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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Liberty Global Ltd | NASDAQ:LBTYB | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.22 | -1.35% | 16.03 | 16.00 | 21.94 | 16.48 | 16.01 | 16.40 | 1,951 | 21:05:53 |
Total Q1 RGU Additions of 286,000 in Europe & LatAm, up 46% YoY
European Operating Income of $431 Million in Q1, Down 18% YoY
Q1 Rebased OCF Growth of 4% in Europe, reaching $1.6 Billion
Network & Product Investments to Underpin LiLAC's Future Growth
$1.0 Billion of LBTY Equity Repurchases & $20 Million at LiLAC
Liberty Global plc ("Liberty Global") (NASDAQ: LBTYA, LBTYB, LBTYK, LILA and LILAK), today announces financial and operating results for the three months ("Q1") ended March 31, 2017 for the Liberty Global Group1 and the LiLAC Group1.
CEO Mike Fries stated, "Our first quarter results in Europe showed an acceleration in volume growth, as the mix of market-leading broadband speeds, next-generation2 TV functionality and new build activity underpinned this performance. We added 244,000 RGUs3 during Q1, a 40% increase4 compared to the prior-year period, while successfully implementing price increases across several European markets. This improvement in subscriber additions was led by our operations in the U.K. and Germany, both of which contributed to our best first quarter video performance in the last ten years."
"In terms of our European financials, we had a soft start to the year on the revenue front with 2% rebased5 growth in Q1, mainly due to challenging mobile results in Belgium and the U.K. Of note, we delivered a solid B2B6 performance with 9% rebased revenue growth during the quarter, driven by robust SOHO and SME results. Consistent with our projection for full-year growth to be back-end loaded again this year, we generated 4% rebased OCF7 growth in Q1. While most markets reported results consistent with our forecasts, Virgin Media's cable ARPU8 was softer than planned, partly due to discounting and mix effect, as well as a decline in mobile revenue. Virgin's 1% rebased OCF growth in the first quarter also reflected significant investment in our U.K. marketing efforts, emphasizing our competitive advantage on broadband speeds, TV superiority bolstered by Virgin's new 4K set-top box and our attractive new 4G quad-play offerings. These investments should allow us to deliver better results in the second half of this year. However, we now anticipate our 2017 full-year rebased OCF growth to be around 5% for Liberty Global Group."
"With respect to Project Lightning, we previously reported a reboot9 of the program along with leadership changes. This transformation includes the appointment of a new Lightning management team reporting to Liberty’s central T&I group and a detailed review of the program with a view towards ramping our construction activity over the next 12 to 24 months. Although we delivered 102,000 new premises at Virgin Media in Q1 and a total of around 700,000 homes to date, we expect that the management transition and related review is likely to result in a slower build pace than what we previously expected for 2017. We will provide an update after our second quarter. Our new build plans throughout the rest of continental Europe10 are progressing well."
"As expected, we faced a challenging first quarter at LiLAC due to the comparison against CWC’s11 prior-year OCF result, which was an anomaly when compared to preceding and subsequent quarters. However, our businesses in Chile and Puerto Rico continued to perform strongly, with rebased OCF increases of 12% and 10%, respectively. And we continue laying the building blocks to accelerate LiLAC's growth profile over the next several years. In addition to our network extension investments, we are putting the finishing touches on CWC's new operating model and organizational structure. With most key roles at LiLAC and CWC having been filled, we are beginning to see the benefits from the progress we have made post-acquisition. For example, we had encouraging results on the subscriber front, as we added 42,000 RGUs across the region, including 10,000 at CWC, driven by our product investments and evolving go-to-market strategies. Going forward, we continue to anticipate approximately $1.5 billion12 of OCF for full-year 2017 and are preparing for the hard spin of LiLAC Group towards the end of the year."
"During the first four months of the year, we took advantage of favorable capital market conditions and refinanced nearly $8 billion of debt across credit pools in both Europe and Latin America in order to lengthen our maturity profile and further reduce interest costs. At the Liberty Global plc level, our average tenor13 at March 31 was over seven years, with a fully-swapped borrowing cost14 of 4.9%. In combination with our substantial liquidity position15 of $6.7 billion at quarter-end, our balance sheet remains in great shape. In addition, we took advantage of the attractive trading levels for both of our stocks during Q1, ramping the repurchases of our European equity to $1 billion, or one-third of our full-year target, while also repurchasing around $20 million of LiLAC Group equity. Looking ahead, we will remain opportunistic in terms of managing our capital structure, as our levered-equity approach remains a core pillar of our long-term value creation strategy."
European Highlights Q1 2017
YOYGrowth/(Decline)*
Subscribers
Organic RGU Net Additions 244,300 40.0 %Financial (in USD millions, unless noted)
Revenue $ 3,519 2.1 % OCF $ 1,605 4.1 % Operating income $ 431 (18.1 %) Adjusted FCF $ (333 ) 217.1 % Cash provided by operating activities $ 903 Cash provided by investing activities $ 1,891 Cash used by financing activities $ (1,783 )* For the RGU growth rate the Netherlands is excluded from the Q1 2016 figure; Revenue and OCF YoY growth rates are on a rebased basis.
LiLAC Highlights Q1 2017
YOYGrowth/(Decline)*
Subscribers
Organic RGU Net Additions 41,900 96.7 %Financial (in USD millions, unless noted)
Revenue $ 911 (0.8 %) OCF $ 354 (9.6 %) Operating income $ 138 130.0 % Adjusted FCF $ (58 ) (391.5 %) Cash provided by operating activities $ 76 Cash used by investing activities $ (130 ) Cash provided by financing activities $ 29* Revenue and OCF YoY growth rates are on a rebased basis.
Subscriber Growth - Liberty Global Group (Europe)
Three months ended March 31, 2017 2016 Organic RGU net additions (losses) by product (excluding NL)(4) Video (15,100 ) (97,700 ) Data 154,400 145,200 Voice 105,000 127,000Total Liberty Global Group
244,300 174,500 Organic RGU net additions (losses) by market U.K./Ireland 158,000 92,900 Germany 52,400 23,600 Belgium (12,000 ) 6,300 Switzerland/Austria (2,400 ) (12,000 ) Central and Eastern Europe 48,300 63,700 Total Liberty Global Group 244,300 174,500 Organic Mobile SIM additions (losses) by product Postpaid 91,200 88,600 Prepaid (73,000 ) (66,500 ) Total Liberty Global Group 18,200 22,100 Organic Mobile SIM additions (losses) by market U.K./Ireland 3,400 (16,100 ) Belgium 3,500 17,800 Other 11,300 20,400 Total Liberty Global Group 18,200 22,100Revenue 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 a rebased basis:
Three Months ended
March 31,
Increase/(decrease)
Revenue
2017 2016 % Rebased % in millions, except % amounts European Division: U.K./Ireland $ 1,504.4 $ 1,686.5 (10.8 ) 1.7 Belgium 661.4 610.2 8.4 0.8 Germany 629.1 617.1 1.9 5.6 Switzerland/Austria 423.7 433.4 (2.2 ) (1.3 ) The Netherlands — 669.8 * * Total Western Europe 3,218.6 4,017.0 (19.9 ) 1.8 Central and Eastern Europe 271.3 266.1 2.0 5.2 Central and other 28.7 (2.4 ) N.M. (0.7 ) Total European Division 3,518.6 4,280.7 (17.8 ) 2.1 Corporate and other 0.4 14.6N.M.
— Intersegment eliminations — (11.2 ) N.M. * Total Liberty Global Group $ 3,519.0 $ 4,284.1 (17.9 ) 2.1* - Omitted; N.M. - Not Meaningful
Q1 2017 Rebased Revenue Growth - Segment Highlights
Operating Income - Liberty Global Group (Europe)
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 a rebased basis:
Three months ended
March 31,
Increase/(decrease)
OCF 2017 2016 % Rebased % in millions, except % amounts European Division: U.K./Ireland $ 648.5 $ 744.6 (12.9 ) 0.9 Belgium 297.9 269.8 10.4 8.4 Germany 382.8 379.4 0.9 4.6 Switzerland/Austria 255.1 258.1 (1.2 ) (0.3 ) The Netherlands — 367.9 * * Total Western Europe 1,584.3 2,019.8 (21.6 ) 2.9 Central and Eastern Europe 111.0 110.9 0.1 3.7 Central and other (42.0 ) (84.3 ) 50.2 23.6 Total European Division 1,653.3 2,046.4 (19.2 ) 3.9 Corporate and other (48.6 ) (52.8 ) 8.0 1.8 Total Liberty Global Group $ 1,604.7 $ 1,993.6 (19.5 ) 4.1 OCF Margin 45.6 % 46.5 %* - Omitted; N.M. - Not Meaningful
Q1 2017 Rebased Operating Cash Flow Growth - Segment Highlights
Net Loss - Liberty Global Group (Europe)
Property and Equipment Additions - Liberty Global Group (Europe)
The details of our property and equipment additions are as follows:
Three months ended March 31, 2017 2016in millions, except %amounts
Customer premises equipment $ 296.0 $ 236.2 New Build & Upgrade 189.8 151.0 Capacity 116.6 106.3 Baseline 156.3 174.5 Product & Enablers 125.7 117.4 Property and equipment additions (excluding the Netherlands) 884.4 785.4 The Netherlands — 140.1 Total property and equipment additions $ 884.4 $ 925.5 Property and equipment additions as % of revenue (excluding the Netherlands) 25.1 % 21.7 %Consolidated Statements of Cash Flows - Liberty Global Group (Europe)
Three months ended March 31, 2017 2016 Variance in millionsNet cash provided (used) by:
Operating Activities $ 902.8 $ 1,020.8 $ (118.0 ) Investing Activities $ 1,890.7 $ (1,879.3 ) $ 3,770.0 Financing Activities $ (1,783.1 ) $ 788.5 $ (2,571.6 )Adjusted Free Cash Flow - Liberty Global Group (Europe)
Three months ended March 31, 2017 2016 in millions Adjusted Free Cash Flow $ (332.6 ) $ (104.9 )Leverage and Liquidity - Liberty Global Group (Europe - at March 31, 2017)
VodafoneZiggo Joint Venture (not consolidated) - Liberty Global Group
Our noncontrolling 50% interest in the VodafoneZiggo JV is attributed to Liberty Global Group. VodafoneZiggo is a leading Dutch company that provides fixed, mobile and integrated communication and entertainment services to consumers and businesses. The unaudited financial and operating information set forth below is preliminary and subject to change.
VodafoneZiggo highlights for Q1 2017*:
€
76.0 Share-based compensation expense 2.7 2.8 Depreciation and amortization 375.3 376.8 Impairment, restructuring and other operating items, net 0.2 2.7 OCF€
431.4 € 458.3The following table sets forth selected operating statistics of VodafoneZiggo.
March 31, 2017 2016Fixed-line Subscribers (RGUs)(a)
Basic Video 619,300 736,500 Enhanced Video 3,338,200 3,307,900 Total Video 3,957,500 4,044,400 Internet 3,188,600 3,108,900 Telephony 2,538,900 2,535,000 Total RGUs 9,685,000 9,688,300 Fixed Customer Relationships 3,960,300 4,046,500Mobile Subscribers (a) (pro forma for March 31, 2016)
Postpaid 4,066,900 4,055,600 Prepaid 1,006,300 1,171,100 Total Mobile subscribers 5,073,200 5,226,700(a) As defined by VodafoneZiggo.
Subscriber Growth - LiLAC Group
Three months ended March 31, 2017 2016 Organic RGU net additions (losses) by product Video 5,200 3,500 Data 38,600 25,500 Voice (1,900 ) (7,700 ) Total LiLAC Group 41,900 21,300 Organic RGU net additions by market CWC 9,900 — Chile 25,400 16,200 Puerto Rico 6,600 5,100 Total LiLAC Group 41,900 21,300 Organic Mobile SIM additions (losses) by product Postpaid 12,100 1,000 Prepaid 27,000 (1,000 ) Total LiLAC Group 39,100 — Organic Mobile SIM additions by market CWC 26,600 — Chile 12,500 — Puerto Rico — — Total LiLAC Group 39,100 —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 our U.S. GAAP accounting policies since the acquisition date.
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 a rebased basis:
Three months ended
March 31,
Increase/(decrease)
Revenue 2017 2016 % Rebased % in millions, except % amounts LiLAC Division: CWC $ 575.6 $ — * (4.1 ) Chile 229.3 200.0 14.7 7.1 Puerto Rico 106.7 103.9 2.7 2.7 Total LiLAC Division 911.6 303.9 200.0 (0.8 ) Intersegment eliminations (0.7 ) — N.M. — Total LiLAC Group $ 910.9 $ 303.9 199.7 (0.8 )* - Omitted; N.M. - Not Meaningful
Q1 2017 Rebased Revenue Growth - Segment Highlights
Operating Income - LiLAC Group
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 a rebased basis:
Three months ended
March 31,
Increase/(decrease)
OCF 2017 2016 % Rebased % in millions, except % amounts LiLAC Division: CWC $ 213.1 $ — * (19.4 ) Chile 91.6 76.3 20.1 12.1 Puerto Rico 51.3 46.8 9.6 9.6 Total LiLAC Division 356.0 123.1 189.2 (9.4 ) Corporate and other (2.1 ) (1.2 ) (75.0 ) (75.0 ) Total segment OCF $ 353.9 $ 121.9 190.3 (9.6 ) OCF Margin 38.9 % 40.1 %* - Omitted; N.M. - Not Meaningful
Q1 2017 Rebased OCF Growth - Segment Highlights
Net Loss - LiLAC Group
Property and Equipment Additions - LiLAC Group
in millions, except %amounts
Customer premises equipment $ 45.4 $ 38.6 New Build & Upgrade 14.6 13.8 Capacity 9.4 7.6 Baseline 7.6 5.0 Product & Enablers 1.7 6.5 CWC 60.5 — Property and equipment additions $ 139.2 $ 71.5 Property and equipment additions as % of revenue 15.3 % 23.5 %Consolidated Statements of Cash Flows - LiLAC Group
Three months ended March 31, 2017 2016 Variance in millionsNet cash provided (used) by:
Operating Activities $ 75.9 $ 69.9 $ 6.0 Investing Activities $ (129.8 ) $ (55.5 ) $ (74.3 ) Financing Activities $ 28.9 $ (0.2 ) $ 29.1Adjusted Free Cash Flow - LiLAC Group
Three months ended March 31, 2017 2016 in millions Adjusted Free Cash Flow $ (58.0 ) $ 19.9Leverage and Liquidity - LiLAC Group (at March 31, 2017)
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; our expectations with respect to subscribers, 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 impact of investments by Virgin Media in its marketing efforts); plans and expectations relating to new build and network extension opportunities; expectations regarding our share buyback program; the strength of our balance sheet and tenor of our third-party debt; statements regarding our joint venture in the Netherlands; 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 and our affiliates’ services and their willingness to upgrade to our more advanced offerings; our and our affiliates’ ability to meet challenges from competition, to manage rapid technological change or to maintain or increase rates to subscribers or to pass through increased costs to subscribers; the effects of changes in laws or regulation; general economic factors; our and our affiliates’ ability to obtain regulatory approval and satisfy regulatory conditions associated with acquisitions and dispositions; our and affiliates’ ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive programming for our and our affiliates’ video services and the costs associated with such programming; our and our affiliates’ ability to achieve forecasted financial and operating targets; the outcome of any pending or threatened litigation; the ability of our operating companies and affiliates to access cash of their respective subsidiaries; the impact of our operating companies' and affiliates’ 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 and our affiliates’ 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, as amended, and Form 10-Q. 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 6 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 “track” the economic performance of the Liberty Global Group and the LiLAC Group, respectively (each as defined and described below). For more information regarding the tracking shares, see note 1 to our condensed consolidated financial statements included in our quarterly report on Form 10-Q filed on May 8, 2017 (the "Form 10-Q"). While the LiLAC Group and the Liberty Global Group have separate collections of businesses, assets and liabilities attributed to them, neither group is a separate legal entity. The LiLAC Group comprises our operations in Latin America and the Caribbean and has attributed to it CWC, VTR and Liberty Puerto Rico. The Liberty Global Group comprises our businesses, assets and liabilities not attributed to the LiLAC Group, including Virgin Media, Unitymedia, UPC Holding, Telenet and, through December 31, 2016, Ziggo Group Holding. The condensed consolidated financial statements of Liberty Global are included in our Form 10-Q. For attributed financial information of the Liberty Global Group and the LiLAC Group, see Exhibit 99.1 to our Form 10-Q. 2 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. 3Please 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.
4 As we no longer consolidate the Netherlands effective December 31, 2016, we have removed the Netherlands from certain information presented for periods prior to December 31, 2016 to enhance comparability. 5Please see Revenue and Operating Cash Flow for information on rebased growth.
6 Total B2B includes subscription (SOHO) and non-subscription revenue. 7Please see OCF Definition and Reconciliation for our Operating Cash Flow ("OCF") definition and the required reconciliations.
8 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, installation fees and revenue from the VodafoneZiggo JV for services we provide to them) 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 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. 9 Please see Liberty Global's 8-K/A filed on March 28, 2017. 10 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. 11 On May 16, 2016, we acquired Cable & Wireless Communications Limited ("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. FX rates as of February 12, 2017. 13 For purposes of calculating our average tenor, total third-party debt excludes vendor financing. 14 Our blended fully-swapped debt borrowing cost represents the weighted average interest rate on our aggregate variable- and fixed-rate indebtedness (excluding capital leases 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. 15 Liquidity refers to cash and cash equivalents plus the maximum undrawn commitments under subsidiary borrowing facilities, without regard to covenant compliance calculations. 16Please see Footnotes for Operating Data and Subscriber Variance Tables for the definition of Customer Relationships.
17Please see Footnotes for Operating Data and Subscriber Variance Tables for the definition of mobile subscribers.
18 Our residential fixed business consists of our fixed-line triple-play and DTH businesses, but excludes SOHO services. Residential fixed also excludes the framework services revenue from the VodafoneZiggo JV and our small Irish broadcasting businesses. 19Please 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 condensed consolidated statements of cash flows included in our Form 10-Q. A reconciliation of our 2017 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.
20 On February 11, 2016, Telenet acquired Telenet Group BVBA ("BASE"). 21 We offer our customers in the U.K., Belgium and Switzerland 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 OCF margin is calculated by dividing OCF by total revenue for the applicable period. 23 Our property and equipment additions include our capital expenditures on an accrual basis and amounts financed under vendor financing or capital lease arrangements. 24 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. 25 Our aggregate unused borrowing capacity of $4.0 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 $1.0 billion attributed to the LiLAC Group. Upon completion of the relevant March 31, 2017 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 $3.9 billion. This consists of $3.0 billion attributed to the Liberty Global Group and $879 million attributed to the LiLAC Group. LiLAC cash of $527 million includes $288 million of cash held by CWC, 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 "Material Changes in Financial Condition" in our Form 10-Q.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-Q. For attributed financial information of the Liberty Global Group and the LiLAC Group, see Exhibit 99.1 to our 10-Q.
Revenue and Operating Cash Flow
In the following tables, we present revenue and operating cash flow by reportable segment for the three months ended March 31, 2017, 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 15 to the condensed consolidated financial statements included in our 10-Q.
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 ended March 31, 2016 to (i) include the pre-acquisition revenue and OCF of certain entities acquired during 2016 and 2017 in our rebased amounts for the three months ended March 31, 2016 to the same extent that the revenue and OCF of such entities are included in our results for the three months ended March 31, 2017, (ii) exclude the revenue and OCF of Ziggo Group Holding and a sports channel that were contributed to the VodafoneZiggo JV at the end of December 31, 2016, (iii) include revenue for the framework services agreement with the VodafoneZiggo JV in our rebased amounts for the three months ended March 31, 2016 as if the framework services agreement had been in place at the beginning of 2016, (iv) 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 ended March 31, 2016 to the same extent that the revenue and OCF of these subscribers is excluded from our results for the three months ended March 31, 2017 (v) exclude the revenue and OCF of two small disposals made in Belgium during Q1 2017 to the same extent that the revenue and OCF of these disposed businesses is excluded from our results for the three months ended March 31, 2017 and (vi) reflect the translation of our rebased amounts for the three months ended March 31, 2016 at the applicable average foreign currency exchange rates that were used to translate our results for the three months ended March 31, 2017. We have included CWC, BASE and four small entities in whole or in part in the determination of our rebased revenue and OCF for the three months ended March 31, 2016. We have reflected the revenue and OCF of the acquired entities in our 2016 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 2016 amounts to derive our rebased growth rates for the Liberty Global Group and the LiLAC Group:
Revenue OCF Three months ended Three months ended March 31, 2016 March 31, 2016 Liberty Global Group in millions Acquisitions $ 120.2 $ 39.4 Contribution of Ziggo Group Holding to the VodafoneZiggo JV and other dispositions (a) (680.2 ) (370.6 ) Foreign Currency (276.5 ) (120.3 ) Total decrease $ (836.5 ) $ (451.5 ) LiLAC Group CWC $ 605.6 $ 267.2 Foreign Currency 8.3 2.5 Total increase $ 613.9 $ 269.7 (a) In connection with the December 31, 2016 closing of the VodafoneZiggo JV transaction, we entered into a Framework Agreement that provides for the terms under which we provide services to the VodafoneZiggo JV. These adjustments to revenue and OCF are net of $31 million of revenue that we assumed would have been earned if the Framework Agreement had been in place on January 1, 2016.OCF Definition and Reconciliation
As used herein, OCF has the same meaning as the term "Adjusted OIBDA" that is referenced in our 10-Q. 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 our operating income to total segment OCF is presented in the following table:
Three months ended March 31, 2017 2016 in millions Consolidated Liberty Global Operating income $ 569.2 $ 586.6 Share-based compensation expense 39.0 69.0 Depreciation and amortization 1,322.2 1,435.5 Impairment, restructuring and other operating items, net 28.2 24.4 Total segment OCF $ 1,958.6 $ 2,115.5 Liberty Global Group Operating income $ 431.2 $ 526.6 Share-based compensation expense 33.4 67.2 Inter-group fees and allocations (3.0 ) (2.1 ) Depreciation and amortization 1,128.3 1,383.2 Impairment, restructuring and other operating items, net 14.8 18.7 Total segment OCF $ 1,604.7 $ 1,993.6 LiLAC Group Operating income $ 138.0 $ 60.0 Share-based compensation expense 5.6 1.8 Inter-group fees and allocations 3.0 2.1 Depreciation and amortization 193.9 52.3 Impairment, restructuring and other operating items, net 13.4 5.7 Total segment OCF $ 353.9 $ 121.9Summary 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 March 31, 2017:
Capital Debt & Capital Cash Lease Lease and Cash Debt2 Obligations Obligations Equivalents in millions Liberty Global and Liberty Global Group unrestricted subsidiaries $ 2,269.8 $ 66.7 $ 2,336.5 $ 1,955.3 Virgin Media3 15,220.1 84.1 15,304.2 60.6 UPC Holding 6,908.5 41.1 6,949.6 15.6 Unitymedia 8,132.8 661.6 8,794.4 1.9 Telenet 4,746.5 387.1 5,133.6 76.2 Total Liberty Global Group 37,277.7 1,240.6 38,518.3 2,109.6 LiLAC Group unrestricted subsidiaries — — — 93.8 CWC 3,670.9 20.0 3,690.9 288.4 VTR Finance 1,455.8 0.6 1,456.4 98.9 Liberty Puerto Rico 942.5 0.1 942.6 46.0 Total LiLAC Group 6,069.2 20.7 6,089.9 527.1 Total $ 43,346.9 $ 1,261.3 $ 44,608.2 $ 2,636.7Property 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-Q.
Liberty Global Group
Three months ended March 31, 2017 2016in millions, except %amounts
Customer premises equipment $ 296.0 $ 236.2 New Build & Upgrade 189.8 151.0 Capacity 116.6 106.3 Baseline 156.3 174.5 Product & Enablers 125.7 117.4 Property and equipment additions (excluding the Netherlands) 884.4 785.4 The Netherlands — 140.1 Total property and equipment additions 884.4 925.5 Reconciliation of property and equipment additions to capital expenditures: Excluding the Netherlands: Assets acquired under capital-related vendor financing arrangements4 (614.4 ) (398.5 ) Assets acquired under capital leases (31.4 ) (27.9 ) Changes in current liabilities related to capital expenditures 261.8 110.4 The Netherlands — (22.4 ) Total capital expenditures5 $ 500.4 $ 587.1 Property and equipment additions as % of revenue (excluding the Netherlands) 25.1 % 21.7 %LiLAC Group
Three months ended March 31, 2017 2016in millions, except %amounts
Customer premises equipment $ 45.4 $ 38.6 New Build & Upgrade 14.6 13.8 Capacity 9.4 7.6 Baseline 7.6 5.0 Product & Enablers 1.7 6.5 CWC P&E Additions 60.5 — Property and equipment additions 139.2 71.5 Assets acquired under capital-related vendor financing arrangements (14.1 ) — Assets acquired under capital leases (0.9 ) — Changes in current liabilities and cash derivatives related to capital expenditures 0.2 (21.5 ) Capital expenditures $ 124.4 $ 50.0 Property and equipment additions as % of revenue 15.3 % 23.5 % ______________________________ 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 $0.3 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 $98 million and $56 million during the three months ended March 31, 2017 and 2016, respectively, that were also financed by our vendors under these arrangements. 5 The capital expenditures that we report in our condensed 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) cash payments for third-party costs directly associated with successful and unsuccessful acquisitions and dispositions and (ii) 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. We changed our definition of adjusted free cash flow effective January 1, 2017 to remove the add-back of excess tax benefits from share-based compensation. This change, which was given effect for all periods presented, was made to accommodate our January 1, 2017 adoption of ASU 2016-09, Compensation - Stock Compensation, Improvements to Employee Share-Based Payment Accounting, pursuant to which we retrospectively revised the presentation of our condensed consolidated statements of cash flows to remove the operating cash outflows and financing cash inflows associated with excess tax benefits from share-based compensation. 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 March 31, 2017 2016 in millions Consolidated Liberty Global Net cash provided by operating activities $ 978.7 $ 1,090.7 Cash payments for direct acquisition and disposition costs 2.7 8.2 Expenses financed by an intermediary6 308.1 153.5 Capital expenditures (624.8 ) (637.1 ) Principal payments on amounts financed by vendors and intermediaries (1,033.0 ) (672.9 ) Principal payments on certain capital leases (22.3 ) (27.4 ) Adjusted FCF $ (390.6 ) $ (85.0 ) Liberty Global Group Net cash provided by operating activities $ 902.8 $ 1,020.8 Cash payments for direct acquisition and disposition costs 1.8 8.1 Expenses financed by an intermediary 297.8 153.5 Capital expenditures (500.4 ) (587.1 ) Principal payments on amounts financed by vendors and intermediaries (1,014.2 ) (672.9 ) Principal payments on certain capital leases (20.4 ) (27.3 ) Adjusted FCF $ (332.6 ) $ (104.9 ) LiLAC Group Net cash provided by operating activities $ 75.9 $ 69.9 Cash payments for direct acquisition and disposition costs 0.9 0.1 Expenses financed by an intermediary 10.3 — Capital expenditures (124.4 ) (50.0 ) Principal payments on amounts financed by vendors and intermediaries (18.8 ) — Principal payments on certain capital leases (1.9 ) (0.1 ) Adjusted FCF $ (58.0 ) $ 19.9 ________________________________ 6 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 Relationship7
The following table provides ARPU per customer relationship for the indicated periods:
Three months ended March 31, % FX-Neutral8 2017 2016 Change % Change Liberty Global Consolidated $ 40.71 $ 43.74 (6.9 %) (1.4 %) Liberty Global Group € 37.19 € 39.04 (4.7 %) (1.6 %) U.K. & Ireland (Virgin Media) £ 49.99 £ 49.20 1.6 % 0.8 % Germany (Unitymedia) € 24.82€ 23.87 4.0 % 4.0 % Belgium (Telenet) € 54.37 € 52.34 3.9 % 3.9 % The Netherlands (Ziggo Group Holding) € — € 44.88
*
*
Other Europe (UPC Holding) € 26.98 € 26.67 1.2 % (0.2 %) LiLAC Group9 $ 48.99 $ 54.36 (9.9 %) (13.9 %) Chile (VTR) CLP 33,676 CLP 33,049 1.9 % 1.9 % CWC $ 35.70 $ —*
*
Puerto Rico $ 79.07 $ 77.40 2.2 % 2.2 %* - Omitted
____________________________ 7 The impact of CWC is not included in the three months ended March 31, 2016. 8 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. 9 The decrease in the LiLAC Group ARPU is primarily due to the inclusion of CWC. Excluding CWC, the LiLAC Group ARPU was $57.82 for the three months ended March 31, 2017.Mobile ARPU
The following tables provide ARPU per mobile subscriber10 for the indicated periods:
ARPU per Mobile Subscriber Three months ended March 31, % FX-Neutral 2017 2016 Change % Change Liberty Global Group: Including interconnect revenue $ 17.44 $ 19.88 (12.3 %) (5.2 %) Excluding interconnect revenue $ 14.16 $ 16.23 (12.8 %) (5.3 %) LiLAC Group: Including interconnect revenue $ 16.81 $ 24.77 (32.1 %) (36.6 %) Excluding interconnect revenue $ 15.67 $ 22.40 (30.0 %) (34.7 %) _______________________________ 10 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 March 31, 2016 do not include the impact of CWC. 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 March 31, 2017 was $26.66 (including interconnect) and $24.41 (excluding interconnect).RGUs, Customers and Bundling11
The following table provides information on the breakdown of our RGUs and customer base and highlights our customer bundling metrics at March 31, 2017, December 31, 2016, and March 31, 2016:
March 31, December 31, March 31, Q1’17 / Q4’16 Q1’17 / Q1’16 2017 2016 2016 (% Change) (% Change)Liberty Global Group
Total RGUs Video RGUs 18,472,500 18,483,800 22,580,300 (0.1 %) (18.2 %) Broadband Internet RGUs 14,486,300 14,334,600 16,945,500 1.1 % (14.5 %) Telephony RGUs 12,065,900 11,962,900 14,118,400 0.9 % (14.5 %) Total Liberty Global Group 45,024,700 44,781,300 53,644,200 0.5 % (16.1 %) Customers Single-Play Customers 8,330,700 8,417,300 9,551,100 (1.0 %) (12.8 %) Dual-Play Customers 3,925,700 3,889,900 4,415,200 0.9 % (11.1 %) Triple-Play Customers 9,614,200 9,528,100 11,754,200 0.9 % (18.2 %) Total Liberty Global Group 21,870,600 21,835,300 25,720,500 0.2 % (15.0 %) Bundling % of Single-Play Customers 38.1 % 38.6 % 37.1 % (1.3 %) 2.7 % % of Dual-Play Customers 17.9 % 17.8 % 17.2 % 0.6 % 4.1 % % of Triple-Play Customers 44.0 % 43.6 % 45.7 % 0.9 % (3.7 %) RGUs per customer relationship 2.06 2.05 2.09 0.5 % (1.4 %)LiLAC Group
Total RGUs Video RGUs 1,717,100 1,714,300 1,293,400 0.2 % 32.8 % Broadband Internet RGUs 2,061,500 2,022,900 1,347,600 1.9 % 53.0 % Telephony RGUs 1,639,300 1,641,200 876,200 (0.1 %) 87.1 % Total LiLAC Group 5,417,900 5,378,400 3,517,200 0.7 % 54.0 % Customers Single-Play Customers 1,271,800 1,249,000 570,000 1.8 % 123.1 % Dual-Play Customers 801,200 793,900 382,200 0.9 % 109.6 % Triple-Play Customers 847,900 847,200 727,600 0.1 % 16.5 % Total LiLAC Group 2,920,900 2,890,100 1,679,800 1.1 % 73.9 %Bundling
% of Single-Play Customers 43.6 % 43.2 % 33.9 % 0.9 % 28.6 % % of Dual-Play Customers 27.4 % 27.5 % 22.8 % (0.4 %) 20.2 % % of Triple-play Customers 29.0 % 29.3 % 43.3 % (1.0 %) (33.0 %) RGUs per customer relationship 1.85 1.86 2.09 (0.5 %) (11.5 %) _____________________________ 11 The March 31, 2016 figures for the LiLAC Group do not include the impact of the CWC acquisition and the December 31, 2016 and March 31, 2017 figures for the Liberty Global Group do not include Ziggo Group Holding, which was contributed to the VodafoneZiggo JV on December 31, 2016.Consolidated Operating Data — March 31, 2017
VideoHomesPassed(1)
Two-wayHomesPassed(2)
Fixed-lineCustomerRelationships(3)
Basic VideoSubscribers(5)
EnhancedVideoSubscribers(6)
DTHSubscribers(7)
TotalVideo
InternetSubscribers(8)
TelephonySubscribers(9)
TotalRGUs(4)
Total MobileSubscribers
U.K.(11) 13,554,400 13,542,200 5,351,500 — 3,775,300 — 3,775,300 4,997,400 4,425,700 13,198,400 3,015,700 Germany 12,916,200 12,807,400 7,173,500 4,797,800 1,599,500 — 6,397,300 3,357,100 3,137,000 12,891,400 346,700 Belgium 2,996,700 2,996,700 2,134,200 268,700 1,727,600 — 1,996,300 1,608,100 1,258,200 4,862,600 2,837,500 Switzerland(10) 2,251,100 2,251,100 1,281,400 569,000 672,200 — 1,241,200 744,500 517,900 2,503,600 85,300 Austria 1,394,500 1,394,500 653,200 109,600 367,600 — 477,200 505,900 434,700 1,417,800 39,000 Ireland 856,300 812,100 452,500 28,400 269,500 — 297,900 364,400 353,900 1,016,200 27,900 Total Western Europe 33,969,200 33,804,000 17,046,300 5,773,500 8,411,700 — 14,185,200 11,577,400 10,127,400 35,890,000 6,352,100 Poland 3,184,100 3,123,600 1,430,500 203,400 1,010,500 — 1,213,900 1,111,500 630,200 2,955,600 4,900 Romania 2,922,500 2,877,000 1,290,900 255,000 647,400 356,400 1,258,800 544,000 488,300 2,291,100 — Hungary 1,738,100 1,720,600 1,107,000 118,400 545,600 284,800 948,800 641,600 589,800 2,180,200 67,100 Czech Republic 1,484,000 1,450,700 717,000 152,900 355,200 109,100 617,200 481,500 146,900 1,245,600 — Slovakia 588,700 566,800 278,900 27,100 144,900 76,600 248,600 130,300 83,300 462,200 — Total CEE 9,917,400 9,738,700 4,824,300 756,800 2,703,600 826,900 4,287,300 2,908,900 1,938,500 9,134,700 72,000 Total Liberty Global Group 43,886,600 43,542,700 21,870,600 6,530,300 11,115,300 826,900 18,472,500 14,486,300 12,065,900 45,024,700 6,424,100 Chile 3,271,500 2,758,600 1,352,800 75,700 977,200 — 1,052,900 1,117,800 650,200 2,820,900 178,700 Puerto Rico 1,095,000 1,095,000 406,700 — 260,900 — 260,900 333,900 210,900 805,700 — Panama 527,800 453,200 343,300 — 42,500 42,500 85,000 97,700 275,900 458,600 1,783,200 Jamaica 424,300 414,300 294,900 — 98,000 — 98,000 174,400 223,800 496,200 934,900 Trinidad 311,700 311,700 163,400 — 114,100 — 114,100 123,500 33,400 271,000 — Barbados 122,500 122,500 89,500 — 18,100 — 18,100 63,000 79,500 160,600 128,600 Bahamas 128,900 128,900 54,700 — 3,700 — 3,700 26,800 54,700 85,200 309,400 Other CWC 356,300 336,500 215,600 12,000 72,400 — 84,400 124,400 110,900 319,700 397,300 Total LiLAC Group 6,238,000 5,620,700 2,920,900 87,700 1,586,900 42,500 1,717,100 2,061,500 1,639,300 5,417,900 3,732,100 Grand Total 50,124,600 49,163,400 24,791,500 6,618,000 12,702,200 869,400 20,189,600 16,547,800 13,705,200 50,442,600 10,156,200Subscriber Variance Table - March 31, 2017 vs December 31, 2016
VideoHomesPassed(1)
Two-wayHomesPassed(2)
Fixed-lineCustomerRelationships(3)
Basic VideoSubscribers(5)
EnhancedVideoSubscribers(6)
DTHSubscribers(7)
TotalVideo
InternetSubscribers(8)
TelephonySubscribers(9)
TotalRGUs(4)
Total MobileSubscribers
U.K.(11) 95,200 95,800 67,500 — 46,200 — 46,200 80,700 35,600 162,500 (6,600 ) Germany 21,700 40,300 11,300 (25,100 ) 16,700 — (8,400 ) 31,500 29,300 52,400 (6,400 ) Belgium 9,100 9,100 (15,100 ) (15,900 ) (5,300 ) — (21,200 ) 6,400 2,800 (12,000 ) (154,400 ) Switzerland(10) 14,300 14,300 (13,300 ) (7,500 ) (3,000 ) — (10,500 ) (5,300 ) 6,000 (9,800 ) 5,000 Austria 3,100 3,100 (800 ) (6,100 ) 300 — (5,800 ) 3,100 9,200 6,500 8,500 Ireland 4,000 4,600 (2,200 ) (1,300 ) (5,600 ) — (6,900 ) 900 1,500 (4,500 ) 10,000 Total Western Europe 147,400 167,200 47,400 (55,900 ) 49,300 — (6,600 ) 117,300 84,400 195,100 (143,900 ) Poland 26,500 28,700 (8,700 ) (6,200 ) 5,600 — (600 ) 6,400 (4,300 ) 1,500 (400 ) Romania 34,800 38,600 (5,100 ) (8,400 ) 7,000 (7,100 ) (8,500 ) 8,600 17,400 17,500 — Hungary 6,700 6,700 (5,700 ) (12,800 ) 13,400 (7,200 ) (6,600 ) 9,500 10,000 12,900 4,600 Czech Republic 4,000 4,000 3,000 9,500 400 (2,400 ) 7,500 7,600 (2,500 ) 12,600 — Slovakia 900 2,000 4,400 (1,400 ) 1,100 3,800 3,500 2,300 (2,000 ) 3,800 — Total CEE 72,900 80,000 (12,100 ) (19,300 ) 27,500 (12,900 ) (4,700 ) 34,400 18,600 48,300 4,200 Total Liberty Global Group 220,300 247,200 35,300 (75,200 ) 76,800 (12,900 ) (11,300 ) 151,700 103,000 243,400 (139,700 ) Chile 54,900 48,100 23,900 (3,800 ) 9,400 — 5,600 26,600 (6,800 ) 25,400 12,500 Puerto Rico 2,700 2,700 3,000 — (400 ) — (400 ) 4,900 2,100 6,600 — Panama — 36,900 7,300 — (300 ) 2,800 2,500 2,000 700 5,200 46,900 Jamaica — (10,000 ) (1,000 ) — (4,500 ) — (4,500 ) 2,100 2,600 200 (9,900 ) Trinidad 1,200 1,200 (3,000 ) — (3,100 ) — (3,100 ) — 2,700 (400 ) — Barbados 700 700 (2,700 ) — (300 ) — (300 ) 500 (2,100 ) (1,900 ) (2,900 ) Bahamas (26,100 ) (26,100 ) (500 ) — 2,100 — 2,100 400 (400 ) 2,100 (5,800 ) Other 2,000 2,000 3,800 1,900 (1,000 ) — 900 2,100 (700 ) 2,300 (1,700 ) Total LiLAC Group 35,400 55,500 30,800 (1,900 ) 1,900 2,800 2,800 38,600 (1,900 ) 39,500 39,100 Grand Total 255,700 302,700 66,100 (77,100 ) 78,700 (10,100 ) (8,500 ) 190,300 101,100 282,900 (100,600 )Subscriber Variance Table - March 31, 2017 vs December 31, 2016
Video
Homes Passed(1)
Two-wayHomes Passed(2)
Fixed-lineCustomer Relationships(3)
Basic Video Subscribers(5)
Enhanced Video Subscribers(6)
DTH Subscribers(7)
TotalVideo
Internet Subscribers(8)
Telephony Subscribers(9)
Total RGUs(4)
Total Mobile Subscribers(12)
Organic Change Summary:
U.K. 95,200 95,800 67,500 — 46,200 — 46,200 80,700 35,600 162,500 (6,600 ) Germany 21,700 52,200 11,300 (25,100 ) 16,700 — (8,400 ) 31,500 29,300 52,400 (6,400 ) Belgium 9,100 9,100 (15,100 ) (15,900 ) (5,300 ) — (21,200 ) 6,400 2,800 (12,000 ) 3,500 Other Europe 85,600 93,300 (23,500 ) (41,100 ) 22,300 (12,900 ) (31,700 ) 35,800 37,300 41,400 27,700 Total Liberty Global Group 211,600 250,400 40,200 (82,100 ) 79,900 (12,900 ) (15,100 ) 154,400 105,000 244,300 18,200 Chile 54,900 48,100 23,900 (3,800 ) 9,400 — 5,600 26,600 (6,800 ) 25,400 12,500 Puerto Rico 2,700 2,700 3,000 — (400 ) — (400 ) 4,900 2,100 6,600 — Panama — 36,900 9,700 — 2,100 2,800 4,900 2,000 700 7,600 46,900 Jamaica — — (1,000 ) — (4,500 ) — (4,500 ) 2,100 2,600 200 (9,900 ) Trinidad 1,200 1,200 (3,000 ) — (3,100 ) — (3,100 ) — 2,700 (400 ) — Barbados 700 700 (2,700 ) — (300 ) — (300 ) 500 (2,100 ) (1,900 ) (2,900 ) Bahamas — — (500 ) — 2,100 — 2,100 400 (400 ) 2,100 (5,800 ) Other 2,000 2,000 3,800 1,900 (1,000 ) — 900 2,100 (700 ) 2,300 (1,700 ) Total LiLAC Group 61,500 91,600 33,200 (1,900 ) 4,300 2,800 5,200 38,600 (1,900 ) 41,900 39,100 Total Organic Change 273,100 342,000 73,400 (84,000 ) 84,200 (10,100 ) (9,900 ) 193,000 103,100 286,200 57,300Q1 2017 Adjustments:
Q1 2017 Germany adjustments — (11,900 ) — — — — — — — — — Q1 2017 Acquisitions - Switzerland 8,700 8,700 4,800 4,800 — — 4,800 — — 4,800 — Q1 2017 Switzerland adjustments — — — 2,100 — — 2,100 — — 2,100 — Q1 2017 Disposition - Switzerland — — (3,900 ) — (3,100 ) — (3,100 ) (2,700 ) (2,000 ) (7,800 ) — Q1 2017 Poland adjustments — — (5,800 ) — — — — — — — — Q1 2017 Disposition - Belgium — — — — — — — — — — (157,900 ) Q1 2017 Jamaica adjustments — (10,000 ) — — — — — — — — — Q1 2017 Bahamas adjustments (26,100 ) (26,100 ) — — — — — — — — — Q1 2017 Panama adjustments — — (2,400 ) — (2,400 ) — (2,400 ) — — (2,400 ) — Net Adjustments (17,400 ) (39,300 ) (7,300 ) 6,900 (5,500 ) — 1,400 (2,700 ) (2,000 ) (3,300 ) (157,900 ) Net Adds (Reductions) 255,700 302,700 66,100 (77,100 ) 78,700 (10,100 ) (8,500 ) 190,300 101,100 282,900 (100,600 ) 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. Certain of 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 Fixed-line 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 March 31, 2017 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 173,900 “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 43,500 and 19,900 digital subscriber line (“DSL”) subscribers within Austria and Belgium, 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 93,400 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 33,100 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 101,600 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 March 31, 2017, Switzerland’s partner networks account for 133,700 Customer Relationships, 287,200 RGUs, 104,000 Enhanced Video Subscribers, 107,000 Internet Subscribers, and 76,200 Telephony Subscribers. 11 Our Homes Passed and Two-way Homes Passed counts for the U.K. as of December 31, 2016 have been reduced by 151,000 premises as further detailed in our Form 8-K/A filed on March 28, 2017. 12 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. In a number of countries, our mobile subscribers receive mobile services pursuant to prepaid contracts. As of March 31, 2017, the prepaid mobile subscriber count included the following: Panama (1,615,400), Jamaica (911,900), Belgium (683,400), U.K. (605,100), Bahamas (277,900), Barbados (99,300), Chile (7,700) and twelve remaining CWC geographies (338,800).Additional General Notes to Tables:
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.” To the extent our existing customers upgrade from a residential product offering to a SOHO product offering, the number of SOHO RGUs or SOHO customers will increase, but there is no impact to our total RGU or customer counts. SOHO customers of CWC are not included in our respective RGU and customer counts as of March 31, 2017. 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/20170507005042/en/
Liberty Global plcInvestor Relations:Oskar Nooij, +1 303 220 4218orChristian Fangmann, +49 221 84 62 5151orJohn Rea, +1 303 220 4238orCorporate Communications:Matt Beake, +44 20 8483 6428orRebecca Pike, +44 20 8483 6216
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