled V6
set-top box in the U.K. and completed the roll-out of Horizon TV
across our European operations with the launch of Horizon TV in
Austria and Horizon-Lite in Romania
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U.K./Ireland: we posted a 39% increase in
organic RGU additions to 304,000 in the U.K. in 2016, delivering our
best annual result since 2009, helped by our network extension
program. Subscriber additions in Q4 in the U.K. were impacted by
increased churn related to our second price increase in 2016, while
sales remained strong throughout the quarter. In Ireland, intensified
competition increased RGU attrition by 36,000 in 2016
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Netherlands: with 51,000 RGU additions in
Q4, Ziggo delivered its fourth consecutive quarterly improvement. This
turnaround was driven by our product investments (like Ziggo Sport,
Connect Box and Replay TV) and customer-focused initiatives, supported
by effective sales campaigns and strong upsell results
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Germany: we posted 320,000 RGU additions
in 2016, including 98,000 in Q4, with better combined voice and
broadband gains compared to prior-year periods, in part due to the
success of our "Highspeed Weeks" promotion in the second half of 2016,
but offset by modestly higher video attrition following our 2016 video
price increase, which took place in Q1 2016
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Belgium: RGU additions of 28,000 in 2016
were lower YoY as a result of the intense competitive environment. The
"WIGO" all-in-one converged offering had 151,000 subscribers by the
end of year, following the introduction of this cutting-edge bundle in
June 2016
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Switzerland/Austria: delivered its fourth
consecutive quarter of improved RGU performance with 16,000 RGU
additions in Switzerland in Q4. This represents the region's best
quarterly result since Q1 2014, boosted by the success of our new
Swiss "Connect" and "Connect & Play" portfolios
-
CEE: delivered a 7% improvement in RGU
gains in 2016, mainly related to our new build program, and includes
60,000 video additions across the region for 2016. Our Q4 result was
lower YoY due to lower DTH gains (19,000), mainly related to Romania,
and softer telephony additions
-
Mobile19: added 157,000 mobile
subscribers on an organic basis in 2016; 402,000 postpaid mobile
subscribers added, including 73,000 in Q4, partially offset by 245,000
prepaid subscriber losses
-
Launched 4G services in the U.K. in November and renewed our MVNO
agreement with BT for five years with attractive terms, which
enables a stable transition to full-MVNO
-
U.K./Ireland: 2016 postpaid adds of 110,000 in the U.K. and 10,000
in Ireland were offset by the 104,000 prepaid losses in the U.K.
in-line with our strategic focus on growing postpaid
-
Belgium: solid postpaid adds of 135,000 in 2016 (Q4: 33,000),
supported by "WIGO", were more than offset by BASE-related prepaid
churn of 142,000, mainly in non-Flanders areas
-
Other: Lower 2016 mobile additions YoY, driven by a small decline
of the subscriber base in Germany (54,000 additions in 2015 versus
2,000 attrition in 2016), only partially offset by improvements in
Switzerland (23,000 more additions)
Revenue Highlights - Liberty Global Group (Europe)
The following table presents (i) revenue of each of our reportable
segments for the comparative periods, and (ii) the percentage change
from period to period on a reported and rebased basis:
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Three months ended
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Increase/(decrease)
|
|
|
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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|
2016
|
|
|
2015
|
|
|
%
|
|
|
Rebased %
|
|
|
2016
|
|
|
2015
|
|
|
%
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|
|
Rebased %
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|
|
|
in millions, except % amounts
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European Division:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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U.K./Ireland
|
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|
$
|
1,523.2
|
|
|
|
$
|
1,804.4
|
|
|
|
(15.6
|
)
|
|
|
0.8
|
|
|
|
$
|
6,508.8
|
|
|
|
$
|
7,058.7
|
|
|
|
(7.8
|
)
|
|
|
2.6
|
|
Belgium
|
|
|
680.2
|
|
|
|
505.5
|
|
|
|
34.6
|
|
|
|
2.5
|
|
|
|
2,691.1
|
|
|
|
2,021.0
|
|
|
|
33.2
|
|
|
|
2.9
|
|
The Netherlands
|
|
|
660.4
|
|
|
|
672.6
|
|
|
|
(1.8
|
)
|
|
|
(0.3
|
)
|
|
|
2,690.8
|
|
|
|
2,745.3
|
|
|
|
(2.0
|
)
|
|
|
(1.6
|
)
|
Germany
|
|
|
639.7
|
|
|
|
607.1
|
|
|
|
5.4
|
|
|
|
7.0
|
|
|
|
2,539.7
|
|
|
|
2,399.5
|
|
|
|
5.8
|
|
|
|
6.2
|
|
Switzerland/Austria
|
|
|
435.9
|
|
|
|
432.2
|
|
|
|
0.9
|
|
|
|
1.5
|
|
|
|
1,755.6
|
|
|
|
1,758.2
|
|
|
|
(0.1
|
)
|
|
|
1.6
|
|
Total Western Europe
|
|
|
3,939.4
|
|
|
|
4,021.8
|
|
|
|
(2.0
|
)
|
|
|
1.9
|
|
|
|
16,186.0
|
|
|
|
15,982.7
|
|
|
|
1.3
|
|
|
|
2.4
|
|
Central and Eastern Europe
|
|
|
273.8
|
|
|
|
265.0
|
|
|
|
3.3
|
|
|
|
5.6
|
|
|
|
1,088.4
|
|
|
|
1,066.6
|
|
|
|
2.0
|
|
|
|
3.9
|
|
Central and other
|
|
|
(2.8
|
)
|
|
|
(1.7
|
)
|
|
|
N.M.
|
|
|
*
|
|
|
(8.0
|
)
|
|
|
(5.4
|
)
|
|
|
(48.1
|
)
|
|
|
*
|
Total European Division
|
|
|
4,210.4
|
|
|
|
4,285.1
|
|
|
|
(1.7
|
)
|
|
|
2.1
|
|
|
|
17,266.4
|
|
|
|
17,043.9
|
|
|
|
1.3
|
|
|
|
2.5
|
|
Corporate and other
|
|
|
18.9
|
|
|
|
8.4
|
|
|
|
N.M.
|
|
|
*
|
|
|
66.7
|
|
|
|
42.3
|
|
|
|
57.7
|
|
|
|
*
|
Intersegment eliminations
|
|
|
(12.7
|
)
|
|
|
(3.6
|
)
|
|
|
N.M.
|
|
|
*
|
|
|
(48.1
|
)
|
|
|
(23.5
|
)
|
|
|
N.M.
|
|
|
*
|
Total Liberty Global Group
|
|
|
$
|
4,216.6
|
|
|
|
$
|
4,289.9
|
|
|
|
(1.7
|
)
|
|
|
2.2
|
|
|
|
$
|
17,285.0
|
|
|
|
$
|
17,062.7
|
|
|
|
1.3
|
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liberty Global Group excluding the Netherlands^
|
|
|
|
|
|
(1.7
|
)
|
|
|
2.6
|
|
|
|
|
|
|
|
|
|
1.9
|
|
|
|
3.3
|
|
* - Omitted; N.M. - Not Meaningful
^ - We provide a rebased revenue growth rate for the Liberty Global
Group that excludes the Netherlands in light of the deconsolidation of
the Netherlands that occurred on December 31, 2016 in connection with
the closing of our joint venture in the Netherlands with Vodafone Group.
-
Reported revenue for the three months and year ended December 31, 2016
declined 2% and increased 1%, respectively
-
Both changes were primarily driven by negative foreign exchange
("FX") movements, mainly related to the strengthening of the U.S.
dollar against the British pound, the inclusion of the former BASE
business in Belgium and our organic revenue growth.
-
For the Q4 2016 period, the negative FX effects exceeded the
impacts of the BASE20 acquisition and organic growth,
while for full-year 2016 the positive acquisition impact and
organic growth exceeded the decline caused by the adverse FX
movements
-
Excluding the Netherlands, rebased revenue grew 3% during both the Q4
and 2016 periods despite the net negative impact of certain items, the
most significant of which include:
-
The net negative impact of our mobile split-contract programs21
in the U.K., Belgium and Switzerland of $36 million and $43
million, respectively, as the net positive impact of these
programs declined from the prior-year periods
-
A reduction in cable subscription revenue of $11 million and $29
million, respectively, resulting from a change in U.K. regulations
governing payment handling fees that Virgin Media charges its
customers
-
The negative impact of $17 million and $16 million, respectively,
related to the prior-period favorable settlement of disputes with
mobile operators over amounts charged for voice traffic in the U.K.
-
The favorable impact of $2 million and $13 million, respectively,
related to higher amortization of deferred upfront fees on B2B
contracts in the U.K. in 2016
-
Our B2B (including SOHO)22 and mobile (including
interconnect and handset sales)23 businesses reported 7%
and relatively flat rebased revenue growth, respectively, in 2016
-
Geographically, we delivered 3% rebased revenue growth in Western
Europe (excluding the Netherlands) both in Q4 and 2016, while our CEE
operations generated 6% and 4% rebased revenue growth, respectively
2016 Rebased Revenue Growth - Segment Highlights
-
U.K./Ireland: overall growth includes:
-
Cable subscription (~70% of revenue) rebased growth of 3.5% in
2016 and 4% in Q4 driven by (i) over 250,000 new RGUs in 2016 and
(ii) an increase in ARPU per RGU24, partially offset by
(iii) $29 million and $11 million reductions in the full-year and
Q4 2016 periods, respectively, related to a reduction in revenue
from a change in the regulations governing payment handling fees
-
Mobile business (including interconnect and mobile handset
revenue) delivered rebased revenue declines of 2% for 2016 and 9%
in Q4. Both periods were impacted by (i) a reduction in revenue
associated with the U.K.'s Freestyle proposition and (ii)
continued declines in mobile interconnect revenue
-
Business revenue growth, driven by higher underlying data volumes
and an increase in amortization of deferred upfront fees on B2B
contracts. This growth was more than offset in Q4 and partially
offset in fiscal year 2016 by a $17 million revenue benefit
recorded in Q4 2015 related to the settlement of disputes with
mobile operators
-
Belgium: rebased growth for the cable
business was 5% in 2016, driven by higher cable subscription revenue
(~60% of revenue) related to an increase in ARPU per RGU and, to a
lesser extent, volume growth
-
The Netherlands: Q4 performance was flat
compared to prior year as higher ARPU per RGU for cable subscription
revenue was offset by lower subscribers, while the full-year 2016
decline was primarily driven by lower cable subscription revenue due
to a decrease in the average number of RGUs and lower ARPU per RGU
-
Germany: solid rebased revenue growth for
both periods was primarily attributable to higher cable subscription
revenue (~90% of revenue) as a result of an increase in ARPU per RGU
and adding over 300,000 new subscribers in 2016. Q4 growth also
benefited from higher wholesale mobile handset sales, which typically
generate relatively low margins
-
Switzerland/Austria: growth was primarily
driven by mobile volume growth and higher cable subscription revenue,
where higher ARPU per RGU more than offset the lower average number of
subscribers during the 2016 period
-
CEE: quarterly rebased revenue growth
accelerated throughout the year driven by new build related subscriber
growth, partially offset by lower ARPU per RGU in most CEE
countries
Operating Income - Liberty Global Group (Europe)
-
Operating income of $683 million and $558 million in Q4 2016 and Q4
2015, respectively, and $2,482 million and $2,101 million during
full-year 2016 and 2015, respectively, representing increases of 22%
and 18%, respectively
-
Operating income results were impacted by OCF changes as further
described below
-
In addition, the operating income result was impacted by (i) decreases
in depreciation and amortization, (ii) higher restructuring charges,
as increases in Germany, the European Division's central operations,
Belgium and Virgin Media were only partially offset by decreases in
the Netherlands, and (iii) changes in share-based compensation expense
Operating Cash Flow Highlights - Liberty Global Group (Europe)
The following table presents (i) OCF of each of our reportable segments
for the comparative periods, and (ii) the percentage change from period
to period on a reported and rebased basis:
|
|
|
Three months ended
|
|
|
Increase/(decrease)
|
|
|
Year ended
|
|
|
Increase/(decrease)
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
OCF
|
|
|
2016
|
|
|
2015
|
|
|
%
|
|
|
Rebased %
|
|
|
2016
|
|
|
2015
|
|
|
%
|
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
|
$
|
724.8
|
|
|
|
$
|
816.2
|
|
|
|
(11.2
|
)
|
|
|
7.9
|
|
|
|
$
|
2,930.9
|
|
|
|
$
|
3,162.1
|
|
|
|
(7.3
|
)
|
|
|
4.6
|
|
Belgium
|
|
|
281.2
|
|
|
|
224.2
|
|
|
|
25.4
|
|
|
|
8.8
|
|
|
|
1,173.4
|
|
|
|
990.3
|
|
|
|
18.5
|
|
|
|
3.7
|
|
The Netherlands
|
|
|
365.2
|
|
|
|
392.0
|
|
|
|
(6.8
|
)
|
|
|
(5.4
|
)
|
|
|
1,472.7
|
|
|
|
1,519.5
|
|
|
|
(3.1
|
)
|
|
|
(2.7
|
)
|
Germany
|
|
|
398.7
|
|
|
|
390.3
|
|
|
|
2.2
|
|
|
|
3.8
|
|
|
|
1,586.4
|
|
|
|
1,502.1
|
|
|
|
5.6
|
|
|
|
5.9
|
|
Switzerland/Austria
|
|
|
274.2
|
|
|
|
262.0
|
|
|
|
4.7
|
|
|
|
5.5
|
|
|
|
1,069.3
|
|
|
|
1,040.1
|
|
|
|
2.8
|
|
|
|
4.8
|
|
Total Western Europe
|
|
|
2,044.1
|
|
|
|
2,084.7
|
|
|
|
(1.9
|
)
|
|
|
4.3
|
|
|
|
8,232.7
|
|
|
|
8,214.1
|
|
|
|
0.2
|
|
|
|
3.3
|
|
Central and Eastern Europe
|
|
|
125.6
|
|
|
|
118.5
|
|
|
|
6.0
|
|
|
|
8.8
|
|
|
|
471.5
|
|
|
|
474.0
|
|
|
|
(0.5
|
)
|
|
|
1.5
|
|
Central and other
|
|
|
(83.5
|
)
|
|
|
(74.6
|
)
|
|
|
(11.9
|
)
|
|
|
*
|
|
|
(327.2
|
)
|
|
|
(289.2
|
)
|
|
|
(13.1
|
)
|
|
|
*
|
Total European Division
|
|
|
2,086.2
|
|
|
|
2,128.6
|
|
|
|
(2.0
|
)
|
|
|
4.3
|
|
|
|
8,377.0
|
|
|
|
8,398.9
|
|
|
|
(0.3
|
)
|
|
|
2.9
|
|
Corporate and other
|
|
|
(50.7
|
)
|
|
|
(62.9
|
)
|
|
|
19.4
|
|
|
|
*
|
|
|
(213.3
|
)
|
|
|
(222.6
|
)
|
|
|
4.2
|
|
|
|
*
|
Total Liberty Global Group
|
|
|
$
|
2,035.5
|
|
|
|
$
|
2,065.7
|
|
|
|
(1.5
|
)
|
|
|
5.0
|
|
|
|
$
|
8,163.7
|
|
|
|
$
|
8,176.3
|
|
|
|
(0.2
|
)
|
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liberty Global Group excluding the Netherlands^
|
|
|
|
|
|
-
|
|
|
|
7.5
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OCF Margin
|
|
|
48.3
|
%
|
|
|
48.2
|
%
|
|
|
|
|
|
|
|
|
47.2
|
%
|
|
|
47.9
|
%
|
|
|
|
|
|
|
* - Omitted; N.M. - Not Meaningful
^ - We provide a rebased OCF growth rate for the Liberty Global Group
that excludes the Netherlands in light of the deconsolidation of the
Netherlands that occurred on December 31, 2016 in connection with the
closing of our joint venture in the Netherlands with Vodafone Group.
This is also the basis on which we provided our 2016 OCF guidance for
the Liberty Global Group.
-
Reported OCF for the three months ended December 31, 2016 declined
1.5%, while full year 2016 OCF was relatively unchanged
-
Both results were the result of organic OCF growth, the inclusion
of BASE and the adverse impact of FX movements mentioned above
-
Excluding the Netherlands, rebased OCF growth was 7.5% in Q4 and 4% in
FY16, respectively, and included the net negative impact of certain
items, the most significant of which included;
-
The net unfavorable revenue items discussed in the "Revenue
Highlights" above
-
For Q4, an $8 million benefit representing the reversal of pylon
taxes recorded during the first three quarters of 2016 in
connection with a Q4 settlement in Belgium
-
For the full-year 2016 period, (i) the $26 million positive impact
of lower Ziggo integration expenses in the Netherlands in 2016 and
(ii) the $18 million negative impact of local authority charges
for certain elements of network infrastructure in the U.K. in 2015
-
Our 2016 OCF margins25 were positively impacted by
efficiencies across most of our operations and Liberty Go efficiency
gains, but adversely impacted by the inclusion of BASE, which has
structurally lower OCF margins than our fixed-line cable business
2016 Rebased Operating Cash Flow Growth - Segment
Highlights
-
U.K./Ireland: OCF growth benefited from
increased revenue and operating cost controls, offset by higher
programming spend
-
Belgium: growth supported by revenue
growth, lower interconnect cost and operating efficiencies, partially
offset by higher programming and copyright expenses
-
The Netherlands: rebased OCF contraction
is mainly driven by the aforementioned revenue trend in combination
with higher direct costs year-over-year, primarily programming costs.
The FY16 period benefited from lower integration costs
-
Germany: grew primarily as a result of
the previously mentioned revenue growth drivers, offset by the impact
of higher staff related costs and higher programming and copyright
expenses
-
Switzerland/Austria: growth was primarily
attributable to the aforementioned revenue increases, and tight cost
controls
-
CEE: growth primarily driven by revenue
growth acceleration during 2016
-
Corporate and other: 2016 corporate spend
increased year-over-year driven by our investments in Liberty Go
including further centralization of various functions. In the second
half of 2016, benefits from the new operating model started to emerge
Net Earnings (Loss) - Liberty Global Group (Europe)
-
Net earnings of $2.2 billion and $2.0 billion for the three months and
year ended December 31, 2016, respectively, as compared to net losses
of $0.2 billion and $1.1 billion, respectively, during the
corresponding prior-year periods
-
The net earnings during the 2016 periods include a $1.1 billion income
tax benefit recognized in the Netherlands upon the release of
valuation allowances in the fourth quarter of 2016 and a pre-tax gain
of $521 million that we recognized in connection with the December 31,
2016 closing of our joint venture in the Netherlands with Vodafone
Group
Property and Equipment Additions - Liberty Global Group
(Europe)
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
in millions, except % amounts
|
Customer premises equipment
|
|
|
$
|
292.4
|
|
|
|
$
|
233.7
|
|
|
|
$
|
1,148.6
|
|
|
|
$
|
1,057.1
|
|
Scalable infrastructure
|
|
|
334.4
|
|
|
|
223.4
|
|
|
|
965.0
|
|
|
|
807.2
|
|
Line extensions
|
|
|
318.8
|
|
|
|
167.4
|
|
|
|
808.6
|
|
|
|
493.3
|
|
Upgrade/rebuild
|
|
|
131.1
|
|
|
|
131.0
|
|
|
|
465.1
|
|
|
|
519.4
|
|
Support capital & other
|
|
|
452.3
|
|
|
|
333.9
|
|
|
|
1,251.3
|
|
|
|
1,033.2
|
|
Property and equipment additions
|
|
|
1,529.0
|
|
|
|
1,089.4
|
|
|
|
4,638.6
|
|
|
|
3,910.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment additions as % of revenue
|
|
|
36.3
|
%
|
|
|
25.4
|
%
|
|
|
26.8
|
%
|
|
|
22.9
|
%
|
-
Increases in Property and Equipment additions26 in absolute
terms and as a percentage of revenue was primarily driven by the
increased new build activities across our footprint and in the U.K. in
particular
|
|
|
Consolidated Statements of Cash Flows - Liberty Global Group
(Europe)
|
|
|
|
|
|
|
|
|
|
|
Year ended
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
Variance
|
|
|
|
|
|
|
|
in millions
|
|
|
|
|
|
Net cash provided (used) by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Activities
|
|
|
|
|
$
|
5,467.3
|
|
|
|
$
|
5,399.3
|
|
|
|
$
|
68.0
|
|
|
|
Investing Activities
|
|
|
|
|
$
|
(3,475.2
|
)
|
|
|
$
|
(3,429.0
|
)
|
|
|
$
|
(46.2
|
)
|
|
|
Financing Activities
|
|
|
|
|
$
|
(1,634.4
|
)
|
|
|
$
|
(2,311.3
|
)
|
|
|
$
|
676.9
|
|
-
Operating Activities: increase in cash
provided is primarily attributable to the net effect of (i) higher
payments for interest, (ii) an increase in cash provided by OCF and
related working capital, (iii) higher cash receipts related to
derivative instruments and (iv) higher payments for taxes
-
Investing Activities: increase in cash
used is primarily due to the net effect of (i) higher payments for
acquisitions, (ii) lower investments in and loans to affiliates and
(iii) proceeds from sale of investments
-
Financing Activities: decrease in cash
used is primarily due to the net effect of (i) lower cash payments
associated with the repurchase of shares, (ii) lower net borrowings of
debt, (iii) lower payments for financing costs and debt premiums and
(iv) changes in cash collateral
Adjusted Free Cash Flow - Liberty Global Group (Europe)
|
|
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
in millions
|
|
|
in millions
|
Adjusted Free Cash Flow
|
|
|
|
|
$
|
1,009.1
|
|
|
|
$
|
779.0
|
|
|
|
$
|
1,978.9
|
|
|
|
$
|
2,432.1
|
-
Q4 increase, as compared to the prior-year period, was attributable to
the net effect of:
-
Higher cash provided from OCF and related working capital items,
including benefits from operating expense-related vendor financing
activities
-
Lower benefits from capital-related vendor financing activities
-
Higher cash taxes
-
Lower interest payments (including related derivative instruments)
-
Favorable movements in FX
-
2016 decrease, as compared to the prior-year period, was attributable
to the net effect of:
-
Lower benefits from capital-related vendor financing activities
-
Higher cash provided from OCF and related working capital items,
including benefits from operating expense-related vendor financing
activities
-
Higher interest payments (including related derivative instruments)
-
Higher cash taxes
-
Favorable movements in FX
Leverage and Liquidity - Liberty Global Group (Europe - at
December 31, 2016)
-
Total capital leases and principal amount of
third-party debt: $37.8 billion
-
Leverage: Excluding the OCF of Ziggo
Group Holding, as our December 31, 2016 consolidated debt does not
include the debt associated with this entity, our adjusted gross and
net leverage ratios at December 31, 2016 were 5.0x and 4.8x,
respectively. As adjusted for the cash we received on January 4, 2017
in connection with the closing of the joint venture in the Netherlands
with Vodafone Group, our net leverage ratio would be 4.5x
-
Average debt tenor:27
approximately 7.5 years, with ~90% not due until 2021 or beyond
-
Borrowing costs:28 blended
fully-swapped borrowing cost of our third-party debt was 4.7%
-
Liquidity: $6.4 billion, including (i)
$1.1 billion of cash at December 31, 2016, (ii) $2.3 billion of cash
received on January 4, 2017 following the closing of the joint venture
in the Netherlands and (iii) the aggregate unused borrowing capacity29
under our credit facilities of $3.0 billion
-
The $2.3 billion of cash received on January 4, 2017 includes (i) the
$2.9 billion of net recapitalization proceeds from VodafoneZiggo, with
each party receiving a 50% share, and (ii) an equalization payment
from Vodafone Group of $841 million
Subscriber Growth - LiLAC Group
|
|
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
Organic RGU net additions (losses) by product
|
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
(6,200
|
)
|
|
|
(1,300
|
)
|
|
|
11,600
|
|
|
|
7,900
|
|
Data
|
|
|
14,500
|
|
|
|
15,000
|
|
|
|
100,200
|
|
|
|
88,400
|
|
Voice
|
|
|
(8,500
|
)
|
|
|
(5,900
|
)
|
|
|
(17,800
|
)
|
|
|
13,500
|
|
Total LiLAC Group
|
|
|
(200
|
)
|
|
|
7,800
|
|
|
|
94,000
|
|
|
|
109,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic RGU net additions (losses) by market
|
|
|
|
|
|
|
|
|
|
|
|
|
CWC
|
|
|
(20,400
|
)
|
|
|
-
|
|
|
|
(4,700
|
)
|
|
|
-
|
|
Chile
|
|
|
10,300
|
|
|
|
200
|
|
|
|
76,500
|
|
|
|
79,700
|
|
Puerto Rico
|
|
|
9,900
|
|
|
|
7,600
|
|
|
|
22,200
|
|
|
|
30,100
|
|
Total LiLAC Group
|
|
|
(200
|
)
|
|
|
7,800
|
|
|
|
94,000
|
|
|
|
109,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Mobile SIM additions (losses) by product
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
3,300
|
|
|
|
(900
|
)
|
|
|
33,100
|
|
|
|
30,400
|
|
Prepaid
|
|
|
58,600
|
|
|
|
(1,100
|
)
|
|
|
14,300
|
|
|
|
(8,900
|
)
|
Total LiLAC Group
|
|
|
61,900
|
|
|
|
(2,000
|
)
|
|
|
47,400
|
|
|
|
21,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Mobile SIM additions (losses) by market
|
|
|
|
|
|
|
|
|
|
|
|
|
CWC
|
|
|
48,500
|
|
|
|
-
|
|
|
|
13,200
|
|
|
|
-
|
|
Chile
|
|
|
13,400
|
|
|
|
(2,000
|
)
|
|
|
34,200
|
|
|
|
21,500
|
|
Puerto Rico
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total LiLAC Group
|
|
|
61,900
|
|
|
|
(2,000
|
)
|
|
|
47,400
|
|
|
|
21,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Product Additions: full-year 2016 RGU
additions were powered by our broadband gains of 100,000 RGUs and
supported by total video additions of 12,000. This result was
partially offset by on-going weakness in fixed-line telephony
resulting in losses of 18,000 RGUs
-
As compared to full-year 2015, our broadband and video additions
improved by 12,000 and 4,000 RGUs, respectively, offset by a
31,000 RGU contraction in our total fixed-line telephony
subscriber growth
-
CWC's organic RGU losses were driven by an adjustment that we
recorded in Q4 to eliminate 30,000 non-paying subscribers from
CWC's subscriber counts
-
Chile: our attractive "Vive" bundles,
featuring the best HD channel line-up in Chile and super-fast
broadband speeds of up to 160 Mbps, fueled 77,000 RGU additions in
2016. This was in-line with our prior-year performance, as
year-over-year improvements in broadband and video were offset by
fixed-line voice attrition
-
Puerto Rico: operating in a tough
economic environment, LCPR delivered 22,000 subscriber additions in
2016 supported by market-leading broadband speeds of up to 400 Mbps
and a rich variety of video packages, including cost-effective Spanish
speaking bundles, and the successful introduction of the UPick "skinny
bundles" in the fall of 2016
-
Panama: we added 8,000 video subscribers
on an organic basis since May 2016, including an acceleration in video
subscriber additions in Q4 following the launch of our new "Mast3r"
product in September 2016. Telephony and internet subscribers declined
due to continued fixed to mobile substitution as well as churn from
our copper network. Since May 2016, we upgraded 64,000 of the 528,000
total homes passed from one-way hybrid fiber coaxial ("HFC") to
two-way HFC. Total RGUs declined by 6,000 in the post-acquisition
period
-
Jamaica: following the acquisition of
CWC, we posted 20,000 organic RGU additions with growth across our
internet and telephony services driven by improved bundling
propositions
-
Bahamas: although still early stages, we
are steadily building our video and broadband RGU base (3,000 for post
acquisition 2016) through the penetration of our newly constructed
Fiber-to-the-Home (FTTH) network of 26,000 homes. We ended the
post-acquisition 2016 period with 5,000 fewer fixed-line voice RGUs
-
Barbados: RGUs declined by 13,000 in
total during the post-acquisition 2016 period, due to competitive
intensity combined with customer experience challenges during our
ongoing program to upgrade customers from our legacy copper to
nationwide fiber based network
-
Mobile: we added 47,000 mobile
subscribers in the post-acquisition 2016 period, driven by 62,000
additions in Q4, including by solid prepaid gains in Jamaica (62,000)
and Bahamas (12,000), and accelerating postpaid subscriber additions
at VTR (37,000), that were only partially offset by prepaid losses in
Panama (58,000)
-
Panama: in our largest, but also our
most competitive market, we lost 1,000 postpaid subscribers in
post acquisition 2016. Our prepaid base was down by 58,000
subscribers since the acquisition of CWC due to continued intense
competition
-
Jamaica: mobile subscriber momentum
drove the Jamaican business during the year with particularly
strong growth in Q4, where we saw prepaid subscriber additions of
56,000 driven by Christmas promotions, bringing the total since
May 2016 to 62,000
-
Bahamas: despite the entry of our
first mobile competitor during November 2016, we were able to grow
our subscriber base by 11,000 since May 2016, including 6,000 in
Q4 2016, through increased promotional activity focused on data
offers
-
Chile: mobile subscribers increased
by 34,000 during the full year 2016. The year-over-year
improvement of 13,000 was driven by refreshed 4G mobile packages
Revenue Highlights - LiLAC Group
On May 16, 2016, a subsidiary of Liberty Global acquired CWC.
Accordingly, CWC has been included in our financial results under
Liberty Global's U.S. GAAP accounting policies since May 16, 2016.
The following table presents (i) revenue of each of our reportable
segments for the comparative periods and (ii) the percentage change from
period to period on a reported and rebased basis:
|
|
|
Three months ended
|
|
|
Increase
|
|
|
Year ended
|
|
|
Increase/(decrease)
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
Revenue
|
|
|
2016
|
|
|
2015
|
|
|
%
|
|
|
Rebased %
|
|
|
2016
|
|
|
2015
|
|
|
%
|
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CWC
|
|
|
$
|
590.7
|
|
|
|
$
|
-
|
|
|
|
*
|
|
|
0.5
|
|
|
|
$
|
1,444.8
|
|
|
|
$
|
-
|
|
|
|
*
|
|
|
(1.4
|
)
|
Chile
|
|
|
227.6
|
|
|
|
204.2
|
|
|
|
11.5
|
|
|
|
6.2
|
|
|
|
859.5
|
|
|
|
838.1
|
|
|
|
2.6
|
|
|
|
6.0
|
|
Puerto Rico
|
|
|
105.2
|
|
|
|
105.1
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
420.8
|
|
|
|
379.2
|
|
|
|
11.0
|
|
|
|
1.1
|
|
Total LiLAC Division
|
|
|
923.5
|
|
|
|
309.3
|
|
|
|
198.6
|
|
|
|
1.8
|
|
|
|
2,725.1
|
|
|
|
1,217.3
|
|
|
|
123.9
|
|
|
|
1.2
|
|
Intersegment eliminations
|
|
|
(0.6
|
)
|
|
|
-
|
|
|
|
N.M.
|
|
|
*
|
|
|
(1.3
|
)
|
|
|
-
|
|
|
|
N.M.
|
|
|
*
|
Total LiLAC Group
|
|
|
$
|
922.9
|
|
|
|
$
|
309.3
|
|
|
|
198.4
|
|
|
|
1.8
|
|
|
|
$
|
2,723.8
|
|
|
|
$
|
1,217.3
|
|
|
|
123.8
|
|
|
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group excluding CWC^
|
|
|
|
|
|
7.6
|
|
|
|
4.2
|
|
|
|
|
|
|
|
|
|
5.2
|
|
|
|
4.3
|
|
* - Omitted; N.M. - Not Meaningful
^ - We provide a rebased revenue growth rate for the LiLAC Group that
excludes CWC in light of the fact that CWC is only included in our 2016
results from the May 16, 2016 acquisition date.
-
Reported revenue for the three months and year ended December 31, 2016
increased by 199% and 124%, respectively
-
The Q4 result was primarily driven by the acquisition of CWC and,
to a lesser extent, organic growth and the beneficial movements of
the Chilean peso relative to the U.S. dollar
-
The full-year result was primarily driven by the acquisitions of
CWC and Choice and, to a lesser extent, organic growth, partially
offset by the adverse movements of the Chilean peso relative to
the U.S. dollar
-
From a rebased perspective, revenue increased 2% and 1% for the three
months and year ended December 31, 2016, respectively
2016 Rebased Revenue Growth - Segment Highlights
-
CWC: modest rebased revenue growth in Q4
2016 was driven by robust results in our managed services business,
driven by large project-related contract wins in Panama, growth in our
wholesale capacity business and stable broadband performance, mostly
offset by revenue weakness in our mobile and fixed-line telephony
segments. The rebased revenue contraction for the 2016
post-acquisition period was the result of growth in managed services
and broadband that was more than offset by declines in mobile and
fixed-line telephony. The decrease in mobile revenue was primarily
attributable to declines in the Bahamas and certain other smaller
markets that were only partially offset by strong growth in our
Jamaica business
-
Chile: solid rebased revenue growth for
both the Q4 and FY 2016 periods was primarily attributable to higher
cable subscription revenue (~90% of revenue) as a result of an
increase in ARPU per RGU and the addition of 77,000 new
subscribers in 2016. This growth was enhanced by our mobile business,
which benefited from accelerating year-over-year volume growth and
higher ARPU
-
Puerto Rico: the revenue result in both
periods was driven by solid growth in our B2B business, centered
around data connectivity, and was further supported by subscriber
growth. A portion of this growth was offset by a decline in ARPU per
RGU
Operating Income - LiLAC Group
-
Operating income of $141 million and $63 million during Q4 2016 and Q4
2015, respectively, and $319 million and $248 million during 2016 and
2015, respectively, representing increases of 123% and 29%,
respectively
-
Operating income was impacted by OCF changes as further described below
-
In addition, the operating income results were impacted by (i)
increases in depreciation and amortization, primarily due to the
inclusion of CWC, and (ii) increases in restructuring charges in Chile
and Puerto Rico and, for the full year comparison, higher direct
acquisition costs attributable to the acquisition of CWC
Operating Cash Flow Highlights - LiLAC Group
The following table presents (i) OCF of each of our reportable segments
for the comparative periods, and (ii) the percentage change from period
to period on a reported and rebased basis:
|
|
|
Three months ended
|
|
|
Increase
|
|
|
Year ended
|
|
|
Increase
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
OCF
|
|
|
2016
|
|
|
2015
|
|
|
%
|
|
|
Rebased %
|
|
|
2016
|
|
|
2015
|
|
|
%
|
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CWC
|
|
|
$
|
226.4
|
|
|
|
$
|
-
|
|
|
|
N.M.
|
|
|
3.2
|
|
|
|
$
|
541.9
|
|
|
|
$
|
-
|
|
|
|
N.M.
|
|
|
3.0
|
Chile
|
|
|
94.3
|
|
|
|
82.0
|
|
|
|
15.0
|
|
|
|
9.7
|
|
|
|
339.3
|
|
|
|
328.1
|
|
|
|
3.4
|
|
|
|
6.8
|
Puerto Rico
|
|
|
58.9
|
|
|
|
46.5
|
|
|
|
26.7
|
|
|
|
26.7
|
|
|
|
211.8
|
|
|
|
167.2
|
|
|
|
26.7
|
|
|
|
15.0
|
Total LiLAC Division
|
|
|
379.6
|
|
|
|
128.5
|
|
|
|
195.4
|
|
|
|
7.9
|
|
|
|
1,093.0
|
|
|
|
495.3
|
|
|
|
120.7
|
|
|
|
6.3
|
Corporate and other
|
|
|
(3.1
|
)
|
|
|
(1.1
|
)
|
|
|
N.M.
|
|
|
*
|
|
|
(8.9
|
)
|
|
|
(4.3
|
)
|
|
|
N.M.
|
|
|
*
|
Total segment OCF
|
|
|
$
|
376.5
|
|
|
|
$
|
127.4
|
|
|
|
195.5
|
|
|
|
7.3
|
|
|
|
$
|
1,084.1
|
|
|
|
$
|
491.0
|
|
|
|
120.8
|
|
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group excluding CWC^
|
|
|
|
|
|
|
|
|
14.2
|
|
|
|
|
|
|
|
|
|
|
|
|
8.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OCF Margin
|
|
|
40.8
|
%
|
|
|
41.2
|
%
|
|
|
|
|
|
|
|
|
39.8
|
%
|
|
|
40.3
|
%
|
|
|
|
|
|
|
* - Omitted; N.M. - Not Meaningful
^ - We provide a rebased OCF growth rate for the LiLAC Group that
excludes CWC in light of the fact that CWC is only included in our 2016
results from the May 16, 2016 acquisition date. This is also the basis
on which we provided our 2016 OCF guidance for the LiLAC Group.
-
Reported OCF for the three months and year ended December 31, 2016
increased 196% and 121%, respectively, both of which were the result
of the aforementioned revenue drivers
-
From a rebased perspective, OCF increased 7% and 6% for the three
months and year ended December 31, 2016, respectively
2016 Rebased OCF Growth - Segment Highlights
-
CWC: in both periods, rebased OCF growth
was primarily driven by reduced integration costs, the realization of
staff- and network-related synergies following the Columbus
acquisition, and further cost discipline across CWC's markets. These
improvements were partly offset by higher charges for doubtful
accounts and increased programming costs primarily related to the
Premier League
-
Chile: both periods grew primarily as a
result of the aforementioned revenue growth drivers, partially offset
by the impact of higher programming, call center and mobile handset
costs
-
Puerto Rico: the Q4 and full-year 2016
rebased OCF growth was primarily driven by the favorable impacts of $8
million and $13 million in Q4 and 2016, respectively, related to the
settlement of a legal matter and the related receipt of
indemnification reimbursements. We also benefited from ongoing cost
containment across the business
Net Earnings (Loss) - LiLAC Group
-
Net losses of $5 million and $227 million for the three months and
year ended December 31, 2016, respectively, as compared to net
earnings (loss) of ($10 million) and $52 million, respectively, during
the corresponding prior-year periods
Property and Equipment Additions - LiLAC Group
|
|
|
|
Three months ended
|
|
Year ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
in millions, except % amounts
|
Customer premises equipment
|
|
$
|
27.9
|
|
|
$
|
16.1
|
|
|
$
|
140.2
|
|
|
$
|
111.5
|
|
Scalable infrastructure
|
|
13.2
|
|
|
9.8
|
|
|
48.6
|
|
|
48.6
|
|
Line extensions
|
|
7.2
|
|
|
5.4
|
|
|
37.8
|
|
|
21.0
|
|
Upgrade/rebuild
|
|
1.7
|
|
|
1.3
|
|
|
9.4
|
|
|
6.3
|
|
Support capital & other
|
|
15.5
|
|
|
9.7
|
|
|
49.6
|
|
|
39.7
|
|
CWC P&E Additions
|
|
137.7
|
|
|
-
|
|
|
282.6
|
|
|
-
|
|
Property and equipment additions
|
|
203.2
|
|
|
42.3
|
|
|
568.2
|
|
|
227.1
|
|
|
|
|
|
|
|
|
|
|
Property and equipment additions as % of revenue
|
|
22.0
|
%
|
|
13.7
|
%
|
|
20.9
|
%
|
|
18.7
|
%
|
-
For both periods, the increase in property and equipment additions in
absolute terms was driven primarily by the acquisition of CWC and, to
a lesser extent, increases in CPE and new build activities across the
legacy LiLAC footprint
Consolidated Statements of Cash Flows - LiLAC Group
|
|
|
|
|
|
|
|
|
Year ended
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
Variance
|
|
|
|
|
|
|
|
in millions
|
|
|
|
|
|
Net cash provided (used) by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Activities
|
|
|
|
|
$
|
468.2
|
|
|
|
$
|
306.5
|
|
|
|
$
|
161.7
|
|
|
|
Investing Activities
|
|
|
|
|
$
|
(441.1
|
)
|
|
|
$
|
(490.6
|
)
|
|
|
$
|
49.5
|
|
|
|
Financing Activities
|
|
|
|
|
$
|
247.3
|
|
|
|
$
|
363.7
|
|
|
|
$
|
(116.4
|
)
|
-
Operating Activities: the increase in
cash provided was primarily attributable to the net effect of (i) an
increase in cash provided by OCF and related working capital mainly
from the acquisition of CWC and (ii) higher payments for interest and
taxes
-
Investing Activities: the decrease in
cash used was primarily due to the net effect of (i) an increase in
cash received from acquisitions and (ii) higher payments for capital
expenditures
-
Financing Activities: the decrease in
cash provided was primarily attributable to (i) higher net borrowings
of debt, (ii) higher net inter-group payments and (iii) higher
distributions to noncontrolling interest owners
Adjusted Free Cash Flow - LiLAC Group
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
in millions
|
|
|
in millions
|
|
|
Adjusted Free Cash Flow
|
|
|
|
|
$
|
116.3
|
|
|
|
$
|
47.6
|
|
|
|
$
|
61.6
|
|
|
|
$
|
87.1
|
-
The Q4 increase, as compared to the prior-year period, was
attributable to the net effect of:
-
Higher cash provided from OCF and related working capital items,
mainly related to our acquisition of CWC
-
Higher capital expenditures
-
Higher interest payments (including related derivative instruments)
-
Favorable movements in FX
-
The 2016 decrease, as compared to the prior-year period, was
attributable to the net effect of:
-
Higher cash provided from OCF and related working capital items,
mainly related to our acquisition of CWC
-
Higher capital expenditures
-
Higher interest payments (including related derivative instruments)
-
Higher cash taxes
-
Favorable movements in FX
Leverage and Liquidity - LiLAC Group (at December 31, 2016)
-
Total capital leases and principal amount of
third-party debt: $6.0 billion
-
Leverage: consolidated gross and net
leverage ratios of 4.0x and 3.6x, respectively
-
Average debt tenor: approximately 5.5
years, with less than 10% due prior to 2021
-
Borrowing costs: blended fully-swapped
borrowing cost of our third-party debt was 6.8%
-
Liquidity: approximately $1.5 billion,
including $553 million of cash and $989 million of aggregate unused
borrowing capacity under our credit facilities
Forward-Looking Statements
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; expected RGU additions; our expectations
with respect to revenue, OCF and Adjusted FCF; expectations with respect
to the development, enhancement and expansion of our superior networks
and innovative and advanced products and services, including the
roll-out of our 4G mobile product and cloud-based products; plans and
expectations relating to new build and network extension opportunities;
the timing of proposed acquisitions and the anticipated benefits, costs
and synergies in connection with acquisitions, including the CWC
acquisition and the proposed acquisition of Multimedia Polska;
expectations with respect to our joint venture in the Netherlands;
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 the continued
use by subscribers and potential subscribers of our services and their
willingness to upgrade to our more advanced offerings; our ability to
meet challenges from competition, to manage rapid technological change
or to maintain or increase rates to our subscribers or to pass through
increased costs to our subscribers; the effects of changes in laws or
regulation; general economic factors; our ability to obtain regulatory
approval and satisfy regulatory conditions associated with acquisitions
and dispositions; our ability to successfully acquire and integrate new
businesses and realize anticipated efficiencies from businesses we
acquire; the availability of attractive programming for our video
services and the costs associated with such programming; our ability to
achieve forecasted financial and operating targets; the outcome of any
pending or threatened litigation; the ability of our operating companies
to access cash of their respective subsidiaries; the impact of our
operating companies' 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 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. 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.
About Liberty Global
Liberty Global is the world's largest international TV and broadband
company, with operations in more than 30 countries across Europe, Latin
America and the Caribbean. We invest in the infrastructure that empowers
our customers to make the most of the digital revolution. Our scale and
commitment to innovation enable us to develop market-leading products
delivered through next-generation networks that connect our 25 million
customers who subscribe to over 50 million television, broadband
internet and telephony services. We also serve over 10 million mobile
subscribers and offer WiFi service across 5 million access points.
Liberty Global's businesses are comprised of two stocks: the Liberty
Global Group (NASDAQ: LBTYA, LBTYB and LBTYK) for our European
operations, and the LiLAC Group (NASDAQ: LILA and LILAK, OTC Link:
LILAB), which consists of our operations in Latin America and the
Caribbean.
The Liberty Global Group operates in 11 European countries under the
consumer brands Virgin Media, Unitymedia, Telenet and UPC. The Liberty
Global Group also owns 50% of VodafoneZiggo, a Dutch joint venture,
which has 4 million customers, 10 million fixed-line subscribers and 5
million mobile subscribers. The LiLAC Group operates in over 20
countries in Latin America and the Caribbean under the consumer brands
VTR, Flow, Liberty, Más Móvil and BTC. In addition, the LiLAC Group
operates a sub-sea fiber network throughout the region in over 30
markets.
For more information, please visit www.libertyglobal.com
Footnotes
1
|
|
The Liberty Global ordinary shares and the LiLAC ordinary shares are
tracking shares. Tracking shares are intended by the issuing company
to reflect or "track" the economic performance of a particular
business or "group," rather than the economic performance of the
company as a whole. The Liberty Global ordinary shares and the LiLAC
ordinary shares are intended to reflect or "track" the economic
performance of the Liberty Global Group and the LiLAC Group (each as
defined and described below), respectively. For more information
regarding the tracking shares, see note 1 to our consolidated
financial statements included in our annual report on Form 10-K
filed on February 15, 2017 (the "10-K"). "Liberty Global Group" does
not represent a separate legal entity, rather it represents those
businesses, assets and liabilities that have been attributed to that
group. The Liberty Global Group comprises our businesses, assets and
liabilities not attributed to the LiLAC Group, including Virgin
Media, Unitymedia, UPC Holding BV, Telenet and, through December 31,
2016, Ziggo Group Holding. "LiLAC Group" does not represent a
separate legal entity, rather it represents those businesses, assets
and liabilities that have been attributed to that group. The LiLAC
Group comprises our operations in Latin America and the Caribbean
and has attributed to it CWC, VTR and Liberty Puerto Rico. The
consolidated financial statements of Liberty Global are included in
our 10-K. For attributed financial information of the Liberty Global
Group and the LiLAC Group, see Exhibit 99.1 to our 10-K.
|
2
|
|
Please see Revenue and Operating Cash Flow for information
on rebased growth.
|
3
|
|
Please see OCF Definition and Reconciliation for our
Operating Cash Flow ("OCF") definition and the required
reconciliations.
|
4
|
|
Please see Footnotes for Operating Data and Subscriber Variance
Tables 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.
|
5
|
|
Figure includes upgrades in Germany and U.K./Ireland.
|
6
|
|
The 465,000 premises added by Virgin Media in 2016 include 142,000
inactive premises at December 31, 2016 that have not yet received
power and/or where head-end capacity upgrades or connection
activities are required. These inactive premises are planned to be
connected during the first quarter of 2017. Most of these inactive
premises were related to fourth quarter 2016 activity. As of
February 13, 2017, the number of these inactive premises had
declined to 110,000. In addition, the 465,000 premises added include
25,000 technical upgrades and 18,000 commercial premises.
|
7
|
|
A reconciliation to a U.S. GAAP measure of the Liberty Global Group
2017 and medium-term OCF figures that underly our guidance ranges is
not provided due to the fact that not all elements of the
reconciliation are projected as part of our forecasting process, as
certain items may vary significantly from one period to another. For
example, impairments or other operating charges such as direct
acquisition costs are contingent upon the underlying activity, which
cannot be reasonably forecasted.
|
8
|
|
FX rates as of February 12, 2017.
|
9
|
|
The amounts presented for our 2017 new build programs in Europe,
which exclude upgrades, include homes, residential multiple dwelling
units and commercial premises that potentially could subscribe to
our residential or SOHO services.
|
10
|
|
The nearly $3 billion of proceeds that are related to the joint
venture with Vodafone comprise (i) amounts received in connection
with the closing of the transaction, including (a) our 50% share of
the $2.9 billion of net proceeds from the recapitalization
transactions completed by VodafoneZiggo Holding B.V., formerly known
as Ziggo Group Holding B.V. ("Ziggo Group Holding"), during the
third quarter of 2016 and (b) an equalization payment from Vodafone
of $841 million, and (ii) over $500 million of cash generated and
up-streamed by Ziggo Group Holding from the date the deal was
announced in February 2016 through December 31, 2016.
|
11
|
|
On May 16, 2016, we acquired Cable & Wireless Communications Limited
(formerly Cable & Wireless Communications Plc) ("CWC").
|
12
|
|
A reconciliation of our LiLAC OCF guidance for 2017 to a U.S. GAAP
measure is not provided due to the fact that not all elements of the
reconciliation is projected as part of our forecasting process, as
certain items may vary significantly from one period to another. For
example, impairments or other operating charges such as direct
acquisition costs are contingent upon the underlying activity, which
cannot be reasonably forecasted.
|
13
|
|
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, in the case of the Liberty Global
Group, excludes the loans backed or secured by the shares we hold in
ITV plc, Sumitomo Corporation and Lions Gate Entertainment Corp. For
Liberty Global Group, our ratios are adjusted to exclude debt and
OCF of Ziggo Sport and Ziggo and its subsidiaries.
|
14
|
|
Liquidity refers to cash and cash equivalents plus the maximum
undrawn commitments under subsidiary borrowing facilities, without
regard to covenant compliance calculations.
|
15
|
|
Please see Footnotes for Operating Data and Subscriber Variance
Tables for the definition of Customer Relationships.
|
16
|
|
Please see Adjusted Free Cash Flow Definition and Reconciliation
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. A
reconciliation of our 2017 and 2016 FCF guidance to a U.S. GAAP
measure is not provided due to the fact that not all elements of
the reconciliation are projected as part of our forecasting
process, as certain items may vary significantly from one period
to another.
|
17
|
|
Consistent with how our guidance was developed, the 1.4 million new
homes that we built across Europe through year-end 2016 included
139,000 upgraded homes in Germany.
|
18
|
|
Our next-generation video base consists of Horizon TV, TiVo (in the
U.K.), Digital TV with a Horizon-like user interface (Yelo in
Belgium) as well as Horizon-Lite set-top boxes.
|
19
|
|
Our mobile subscriber count represents the number of active
subscriber identification module ("SIM") cards in service rather
than services provided. For example, if a mobile subscriber has both
a data and voice plan on a smartphone this would equate to one
mobile subscriber. Alternatively, a subscriber who has a voice and
data plan for a mobile handset and a data plan for a laptop (via a
dongle) would be counted as two mobile subscribers. Customers who do
not pay a recurring monthly fee are excluded from our mobile
telephony subscriber counts after periods of inactivity ranging from
30 to 90 days, based on industry standards within the respective
country.
|
20
|
|
On February 11, 2016, Telenet acquired Telenet Group BVBA, formerly
known as BASE Company NV ("BASE").
|
21
|
|
In the U.K., Belgium and Switzerland we now offer our customers the
option to purchase a mobile handset pursuant to a contract that is
independent of a mobile airtime services contract ("split-contract
programs"). Revenue associated with handsets sold under our
split-contract programs is recognized upfront and included in other
non-subscription revenue. We generally recognize the full sales
price for the mobile handset upon delivery, regardless of whether
the sales price is received upfront or in installments. Revenue
associated with the airtime services is recognized as mobile
subscription revenue over the contractual term of the airtime
services contract. Prior to our split-contract programs, all revenue
from handset sales that was contingent upon delivering future
airtime services was recognized over the life of the customer
contract as part of the monthly fee and included in mobile
subscription revenue.
|
22
|
|
Total B2B includes subscription (SOHO) and non-subscription revenue.
Non-subscription revenue includes the amortization of deferred
upfront installation fees and deferred nonrecurring fees received on
B2B contracts where we maintain ownership of the installed
equipment. Most of this deferred revenue relates to Virgin Media's
B2B contracts, and in connection with the application of the Virgin
Media acquisition accounting, we eliminated all of Virgin Media's
B2B deferred revenue as of the June 7, 2013 acquisition date. Due
primarily to this acquisition accounting, the amortization of Virgin
Media's B2B deferred revenue is accounting for $1.5 million and
$13.1 million of the increase in Liberty Global Group's total B2B
revenue for the three months and year ended December 31, 2016,
respectively.
|
23
|
|
Liberty Global Group's (3.4%) rebased mobile contraction (including
interconnect and mobile handset sales revenue) and 0.3% growth for
Q4 2016 and full-year 2016, respectively, includes the impact of our
split-contract and non-subsidized handset sale programs in the U.K.,
Belgium, Switzerland, Ireland and Hungary, as further described
above. Our split-contract and non-subsidized handset sale programs
in the U.K., Belgium and Switzerland had net negative effects on our
mobile subscription and handset revenue of $36.2 million in Q4 2016
and $42.7 million in 2016. The net negative effects of the
split-contract and non-subsidized handset sale programs are
comprised of (i) a decrease of $1.4 million and an increase of $76.6
million in handset revenue and (ii) decreases in mobile subscription
revenue of $34.8 million and $119.3 million during Q4 2016 and
full-year 2016, respectively.
|
24
|
|
Average Revenue Per Unit ("ARPU") refers to the average monthly
subscription revenue per average customer relationship or mobile
subscriber, as applicable, and is calculated by dividing the average
monthly cable subscription revenue (excluding mobile services, B2B
services, interconnect, channel carriage fees, mobile handset sales
and installation fees) or mobile subscription revenue, as
applicable, for the indicated period, by the average of the opening
and closing balances for customer relationships or mobile
subscribers, as applicable, for the period. Customer relationships
of entities acquired during the period are normalized. Unless
otherwise indicated, ARPU per customer relationship or mobile
subscriber, as applicable, for the Liberty Global Group and LiLAC
Group are not adjusted for currency impacts. ARPU per RGU refers to
average monthly subscription revenue per average RGU, which is
calculated by dividing the average monthly cable subscription
revenue for the indicated period, by the average of the opening and
closing balances of 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.
|
25
|
|
OCF margin is calculated by dividing OCF by total revenue for the
applicable period.
|
26
|
|
Our property and equipment additions include our capital
expenditures on an accrual basis and amounts financed under vendor
financing or capital lease arrangements.
|
27
|
|
For purposes of calculating our average tenor, total third-party
debt excludes vendor financing.
|
28
|
|
Our blended fully-swapped debt borrowing cost represents the
weighted average interest rate on our aggregate variable- and
fixed-rate indebtedness (excluding capital lease 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.
|
29
|
|
Our aggregate unused borrowing capacity of $3.9 billion represents
the maximum undrawn commitments under our subsidiaries' applicable
facilities without regard to covenant compliance calculations. This
consists of $3.0 billion attributed to the Liberty Global Group and
$989 million attributed to the LiLAC Group. Upon completion of the
relevant December 31, 2016 compliance reporting requirements for our
credit facilities, and assuming no further changes from quarter-end
borrowing levels, we anticipate that our subsidiaries' borrowing
capacity would be $3.8 billion. This consists of $3.0 billion
attributed to the Liberty Global Group and $845 million attributed
to the LiLAC Group. LiLAC cash of $553 million includes $271 million
of cash held by the consolidated CWC group, substantially all of
which is held by CWC subsidiaries. For information regarding
limitations on CWC's ability to access this cash, see the discussion
under "Liquidity and Capital Resources" in our 10-K.
|
|
|
|
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 included in our 10-K. For attributed
financial information of the Liberty Global Group and the LiLAC Group,
see Exhibit 99.1 to our 10-K.
Revenue and Operating Cash Flow
In the following tables, we present revenue and operating cash flow by
reportable segment for the three months and year ended December 31,
2016, as compared to the corresponding prior-year periods. All of our
reportable segments derive their revenue primarily from consumer and B2B
services, including video, broadband internet and fixed-line telephony
services and, with the exception of Puerto Rico, mobile services. For
detailed information regarding the composition of our reportable
segments, see note 18 to our consolidated financial statements included
in our 10-K.
For purposes of calculating rebased growth rates on a comparable basis
for all businesses that we owned during 2016, we have adjusted our
historical revenue and OCF for the three months and year ended December
31, 2015 to (i) include the pre-acquisition revenue and OCF of certain
entities acquired during 2015 and 2016 in our rebased amounts for the
three months and year ended December 31, 2015 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, 2016, (ii) exclude the
pre-disposition revenue and OCF of "offnet" subscribers in the U.K. that
were disposed in the fourth quarter of 2014 and the first half of 2015
from our rebased amounts for the year ended December 31, 2015 to the
same extent that the revenue and OCF of these disposed subscribers is
excluded from our results for the year ended December 31, 2016, (iii)
exclude the revenue and OCF related to a partner network agreement that
was terminated shortly after the Ziggo acquisition from our rebased
amounts for the year ended December 31, 2015 to the same extent that the
revenue and OCF from this partner network is excluded from our results
for the year ended December 31, 2016, (iv) exclude the pre-disposition
revenue, OCF and associated intercompany eliminations of Film1, which
was disposed in the third quarter of 2015, from our rebased amounts for
the year ended December 31, 2015 to the same extent that the revenue,
OCF and associated intercompany eliminations are excluded from our
results for the year ended December 31, 2016, (v) 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 three months and
year ended December 31, 2015 to the same extent that the revenue and OCF
of these subscribers is excluded from our results for the three months
and year ended December 31, 2016 and (vi) reflect the translation of our
rebased amounts for the three months and year ended December 31, 2015 at
the applicable average foreign currency exchange rates that were used to
translate our results for the three months and year ended December 31,
2016. We have included CWC, BASE and five small entities in whole or in
part in the determination of our rebased revenue and OCF for the three
months ended December 31, 2015. We have included CWC, BASE, Choice and
five small entities in whole or in part in the determination of our
rebased revenue and OCF for the year ended December 31, 2015. We have
reflected the revenue and OCF of the acquired entities in our 2015
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 Generally Accepted Accounting Principles
in the United States ("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 2015 amounts to
derive our rebased growth rates for the Liberty Global Group and the
LiLAC Group:
|
|
|
|
|
Revenue
|
|
|
OCF
|
|
|
|
|
|
Three months ended December 31, 2015
|
|
|
Year ended December 31, 2015
|
|
|
Three months ended December 31, 2015
|
|
|
Year ended December 31, 2015
|
Liberty Global Group
|
|
|
|
|
in millions
|
Acquisitions
|
|
|
|
|
$
|
192.9
|
|
|
|
$
|
667.4
|
|
|
|
$
|
36.1
|
|
|
|
$
|
136.2
|
|
Dispositions
|
|
|
|
|
(3.1
|
)
|
|
|
(22.6
|
)
|
|
|
(2.0
|
)
|
|
|
(6.4
|
)
|
Foreign Currency
|
|
|
|
|
(352.7
|
)
|
|
|
(839.3
|
)
|
|
|
(160.6
|
)
|
|
|
(380.4
|
)
|
Total decrease
|
|
|
|
|
$
|
(162.9
|
)
|
|
|
$
|
(194.5
|
)
|
|
|
$
|
(126.5
|
)
|
|
|
$
|
(250.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
|
|
|
Acquisitions
|
|
|
|
|
$
|
596.5
|
|
|
|
$
|
1,523.1
|
|
|
|
$
|
223.2
|
|
|
|
$
|
550.0
|
|
Foreign Currency
|
|
|
|
|
0.9
|
|
|
|
(49.7
|
)
|
|
|
0.2
|
|
|
|
(17.2
|
)
|
Total increase
|
|
|
|
|
$
|
597.4
|
|
|
|
$
|
1,473.4
|
|
|
|
$
|
223.4
|
|
|
|
$
|
532.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In each case, the following tables present (i) the amounts reported by
each of our reportable segments for the comparative periods, (ii) the
U.S. dollar change and percentage change from period to period and (iii)
the percentage change from period to period on a rebased basis:
|
|
|
Three months ended
|
|
|
Increase
|
|
|
Increase
|
|
|
|
December 31,
|
|
|
(decrease)
|
|
|
(decrease)
|
Revenue
|
|
|
2016
|
|
|
2015
|
|
|
$
|
|
|
%
|
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
|
$
|
1,523.2
|
|
|
|
$
|
1,804.4
|
|
|
|
$
|
(281.2
|
)
|
|
|
(15.6
|
)
|
|
|
0.8
|
|
Belgium
|
|
|
680.2
|
|
|
|
505.5
|
|
|
|
174.7
|
|
|
|
34.6
|
|
|
|
2.5
|
|
The Netherlands
|
|
|
660.4
|
|
|
|
672.6
|
|
|
|
(12.2
|
)
|
|
|
(1.8
|
)
|
|
|
(0.3
|
)
|
Germany
|
|
|
639.7
|
|
|
|
607.1
|
|
|
|
32.6
|
|
|
|
5.4
|
|
|
|
7.0
|
|
Switzerland/Austria
|
|
|
435.9
|
|
|
|
432.2
|
|
|
|
3.7
|
|
|
|
0.9
|
|
|
|
1.5
|
|
Total Western Europe
|
|
|
3,939.4
|
|
|
|
4,021.8
|
|
|
|
(82.4
|
)
|
|
|
(2.0
|
)
|
|
|
1.9
|
|
Central and Eastern Europe
|
|
|
273.8
|
|
|
|
265.0
|
|
|
|
8.8
|
|
|
|
3.3
|
|
|
|
5.6
|
|
Central and other
|
|
|
(2.8
|
)
|
|
|
(1.7
|
)
|
|
|
(1.1
|
)
|
|
|
N.M.
|
|
|
*
|
Total European Division
|
|
|
4,210.4
|
|
|
|
4,285.1
|
|
|
|
(74.7
|
)
|
|
|
(1.7
|
)
|
|
|
2.1
|
|
Corporate and other
|
|
|
18.9
|
|
|
|
8.4
|
|
|
|
10.5
|
|
|
|
125.0
|
|
|
|
*
|
Intersegment eliminations
|
|
|
(12.7
|
)
|
|
|
(3.6
|
)
|
|
|
(9.1
|
)
|
|
|
N.M.
|
|
|
*
|
Total Liberty Global Group
|
|
|
4,216.6
|
|
|
|
4,289.9
|
|
|
|
(73.3
|
)
|
|
|
(1.7
|
)
|
|
|
2.2
|
|
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CWC
|
|
|
590.7
|
|
|
|
-
|
|
|
|
590.7
|
|
|
|
*
|
|
|
0.5
|
|
Chile
|
|
|
227.6
|
|
|
|
204.2
|
|
|
|
23.4
|
|
|
|
11.5
|
|
|
|
6.2
|
|
Puerto Rico
|
|
|
105.2
|
|
|
|
105.1
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.1
|
|
Total LiLAC Division
|
|
|
923.5
|
|
|
|
309.3
|
|
|
|
614.2
|
|
|
|
198.6
|
|
|
|
1.8
|
|
Intersegment eliminations
|
|
|
(0.6
|
)
|
|
|
-
|
|
|
|
(0.6
|
)
|
|
|
N.M.
|
|
|
*
|
Total LiLAC Group
|
|
|
922.9
|
|
|
|
309.3
|
|
|
|
613.6
|
|
|
|
198.4
|
|
|
|
1.8
|
|
Total
|
|
|
$
|
5,139.5
|
|
|
|
$
|
4,599.2
|
|
|
|
$
|
540.3
|
|
|
|
11.7
|
|
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group excluding the Netherlands(1)
|
|
|
|
|
|
2.6
|
|
LiLAC Group excluding CWC(2)
|
|
|
|
|
|
4.2
|
|
* - Omitted; N.M. - Not Meaningful
|
|
(1) We provide a rebased revenue growth rate for the Liberty Global
Group that excludes the Netherlands in light of the deconsolidation of
the Netherlands that occurred on December 31, 2016 in connection with
the closing of our joint venture in the Netherlands with Vodafone Group.
(2) We provide a rebased revenue growth rate for the LiLAC Group that
excludes CWC in light of the fact that CWC is only included in our 2016
results from the May 16, 2016 acquisition date.
|
|
|
Year ended
|
|
|
Increase
|
|
|
Increase
|
|
|
|
December 31,
|
|
|
(decrease)
|
|
|
(decrease)
|
Revenue
|
|
|
2016
|
|
|
2015
|
|
|
$
|
|
|
%
|
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
|
$
|
6,508.8
|
|
|
|
$
|
7,058.7
|
|
|
|
$
|
(549.9
|
)
|
|
|
(7.8
|
)
|
|
|
2.6
|
|
Belgium
|
|
|
2,691.1
|
|
|
|
2,021.0
|
|
|
|
670.1
|
|
|
|
33.2
|
|
|
|
2.9
|
|
The Netherlands
|
|
|
2,690.8
|
|
|
|
2,745.3
|
|
|
|
(54.5
|
)
|
|
|
(2.0
|
)
|
|
|
(1.6
|
)
|
Germany
|
|
|
2,539.7
|
|
|
|
2,399.5
|
|
|
|
140.2
|
|
|
|
5.8
|
|
|
|
6.2
|
|
Switzerland/Austria
|
|
|
1,755.6
|
|
|
|
1,758.2
|
|
|
|
(2.6
|
)
|
|
|
(0.1
|
)
|
|
|
1.6
|
|
Total Western Europe
|
|
|
16,186.0
|
|
|
|
15,982.7
|
|
|
|
203.3
|
|
|
|
1.3
|
|
|
|
2.4
|
|
Central and Eastern Europe
|
|
|
1,088.4
|
|
|
|
1,066.6
|
|
|
|
21.8
|
|
|
|
2.0
|
|
|
|
3.9
|
|
Central and other
|
|
|
(8.0
|
)
|
|
|
(5.4
|
)
|
|
|
(2.6
|
)
|
|
|
(48.1
|
)
|
|
|
*
|
Total European Division
|
|
|
17,266.4
|
|
|
|
17,043.9
|
|
|
|
222.5
|
|
|
|
1.3
|
|
|
|
2.5
|
|
Corporate and other
|
|
|
66.7
|
|
|
|
42.3
|
|
|
|
24.4
|
|
|
|
N.M.
|
|
|
*
|
Intersegment eliminations
|
|
|
(48.1
|
)
|
|
|
(23.5
|
)
|
|
|
(24.6
|
)
|
|
|
N.M.
|
|
|
*
|
Total Liberty Global Group
|
|
|
17,285.0
|
|
|
|
17,062.7
|
|
|
|
222.3
|
|
|
|
1.3
|
|
|
|
2.5
|
|
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CWC
|
|
|
1,444.8
|
|
|
|
-
|
|
|
|
1,444.8
|
|
|
|
*
|
|
|
(1.4
|
)
|
Chile
|
|
|
859.5
|
|
|
|
838.1
|
|
|
|
21.4
|
|
|
|
2.6
|
|
|
|
6.0
|
|
Puerto Rico
|
|
|
420.8
|
|
|
|
379.2
|
|
|
|
41.6
|
|
|
|
11.0
|
|
|
|
1.1
|
|
Total LiLAC Division
|
|
|
2,725.1
|
|
|
|
1,217.3
|
|
|
|
1,507.8
|
|
|
|
123.9
|
|
|
|
1.2
|
|
Intersegment eliminations
|
|
|
(1.3
|
)
|
|
|
-
|
|
|
|
(1.3
|
)
|
|
|
N.M.
|
|
|
*
|
Total LiLAC Group
|
|
|
2,723.8
|
|
|
|
1,217.3
|
|
|
|
1,506.5
|
|
|
|
123.8
|
|
|
|
1.2
|
|
Total
|
|
|
$
|
20,008.8
|
|
|
|
$
|
18,280.0
|
|
|
|
$
|
1,728.8
|
|
|
|
9.5
|
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group excluding the Netherlands (1)
|
|
|
|
|
|
3.3
|
|
LiLAC Group excluding CWC (2)
|
|
|
|
|
|
4.3
|
|
|
|
|
|
|
|
|
|
* - Omitted; N.M. - Not Meaningful
|
(1) We provide a rebased revenue growth rate for the Liberty Global
Group that excludes the Netherlands in light of the deconsolidation of
the Netherlands that occurred on December 31, 2016 in connection with
the closing of our joint venture in the Netherlands with Vodafone Group.
(2) We provide a rebased revenue growth rate for the LiLAC Group that
excludes CWC in light of the fact that CWC is only included in our 2016
results from the May 16, 2016 acquisition date.
|
|
|
Three months ended
|
|
|
Increase
|
|
|
Increase
|
|
|
|
December 31,
|
|
|
(decrease)
|
|
|
(decrease)
|
OCF
|
|
|
2016
|
|
|
2015
|
|
|
$
|
|
|
%
|
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
|
$
|
724.8
|
|
|
|
$
|
816.2
|
|
|
|
$
|
(91.4
|
)
|
|
|
(11.2
|
)
|
|
|
7.9
|
|
Belgium
|
|
|
281.2
|
|
|
|
224.2
|
|
|
|
57.0
|
|
|
|
25.4
|
|
|
|
8.8
|
|
The Netherlands
|
|
|
365.2
|
|
|
|
392.0
|
|
|
|
(26.8
|
)
|
|
|
(6.8
|
)
|
|
|
(5.4
|
)
|
Germany
|
|
|
398.7
|
|
|
|
390.3
|
|
|
|
8.4
|
|
|
|
2.2
|
|
|
|
3.8
|
|
Switzerland/Austria
|
|
|
274.2
|
|
|
|
262.0
|
|
|
|
12.2
|
|
|
|
4.7
|
|
|
|
5.5
|
|
Total Western Europe
|
|
|
2,044.1
|
|
|
|
2,084.7
|
|
|
|
(40.6
|
)
|
|
|
(1.9
|
)
|
|
|
4.3
|
|
Central and Eastern Europe
|
|
|
125.6
|
|
|
|
118.5
|
|
|
|
7.1
|
|
|
|
6.0
|
|
|
|
8.8
|
|
Central and other
|
|
|
(83.5
|
)
|
|
|
(74.6
|
)
|
|
|
(8.9
|
)
|
|
|
(11.9
|
)
|
|
|
*
|
Total European Division
|
|
|
2,086.2
|
|
|
|
2,128.6
|
|
|
|
(42.4
|
)
|
|
|
(2.0
|
)
|
|
|
4.3
|
|
Corporate and other
|
|
|
(50.7
|
)
|
|
|
(62.9
|
)
|
|
|
12.2
|
|
|
|
19.4
|
|
|
|
*
|
Total Liberty Global Group
|
|
|
2,035.5
|
|
|
|
2,065.7
|
|
|
|
(30.2
|
)
|
|
|
(1.5
|
)
|
|
|
5.0
|
|
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CWC
|
|
|
226.4
|
|
|
|
-
|
|
|
|
226.4
|
|
|
|
N.M.
|
|
|
3.2
|
|
Chile
|
|
|
94.3
|
|
|
|
82.0
|
|
|
|
12.3
|
|
|
|
15.0
|
|
|
|
9.7
|
|
Puerto Rico
|
|
|
58.9
|
|
|
|
46.5
|
|
|
|
12.4
|
|
|
|
26.7
|
|
|
|
26.7
|
|
Total LiLAC Division
|
|
|
379.6
|
|
|
|
128.5
|
|
|
|
251.1
|
|
|
|
195.4
|
|
|
|
7.9
|
|
Corporate and other
|
|
|
(3.1
|
)
|
|
|
(1.1
|
)
|
|
|
(2.0
|
)
|
|
|
N.M.
|
|
|
*
|
Total LiLAC Group
|
|
|
376.5
|
|
|
|
127.4
|
|
|
|
249.1
|
|
|
|
195.5
|
|
|
|
7.3
|
|
Total
|
|
|
$
|
2,412.0
|
|
|
|
$
|
2,193.1
|
|
|
|
$
|
218.9
|
|
|
|
10.0
|
|
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group excluding the Netherlands (1)
|
|
|
|
|
|
7.5
|
|
LiLAC Group excluding CWC (2)
|
|
|
|
|
|
14.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group
|
|
|
$
|
683.0
|
|
|
|
$
|
558.0
|
|
|
|
$
|
125.0
|
|
|
|
22.4
|
|
|
|
|
LiLAC Group
|
|
|
141.2
|
|
|
|
63.3
|
|
|
|
77.9
|
|
|
|
123.1
|
|
|
|
|
Total
|
|
|
$
|
824.2
|
|
|
|
$
|
621.3
|
|
|
|
$
|
202.9
|
|
|
|
32.7
|
|
|
|
|
|
* - Omitted; N.M. - Not Meaningful
|
|
|
|
|
|
Year ended
|
|
|
Increase
|
|
|
Increase
|
|
|
|
December 31,
|
|
|
(decrease)
|
|
|
(decrease)
|
OCF
|
|
|
2016
|
|
|
2015
|
|
|
$
|
|
|
%
|
|
|
Rebased %
|
|
|
|
in millions, except % amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K./Ireland
|
|
|
$
|
2,930.9
|
|
|
|
$
|
3,162.1
|
|
|
|
$
|
(231.2
|
)
|
|
|
(7.3
|
)
|
|
|
4.6
|
|
Belgium
|
|
|
1,173.4
|
|
|
|
990.3
|
|
|
|
183.1
|
|
|
|
18.5
|
|
|
|
3.7
|
|
The Netherlands
|
|
|
1,472.7
|
|
|
|
1,519.5
|
|
|
|
(46.8
|
)
|
|
|
(3.1
|
)
|
|
|
(2.7
|
)
|
Germany
|
|
|
1,586.4
|
|
|
|
1,502.1
|
|
|
|
84.3
|
|
|
|
5.6
|
|
|
|
5.9
|
|
Switzerland/Austria
|
|
|
1,069.3
|
|
|
|
1,040.1
|
|
|
|
29.2
|
|
|
|
2.8
|
|
|
|
4.8
|
|
Total Western Europe
|
|
|
8,232.7
|
|
|
|
8,214.1
|
|
|
|
18.6
|
|
|
|
0.2
|
|
|
|
3.3
|
|
Central and Eastern Europe
|
|
|
471.5
|
|
|
|
474.0
|
|
|
|
(2.5
|
)
|
|
|
(0.5
|
)
|
|
|
1.5
|
|
Central and other
|
|
|
(327.2
|
)
|
|
|
(289.2
|
)
|
|
|
(38.0
|
)
|
|
|
(13.1
|
)
|
|
|
*
|
Total European Division
|
|
|
8,377.0
|
|
|
|
8,398.9
|
|
|
|
(21.9
|
)
|
|
|
(0.3
|
)
|
|
|
2.9
|
|
Corporate and other
|
|
|
(213.3
|
)
|
|
|
(222.6
|
)
|
|
|
9.3
|
|
|
|
4.2
|
|
|
|
*
|
Total Liberty Global Group
|
|
|
8,163.7
|
|
|
|
8,176.3
|
|
|
|
(12.6
|
)
|
|
|
(0.2
|
)
|
|
|
3.0
|
|
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CWC
|
|
|
541.9
|
|
|
|
-
|
|
|
|
541.9
|
|
|
|
N.M.
|
|
|
3.0
|
|
Chile
|
|
|
339.3
|
|
|
|
328.1
|
|
|
|
11.2
|
|
|
|
3.4
|
|
|
|
6.8
|
|
Puerto Rico
|
|
|
211.8
|
|
|
|
167.2
|
|
|
|
44.6
|
|
|
|
26.7
|
|
|
|
15.0
|
|
Total LiLAC Division
|
|
|
1,093.0
|
|
|
|
495.3
|
|
|
|
597.7
|
|
|
|
120.7
|
|
|
|
6.3
|
|
Corporate and other
|
|
|
(8.9
|
)
|
|
|
(4.3
|
)
|
|
|
(4.6
|
)
|
|
|
N.M.
|
|
|
*
|
Total LiLAC Group
|
|
|
1,084.1
|
|
|
|
491.0
|
|
|
|
593.1
|
|
|
|
120.8
|
|
|
|
5.9
|
|
Total
|
|
|
$
|
9,247.8
|
|
|
|
$
|
8,667.3
|
|
|
|
$
|
580.5
|
|
|
|
6.7
|
|
|
|
3.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group excluding the Netherlands (1)
|
|
|
|
|
|
4.3
|
|
LiLAC Group excluding CWC (2)
|
|
|
|
|
|
8.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group
|
|
|
$
|
2,482.2
|
|
|
|
$
|
2,101.1
|
|
|
|
$
|
381.1
|
|
|
|
18.1
|
|
|
|
|
LiLAC Group
|
|
|
319.1
|
|
|
|
248.1
|
|
|
|
71.0
|
|
|
|
28.6
|
|
|
|
|
Total
|
|
|
$
|
2,801.3
|
|
|
|
$
|
2,349.2
|
|
|
|
$
|
452.1
|
|
|
|
19.2
|
|
|
|
|
|
* - Omitted; N.M. - Not Meaningful
|
|
(1)
|
|
We provide a rebased OCF growth rate for the Liberty Global Group
that excludes the Netherlands in light of the deconsolidation of the
Netherlands that occurred on December 31, 2016 in connection with
the closing of our joint venture in the Netherlands with Vodafone
Group. This is also the basis on which we provided our 2016 OCF
guidance for the Liberty Global Group.
|
|
|
|
(2)
|
|
We provide a rebased OCF growth rate for the LiLAC Group that
excludes CWC in light of the fact that CWC is only included in our
2016 results from the May 16, 2016 acquisition date. This is also
the basis on which we provided our 2016 OCF guidance for the LiLAC
Group.
|
|
|
|
OCF Definition and Reconciliation
As used herein, OCF has the same meaning as the term "Adjusted OIBDA"
that is referenced in our 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 operating
income to total segment OCF is presented below.
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
in millions
|
|
|
in millions
|
Consolidated Liberty Global
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
824.2
|
|
|
|
$
|
621.3
|
|
|
|
$
|
2,801.3
|
|
|
|
$
|
2,349.2
|
|
Share-based compensation expense
|
|
|
90.5
|
|
|
|
65.2
|
|
|
|
296.9
|
|
|
|
318.2
|
|
Depreciation and amortization
|
|
|
1,395.7
|
|
|
|
1,438.2
|
|
|
|
5,801.1
|
|
|
|
5,825.8
|
|
Impairment, restructuring and other operating items, net
|
|
|
101.6
|
|
|
|
68.4
|
|
|
|
348.5
|
|
|
|
174.1
|
|
Total segment OCF
|
|
|
$
|
2,412.0
|
|
|
|
$
|
2,193.1
|
|
|
|
$
|
9,247.8
|
|
|
|
$
|
8,667.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
683.0
|
|
|
|
$
|
558.0
|
|
|
|
$
|
2,482.2
|
|
|
|
$
|
2,101.1
|
|
Share-based compensation expense
|
|
|
85.8
|
|
|
|
65.0
|
|
|
|
281.5
|
|
|
|
315.8
|
|
Inter-group fees and allocations
|
|
|
(2.1
|
)
|
|
|
(2.2
|
)
|
|
|
(8.5
|
)
|
|
|
(4.3
|
)
|
Depreciation and amortization
|
|
|
1,187.5
|
|
|
|
1,382.6
|
|
|
|
5,213.8
|
|
|
|
5,609.4
|
|
Impairment, restructuring and other operating items, net
|
|
|
81.3
|
|
|
|
62.3
|
|
|
|
194.7
|
|
|
|
154.3
|
|
Total segment OCF
|
|
|
$
|
2,035.5
|
|
|
|
$
|
2,065.7
|
|
|
|
$
|
8,163.7
|
|
|
|
$
|
8,176.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
141.2
|
|
|
|
$
|
63.3
|
|
|
|
$
|
319.1
|
|
|
|
$
|
248.1
|
|
Share-based compensation expense
|
|
|
4.7
|
|
|
|
0.2
|
|
|
|
15.4
|
|
|
|
2.4
|
|
Inter-group fees and allocations
|
|
|
2.1
|
|
|
|
2.2
|
|
|
|
8.5
|
|
|
|
4.3
|
|
Depreciation and amortization
|
|
|
208.2
|
|
|
|
55.6
|
|
|
|
587.3
|
|
|
|
216.4
|
|
Impairment, restructuring and other operating items, net
|
|
|
20.3
|
|
|
|
6.1
|
|
|
|
153.8
|
|
|
|
19.8
|
|
Total segment OCF
|
|
|
$
|
376.5
|
|
|
|
$
|
127.4
|
|
|
|
$
|
1,084.1
|
|
|
|
$
|
491.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Debt, Capital Lease Obligations and Cash and Cash
Equivalents
The following table1 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, 2016:
|
|
|
|
|
|
Capital
|
|
|
Debt & Capital
|
|
|
Cash
|
|
|
|
|
|
|
Lease
|
|
|
Lease
|
|
|
and Cash
|
|
|
|
Debt2
|
|
|
Obligations
|
|
|
Obligations
|
|
|
Equivalents
|
|
|
|
in millions
|
Liberty Global and Liberty Global Group unrestricted subsidiaries
|
|
|
$
|
2,190.6
|
|
|
|
$
|
65.4
|
|
|
|
$
|
2,256.0
|
|
|
|
$
|
913.8
|
Virgin Media3
|
|
|
14,903.1
|
|
|
|
91.2
|
|
|
|
14,994.3
|
|
|
|
27.1
|
UPC Holding
|
|
|
6,784.0
|
|
|
|
33.5
|
|
|
|
6,817.5
|
|
|
|
28.2
|
Unitymedia
|
|
|
8,021.5
|
|
|
|
657.0
|
|
|
|
8,678.5
|
|
|
|
2.9
|
Telenet
|
|
|
4,658.2
|
|
|
|
374.0
|
|
|
|
5,032.2
|
|
|
|
104.6
|
Total Liberty Global Group
|
|
|
36,557.4
|
|
|
|
1,221.1
|
|
|
|
37,778.5
|
|
|
|
1,076.6
|
LiLAC Group unrestricted subsidiaries
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
77.9
|
CWC
|
|
|
3,593.0
|
|
|
|
20.8
|
|
|
|
3,613.8
|
|
|
|
271.2
|
VTR Finance
|
|
|
1,448.9
|
|
|
|
0.7
|
|
|
|
1,449.6
|
|
|
|
125.0
|
Liberty Puerto Rico
|
|
|
942.5
|
|
|
|
0.2
|
|
|
|
942.7
|
|
|
|
78.5
|
Total LiLAC Group
|
|
|
5,984.4
|
|
|
|
21.7
|
|
|
|
6,006.1
|
|
|
|
552.6
|
Total
|
|
|
$
|
42,541.8
|
|
|
|
$
|
1,242.8
|
|
|
|
$
|
43,784.6
|
|
|
|
$
|
1,629.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and Equipment Additions and Capital Expenditures
The tables below highlight the categories of the property and equipment
additions attributed to the Liberty Global Group and the LiLAC Group for
the indicated periods and reconcile those additions to the capital
expenditures that are presented in the attributed statement of cash
flows information included in Exhibit 99.1 to our 10-K:
Liberty Global Group
|
|
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
in millions, except % amounts
|
Customer premises equipment
|
|
|
$
|
292.4
|
|
|
|
$
|
233.7
|
|
|
|
$
|
1,148.6
|
|
|
|
$
|
1,057.1
|
|
Scalable infrastructure
|
|
|
334.4
|
|
|
|
223.4
|
|
|
|
965.0
|
|
|
|
807.2
|
|
Line extensions
|
|
|
318.8
|
|
|
|
167.4
|
|
|
|
808.6
|
|
|
|
493.3
|
|
Upgrade/rebuild
|
|
|
131.1
|
|
|
|
131.0
|
|
|
|
465.1
|
|
|
|
519.4
|
|
Support capital & other
|
|
|
452.3
|
|
|
|
333.9
|
|
|
|
1,251.3
|
|
|
|
1,033.2
|
|
Property and equipment additions
|
|
|
1,529.0
|
|
|
|
1,089.4
|
|
|
|
4,638.6
|
|
|
|
3,910.2
|
|
Assets acquired under capital-related vendor financing arrangements4
|
|
|
(613.1
|
)
|
|
|
(390.9
|
)
|
|
|
(2,018.7
|
)
|
|
|
(1,481.5
|
)
|
Assets acquired under capital leases
|
|
|
(31.2
|
)
|
|
|
(16.8
|
)
|
|
|
(104.2
|
)
|
|
|
(106.1
|
)
|
Changes in current liabilities related to capital expenditures
|
|
|
(333.3
|
)
|
|
|
(91.1
|
)
|
|
|
(361.8
|
)
|
|
|
(50.3
|
)
|
Capital expenditures5
|
|
|
$
|
551.4
|
|
|
|
$
|
590.6
|
|
|
|
$
|
2,153.9
|
|
|
|
$
|
2,272.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment additions as % of revenue
|
|
|
36.3
|
%
|
|
|
25.4
|
%
|
|
|
26.8
|
%
|
|
|
22.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
in millions, except % amounts
|
Customer premises equipment
|
|
|
$
|
27.9
|
|
|
|
$
|
16.1
|
|
|
|
$
|
140.2
|
|
|
|
$
|
111.5
|
|
Scalable infrastructure
|
|
|
13.2
|
|
|
|
9.8
|
|
|
|
48.6
|
|
|
|
48.6
|
|
Line extensions
|
|
|
7.2
|
|
|
|
5.4
|
|
|
|
37.8
|
|
|
|
21.0
|
|
Upgrade/rebuild
|
|
|
1.7
|
|
|
|
1.3
|
|
|
|
9.4
|
|
|
|
6.3
|
|
Support capital & other
|
|
|
15.5
|
|
|
|
9.7
|
|
|
|
49.6
|
|
|
|
39.7
|
|
CWC P&E Additions
|
|
|
137.7
|
|
|
|
-
|
|
|
|
282.6
|
|
|
|
-
|
|
Property and equipment additions
|
|
|
203.2
|
|
|
|
42.3
|
|
|
|
568.2
|
|
|
|
227.1
|
|
Assets acquired under capital-related vendor financing arrangements
|
|
|
(11.8
|
)
|
|
|
-
|
|
|
|
(45.5
|
)
|
|
|
-
|
|
Assets acquired under capital leases
|
|
|
(2.4
|
)
|
|
|
-
|
|
|
|
(7.4
|
)
|
|
|
-
|
|
Changes in current liabilities and cash derivatives related to
capital expenditures
|
|
|
(41.1
|
)
|
|
|
15.1
|
|
|
|
(24.9
|
)
|
|
|
0.1
|
|
Capital expenditures
|
|
|
$
|
147.9
|
|
|
|
$
|
57.4
|
|
|
|
$
|
490.4
|
|
|
|
$
|
227.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment additions as % of revenue
|
|
|
22.0
|
%
|
|
|
13.7
|
%
|
|
|
20.9
|
%
|
|
|
18.7
|
%
|
________________________________
1
|
|
Except as otherwise indicated, the amounts reported in the table
include the named entity and its subsidiaries.
|
2
|
|
Debt amounts for UPC Holding and Telenet include notes issued by
special purpose entities that are consolidated by the respective
subsidiary.
|
3
|
|
The Virgin Media borrowing group includes certain subsidiaries of
Virgin Media, but excludes Virgin Media. The cash and cash
equivalents amount includes cash and cash equivalents held by the
Virgin Media borrowing group, but excludes $0.2 million of cash and
cash equivalents held by Virgin Media. This amount is included in
the amount shown for Liberty Global and Liberty Global Group
unrestricted subsidiaries.
|
4
|
|
Amounts exclude related VAT of $85 million and $50 million during
the three months ended December 31, 2016 and 2015, respectively, and
$278 million and $189 million during the year ended December 31,
2016 and 2015, respectively, that were also financed by our vendors
under these arrangements.
|
5
|
|
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.
|
|
|
|
|
|
|
Adjusted Free Cash Flow Definition and Reconciliation
We define Adjusted Free Cash Flow as net cash provided by our operating
activities, plus (i) excess tax benefits related to the exercise of
share-based incentive awards, (ii) cash payments for third-party costs
directly associated with successful and unsuccessful acquisitions and
dispositions and (iii) 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. Beginning with the third quarter of 2016, we changed the
name of this metric from "Free Cash Flow" to "Adjusted Free Cash flow."
We have not changed how we calculate this metric. 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,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
in millions
|
Consolidated Liberty Global
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
1,894.0
|
|
|
|
$
|
1,546.5
|
|
|
|
$
|
5,935.5
|
|
|
|
$
|
5,705.8
|
|
Excess tax benefits from share-based compensation6
|
|
|
0.4
|
|
|
|
(0.3
|
)
|
|
|
4.4
|
|
|
|
26.7
|
|
Cash payments for direct acquisition and disposition costs
|
|
|
25.8
|
|
|
|
14.7
|
|
|
|
115.3
|
|
|
|
264.2
|
|
Expenses financed by an intermediary7
|
|
|
208.0
|
|
|
|
161.4
|
|
|
|
815.0
|
|
|
|
294.2
|
|
Capital expenditures
|
|
|
(699.3
|
)
|
|
|
(648.0
|
)
|
|
|
(2,644.3
|
)
|
|
|
(2,499.5
|
)
|
Principal payments on amounts financed by vendors and intermediaries
|
|
|
(278.5
|
)
|
|
|
(215.7
|
)
|
|
|
(2,074.7
|
)
|
|
|
(1,125.4
|
)
|
Principal payments on certain capital leases
|
|
|
(25.0
|
)
|
|
|
(32.0
|
)
|
|
|
(110.7
|
)
|
|
|
(146.8
|
)
|
Adjusted FCF
|
|
|
$
|
1,125.4
|
|
|
|
$
|
826.6
|
|
|
|
$
|
2,040.5
|
|
|
|
$
|
2,519.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Global Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
1,653.3
|
|
|
|
$
|
1,441.6
|
|
|
|
$
|
5,467.3
|
|
|
|
$
|
5,399.3
|
|
Excess tax benefits from share-based compensation
|
|
|
0.4
|
|
|
|
(0.3
|
)
|
|
|
4.4
|
|
|
|
23.0
|
|
Cash payments for direct acquisition and disposition costs
|
|
|
2.5
|
|
|
|
14.4
|
|
|
|
29.3
|
|
|
|
259.3
|
|
Expenses financed by an intermediary
|
|
|
206.1
|
|
|
|
161.4
|
|
|
|
812.0
|
|
|
|
294.2
|
|
Capital expenditures
|
|
|
(551.4
|
)
|
|
|
(590.6
|
)
|
|
|
(2,153.9
|
)
|
|
|
(2,272.3
|
)
|
Principal payments on amounts financed by vendors and intermediaries
|
|
|
(278.5
|
)
|
|
|
(215.7
|
)
|
|
|
(2,074.7
|
)
|
|
|
(1,125.4
|
)
|
Principal payments on certain capital leases
|
|
|
(23.3
|
)
|
|
|
(31.8
|
)
|
|
|
(105.5
|
)
|
|
|
(146.0
|
)
|
Adjusted FCF
|
|
|
$
|
1,009.1
|
|
|
|
$
|
779.0
|
|
|
|
$
|
1,978.9
|
|
|
|
$
|
2,432.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
240.7
|
|
|
|
$
|
104.9
|
|
|
|
$
|
468.2
|
|
|
|
$
|
306.5
|
|
Excess tax benefits from share-based compensation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3.7
|
|
Cash payments for direct acquisition and disposition costs
|
|
|
23.3
|
|
|
|
0.3
|
|
|
|
86.0
|
|
|
|
4.9
|
|
Expenses financed by an intermediary
|
|
|
1.9
|
|
|
|
-
|
|
|
|
3.0
|
|
|
|
-
|
|
Capital expenditures
|
|
|
(147.9
|
)
|
|
|
(57.4
|
)
|
|
|
(490.4
|
)
|
|
|
(227.2
|
)
|
Principal payments on certain capital leases
|
|
|
(1.7
|
)
|
|
|
(0.2
|
)
|
|
|
(5.2
|
)
|
|
|
(0.8
|
)
|
Adjusted FCF
|
|
|
$
|
116.3
|
|
|
|
$
|
47.6
|
|
|
|
$
|
61.6
|
|
|
|
$
|
87.1
|
|
________________________________
6
|
|
Excess tax benefits from share-based compensation represent the
excess of tax deductions over the related financial reporting
share-based compensation expense. The hypothetical cash flows
associated with these excess tax benefits are reported as an
increase to cash flows from financing activities and a corresponding
decrease to cash flows from operating activities in our consolidated
statements of cash flows.
|
7
|
|
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 per Customer Relationship8
The following table provides ARPU per customer relationship for the
indicated periods:
|
|
|
Three months ended Dec. 31,
|
|
|
%
|
|
|
FX-Neutral9
|
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
|
% Change
|
Liberty Global Consolidated
|
|
|
$
|
42.04
|
|
|
$
|
44.14
|
|
|
|
(4.8
|
)%
|
|
|
1.8
|
%
|
Liberty Global Group10
|
|
|
€
|
38.39
|
|
|
€
|
39.68
|
|
|
|
(3.3
|
)%
|
|
|
2.7
|
%
|
U.K. & Ireland (Virgin Media)
|
|
|
£
|
50.15
|
|
|
£
|
48.80
|
|
|
|
2.8
|
%
|
|
|
1.3
|
%
|
The Netherlands (Ziggo)
|
|
|
€
|
46.18
|
|
|
€
|
44.97
|
|
|
|
2.7
|
%
|
|
|
2.7
|
%
|
Germany (Unitymedia)
|
|
|
€
|
24.65
|
|
|
€
|
23.51
|
|
|
|
4.8
|
%
|
|
|
4.8
|
%
|
Belgium (Telenet)
|
|
|
€
|
53.96
|
|
|
€
|
51.23
|
|
|
|
5.3
|
%
|
|
|
5.3
|
%
|
Other Europe (UPC Holding)
|
|
|
€
|
26.98
|
|
|
€
|
26.72
|
|
|
|
1.0
|
%
|
|
|
1.1
|
%
|
LiLAC Group11
|
|
|
$
|
47.82
|
|
|
$
|
55.12
|
|
|
|
(13.2
|
)%
|
|
|
(16.0
|
)%
|
Chile (VTR)
|
|
|
CLP
|
33,953
|
|
|
CLP
|
33,382
|
|
|
|
1.7
|
%
|
|
|
1.7
|
%
|
CWC
|
|
|
$
|
34.27
|
|
|
$
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Puerto Rico
|
|
|
$
|
77.54
|
|
|
$
|
78.13
|
|
|
|
(0.8
|
)%
|
|
|
(0.8
|
)%
|
____________________________
8
|
|
The amounts presented for the 2016 period reflect the
post-acquisition revenue for CWC, which was acquired on May 16,
2016. The impact of CWC is not included in the three months ended
December 31, 2015.
|
9
|
|
The FX-neutral change represents the percentage change on a
year-over-year basis adjusted for FX impacts and is calculated by
adjusting the prior-year figures to reflect translation at the
foreign currency rates used to translate the current year amounts.
|
10
|
|
Excluding the Netherlands, the Liberty Global Group ARPU was €36.96
for the three months ended December 31, 2016.
|
11
|
|
The decrease in the LiLAC Group ARPU is primarily due to the
inclusion of CWC. Excluding CWC, the LiLAC Group ARPU was $57.20 for
the three months ended December 31, 2016.
|
|
|
|
Mobile Statistics
The following tables provide ARPU per mobile subscriber12 and
mobile subscribers13 for the indicated periods:
|
|
|
ARPU per Mobile Subscriber
|
|
|
|
Three months ended Dec. 31,
|
|
|
%
|
|
|
FX-Neutral
|
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
|
% Change
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
Including interconnect revenue
|
|
|
$
|
18.41
|
|
|
|
$
|
21.38
|
|
|
|
(13.9
|
)%
|
|
|
(1.6
|
)%
|
Excluding interconnect revenue
|
|
|
$
|
14.95
|
|
|
|
$
|
17.66
|
|
|
|
(15.3
|
)%
|
|
|
(2.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
Including interconnect revenue
|
|
|
$
|
17.47
|
|
|
|
$
|
24.91
|
|
|
|
(29.9
|
)%
|
|
|
(33.2
|
)%
|
Excluding interconnect revenue
|
|
|
$
|
16.26
|
|
|
|
$
|
22.84
|
|
|
|
(28.8
|
)%
|
|
|
(32.1
|
)%
|
|
|
|
Mobile Subscribers
|
|
|
|
Dec 31, 2016
|
|
|
Sept. 30, 2016
|
|
|
Change
|
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
|
3,022,300
|
|
|
|
3,028,400
|
|
|
|
(6,100
|
)
|
Belgium
|
|
|
2,991,900
|
|
|
|
3,020,000
|
|
|
|
(28,100
|
)
|
Germany
|
|
|
353,100
|
|
|
|
356,400
|
|
|
|
(3,300
|
)
|
The Netherlands
|
|
|
-
|
|
|
|
227,000
|
|
|
|
(227,000
|
)
|
Switzerland
|
|
|
80,300
|
|
|
|
70,100
|
|
|
|
10,200
|
|
Austria
|
|
|
30,500
|
|
|
|
24,300
|
|
|
|
6,200
|
|
Ireland
|
|
|
17,900
|
|
|
|
13,600
|
|
|
|
4,300
|
|
Total Western Europe
|
|
|
6,496,000
|
|
|
|
6,739,800
|
|
|
|
(243,800
|
)
|
Hungary
|
|
|
62,500
|
|
|
|
56,700
|
|
|
|
5,800
|
|
Poland
|
|
|
5,300
|
|
|
|
5,800
|
|
|
|
(500
|
)
|
Total CEE
|
|
|
67,800
|
|
|
|
62,500
|
|
|
|
5,300
|
|
Liberty Global Group
|
|
|
6,563,800
|
|
|
|
6,802,300
|
|
|
|
(238,500
|
)
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
Panama14
|
|
|
1,736,300
|
|
|
|
1,760,200
|
|
|
|
(23,900
|
)
|
Jamaica
|
|
|
944,800
|
|
|
|
888,800
|
|
|
|
56,000
|
|
Bahamas
|
|
|
315,200
|
|
|
|
309,200
|
|
|
|
6,000
|
|
Barbados
|
|
|
131,500
|
|
|
|
129,000
|
|
|
|
2,500
|
|
Other
|
|
|
399,000
|
|
|
|
379,100
|
|
|
|
19,900
|
|
CWC Total
|
|
|
3,526,800
|
|
|
|
3,466,300
|
|
|
|
60,500
|
|
Chile
|
|
|
166,200
|
|
|
|
152,800
|
|
|
|
13,400
|
|
LiLAC Group
|
|
|
3,693,000
|
|
|
|
3,619,100
|
|
|
|
73,900
|
|
Grand Total
|
|
|
10,256,800
|
|
|
|
10,421,400
|
|
|
|
(164,600
|
)
|
_______________________________
12
|
|
Our ARPU per mobile subscriber calculation that excludes
interconnect revenue refers to the average monthly mobile
subscription revenue per average mobile subscriber in service 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. The amounts
for the three months ended December 31, 2015 do not include the
impact of CWC and BASE in Belgium. The decrease in ARPU per mobile
subscriber for the Liberty Global Group is largely due to our
split-contract programs. The decrease in ARPU per mobile subscriber
for the LiLAC Group is primarily due to the inclusion of CWC.
Excluding CWC, the LiLAC Group ARPU per mobile subscriber for the
three months ended December 31, 2016 was $26.64 (including
interconnect) and $24.38 (excluding interconnect).
|
13
|
|
In a number of countries, our mobile subscribers received mobile
services pursuant to prepaid contracts. As of December 31, 2016, the
prepaid mobile subscriber count included the following: Panama
(1,566,500), Jamaica (922,100), Belgium (880,800), U.K. (638,600),
Bahamas (282,600), Barbados (101,900), Chile (8,000) and twelve
remaining CWC geographies (342,900).
|
14
|
|
The decline includes a 30,200 nonorganic adjustment to prepaid
mobile subscribers to comply with Liberty Global subscriber counting
policies.
|
|
|
|
RGUs, Customers and Bundling15
The following table provides information on the breakdown of our RGUs
and customer base and highlights our customer bundling metrics at
December 31, 2016, September 30, 2016, and December 31, 2015:
|
|
|
December 31, 2016
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Q4'16 / Q3'16 (% Change)
|
|
|
Q4'16 / Q4'15 (% Change)
|
Liberty Global Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total RGUs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Video RGUs
|
|
|
18,483,800
|
|
|
|
22,477,000
|
|
|
|
22,756,100
|
|
|
|
(17.8
|
%)
|
|
|
(18.8
|
%)
|
Broadband Internet RGUs
|
|
|
14,334,600
|
|
|
|
17,287,900
|
|
|
|
16,798,400
|
|
|
|
(17.1
|
%)
|
|
|
(14.7
|
%)
|
Telephony RGUs
|
|
|
11,962,900
|
|
|
|
14,378,200
|
|
|
|
13,997,600
|
|
|
|
(16.8
|
%)
|
|
|
(14.5
|
%)
|
Total Liberty Global Group
|
|
|
44,781,300
|
|
|
|
54,143,100
|
|
|
|
53,552,100
|
|
|
|
(17.3
|
%)
|
|
|
(16.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single-Play Customers
|
|
|
8,417,300
|
|
|
|
9,297,700
|
|
|
|
9,777,100
|
|
|
|
(9.5
|
%)
|
|
|
(13.9
|
%)
|
Dual-Play Customers
|
|
|
3,889,900
|
|
|
|
4,536,600
|
|
|
|
4,316,500
|
|
|
|
(14.3
|
%)
|
|
|
(9.9
|
%)
|
Triple-Play Customers
|
|
|
9,528,100
|
|
|
|
11,924,100
|
|
|
|
11,714,000
|
|
|
|
(20.1
|
%)
|
|
|
(18.7
|
%)
|
Total Liberty Global Group
|
|
|
21,835,300
|
|
|
|
25,758,400
|
|
|
|
25,807,600
|
|
|
|
(15.2
|
%)
|
|
|
(15.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Single-Play Customers
|
|
|
38.6
|
%
|
|
|
36.1
|
%
|
|
|
37.9
|
%
|
|
|
6.9
|
%
|
|
|
1.8
|
%
|
% of Dual-Play Customers
|
|
|
17.8
|
%
|
|
|
17.6
|
%
|
|
|
16.7
|
%
|
|
|
1.1
|
%
|
|
|
6.6
|
%
|
% of Triple-Play Customers
|
|
|
43.6
|
%
|
|
|
46.3
|
%
|
|
|
45.4
|
%
|
|
|
(5.8
|
%)
|
|
|
(4.0
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RGUs per customer relationship
|
|
|
2.05
|
|
|
|
2.10
|
|
|
|
2.08
|
|
|
|
(2.4
|
%)
|
|
|
(1.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiLAC Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total RGUs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Video RGUs
|
|
|
1,714,300
|
|
|
|
1,733,700
|
|
|
|
1,289,900
|
|
|
|
(1.1
|
%)
|
|
|
32.9
|
%
|
Broadband Internet RGUs
|
|
|
2,022,900
|
|
|
|
2,031,900
|
|
|
|
1,322,100
|
|
|
|
(0.4
|
%)
|
|
|
53.0
|
%
|
Telephony RGUs
|
|
|
1,641,200
|
|
|
|
1,667,400
|
|
|
|
883,900
|
|
|
|
(1.6
|
%)
|
|
|
85.7
|
%
|
Total LiLAC Group
|
|
|
5,378,400
|
|
|
|
5,433,000
|
|
|
|
3,495,900
|
|
|
|
(1.0
|
%)
|
|
|
53.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single-Play Customers
|
|
|
1,249,000
|
|
|
|
1,298,700
|
|
|
|
562,300
|
|
|
|
(3.8
|
%)
|
|
|
122.1
|
%
|
Dual-Play Customers
|
|
|
793,900
|
|
|
|
802,900
|
|
|
|
372,400
|
|
|
|
(1.1
|
%)
|
|
|
113.2
|
%
|
Triple-Play Customers
|
|
|
847,200
|
|
|
|
842,800
|
|
|
|
729,600
|
|
|
|
0.5
|
%
|
|
|
16.1
|
%
|
Total LiLAC Group
|
|
|
2,890,100
|
|
|
|
2,944,400
|
|
|
|
1,664,300
|
|
|
|
(1.8
|
%)
|
|
|
73.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Single-Play Customers
|
|
|
43.2
|
%
|
|
|
44.1
|
%
|
|
|
33.8
|
%
|
|
|
(2.0
|
%)
|
|
|
27.8
|
%
|
% of Dual-Play Customers
|
|
|
27.5
|
%
|
|
|
27.3
|
%
|
|
|
22.4
|
%
|
|
|
0.7
|
%
|
|
|
22.8
|
%
|
% of Triple-play Customers
|
|
|
29.3
|
%
|
|
|
28.6
|
%
|
|
|
43.8
|
%
|
|
|
2.4
|
%
|
|
|
(33.1
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RGUs per customer relationship
|
|
|
1.86
|
|
|
|
1.85
|
|
|
|
2.10
|
|
|
|
0.5
|
%
|
|
|
(11.4
|
%)
|
_____________________________
15
|
|
The December 31, 2015 figures for the LiLAC Group do not include the
impact of the CWC acquisition and the December 31, 2016 figures for
Liberty Global Group do not include Ziggo Group Holding, which was
contributed to the joint venture with Vodafone on December 31, 2016.
|
|
|
|
|
|
Consolidated Operating Data - December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
Homes Passed(1)
|
|
Two-way Homes Passed(2)
|
|
Customer Relationships(3)
|
|
Total RGUs(4)
|
|
Basic Video Subscribers(5)
|
|
Enhanced Video Subscribers(6)
|
|
DTH Subscribers(7)
|
|
Total Video
|
|
Internet Subscribers(8)
|
|
Telephony Subscribers(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
13,610,200
|
|
|
13,597,400
|
|
|
5,284,000
|
|
|
13,035,900
|
|
|
-
|
|
|
3,729,100
|
|
|
-
|
|
|
3,729,100
|
|
|
4,916,700
|
|
|
4,390,100
|
Germany
|
|
12,894,500
|
|
|
12,767,100
|
|
|
7,162,200
|
|
|
12,839,000
|
|
|
4,822,900
|
|
|
1,582,800
|
|
|
-
|
|
|
6,405,700
|
|
|
3,325,600
|
|
|
3,107,700
|
The Netherlands
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Belgium
|
|
2,987,600
|
|
|
2,987,600
|
|
|
2,149,300
|
|
|
4,874,600
|
|
|
284,600
|
|
|
1,732,900
|
|
|
-
|
|
|
2,017,500
|
|
|
1,601,700
|
|
|
1,255,400
|
Switzerland(10)
|
|
2,236,800
|
|
|
2,236,800
|
|
|
1,294,700
|
|
|
2,513,400
|
|
|
576,500
|
|
|
675,200
|
|
|
-
|
|
|
1,251,700
|
|
|
749,800
|
|
|
511,900
|
Austria
|
|
1,391,400
|
|
|
1,391,400
|
|
|
654,000
|
|
|
1,411,300
|
|
|
115,700
|
|
|
367,300
|
|
|
-
|
|
|
483,000
|
|
|
502,800
|
|
|
425,500
|
Ireland
|
|
852,300
|
|
|
807,500
|
|
|
454,700
|
|
|
1,020,700
|
|
|
29,700
|
|
|
275,100
|
|
|
-
|
|
|
304,800
|
|
|
363,500
|
|
|
352,400
|
Total Western Europe
|
|
33,972,800
|
|
|
33,787,800
|
|
|
16,998,900
|
|
|
35,694,900
|
|
|
5,829,400
|
|
|
8,362,400
|
|
|
-
|
|
|
14,191,800
|
|
|
11,460,100
|
|
|
10,043,000
|
Poland
|
|
3,157,600
|
|
|
3,094,900
|
|
|
1,439,200
|
|
|
2,954,100
|
|
|
209,600
|
|
|
1,004,900
|
|
|
-
|
|
|
1,214,500
|
|
|
1,105,100
|
|
|
634,500
|
Hungary
|
|
1,731,400
|
|
|
1,713,900
|
|
|
1,112,700
|
|
|
2,167,300
|
|
|
131,200
|
|
|
532,200
|
|
|
292,000
|
|
|
955,400
|
|
|
632,100
|
|
|
579,800
|
Romania
|
|
2,887,700
|
|
|
2,838,400
|
|
|
1,296,000
|
|
|
2,273,600
|
|
|
263,400
|
|
|
640,400
|
|
|
363,500
|
|
|
1,267,300
|
|
|
535,400
|
|
|
470,900
|
Czech Republic
|
|
1,480,000
|
|
|
1,446,700
|
|
|
714,000
|
|
|
1,233,000
|
|
|
143,400
|
|
|
354,800
|
|
|
111,500
|
|
|
609,700
|
|
|
473,900
|
|
|
149,400
|
Slovakia
|
|
587,800
|
|
|
564,800
|
|
|
274,500
|
|
|
458,400
|
|
|
28,500
|
|
|
143,800
|
|
|
72,800
|
|
|
245,100
|
|
|
128,000
|
|
|
85,300
|
Total CEE
|
|
9,844,500
|
|
|
9,658,700
|
|
|
4,836,400
|
|
|
9,086,400
|
|
|
776,100
|
|
|
2,676,100
|
|
|
839,800
|
|
|
4,292,000
|
|
|
2,874,500
|
|
|
1,919,900
|
Total Liberty Global Group
|
|
43,817,300
|
|
|
43,446,500
|
|
|
21,835,300
|
|
|
44,781,300
|
|
|
6,605,500
|
|
|
11,038,500
|
|
|
839,800
|
|
|
18,483,800
|
|
|
14,334,600
|
|
|
11,962,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
3,216,600
|
|
|
2,710,500
|
|
|
1,328,900
|
|
|
2,795,500
|
|
|
79,500
|
|
|
967,800
|
|
|
-
|
|
|
1,047,300
|
|
|
1,091,200
|
|
|
657,000
|
CWC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Panama
|
|
527,800
|
|
|
416,300
|
|
|
336,000
|
|
|
453,400
|
|
|
-
|
|
|
42,800
|
|
|
39,700
|
|
|
82,500
|
|
|
95,700
|
|
|
275,200
|
Jamaica
|
|
424,300
|
|
|
424,300
|
|
|
295,900
|
|
|
496,000
|
|
|
-
|
|
|
102,500
|
|
|
-
|
|
|
102,500
|
|
|
172,300
|
|
|
221,200
|
Trinidad & Tobago
|
|
310,500
|
|
|
310,500
|
|
|
166,400
|
|
|
271,400
|
|
|
-
|
|
|
117,200
|
|
|
-
|
|
|
117,200
|
|
|
123,500
|
|
|
30,700
|
Barbados
|
|
121,800
|
|
|
121,800
|
|
|
92,200
|
|
|
162,500
|
|
|
-
|
|
|
18,400
|
|
|
-
|
|
|
18,400
|
|
|
62,500
|
|
|
81,600
|
Bahamas
|
|
155,000
|
|
|
155,000
|
|
|
55,200
|
|
|
83,100
|
|
|
-
|
|
|
1,600
|
|
|
-
|
|
|
1,600
|
|
|
26,400
|
|
|
55,100
|
Other
|
|
354,300
|
|
|
334,500
|
|
|
211,800
|
|
|
317,400
|
|
|
10,100
|
|
|
73,400
|
|
|
-
|
|
|
83,500
|
|
|
122,300
|
|
|
111,600
|
Total CWC
|
|
1,893,700
|
|
|
1,762,400
|
|
|
1,157,500
|
|
|
1,783,800
|
|
|
10,100
|
|
|
355,900
|
|
|
39,700
|
|
|
405,700
|
|
|
602,700
|
|
|
775,400
|
Puerto Rico
|
|
1,092,300
|
|
|
1,092,300
|
|
|
403,700
|
|
|
799,100
|
|
|
-
|
|
|
261,300
|
|
|
-
|
|
|
261,300
|
|
|
329,000
|
|
|
208,800
|
Total LiLAC Group
|
|
6,202,600
|
|
|
5,565,200
|
|
|
2,890,100
|
|
|
5,378,400
|
|
|
89,600
|
|
|
1,585,000
|
|
|
39,700
|
|
|
1,714,300
|
|
|
2,022,900
|
|
|
1,641,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
50,019,900
|
|
|
49,011,700
|
|
|
24,725,400
|
|
|
50,159,700
|
|
|
6,695,100
|
|
|
12,623,500
|
|
|
879,500
|
|
|
20,198,100
|
|
|
16,357,500
|
|
|
13,604,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscriber Variance Table - December 31, 2016 vs September 30,
2016
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
Homes Passed(1)
|
|
Two-way Homes Passed(2)
|
|
Customer Relationships(3)
|
|
Total RGUs(4)
|
|
Basic Video Subscribers(5)
|
|
Enhanced Video Subscribers(6)
|
|
DTH Subscribers(7)
|
|
Total Video
|
|
Internet Subscribers(8)
|
|
Telephony Subscribers(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
455,700
|
|
|
458,300
|
|
|
34,100
|
|
|
35,700
|
|
|
-
|
|
|
5,600
|
|
|
-
|
|
|
5,600
|
|
|
48,800
|
|
|
(18,700
|
)
|
Germany
|
|
15,800
|
|
|
81,900
|
|
|
5,200
|
|
|
98,000
|
|
|
(42,900
|
)
|
|
18,500
|
|
|
-
|
|
|
(24,400
|
)
|
|
62,100
|
|
|
60,300
|
|
The Netherlands
|
|
(7,070,000
|
)
|
|
(7,056,200
|
)
|
|
(4,013,100
|
)
|
|
(9,649,300
|
)
|
|
(703,500
|
)
|
|
(3,289,000
|
)
|
|
-
|
|
|
(3,992,500
|
)
|
|
(3,132,700
|
)
|
|
(2,524,100
|
)
|
Belgium
|
|
13,900
|
|
|
13,900
|
|
|
(7,000
|
)
|
|
700
|
|
|
(13,000
|
)
|
|
1,900
|
|
|
-
|
|
|
(11,100
|
)
|
|
7,400
|
|
|
4,400
|
|
Switzerland(10)
|
|
9,900
|
|
|
9,900
|
|
|
4,900
|
|
|
28,400
|
|
|
(7,700
|
)
|
|
14,800
|
|
|
-
|
|
|
7,100
|
|
|
5,200
|
|
|
16,100
|
|
Austria
|
|
5,600
|
|
|
5,600
|
|
|
1,200
|
|
|
9,300
|
|
|
(4,700
|
)
|
|
(1,000
|
)
|
|
-
|
|
|
(5,700
|
)
|
|
4,800
|
|
|
10,200
|
|
Ireland
|
|
10,200
|
|
|
14,900
|
|
|
(3,000
|
)
|
|
(7,500
|
)
|
|
1,000
|
|
|
(8,400
|
)
|
|
-
|
|
|
(7,400
|
)
|
|
(300
|
)
|
|
200
|
|
Total Western Europe
|
|
(6,558,900
|
)
|
|
(6,471,700
|
)
|
|
(3,977,700
|
)
|
|
(9,484,700
|
)
|
|
(770,800
|
)
|
|
(3,257,600
|
)
|
|
-
|
|
|
(4,028,400
|
)
|
|
(3,004,700
|
)
|
|
(2,451,600
|
)
|
Poland
|
|
62,400
|
|
|
63,500
|
|
|
9,500
|
|
|
29,100
|
|
|
(7,200
|
)
|
|
14,600
|
|
|
-
|
|
|
7,400
|
|
|
19,000
|
|
|
2,700
|
|
Hungary
|
|
39,200
|
|
|
39,200
|
|
|
400
|
|
|
20,500
|
|
|
(10,200
|
)
|
|
12,900
|
|
|
(3,400
|
)
|
|
(700
|
)
|
|
11,600
|
|
|
9,600
|
|
Romania
|
|
76,300
|
|
|
86,000
|
|
|
36,600
|
|
|
47,800
|
|
|
(8,700
|
)
|
|
10,800
|
|
|
14,000
|
|
|
16,100
|
|
|
10,500
|
|
|
21,200
|
|
Czech Republic
|
|
34,900
|
|
|
34,900
|
|
|
4,200
|
|
|
15,100
|
|
|
9,300
|
|
|
1,800
|
|
|
(2,100
|
)
|
|
9,000
|
|
|
8,200
|
|
|
(2,100
|
)
|
Slovakia
|
|
28,000
|
|
|
29,100
|
|
|
3,900
|
|
|
10,400
|
|
|
(1,600
|
)
|
|
1,400
|
|
|
3,600
|
|
|
3,400
|
|
|
2,100
|
|
|
4,900
|
|
Total CEE
|
|
240,800
|
|
|
252,700
|
|
|
54,600
|
|
|
122,900
|
|
|
(18,400
|
)
|
|
41,500
|
|
|
12,100
|
|
|
35,200
|
|
|
51,400
|
|
|
36,300
|
|
Total Liberty Global Group
|
|
(6,318,100
|
)
|
|
(6,219,000
|
)
|
|
(3,923,100
|
)
|
|
(9,361,800
|
)
|
|
(789,200
|
)
|
|
(3,216,100
|
)
|
|
12,100
|
|
|
(3,993,200
|
)
|
|
(2,953,300
|
)
|
|
(2,415,300
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
18,200
|
|
|
21,200
|
|
|
11,100
|
|
|
10,300
|
|
|
(2,900
|
)
|
|
5,400
|
|
|
-
|
|
|
2,500
|
|
|
14,400
|
|
|
(6,600
|
)
|
CWC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Panama
|
|
112,100
|
|
|
176,100
|
|
|
(60,100
|
)
|
|
(67,200
|
)
|
|
-
|
|
|
(8,200
|
)
|
|
(3,800
|
)
|
|
(12,000
|
)
|
|
(28,900
|
)
|
|
(26,300
|
)
|
Jamaica
|
|
(45,500
|
)
|
|
(35,500
|
)
|
|
(5,200
|
)
|
|
(1,000
|
)
|
|
-
|
|
|
(3,000
|
)
|
|
-
|
|
|
(3,000
|
)
|
|
(900
|
)
|
|
2,900
|
|
Trinidad & Tobago
|
|
-
|
|
|
-
|
|
|
(3,100
|
)
|
|
(700
|
)
|
|
-
|
|
|
(4,400
|
)
|
|
-
|
|
|
(4,400
|
)
|
|
100
|
|
|
3,600
|
|
Barbados
|
|
-
|
|
|
-
|
|
|
(2,300
|
)
|
|
(7,400
|
)
|
|
-
|
|
|
(1,500
|
)
|
|
-
|
|
|
(1,500
|
)
|
|
(3,600
|
)
|
|
(2,300
|
)
|
Bahamas
|
|
-
|
|
|
-
|
|
|
200
|
|
|
2,300
|
|
|
-
|
|
|
700
|
|
|
-
|
|
|
700
|
|
|
1,500
|
|
|
100
|
|
Other
|
|
-
|
|
|
-
|
|
|
(700
|
)
|
|
(800
|
)
|
|
(2,000
|
)
|
|
(400
|
)
|
|
-
|
|
|
(2,400
|
)
|
|
2,800
|
|
|
(1,200
|
)
|
Total CWC
|
|
66,600
|
|
|
140,600
|
|
|
(71,200
|
)
|
|
(74,800
|
)
|
|
(2,000
|
)
|
|
(16,800
|
)
|
|
(3,800
|
)
|
|
(22,600
|
)
|
|
(29,000
|
)
|
|
(23,200
|
)
|
Puerto Rico
|
|
6,500
|
|
|
6,500
|
|
|
5,800
|
|
|
9,900
|
|
|
-
|
|
|
700
|
|
|
-
|
|
|
700
|
|
|
5,600
|
|
|
3,600
|
|
Total LiLAC Group
|
|
91,300
|
|
|
168,300
|
|
|
(54,300
|
)
|
|
(54,600
|
)
|
|
(4,900
|
)
|
|
(10,700
|
)
|
|
(3,800
|
)
|
|
(19,400
|
)
|
|
(9,000
|
)
|
|
(26,200
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
(6,226,800
|
)
|
|
(6,050,700
|
)
|
|
(3,977,400
|
)
|
|
(9,416,400
|
)
|
|
(794,100
|
)
|
|
(3,226,800
|
)
|
|
8,300
|
|
|
(4,012,600
|
)
|
|
(2,962,300
|
)
|
|
(2,441,500
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscriber Variance Table - December 31, 2016 vs September 30,
2016
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
Homes Passed(1)
|
|
Two-way Homes Passed(2)
|
|
Customer Relationships(3)
|
|
Total RGUs(4)
|
|
Basic Video Subscribers(5)
|
|
Enhanced Video Subscribers(6)
|
|
DTH Subscribers(7)
|
|
Total Video
|
|
Internet Subscribers(8)
|
|
Telephony Subscribers(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Change Summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
|
|
193,900
|
|
|
196,500
|
|
|
34,100
|
|
|
35,700
|
|
|
-
|
|
|
5,600
|
|
|
-
|
|
|
5,600
|
|
|
48,800
|
|
|
(18,700
|
)
|
Germany
|
|
22,100
|
|
|
86,800
|
|
|
5,200
|
|
|
98,000
|
|
|
(42,900
|
)
|
|
18,500
|
|
|
-
|
|
|
(24,400
|
)
|
|
62,100
|
|
|
60,300
|
|
The Netherlands
|
|
19,500
|
|
|
21,900
|
|
|
(24,000
|
)
|
|
51,100
|
|
|
(34,300
|
)
|
|
17,400
|
|
|
-
|
|
|
(16,900
|
)
|
|
55,800
|
|
|
12,200
|
|
Belgium
|
|
13,900
|
|
|
13,900
|
|
|
(7,000
|
)
|
|
700
|
|
|
(13,000
|
)
|
|
1,900
|
|
|
-
|
|
|
(11,100
|
)
|
|
7,400
|
|
|
4,400
|
|
Other Europe
|
|
251,500
|
|
|
268,100
|
|
|
37,200
|
|
|
138,200
|
|
|
(34,500
|
)
|
|
44,800
|
|
|
12,100
|
|
|
22,400
|
|
|
56,500
|
|
|
59,300
|
|
Total Liberty Global Group
|
|
500,900
|
|
|
587,200
|
|
|
45,500
|
|
|
323,700
|
|
|
(124,700
|
)
|
|
88,200
|
|
|
12,100
|
|
|
(24,400
|
)
|
|
230,600
|
|
|
117,500
|
|
Chile
|
|
18,200
|
|
|
21,200
|
|
|
11,100
|
|
|
10,300
|
|
|
(2,900
|
)
|
|
5,400
|
|
|
-
|
|
|
2,500
|
|
|
14,400
|
|
|
(6,600
|
)
|
CWC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Panama
|
|
-
|
|
|
64,000
|
|
|
(42,400
|
)
|
|
(12,800
|
)
|
|
-
|
|
|
5,000
|
|
|
(3,800
|
)
|
|
1,200
|
|
|
(5,400
|
)
|
|
(8,600
|
)
|
Jamaica
|
|
-
|
|
|
-
|
|
|
(5,200
|
)
|
|
(1,000
|
)
|
|
-
|
|
|
(3,000
|
)
|
|
-
|
|
|
(3,000
|
)
|
|
(900
|
)
|
|
2,900
|
|
Trinidad & Tobago
|
|
-
|
|
|
-
|
|
|
(3,100
|
)
|
|
(700
|
)
|
|
-
|
|
|
(4,400
|
)
|
|
-
|
|
|
(4,400
|
)
|
|
100
|
|
|
3,600
|
|
Barbados
|
|
-
|
|
|
-
|
|
|
(2,300
|
)
|
|
(7,400
|
)
|
|
-
|
|
|
(1,500
|
)
|
|
-
|
|
|
(1,500
|
)
|
|
(3,600
|
)
|
|
(2,300
|
)
|
Bahamas
|
|
-
|
|
|
-
|
|
|
200
|
|
|
2,300
|
|
|
-
|
|
|
700
|
|
|
-
|
|
|
700
|
|
|
1,500
|
|
|
100
|
|
Other
|
|
-
|
|
|
-
|
|
|
(700
|
)
|
|
(800
|
)
|
|
(2,000
|
)
|
|
(400
|
)
|
|
-
|
|
|
(2,400
|
)
|
|
2,800
|
|
|
(1,200
|
)
|
Total CWC
|
|
-
|
|
|
64,000
|
|
|
(53,500
|
)
|
|
(20,400
|
)
|
|
(2,000
|
)
|
|
(3,600
|
)
|
|
(3,800
|
)
|
|
(9,400
|
)
|
|
(5,500
|
)
|
|
(5,500
|
)
|
Puerto Rico
|
|
6,500
|
|
|
6,500
|
|
|
5,800
|
|
|
9,900
|
|
|
-
|
|
|
700
|
|
|
-
|
|
|
700
|
|
|
5,600
|
|
|
3,600
|
|
Total LiLAC Group
|
|
24,700
|
|
|
91,700
|
|
|
(36,600
|
)
|
|
(200
|
)
|
|
(4,900
|
)
|
|
2,500
|
|
|
(3,800
|
)
|
|
(6,200
|
)
|
|
14,500
|
|
|
(8,500
|
)
|
Total Organic Change
|
|
525,600
|
|
|
678,900
|
|
|
8,900
|
|
|
323,500
|
|
|
(129,600
|
)
|
|
90,700
|
|
|
8,300
|
|
|
(30,600
|
)
|
|
245,100
|
|
|
109,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2016 Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2016 UK adjustments
|
|
261,800
|
|
|
261,800
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Q4 2016 Germany adjustments
|
|
(6,300
|
)
|
|
(4,900
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Q4 2016 Disposition - Netherlands
|
|
(7,089,500
|
)
|
|
(7,078,100
|
)
|
|
(3,978,600
|
)
|
|
(9,689,900
|
)
|
|
(637,400
|
)
|
|
(3,338,000
|
)
|
|
-
|
|
|
(3,975,400
|
)
|
|
(3,178,200
|
)
|
|
(2,536,300
|
)
|
Q4 2016 Netherlands adjustments
|
|
-
|
|
|
-
|
|
|
(10,500
|
)
|
|
(10,500
|
)
|
|
(31,800
|
)
|
|
31,600
|
|
|
-
|
|
|
(200
|
)
|
|
(10,300
|
)
|
|
-
|
|
Q4 2016 Switzerland adjustments
|
|
-
|
|
|
-
|
|
|
-
|
|
|
12,700
|
|
|
3,000
|
|
|
2,100
|
|
|
-
|
|
|
5,100
|
|
|
4,100
|
|
|
3,500
|
|
Q4 2016 Acquisition - Hungary
|
|
12,900
|
|
|
12,900
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Q4 2016 Acquisition - Romania
|
|
2,100
|
|
|
2,100
|
|
|
1,800
|
|
|
2,200
|
|
|
1,700
|
|
|
-
|
|
|
-
|
|
|
1,700
|
|
|
500
|
|
|
-
|
|
Q4 2016 Romania adjustments
|
|
-
|
|
|
-
|
|
|
18,700
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Q4 2016 Panama adjustments
|
|
112,100
|
|
|
112,100
|
|
|
(17,700
|
)
|
|
(54,400
|
)
|
|
-
|
|
|
(13,200
|
)
|
|
-
|
|
|
(13,200
|
)
|
|
(23,500
|
)
|
|
(17,700
|
)
|
Q4 2016 Jamaica adjustments
|
|
(45,500
|
)
|
|
(35,500
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Net Adjustments
|
|
(6,752,400
|
)
|
|
(6,729,600
|
)
|
|
(3,986,300
|
)
|
|
(9,739,900
|
)
|
|
(664,500
|
)
|
|
(3,317,500
|
)
|
|
-
|
|
|
(3,982,000
|
)
|
|
(3,207,400
|
)
|
|
(2,550,500
|
)
|
Net Adds (Reductions)
|
|
(6,226,800
|
)
|
|
(6,050,700
|
)
|
|
(3,977,400
|
)
|
|
(9,416,400
|
)
|
|
(794,100
|
)
|
|
(3,226,800
|
)
|
|
8,300
|
|
|
(4,012,600
|
)
|
|
(2,962,300
|
)
|
|
(2,441,500
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes for Operating Data and Subscriber Variance Tables
|
|
(1)
|
|
Homes Passed are homes, residential multiple dwelling units or
commercial units that can be connected to our networks without
materially extending the distribution plant, except for DTH homes.
Our Homes Passed counts are based on census data that can change
based on either revisions to the data or from new census results. We
do not count homes passed for DTH. Due to the fact that we do not
own the partner networks (defined below) used in Switzerland (see
note 10) we do not report homes passed for Switzerland's partner
networks.
|
(2)
|
|
Two-way Homes Passed are Homes Passed by those sections of our
networks that are technologically capable of providing two-way
services, including video, internet and telephony services.
|
(3)
|
|
Customer Relationships are the number of customers who receive at
least one of our video, internet or telephony services that we
count as Revenue Generating Units ("RGUs"), without regard to
which or to how many services they subscribe. To the extent that
RGU counts include equivalent billing unit ("EBU") adjustments, we
reflect corresponding adjustments to our Customer Relationship
counts. For further information regarding our EBU calculation, see Additional
General Notes to Tables. Customer Relationships generally are
counted on a unique premises basis. Accordingly, if an individual
receives our services in two premises (e.g., a primary home and a
vacation home), that individual generally will count as two
Customer Relationships. We exclude mobile-only customers from
Customer Relationships.
|
(4)
|
|
RGU is separately a Basic Video Subscriber, Enhanced Video
Subscriber, DTH Subscriber, Internet Subscriber or Telephony
Subscriber (each as defined and described below). A home,
residential multiple dwelling unit, or commercial unit may contain
one or more RGUs. For example, if a residential customer in our
Austrian 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, 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, 2016 RGU counts exclude our
separately reported postpaid and prepaid mobile subscribers.
|
(5)
|
|
Basic Video Subscriber is 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. In Europe, we
have approximately 164,900 "lifeline" customers that are counted on
a per connection basis, representing the least expensive regulated
tier of video cable service, with only a few channels.
|
(6)
|
|
Enhanced Video Subscriber is 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. Subscribers to enhanced video services
provided by our operations in Switzerland over partner networks
receive basic video services from the partner networks as opposed to
our operations.
|
(7)
|
|
DTH Subscriber is a home, residential multiple dwelling unit or
commercial unit that receives our video programming broadcast
directly via a geosynchronous satellite.
|
(8)
|
|
Internet Subscriber is a home, residential multiple dwelling unit or
commercial unit that receives internet services over our networks,
or that we service through a partner network. Our Internet
Subscribers exclude 45,700 and 45,600 digital subscriber line
("DSL") subscribers within Belgium and Austria, respectively, who
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 97,400 subscribers who
have requested and received this service.
|
(9)
|
|
Telephony Subscriber is a home, residential multiple dwelling unit
or commercial unit that receives voice services over our networks,
or that we service through a partner network. Telephony Subscribers
exclude mobile telephony subscribers. Our Telephony Subscribers
exclude 34,900 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
88,900 subscribers who have requested and received this service.
|
(10)
|
|
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, 2016, Switzerland's partner
networks account for 138,600 Customer Relationships, 290,900 RGUs,
106,300 Enhanced Video Subscribers, 108,500 Internet Subscribers,
and 76,100 Telephony Subscribers.
|
|
|
|
Additional General Notes to Tables:
As a result of our decision to discontinue our Multi-channel Multipoint
Distribution System ("MMDS") service in Ireland, we have excluded
subscribers to our MMDS service from our externally reported operating
statistics effective January 1, 2016, which resulted in a reduction to
Homes Passed, RGUs, and Customer Relationships in Ireland and Slovakia
of 22,000 and 500, respectively.
Most of our broadband communications subsidiaries provide telephony,
broadband internet, data, video or other B2B services. Certain of our
B2B revenue is derived from small or home office ("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." SOHO customers of CWC
are not included in our respective RGU and customer counts as of
December 31, 2016. 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.
Certain of our residential and commercial RGUs are counted on an EBU
basis, including residential multiple dwelling units and commercial
establishments, such as bars, hotels and hospitals, in Chile and Puerto
Rico and certain commercial and residential multiple dwelling units in
Europe (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. 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, including CWC, 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170215006338/en/
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