) declared disappointing financial results for the fourth quarter
of 2013 as both the top and the bottom line significantly lagged
the respective Zacks Consensus Estimate. In the reported quarter,
the company added 413,000 organic revenue generating units (RGU),
down 11.2% year over year.
Quarterly GAAP net loss was $121 million or 31 cents per share
compared with a net loss of $331 million or $1.27 per share in
the prior-year quarter. However, adjusted earnings per share of 7
cents were substantially below the Zacks Consensus Estimate of 38
Quarterly total revenue of $4,468 million was up 70.5% year
over year, but fell below the Zacks Consensus Estimate of $4,658
Cost of operations was $1,723 million, up 92.6% year over
year. Operating income came in at $517.6 million, up 0.8% year
over year. Operating margin was 11.6% compared with 19.6% in the
During 2013, Liberty Global generated $3,931.3 million of cash
from operations compared with $2,919.7 million in 2012. Free cash
flow in 2013 was $1,449.8 million against $1,051.4 million in
At the end of 2013, Liberty Global had $6,193.1 million of
cash and marketable securities and $43,681 million of outstanding
debt on its balance sheet compared with $2,989 million and
$27,524.5 million, respectively, at the end of 2012.
As of Dec 31, 2013, Liberty Global had a total of
approximately 24.5 million subscribers, which constitute 48.3
million RGUs. Of the total RGUs, 21.8 million was video RGU, 14.4
million was broadband Internet RGU and the remaining 12.1 million
was telephony RGU.
The total Single-Play customer count stood at 10.6 million,
down 1.2% year over year. The total Double-Play and Triple-Play
customer base constitutes around 57% of the company's total
During the reported quarter, Liberty Global added 413,000
organic RGUs including net gains of 270,000 and 192,000
subscribers for broadband Internet and telephony services,
respectively, and a net loss of 50,000 video subscribers. At Dec
31, 2013, the company had 13.2 million digital video
At the end of 2013, the company had over 500,000 Horizon TV
subscribers in the Netherlands, Switzerland, Ireland and Germany.
Liberty Global had approximately 2 million
)-platform based video subscribers with a quarterly net addition
of 200,000 subscribers. Moreover, the company had 4.1 million
Total revenue from the European Operations division was
$4,138.4 million, up 79.6% year over year. Within this segment,
revenues from Western Europe were $3,811.9 million, up 91.7% year
over year. Revenues from Central and Eastern Europe came in at
$292.8 million, up 6.9% year over year. Revenues from Central and
other operation were $33.7 million, up 12.7% year over year. VTR
Chile revenues were $243.7 million, down 1.9% year over year.
Corporate and other revenues totaled $93.4 million, up 25.2% year
Other Stocks to Consider
Liberty Global currently has a Zacks Rank #3 (Hold). Other
stocks in the cable TV industry which are doing well include
Time Warner Cable Inc.
BT Group plc.
). Both these stocks currently have a Zacks Rank #2 (Buy).
BT GRP PLC-ADR (BT): Free Stock Analysis
LIBERTY GLBL-A (LBTYA): Free Stock Analysis
TIVO INC (TIVO): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis
To read this article on Zacks.com click here.