| Press Release | Source:
UPC Holding B.V. |
UPC Holding B.V. Provides Selected Financial Information for the Period Ended September 30, 2009
Thursday November 5, 12:02 am ET
AMSTERDAM--(BUSINESS WIRE)--UPC Holding B.V. (“UPC Holding”) is today providing selected,
preliminary unaudited financial and operating information for the three
and nine months ended September 30, 2009. UPC Holding is an indirect
wholly-owned subsidiary of Liberty Global, Inc. (“Liberty Global”)
(NASDAQ: LBTYA - News) (NASDAQ: LBTYB - News) and (NASDAQ: LBTYK - News). A copy of this press
release will be posted to the Liberty Global website ( www.lgi.com).
In addition, UPC Holding’s unaudited condensed consolidated financial
statements with the accompanying notes are expected to be posted prior
to the end of November 2009. Highlights for the third quarter (“Q”) ended September 30, 2009 as
compared to the results for the same period last year (unless noted)
include:1
-
Organic RGU2 additions of 59,000 during the quarter, an
increase of 84% over Q2 2009
-
Reported revenue of €862 million and operating cash flow (“OCF”)3
of €421 million
-
Rebased4 growth of 1% on revenue and 4% on OCF
-
OCF margin5 of 48.8%, representing a 140 basis point
improvement
-
Operating income of €149 million, a 7% increase
Financial Results On a reported basis, we generated revenue of €862 million and €2.57
billion for the three and nine months ended September 30, 2009,
respectively, reflecting a 1% decrease for both periods as compared to
the respective 2008 periods. For both the three and nine month 2009
periods, our revenue was adversely impacted by the effects of foreign
currency (“FX”) movements, depressing our reported growth rates by
approximately three percentage points. Adjusting for both the effects of
FX and acquisitions, we delivered 1% and 2% rebased revenue growth for
the three and nine months ended September 30, 2009, as compared to the
respective prior year periods. With respect to quarterly rebased revenue growth, our UPC Broadband
Division (“UPC”) achieved rebased growth in the third quarter that
exceeded the comparable growth rate in the second quarter. Our results
continue to be impacted by our Austrian and Hungarian operations.
However, our Romanian operation reported positive revenue growth for the
first time in two years. Similar to recent quarters, we are generating
revenue growth from our advanced services,6 which is being
partially offset by the effects associated with continued ARPU7
compression, analog churn, and declines in our business-to-business and
interconnect revenues. We continue to upsell high-ARPU advanced services
to our customer base, enabling us to generate year-over-year ARPU per
customer increases of 4% for UPC and 3% for VTR in local currency terms. For the three and nine months ended September 30, 2009, our OCF
increased to €421 million and €1.22 billion, respectively, each
reflecting 2% growth over the respective prior year periods. For the
same comparative periods, we realized rebased OCF growth of 4% and 5%
for the three and nine months ended September 30, 2009, respectively. In
the third quarter, our rebased results were supported by continued
double-digit growth from our Polish operation and the strongest rebased
growth quarters of the year from our Chilean and Romanian operations.
Based upon our year-to-date performance and outlook for Q4, we would
expect that our rebased OCF growth in the fourth quarter would be lower
than the previous three quarters, reflecting in part more
difficult year-over-year Q4 comparisons in some markets. Our consolidated OCF margins were 48.8% and 47.4% for the three and nine
months ended September 30, 2009, respectively, reflecting 140 basis
point improvements over the corresponding prior year periods. Our
operating expenses and selling, general and administrative costs have
contributed to our margin improvement, as they are lower as a percentage
of revenue in both 2009 periods versus the three and nine months ended
September 30, 2008. With respect to our third quarter results, UPC and
VTR attained their highest OCF margins of 2009 at 50.1% and 41.5%,
respectively, representing 150 and 140 basis point increases,
respectively, over the comparable OCF margins in Q3 2008. Our
improvement at UPC was driven largely by our Western European markets,
particularly Switzerland and the Netherlands. Subscriber Statistics Our base of 15.8 million RGUs consists of 9.4 million video, 3.8 million
broadband internet and 2.6 million telephony subscribers at September
30, 2009. We have increased our RGUs by 313,000 or 2% since September
30, 2008, driven primarily by organic growth. Over this same timeframe,
we have added more than 330,000 multi-play customers, growing our
bundled customer base by 10% as compared to the third quarter ended
September 30, 2008. As a result, 37% of our 10.2 million customers now
subscribe to two or more products. In the third quarter, we added 59,000 organic RGUs, consisting of 35,000
Chilean and 24,000 European organic additions. Our total organic
additions reflect an increase of 84% above our second quarter 2009
organic additions, entirely as a result of our European performance. Our
European markets, which are typically adversely impacted by the summer
holiday season, had a strong third quarter, improving from an organic
loss in Q2 2009 of 11,000 RGUs to an organic gain of 24,000 RGUs in Q3
2009. Our third quarter organic additions included broadband internet and
telephony additions of 75,000 and 53,000 RGUs, respectively, and video
losses of 69,000 RGUs. Organic broadband internet additions were 17%
higher than Q2 2009, and in-line with the 75,000 organic additions
gained in Q3 2008. In the third quarter, the Netherlands and Ireland
added 15,000 and 13,000 broadband internet subscribers, respectively,
representing improvements both sequentially and year-over-year.
Furthermore, the Netherlands reported its best broadband internet
quarter since 2007, reflecting early success with its “Fiber Power”
products. We currently have next-generation broadband internet services
in seven of nine UPC markets, four of which launched in September
(Switzerland, Czech Republic, Slovakia, and Poland). Over 60% of UPC’s
two-way footprint is now capable of supporting speeds of 100+ Mbps and
we estimate that we are marketing to approximately 80% of this footprint. Our third quarter organic video loss compares favorably to Q1 2009 and
Q2 2009, as it was better by 13,000 and 29,000 subscribers,
respectively. This result was aided by VTR’s highest organic gain in
2009 and improved quarterly churn in the Netherlands, as evidenced by
their lowest video loss of the year. At September 30, 2009, our 9.4
million video subscribers consisted of 5.9 million analog (including
MMDS), 3.0 million digital cable, and 483,000 DTH RGUs. In the last
twelve months, digital cable subscribers have grown by 47% or 970,000,
resulting in consolidated digital cable penetration8 of 34%. For the three and nine months ended September 30, 2009, we added 180,000
and 679,000 digital cable RGUs, respectively, on an organic basis. The
latter represented an increase of 16% over the nine months ended
September 30, 2008. As compared to the corresponding prior year period,
our digital cable growth improvement on a year-to-date basis was led by
our Central and Eastern European (“CEE”) operations, which grew by 37%,
and VTR, which grew by 34%. Within our digital subscriber base, the
digital video recorder (“DVR”) continues to appeal to our customers. At
UPC, we have added over 400,000 DVR cable RGUs in the last twelve
months, an increase of approximately 88% since September 30, 2008. We
believe our digital video growth opportunity remains substantial,
particularly at UPC, given its digital penetration of 31% and analog
video base of 5.5 million subscribers. Summary of Third-Party Debt and Cash and Cash Equivalents The following table details UPC Holding’s consolidated third-party debt
and cash and cash equivalents as of the indicated periods:
|
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September 30,
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June 30,
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|
|
|
|
|
|
|
|
|
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2009
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|
|
2009
|
|
|
|
|
in millions
|
|
UPC Broadband Holding Bank Facility
|
|
€
|
6,182.9
|
|
€
|
6,209.0
|
|
UPC Holding 7.75% Senior Notes due 2014
|
|
|
384.6
|
|
|
384.6
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|
UPC Holding 8.63% Senior Notes due 2014
|
|
|
230.9
|
|
|
230.9
|
|
UPC Holding 8.00% Senior Notes due 2016
|
|
|
300.0
|
|
|
300.0
|
|
UPC Holding 9.75% Senior Notes due 2018
|
|
|
373.5
|
|
|
373.2
|
|
UPC Holding 9.875% Senior Notes due 2018
|
|
|
253.0
|
|
|
263.4
|
|
VTR Bank Facility9
|
|
|
314.7
|
|
|
331.3
|
|
Other debt, including capital lease obligations
|
|
|
30.0
|
|
|
29.5
|
|
Total third-party debt
|
|
€
|
8,069.6
|
|
€
|
8,121.9
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
€
|
79.4
|
|
€
|
124.7
|
|
Restricted cash10
|
|
|
316.7
|
|
|
333.4
|
|
Total cash and cash equivalents including restricted cash
|
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€
|
396.1
|
|
€
|
458.1
|
At September 30, 2009, we reported €8.1 billion of third-party debt and
€396 million of cash and cash equivalents, including restricted cash of
€317 million. As compared to June 30, 2009, our third-party debt
decreased by €52 million, due largely to the translation impact
associated with our U.S. dollar-denominated debt, as a result of the
euro strengthening relative to the U.S. dollar during the third quarter.
This was partially offset by incremental borrowings under the bank
facility during the quarter. As of September 30, 2009, we had minimal
near-term amortizations, with over 99% of our consolidated debt maturing
in 2013 and beyond. Subsequent to the second quarter, we completed several transactions
involving our bank facility. In September, we rolled €70 million of our
redrawable Facility L commitments due 2012 into €35 million of Facility
Q due 2014 and €35 million of Facility T due 2016. During September and
October, we also increased the committed amounts under Facility T by
€222 million ($325 million) through the addition of a $25 million (€17
million) tranche issued at par and a $300 million (€205 million) tranche
issued at a discount. We received net proceeds after discounts of €157
million ($229 million) as of September 30, 2009 and will receive the
remaining €57 million ($84 million) in the fourth quarter. After
completion of the foregoing transactions, total third-party commitments
under Facility T were $876 million (€598 million). Borrowing Capacity & Covenant Calculations As of September 30, 2009, UPC Holding had maximum undrawn commitments
under Facilities I, L, Q and T of the UPC Broadband Holding Bank
Facility of €456 million, of which we estimate €318 million will be
available to borrow upon completion of our third quarter bank reporting
requirements. Based on the results for September 30, 2009 and subject to
the completion of third quarter bank reporting requirements, (i) the
ratio of Senior Debt to Annualized EBITDA (last two quarters
annualized), as defined and calculated in accordance with the UPC
Broadband Holding Bank Facility, was 3.81x,11 and (ii) the
ratio of Total Debt to Annualized EBITDA (last two quarters annualized),
as defined and calculated in accordance with the UPC Broadband Holding
Bank Facility was 4.78x.11 UPC Broadband Holding Bank Facility The following table details the key terms of the UPC Broadband Holding
Bank Facility at September 30, 2009:
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As of September 30, 2009
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Facility
|
Final
maturity
|
|
Interest
rate
|
|
|
Facility
amount12
|
|
|
Unused
borrowing
capacity
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|
Carrying
value13
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|
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in millions
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|
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|
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Facility I
|
April 1, 2010
|
|
E + 2.50%
|
|
€
|
48
|
|
€
|
48
|
|
€
|
—
|
|
Facility L
|
July 3, 2012
|
|
E + 2.25%
|
|
€
|
160
|
|
|
160
|
|
|
—
|
|
Facility M
|
Dec. 31, 201414
|
|
E + 2.00%
|
|
€
|
954
|
|
|
—
|
|
|
954
|
|
Facility N
|
Dec. 31, 201414
|
|
L + 1.75%
|
|
$
|
|
1,400
|
|
|
—
|
|
|
956
|
|
Facility O
|
July 31, 2013
|
|
SR + 2.75%15
|
|
|
HUF 5,963 / PLN 115
|
|
|
—
|
|
|
50
|
|
Facility P
|
Sept. 2, 2013
|
|
L + 2.75%
|
|
$
|
|
512
|
|
|
—
|
|
|
349
|
|
Facility Q
|
July 31, 201416
|
|
E + 2.75%
|
|
€
|
372
|
|
|
230
|
|
|
142
|
|
Facility R
|
Dec. 31, 201516
|
|
E + 3.25%
|
|
€
|
263
|
|
|
—
|
|
|
263
|
|
Facility S
|
Dec. 31, 201617
|
|
E + 3.75%
|
|
€
|
1,700
|
|
|
—
|
|
|
1,700
|
|
Facility T
|
Dec. 31, 201617
|
|
L + 3.50%
|
|
$
|
|
816
|
|
|
18
|
|
|
533
|
|
Facility U
|
Dec. 31, 201718
|
|
E + 4.00%
|
|
€
|
1,236
|
|
|
—
|
|
|
1,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
€
|
456
|
|
€
|
6,183
|
Disposition of UPC Slovenia On July 15, 2009, one of our subsidiaries sold 100% of its interest in
UPC Slovenia to Mid Europa Partners for a cash purchase price of €119.5
million, before working capital adjustments. About UPC Holding UPC Holding connects its customers to the world of entertainment,
communications and information, by offering advanced video, voice and
broadband internet services. As of September 30, 2009, UPC Holding
operated state-of-the-art networks in Europe and Chile, serving 10
million customers in 10 countries. Disclaimer This press release contains forward-looking statements, including our
expectations with respect to our 2009 outlook, including our rebased
operating cash flow growth in the fourth quarter, our future growth
prospects, and our liquidity and access to capital markets, including
our borrowing availability; the timing and impact of our roll-out of
advanced products and services, including the success of our EuroDOCSIS
3.0 deployment and our digital cable growth opportunity; our insight and
expectations regarding competitive and economic factors in our markets;
the impact of our M&A activity on our operations and financial
performance; 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 UPC Holding's services and their willingness to upgrade
to our more advanced offerings, our ability to meet challenges from
competition and economic factors, the continued growth in services for
digital television at a reasonable cost, the effects of changes in
technology and regulation, our ability to achieve expected operational
efficiencies and economies of scale, our ability to generate expected
revenue and operating cash flow, control capital expenditures as
measured by a percentage of revenue and achieve assumed margins, the
impact of our future financial performance, or market conditions
generally, on the availability, terms and deployment of capital, as well
as other factors detailed from time to time in Liberty Global's filings
with the Securities and Exchange Commission including Liberty Global’s
most recently filed Forms 10-K and 10-Q. These forward-looking
statements speak only as of the date of this release. UPC Holding
expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statement contained herein
to reflect any change in UPC Holding's expectations with regard thereto
or any change in events, conditions or circumstances on which any such
statement is based. UPC Holding is required under the terms of the indentures for its Senior
Notes to provide certain financial information regarding UPC Holding to
bondholders on a quarterly basis. UPC Broadband Holding B.V. (“UPC
Broadband Holding”), a wholly-owned subsidiary of UPC Holding, is a
borrower and UPC Holding is a guarantor of outstanding indebtedness
under a senior secured credit facility (the “UPC Broadband Holding Bank
Facility”) which also requires the provision of certain financial and
related information to the lenders. This press release is being issued
at this time, in connection with those obligations, due to the
contemporaneous release by Liberty Global of its September 30, 2009
results. The financial information contained herein is preliminary and
subject to change. UPC Holding presently expects to issue its unaudited
condensed consolidated financial statements prior to the end of November
2009, at which time they will be posted to the investor relations
section of the Liberty Global website (www.lgi.com)
under the fixed income heading. Copies will also be available from the
Trustee for the Senior Notes.
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1
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UPC Slovenia was sold on July 15, 2009 and we have treated UPC
Slovenia as a discontinued operation in our condensed consolidated
financial statements. Thus, the results of operations and cash flows
of UPC Slovenia have been reclassified to discontinued operations
for all periods presented. Additionally, we are reporting subscriber
metrics excluding the impact of this discontinued operation.
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2
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Please see footnotes to the operating data table for the definition
of revenue generating units (“RGUs”). Organic figures exclude RGUs
of acquired entities at the date of acquisition but include the
impact of changes in RGUs from the date of acquisition. Organic
figures represent additions on a net basis.
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3
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Please see page 10 for our definition of operating cash flow and a
reconciliation to operating income.
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4
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For purposes of calculating rebased growth rates on a comparable
basis for all businesses that we owned during the respective period
in 2009, we have adjusted our historical 2008 revenue and OCF to (i)
include the pre-acquisition revenue and OCF of certain entities
acquired during 2008 and 2009 in the respective 2008 rebased amounts
to the same extent that the revenue and OCF of such entities are
included in our 2009 results and (ii) reflect the translation of our
2008 rebased amounts at the applicable average exchange rates that
were used to translate our 2009 results. Please see page 7 for
supplemental information.
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5
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OCF margin is calculated by dividing OCF by total revenue for the
applicable period.
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6
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Advanced services represent our services related to digital video,
including digital cable and direct-to-home (“DTH”), broadband
internet and telephony.
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7
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ARPU per customer relationship refers to the average monthly
subscription revenue per average customer relationship. ARPU or ARPU
per RGU refers to the average monthly subscription revenue per
average RGU. In both cases, the amounts are calculated by dividing
the average monthly subscription revenue (excluding installation,
late fees and mobile telephony revenue) for the indicated period, by
the average of the opening and closing balances for customer
relationships or RGUs, as the case may be, for the period. The
growth rate for ARPU per customer relationship for UPC is not
adjusted for currency impacts unless otherwise noted.
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8
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Digital penetration is calculated by dividing digital cable RGUs by
the total of digital and analog cable RGUs.
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9
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An amount equal to the outstanding principal and interest balance
due under the VTR Bank Facility is held in a cash collateral account
that is reflected as restricted cash in our consolidated balance
sheet.
|
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10
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Of this amount, €315 million and €331 million of restricted cash as
of September 30, 2009 and June 30, 2009, respectively, relates to
our VTR Bank Facility.
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11
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Our covenant calculations are based on debt figures which take into
account currency swaps. Thus, the debt used in the calculations may
differ from the debt balances reported within the financial
statements.
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12
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Amounts represent total third-party commitments at September 30,
2009 without giving effect to discounts. Certain of the originally
committed amounts under Facilities I, L, M and N have been novated
to Liberty Global Europe B.V. and accordingly, such amounts are not
included in the table.
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13
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The Facility T amount includes the impact of discounts.
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14
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The final maturity date for Facilities M and N is the earlier of (i)
December 31, 2014 and (ii) October 17, 2013, the date falling 90
days prior to the date on which the UPC Holding Senior Notes due
2014 fall due, if such Senior Notes have not been repaid, refinanced
or redeemed prior to such date.
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15
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SR refers to the specified percentage rate per annum determined by
the Polish Association of Banking Dealers – Forex Poland or the
National Bank of Hungary, as appropriate for the relevant period.
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16
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The final maturity dates for Facilities Q and R are the earlier of
(i) July 31, 2014 and December 31, 2015, respectively, and (ii)
October 17, 2013, the date falling 90 days prior to the date on
which the UPC Holding Senior Notes due 2014 fall due, if such Senior
Notes have not been repaid, refinanced or redeemed prior to such
date.
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17
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The final maturity date for Facilities S and T will be the earlier
of (i) December 31, 2016 and (ii) October 17, 2013, the date falling
90 days prior to the date on which the UPC Holding Senior Notes due
2014 fall due, if, on such date, such notes are outstanding in an
aggregate principal amount of €250 million or more.
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18
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The final maturity date for Facility U is the earlier of (i)
December 31, 2017 and (ii) October 17, 2013, the date falling 90
days prior to the date on which the UPC Holding Senior Notes due
2014 fall due, if, on such date, such notes are outstanding in an
aggregate principal amount of €250 million or more.
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Revenue and Operating Cash Flow The following tables present preliminary revenue and operating cash flow
by reportable segment for the three and nine months ended September 30,
2009, as compared to the corresponding prior year period. All of the
reportable segments derive their revenue primarily from broadband
communications services, including video, voice and broadband internet
services. Certain segments also provide competitive local exchange
carrier and other business-to-business communications services. At
September 30, 2009, our operating segments in UPC Holding provided
services in ten countries, consisting of our UPC Broadband Division in
Europe and VTR in Chile. Other Central and Eastern Europe segment
includes our operating segments in the Czech Republic, Poland, Romania
and Slovakia. During the first quarter of 2009, we changed our reporting such that we
no longer include video-on-demand costs within the central and corporate
operations category of UPC. Instead, we present these costs within the
individual operating segments of UPC. Segment information for all
periods presented has been recast to reflect the reclassification of
these costs. Additionally, our reportable segments have been
reclassified for all periods to present UPC Slovenia as a discontinued
operation. Previously, UPC Slovenia was included in our Other Central
and Eastern Europe segment. We present only the reportable segments of
our continuing operations in the following tables. For purposes of calculating rebased growth rates on a comparable basis
for all businesses that we owned during 2009, we have adjusted our
historical revenue and OCF for the three and nine months ended September
30, 2008 to (i) include the pre-acquisition revenue and OCF of certain
entities acquired during 2008 and 2009 in our rebased amounts for the
three and nine months ended September 30, 2008 to the same extent that
the revenue and OCF of such entities are included in our results for the
three and nine months ended September 30, 2009 and (ii) reflect the
translation of our rebased amounts for the three and nine months ended
September 30, 2008 at the applicable average exchange rates that were
used to translate our results for the three and nine months ended
September 30, 2009. The acquired entities that have been included in
whole or in part in the determination of our rebased revenue and OCF for
the three months ended September 30, 2008 include one small acquisition
in Europe. The acquired entities that have been included in whole or in
part in the determination of our rebased revenue and OCF for the nine
months ended September 30, 2008 include four small acquisitions in
Europe. We have reflected the revenue and OCF of these acquired entities
in our 2008 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 (i) any significant differences between generally accepted
accounting principles in the U.S. (“GAAP”) and local generally accepted
accounting principles, (ii) any significant effects of post-acquisition
purchase accounting adjustments, (iii) any significant differences
between our accounting policies and those of the acquired entities and
(iv) other items we deem appropriate. 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 2008 results or that the pre-acquisition financial statements
we have relied upon do not contain undetected errors. The adjustments
reflected in our 2008 rebased amounts have not been prepared with a view
towards complying with Article 11 of the Securities and Exchange
Commission's 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 2008 amounts or the revenue and OCF
that will occur in the future. The rebased growth percentages have been
presented as a basis for assessing 2009 growth rates on a comparable
basis, and are not presented as a measure of our pro forma financial
performance for 2008. Therefore, we believe our rebased data is not a
non-GAAP financial measure as contemplated by Regulation G or Item 10 of
Regulation S-K. The selected financial data contained herein is preliminary and unaudited
and subject to possible adjustments in connection with the
publication of UPC Holding’s September 30, 2009 unaudited condensed
consolidated financial statements. In each case, the following tables
present (i) the amounts reported by each of our reportable segments for
the comparative periods, (ii) the Euro change and percentage change from
period to period, (iii) the percentage change from period to period,
after removing foreign currency translation effects (FX), and (iv) the
percentage change from period to period on a rebased basis. The
comparisons that exclude FX assume that exchange rates remained constant
during the periods that are included in each table.
|
Revenue
|
|
|
|
|
Three months ended
September 30,
|
|
|
Increase
(decrease)
|
|
Increase
(decrease)
excluding FX
|
|
Increase
(decrease)
|
|
|
|
|
2009
|
|
|
2008
|
|
|
€
|
|
%
|
|
%
|
|
Rebased %
|
|
|
|
|
in millions
|
|
|
UPC Broadband Division:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands
|
|
€
|
201.6
|
|
€
|
197.9
|
|
€
|
3.7
|
|
1.9
|
%
|
|
1.9
|
%
|
|
—
|
|
|
Switzerland
|
|
|
181.0
|
|
|
170.3
|
|
|
10.7
|
|
|
6.3
|
%
|
|
0.3
|
%
|
|
—
|
|
|
Austria
|
|
|
86.2
|
|
|
90.5
|
|
|
(4.3
|
)
|
|
(4.8
|
%)
|
|
(4.8
|
%)
|
|
—
|
|
|
Ireland
|
|
|
61.6
|
|
|
60.6
|
|
|
1.0
|
|
|
1.7
|
%
|
|
1.7
|
%
|
|
—
|
|
|
Total Western Europe
|
|
|
530.4
|
|
|
519.3
|
|
|
11.1
|
|
|
2.1
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
Hungary
|
|
|
59.2
|
|
|
73.2
|
|
|
(14.0
|
)
|
|
(19.1
|
%)
|
|
(7.2
|
%)
|
|
—
|
|
|
Other Central and Eastern Europe
|
|
|
144.8
|
|
|
156.7
|
|
|
(11.9
|
)
|
|
(7.6
|
%)
|
|
6.8
|
%
|
|
—
|
|
|
Total Central and Eastern Europe
|
|
|
204.0
|
|
|
229.9
|
|
|
(25.9
|
)
|
|
(11.3
|
%)
|
|
2.4
|
%
|
|
1.9
|
%
|
|
Central and corporate operations
|
|
|
1.4
|
|
|
1.7
|
|
|
(0.3
|
)
|
|
(17.6
|
%)
|
|
(17.6
|
%)
|
|
—
|
|
|
Total UPC Broadband Division
|
|
|
735.8
|
|
|
750.9
|
|
|
(15.1
|
)
|
|
(2.0
|
%)
|
|
0.8
|
%
|
|
0.6
|
%
|
|
VTR (Chile)
|
|
|
125.7
|
|
|
119.8
|
|
|
5.9
|
|
|
4.9
|
%
|
|
5.5
|
%
|
|
5.5
|
%
|
|
Total UPC Holding
|
|
€
|
861.5
|
|
€
|
870.7
|
|
€
|
(9.2)
|
|
(1.1
|
%)
|
|
1.4
|
%
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
|
|
Increase
(decrease)
|
|
Increase
(decrease)
excluding FX
|
|
Increase
(decrease)
|
|
|
|
|
2009
|
|
2008
|
|
|
€
|
|
%
|
|
%
|
|
Rebased %
|
|
|
|
|
in millions
|
|
|
UPC Broadband Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands
|
|
€
|
609.7
|
|
€
|
597.4
|
|
€
|
12.3
|
|
2.1
|
%
|
|
2.1
|
%
|
|
—
|
|
|
Switzerland
|
|
|
545.9
|
|
|
510.3
|
|
|
35.6
|
|
|
7.0
|
%
|
|
0.5
|
%
|
|
—
|
|
|
Austria
|
|
|
260.8
|
|
|
275.8
|
|
|
(15.0
|
)
|
|
(5.4
|
%)
|
|
(5.4
|
%)
|
|
—
|
|
|
Ireland
|
|
|
184.6
|
|
|
180.7
|
|
|
3.9
|
|
|
2.2
|
%
|
|
2.2
|
%
|
|
—
|
|
|
Total Western Europe
|
|
|
1,601.0
|
|
|
1,564.2
|
|
|
36.8
|
|
|
2.4
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
Hungary
|
|
|
176.0
|
|
|
209.3
|
|
|
(33.3
|
)
|
|
(15.9
|
%)
|
|
(3.7
|
%)
|
|
—
|
|
|
Other Central and Eastern Europe
|
|
|
418.2
|
|
|
454.7
|
|
|
(36.5
|
)
|
|
(8.0
|
%)
|
|
6.0
|
%
|
|
—
|
|
|
Total Central and Eastern Europe
|
|
|
594.2
|
|
|
664.0
|
|
|
(69.8
|
)
|
|
(10.5
|
%)
|
|
2.9
|
%
|
|
2.3
|
%
|
|
Central and corporate operations
|
|
|
3.9
|
|
|
4.7
|
|
|
(0.8
|
)
|
|
(17.0
|
%)
|
|
(17.0
|
%)
|
|
—
|
|
|
Total UPC Broadband Division
|
|
|
2,199.1
|
|
|
2,232.9
|
|
|
(33.8
|
)
|
|
(1.5
|
%)
|
|
1.0
|
%
|
|
0.7
|
%
|
|
VTR (Chile)
|
|
|
371.9
|
|
|
368.8
|
|
|
3.1
|
|
|
0.8
|
%
|
|
7.2
|
%
|
|
7.2
|
%
|
|
Total UPC Holding
|
|
€
|
2,571.0
|
|
€
|
2,601.7
|
|
€
|
(30.7)
|
|
(1.2
|
%)
|
|
1.9
|
%
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow
|
|
|
|
|
Three months ended
September 30,
|
|
|
|
Increase
(decrease)
|
|
Increase
(decrease)
excluding FX
|
|
Increase
(decrease)
|
|
|
|
|
2009
|
|
2008
|
|
|
|
€
|
|
%
|
|
%
|
|
Rebased %
|
|
|
|
|
in millions
|
|
|
|
|
|
UPC Broadband Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands
|
|
€
|
122.2
|
|
|
€
|
115.4
|
|
|
€
|
6.8
|
|
|
5.9
|
%
|
|
5.9
|
%
|
|
—
|
|
|
Switzerland
|
|
|
103.2
|
|
|
|
91.6
|
|
|
|
11.6
|
|
|
12.7
|
%
|
|
6.4
|
%
|
|
—
|
|
|
Austria
|
|
|
44.9
|
|
|
|
47.0
|
|
|
|
(2.1
|
)
|
|
(4.5
|
%)
|
|
(4.5
|
%)
|
|
—
|
|
|
Ireland
|
|
|
24.4
|
|
|
|
23.6
|
|
|
|
0.8
|
|
|
3.4
|
%
|
|
3.4
|
%
|
|
—
|
|
|
Total Western Europe
|
|
|
294.7
|
|
|
|
277.6
|
|
|
|
17.1
|
|
|
6.2
|
%
|
|
4.1
|
%
|
|
4.1
|
%
|
|
Hungary
|
|
|
29.2
|
|
|
|
38.4
|
|
|
|
(9.2
|
)
|
|
(24.0
|
%)
|
|
(12.5
|
%)
|
|
—
|
|
|
Other Central and Eastern Europe
|
|
|
78.4
|
|
|
|
84.4
|
|
|
|
(6.0
|
)
|
|
(7.1
|
%)
|
|
7.3
|
%
|
|
—
|
|
|
Total Central and Eastern Europe
|
|
|
107.6
|
|
|
|
122.8
|
|
|
|
(15.2
|
)
|
|
(12.4
|
%)
|
|
1.1
|
%
|
|
0.6
|
%
|
|
Central and corporate operations
|
|
|
(33.9
|
)
|
|
|
(35.3
|
)
|
|
|
1.4
|
|
|
4.0
|
%
|
|
3.0
|
%
|
|
—
|
|
|
Total UPC Broadband Division
|
|
|
368.4
|
|
|
|
365.1
|
|
|
|
3.3
|
|
|
0.9
|
%
|
|
3.8
|
%
|
|
3.8
|
%
|
|
VTR (Chile)
|
|
|
52.2
|
|
|
|
48.0
|
|
|
|
4.2
|
|
|
8.8
|
%
|
|
8.9
|
%
|
|
8.9
|
%
|
|
Total
|
|
€
|
420.6
|
|
|
€
|
413.1
|
|
|
€
|
7.5
|
|
|
1.8
|
%
|
|
4.4
|
%
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
|
|
|
Increase
(decrease)
|
|
Increase
(decrease)
excluding FX
|
|
Increase
(decrease)
|
|
|
|
|
2009
|
|
|
2008
|
|
|
€
|
|
%
|
|
|
%
|
|
Rebased %
|
|
|
|
|
in millions
|
|
|
|
|
UPC Broadband Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands
|
|
€
|
356.1
|
|
|
€
|
334.0
|
|
|
€
|
22.1
|
|
|
6.6
|
%
|
|
6.6
|
%
|
|
—
|
|
|
Switzerland
|
|
|
305.1
|
|
|
|
267.7
|
|
|
|
37.4
|
|
|
14.0
|
%
|
|
7.1
|
%
|
|
—
|
|
|
Austria
|
|
|
132.7
|
|
|
|
141.3
|
|
|
|
(8.6
|
)
|
|
(6.1
|
%)
|
|
(6.1
|
%)
|
|
—
|
|
|
Ireland
|
|
|
73.8
|
|
|
|
69.0
|
|
|
|
4.8
|
|
|
7.0
|
%
|
|
7.0
|
%
|
|
—
|
|
|
Total Western Europe
|
|
|
867.7
|
|
|
|
812.0
|
|
|
|
55.7
|
|
|
6.9
|
%
|
|
4.6
|
%
|
|
4.6
|
%
|
|
Hungary
|
|
|
87.9
|
|
|
|
107.7
|
|
|
|
(19.8
|
)
|
|
(18.4
|
%)
|
|
(6.4
|
%)
|
|
—
|
|
|
Other Central and Eastern Europe
|
|
|
216.0
|
|
|
|
236.8
|
|
|
|
(20.8
|
)
|
|
(8.8
|
%)
|
|
5.0
|
%
|
|
—
|
|
|
Total Central and Eastern Europe
|
|
|
303.9
|
|
|
|
344.5
|
|
|
|
(40.6
|
)
|
|
(11.8
|
%)
|
|
1.4
|
%
|
|
0.7
|
%
|
|
Central and corporate operations
|
|
|
(104.9
|
)
|
|
|
(110.6
|
)
|
|
|
5.7
|
|
|
5.2
|
%
|
|
3.8
|
%
|
|
—
|
|
|
Total UPC Broadband Division
|
|
|
1,066.7
|
|
|
|
1,045.9
|
|
|
|
20.8
|
|
|
2.0
|
%
|
|
4.4
|
%
|
|
4.4
|
%
|
|
VTR (Chile)
|
|
|
150.7
|
|
|
|
150.9
|
|
|
|
(0.2
|
)
|
|
(0.1
|
%)
|
|
6.1
|
%
|
|
6.1
|
%
|
|
Total
|
|
€
|
1,217.4
|
|
|
€
|
1,196.8
|
|
|
€
|
20.6
|
|
|
1.7
|
%
|
|
4.6
|
%
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow Definition and Reconciliation Operating cash flow is not a GAAP measure. Operating cash flow is the
primary measure used by our chief operating decision maker to evaluate
segment operating performance. Operating cash flow 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, operating cash flow is defined as revenue
less operating and SG&A expenses (excluding stock-based compensation,
related-party fees and allocations, depreciation and amortization, and
impairment, restructuring and other operating charges or credits). Other
operating charges or credits include gains and losses on the disposition
of long-lived assets and due diligence, legal, advisory and other
third-party costs directly related to our efforts to acquire controlling
interests in entities. Our internal decision makers believe operating
cash flow is a meaningful measure and is superior to other available
GAAP measures because it represents a transparent view of our recurring
operating performance that is unaffected by our capital structure and
allows management to (i) readily view operating trends, (ii) perform
analytical comparisons and benchmarking between segments and (iii)
identify strategies to improve operating performance in the different
countries in which we operate. We believe our operating cash flow
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 companies. Operating cash
flow should be viewed as a measure of operating performance that is a
supplement to, and not a substitute for, operating income, net earnings,
cash flow from operating activities and other GAAP measures of income or
cash flows. A reconciliation of UPC Holding’s total segment operating
cash flow to operating income is presented below.
|
|
|
|
Three months ended
September 30,
|
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
|
|
in millions
|
|
Total segment operating cash flow
|
|
€
|
420.6
|
|
|
€
|
413.1
|
|
|
€
|
1,217.4
|
|
|
€
|
1,196.8
|
|
|
Stock-based compensation expense
|
|
|
(10.9
|
)
|
|
|
(10.4
|
)
|
|
|
(23.4
|
)
|
|
|
(28.6
|
)
|
|
Related-party fees and allocations, net
|
|
|
4.5
|
|
|
|
7.4
|
|
|
|
15.1
|
|
|
|
15.5
|
|
|
Depreciation and amortization
|
|
|
(265.6
|
)
|
|
|
(269.2
|
)
|
|
|
(790.9
|
)
|
|
|
(810.7
|
)
|
|
Impairment, restructuring and other operating charges (credits),
net*
|
|
|
0.4
|
|
|
|
(1.0
|
)
|
|
|
(89.1
|
)
|
|
|
(5.9
|
)
|
|
Operating income
|
|
€
|
149.0
|
|
|
|
€ 139.9
|
|
|
€
|
329.1
|
|
|
€
|
367.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditure Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides UPC Holding capital expenditures for
the indicated periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
|
|
in millions
|
|
UPC Broadband Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands
|
|
€
|
32.9
|
|
|
€
|
36.0
|
|
|
€
|
75.0
|
|
|
€
|
102.3
|
|
|
Switzerland
|
|
|
44.6
|
|
|
|
48.0
|
|
|
|
147.5
|
|
|
|
122.5
|
|
|
Austria
|
|
|
16.4
|
|
|
|
19.2
|
|
|
|
55.9
|
|
|
|
49.9
|
|
|
Ireland
|
|
|
23.1
|
|
|
|
18.2
|
|
|
|
73.4
|
|
|
|
52.9
|
|
|
Total Western Europe
|
|
|
117.0
|
|
|
|
121.4
|
|
|
|
351.8
|
|
|
|
327.6
|
|
|
Hungary
|
|
|
7.3
|
|
|
|
13.6
|
|
|
|
35.1
|
|
|
|
51.1
|
|
|
Other Central and Eastern Europe
|
|
|
45.0
|
|
|
|
56.9
|
|
|
|
123.5
|
|
|
|
153.3
|
|
|
Total Central and Eastern Europe
|
|
|
52.3
|
|
|
|
70.5
|
|
|
|
158.6
|
|
|
|
204.4
|
|
|
Corporate and other operations
|
|
|
16.5
|
|
|
|
19.0
|
|
|
|
47.5
|
|
|
|
55.3
|
|
|
Total UPC Broadband Division
|
|
|
185.8
|
|
|
|
210.9
|
|
|
|
557.9
|
|
|
|
587.3
|
|
|
VTR (Chile)
|
|
|
24.8
|
|
|
|
36.0
|
|
|
|
91.2
|
|
|
|
96.1
|
|
|
Total UPC Holding
|
|
€
|
210.6
|
|
|
€
|
246.9
|
|
|
€
|
649.1
|
|
|
€
|
683.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* During the second quarter of 2009, we recorded an €85
million charge to impair a portion of the goodwill associated with
our Romanian operating segment.
|
|
|
|
Operating Data Table
|
|
|
|
Operating Data – September 30, 2009 - UPC Holding B.V.
Consolidated
|
|
|
|
Homes
Passed(1)
|
|
Two-way
Homes
Passed(2)
|
|
Customer
Relationships(3)
|
|
|
|
Video
|
|
Internet
|
|
Telephony
|
|
|
|
|
|
|
Total
RGUs(4)
|
|
Analog Cable
Subscribers(5)
|
|
Digital Cable
Subscribers(6)
|
|
DTH
Subscribers(7)
|
|
MMDS
Subscribers(8)
|
|
|
Total
Video
|
|
Homes
Serviceable(9)
|
|
Subscribers(10)
|
|
Homes
Serviceable(11)
|
|
Subscribers(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UPC Broadband Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Netherlands(13)
|
|
2,756,600
|
|
2,649,800
|
|
1,968,600
|
|
3,272,300
|
|
1,255,300
|
|
710,700
|
|
—
|
|
—
|
|
|
1,966,000
|
|
2,649,800
|
|
707,900
|
|
2,603,100
|
|
598,400
|
|
Switzerland(13)
|
|
1,983,300
|
|
1,629,000
|
|
1,590,300
|
|
2,344,600
|
|
1,192,100
|
|
362,300
|
|
—
|
|
—
|
|
|
1,554,400
|
|
1,979,500
|
|
485,100
|
|
1,977,000
|
|
305,100
|
|
Austria
|
|
1,157,500
|
|
1,157,500
|
|
721,000
|
|
1,238,600
|
|
323,600
|
|
217,600
|
|
—
|
|
—
|
|
|
541,200
|
|
1,157,500
|
|
424,300
|
|
1,157,500
|
|
273,100
|
|
Ireland
|
|
876,400
|
|
572,000
|
|
537,000
|
|
697,800
|
|
169,600
|
|
263,500
|
|
—
|
|
76,800
|
|
|
509,900
|
|
572,000
|
|
134,900
|
|
473,100
|
|
53,000
|
|
Total Western Europe
|
|
6,773,800
|
|
6,008,300
|
|
4,816,900
|
|
7,553,300
|
|
2,940,600
|
|
1,554,100
|
|
—
|
|
76,800
|
|
|
4,571,500
|
|
6,358,800
|
|
1,752,200
|
|
6,210,700
|
|
1,229,600
|
|
Hungary
|
|
1,229,400
|
|
1,209,500
|
|
905,300
|
|
1,369,700
|
|
476,600
|
|
140,600
|
|
182,900
|
|
—
|
|
|
800,100
|
|
1,209,500
|
|
325,100
|
|
1,211,900
|
|
244,500
|
|
Romania
|
|
2,070,500
|
|
1,732,000
|
|
1,237,300
|
|
1,638,200
|
|
872,800
|
|
202,900
|
|
161,600
|
|
—
|
|
|
1,237,300
|
|
1,606,600
|
|
256,400
|
|
1,544,800
|
|
144,500
|
|
Poland
|
|
2,013,100
|
|
1,859,100
|
|
1,081,500
|
|
1,619,800
|
|
819,500
|
|
193,900
|
|
—
|
|
—
|
|
|
1,013,400
|
|
1,859,100
|
|
437,800
|
|
1,858,200
|
|
168,600
|
|
Czech Republic
|
|
1,313,200
|
|
1,203,400
|
|
771,700
|
|
1,137,800
|
|
171,500
|
|
361,600
|
|
107,600
|
|
—
|
|
|
640,700
|
|
1,203,400
|
|
344,900
|
|
1,199,300
|
|
152,200
|
|
Slovakia
|
|
489,400
|
|
430,900
|
|
286,700
|
|
365,200
|
|
189,700
|
|
53,800
|
|
31,100
|
|
4,300
|
|
|
278,900
|
|
393,000
|
|
59,800
|
|
393,000
|
|
26,500
|
|
Total Central and Eastern Europe
|
|
7,115,600
|
|
6,434,900
|
|
4,282,500
|
|
6,130,700
|
|
2,530,100
|
|
952,800
|
|
483,200
|
|
4,300
|
|
|
3,970,400
|
|
6,271,600
|
|
1,424,000
|
|
6,207,200
|
|
736,300
|
|
Total UPC Broadband Division
|
|
13,889,400
|
|
12,443,200
|
|
9,099,400
|
|
13,684,000
|
|
5,470,700
|
|
2,506,900
|
|
483,200
|
|
81,100
|
|
|
8,541,900
|
|
12,630,400
|
|
3,176,200
|
|
12,417,900
|
|
1,965,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VTR (Chile)
|
|
2,597,000
|
|
1,933,400
|
|
1,051,000
|
|
2,164,500
|
|
389,700
|
|
509,000
|
|
—
|
|
—
|
|
|
898,700
|
|
1,933,400
|
|
645,900
|
|
1,920,500
|
|
619,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total UPC Holding B.V.
|
|
16,486,400
|
|
14,376,600
|
|
10,150,400
|
|
15,848,500
|
|
5,860,400
|
|
3,015,900
|
|
483,200
|
|
81,100
|
|
|
9,440,600
|
|
14,563,800
|
|
3,822,100
|
|
14,338,400
|
|
2,585,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes to Operating Data
Table:
|
|
|
|
|
|
(1)
|
|
Homes Passed are homes or residential multiple dwelling units that
can be connected to our networks without further extending the
distribution plant, except for direct-to-home (DTH) and
Multi-channel Multipoint (microwave) Distribution System (MMDS)
homes. Our Homes Passed counts are based on census data that can
change based on either revisions to the data or from new census
results. We do not count homes passed for DTH. With respect to
MMDS, one MMDS customer is equal to one Home Passed. Due to the
fact that we do not own the partner networks (defined below) used
by Cablecom in Switzerland (see note 13) or the unbundled loop and
shared access network used by one of our Austrian subsidiaries,
UPC Austria GmbH (Austria GmbH), we do not report homes passed for
Cablecom’s partner networks or the unbundled loop and shared
access network used by Austria GmbH.
|
|
(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 and internet services and, in some
cases, telephony services. Due to the fact that we do not own the
partner networks used by Cablecom in Switzerland or the unbundled
loop and shared access network used by Austria GmbH, we do not
report two-way homes passed for Cablecom’s partner networks or the
unbundled loop and shared access network used by Austria GmbH.
|
|
(3)
|
|
Customer Relationships are the number of customers who receive at
least one of our video, internet or voice 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.
Customer Relationships generally are counted on a unique premise
basis. Accordingly, if an individual receives our services in two
premises (e.g. primary home and vacation home), that individual
will count as two Customer Relationships. We exclude mobile
customers from Customer Relationships.
|
|
(4)
|
|
Revenue Generating Unit is separately an Analog Cable Subscriber,
Digital Cable Subscriber, DTH Subscriber, MMDS Subscriber,
Internet Subscriber or Telephony Subscriber. A home, residential
multiple dwelling unit, or commercial unit may contain one or more
RGUs. For example, if a residential customer in our Austrian
system subscribed to our digital cable service, telephony service
and broadband internet service, the customer would constitute
three RGUs. Total RGUs is the sum of Analog Cable, Digital Cable,
DTH, MMDS, Internet and Telephony Subscribers. RGUs generally are
counted on a unique premise basis such that a given premise does
not count as more than one RGU for any given service. On the other
hand, if an individual receives our service in two premises (e.g.
a primary home and a vacation home), that individual will count as
two RGUs. 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 permanent
basis (e.g. VIP subscribers, free service to employees) are not
counted as RGUs.
|
|
(5)
|
|
Analog Cable Subscriber is a home, residential multiple dwelling
unit or commercial unit that receives our analog cable service
over our broadband network. In Europe, we have approximately
464,800 “lifeline” customers that are counted on a per connection
basis, representing the least expensive regulated tier of basic
cable service, with only a few channels.
|
|
(6)
|
|
Digital Cable Subscriber is a home, residential multiple dwelling
unit or commercial unit that receives our digital cable service
over our broadband network or through a partner network. We count
a subscriber with one or more digital converter boxes that
receives our digital cable service as just one subscriber. A
Digital Cable Subscriber is not counted as an Analog Cable
Subscriber. As we migrate customers from analog to digital cable
services, we report a decrease in our Analog Cable Subscribers
equal to the increase in our Digital Cable Subscribers.
Individuals who receive digital cable service through a purchased
digital set-top box but do not pay a monthly digital service fee
are only counted as Digital Cable Subscribers to the extent we can
verify that such individuals are subscribing to our analog cable
service. We include 41,400 of these subscribers in the Digital
Cable Subscribers reported for Cablecom. Subscribers to digital
cable services provided by Cablecom over partner networks receive
analog cable services from the partner networks as opposed to
Cablecom.
|
|
(7)
|
|
DTH Subscriber is a home, residential multiple dwelling unit or
commercial unit that receives our video programming broadcast
directly via a geosynchronous satellite.
|
|
(8)
|
|
MMDS Subscriber is a home, residential multiple dwelling unit or
commercial unit that receives our video programming via a
multi-channel multipoint (microwave) distribution system.
|
|
(9)
|
|
Internet Homes Serviceable are Two-way Homes Passed that can be
connected to our network, or a partner network with which we have
a service agreement, for the provision of broadband internet
services if requested by the customer or building owner. With
respect to Austria GmbH, we do not report as Internet Homes
Serviceable those homes served either over an unbundled loop or
over a shared access network.
|
|
(10)
|
|
Internet Subscriber is a home, residential multiple dwelling unit
or commercial unit that receives internet services over our
networks, or that we service through a partner network. Our
Internet Subscribers in Austria include 78,800 residential digital
subscriber line (DSL) subscribers of Austria GmbH that are not
serviced over our networks. Our Internet Subscribers do not
include customers that receive services from dial-up connections.
|
|
(11)
|
|
Telephony Homes Serviceable are Two-way Homes Passed that can be
connected to our network, or a partner network with which we have
a service agreement, for the provision of telephony services if
requested by the customer or building owner. With respect to
Austria GmbH, we do not report as Telephony Homes Serviceable
those homes served over an unbundled loop rather than our network.
|
|
(12)
|
|
Telephony Subscriber is a home, residential multiple dwelling unit
or commercial unit that receives voice services over our networks,
or that we service through a partner network. Telephony
Subscribers exclude mobile telephony subscribers. Our Telephony
Subscribers in Austria include 46,000 residential subscribers of
Austria GmbH that are not serviced over our networks.
|
|
(13)
|
|
Pursuant to service agreements, Cablecom and, to a much lesser
extent, the Netherlands offer digital cable, broadband internet
and telephony services over networks owned by third-party cable
operators (partner networks). A partner network RGU is only
recognized if there is a direct billing relationship with the
customer. Homes Serviceable for partner networks represent the
estimated number of homes that are technologically capable of
receiving the applicable service within the geographic regions
covered by the applicable service agreements. Internet and
Telephony Homes Serviceable with respect to partner networks have
been estimated by Cablecom. These estimates may change in future
periods as more accurate information becomes available. At
September 30, 2009, Cablecom’s partner networks account for 83,600
Customer Relationships, 120,100 RGUs, 47,600 Digital Cable
Subscribers, 350,600 Internet Homes Serviceable, 348,100 Telephony
Homes Serviceable, 44,100 Internet Subscribers, and 28,400
Telephony Subscribers. In addition, partner networks account for
460,200 digital cable homes serviceable that are not included in
Homes Passed or Two-way Homes Passed in our September 30, 2009
subscriber table.
|
|
|
|
Additional General Notes to Tables:
|
|
|
|
With respect to Chile, residential multiple dwelling units with a
discounted pricing structure for video, broadband internet or
telephony services are counted on an EBU basis. With respect to
commercial establishments, such as bars, hotels and hospitals, to
which we provide video and other services primarily for the patrons
of such establishments, the subscriber count is generally calculated
on an EBU basis by our subsidiaries. EBU is 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. On a business-to-business basis,
certain of our subsidiaries provide data, telephony and other
services to businesses, primarily in the Netherlands, Switzerland,
Austria, Ireland, and Romania. We generally do not count customers
of these services as subscribers, customers or RGUs.
|
|
|
|
|
|
|
|
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. Accordingly, we may from time to
time make appropriate adjustments to our subscriber statistics based
on those reviews.
|
|
|
|
|
|
|
|
Subscriber information for acquired entities is preliminary and
subject to adjustment until we have completed our review of such
information and determined that it is presented in accordance with
our policies.
|
Contact:UPC Holding B.V.
Investor Relations
Christopher Noyes, +1 303-220-6693
Molly Bruce, +1 303-220-4202
K.C. Dolan, +1 303-220-6686
Corporate Communications
Bert Holtkamp, +31 20-778-9447
Source:
UPC Holding B.V.
|  |
|
