Liberty Global Inc. ( LBTYA ) declared
mixed financial results for the fourth quarter of 2012. Although
revenue and operating cash flow reached a record high level, the
company suffered losses due to huge financial charges. In the
reported quarter, the company added 465,000 organic revenue
generating units (RGU), reflecting an annualized growth of 22%.
Liberty Global currently has a Zacks Rank #2 (Buy).
Quarterly GAAP net loss from continuing operations was $331.3
million or a loss of $1.27 per share compared with a net loss of
$435 million or $1.58 per share in the prior-year quarter.
Fourth-quarter 2012 losses per share of $1.27 were worse than the
Zacks Consensus Estimate of an income of 15 cents per share.
Quarterly total revenue at $2,730.2 million was up 13.6% year over
year, easily surpassing Zacks Consensus Estimate of $2,630
Quarterly cost of operation was $973.5 million, up 12.1% year
over year. Selling, General and Administrative expenses were $524.2
million, up 13.4% year over year. In the fourth quarter of 2012,
operating income was $500.7 million, up 22.7% year over year.
During the fourth quarter of 2012, Liberty Global generated
$1,033.5 million of cash from operations compared with $837.6
million in the year-ago period. Free cash flow in the reported
quarter was $565.5 million compared with $323.5 million in the
At the end of fiscal 2012, Liberty Global had $2,989 million of
cash and marketable securities and $27,524.5 million of outstanding
debt on its balance sheet compared with $2,626.4 million of cash
and marketable securities and $24,757.9 million of outstanding debt
at the end of 2011. At the end of fiscal 2012,
debt-to-capitalization ratio was 0.93 compared with 0.87 at the end
As on Dec 31, 2012, Liberty Global had 19.7882 million customers
in 13 countries. Out of the total, customer count at UPC Broadband,
Telnet and VTR was 16.2503 million, 2.1227 million and 1.1444
million, respectively. Puerto Rico and Chile had 270,800 customers.
Total Single-Play customer was 10.7272 million, down 6.4% year over
year. Total Double-Play customer was 3.0757 million, up 5.6% year
over year. Total Triple-Play customer was 5.9853 million, up 15.8%
year over year.
During the reported quarter, Liberty Global added 465,000 net
RGUs including net gains of 249,000 and 244,000 subscribers,
respectively, for broadband Internet and telephony services and a
net loss of 28,000 subscribers for video services. In the fourth
quarter, the company added 217,000 digital video subscribers. At
the end of 2012, Liberty Global had 9.1 million digital cable
subscribers with a penetration rate of over 52%.
Segment wise Results
Revenue from total UPC Broadband division was $1,791.9 million,
up 15% year over year. Within this segment, revenue from Western
Europe was $1,475.4 million, up 18.7% year over year. Revenue from
Central and Eastern Europe was $285.9 million, up 0.2% year over
year. Revenue from Central and other operation was $30.6 million,
up 3% year over year. During the reported quarter, Telenet revenue
was $513.3 million, up 5.3% year over year. VTR revenue was $248.3
million, up 15.7% year over year. Corporate and other revenue was
$196.9 million, up 20% year over year.
On Feb 5, 2013, Liberty Global came out with a joint press
statement with Virgin Media Inc. ( VMED ), that the two
companies have entered into an agreement par which, Liberty Global
will acquire a 100% stake in Virgin Media in a cash and equity
deal. The deal is expected to be of $15.8 billion or an enterprise
value of nearly $23.3 billion. Both the companies are
expecting the deal to be completed by the second quarter of 2013,
subject to customary regulatory approval. If this deal gets
approved, then Virgin Media will become a formidable challenger to
BSkyB, the largest pay-TV operator of the U.K. and BT Group
plc. ( BT
).BSkyB is partially controlled by News Corp. ( NWSA ).BT GRP PLC-ADR (BT): Free Stock Analysis ReportLIBERTY GLBL-A (LBTYA): Free Stock Analysis
ReportNEWS CORP INC-A (NWSA): Free Stock Analysis
ReportVIRGIN MEDIA (VMED): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment