Liberty Global 4th-Quarter Loss Narrows, Helped by Europe Expansion

   By Kristin Jones 
 

Liberty Global Inc.'s (LBTYA, LBTYB) fourth-quarter loss narrowed as the international cable operator was helped by its expansion in Europe.

Liberty Global, led by media mogul John Malone, has forged ahead lately on an aggressive global expansion plan, with a focus on Europe. The company said its best-performing operations were in Germany and Belgium in the latest quarter.

The U.S. company agreed earlier this month to buy U.K. cable-television and Internet provider Virgin Media Inc. (VMED) for $16 billion, in a deal that may create a stronger rival to market leader British Sky Broadcasting Group PLC (BSY.LN, BSYBY).

The proposed deal came less than a month after Liberty Global boosted its stake in Belgian cable company Telenet Group Holding NV (TLGHY, TNET.BT) to about 58.4% after failing to take full ownership in a tender offer it made to Telenet shareholders.

Still, the company has reported mixed revenue in recent quarters despite more customers switching to digital services or subscribing to packages that bundle services, while its bottom-line results frequently have been impacted by changes in the value of derivatives and currency.

The latest quarter included losses on derivatives of $455 million, compared with year-ago derivative gains of $43.6 million.

Foreign currency transactions resulted in gains of $281.5 million in the latest period, compared with losses of $374.7 million a year earlier.

Overall, Liberty Global reported a loss of $331.3 million, or $1.27 a share, compared with a year-earlier loss of $435 million, or $1.58 a share. Revenue rose 14% to $2.73 billion, helped by acquisitions and organic growth.

Analysts polled by Thomson Reuters projected a per-share profit of 17 cents on revenue of $2.66 billion.

Operating margin widened to 18.3% from 17%, reflecting revenue growth. Operating costs and expenses grew 12% to $2.23 billion.

Liberty Global's Class A shares rose 1.1% to $67.79 after hours Wednesday. Through the close, the stock was up 20% in the past six months.

Write to Kristin Jones at [e-mail]

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