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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 | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 16.29 | 15.02 | 23.81 | 16.57 | 16.57 | 16.57 | 121 | 22:00:00 |
All 2016 Guidance Targets Achieved for LBTY and LiLAC
One Million RGU Additions in 2016, up 20% YoY, incl. 324,000 in Q4
Operating Income of $683 Million in Europe in Q4, up 22% YoY
Q4 Rebased OCF Growth Accelerated to 7.5% in Europe (ex Ziggo)
European Stock Buyback Increased by $1 Billion to $3 Billion for 2017
Liberty Global plc ("Liberty Global") (NASDAQ: LBTYA, LBTYB, LBTYK, LILA and LILAK) today announces financial and operating results for the three months ("Q4") and fiscal year ("2016", "FY 2016" or "FY16") ended December 31, 2016 for the Liberty Global Group1 and the LiLAC Group1.
CEO Mike Fries stated, "As expected, we finished 2016 on a high note, delivering rebased2 OCF3 growth in Europe of 7.5% in the fourth quarter, excluding Ziggo. This performance was driven by solid results across our European operations, including Virgin Media, which delivered its best quarterly result in two years with 8% rebased OCF growth. As promised, the key 2016 drivers of our Liberty Go plan are kicking in - new build accelerated, B2B performed well and we kept indirect operating expenses relatively flat. We expect the collective impact of these drivers to continue ramping in 2017 and beyond, underpinning accelerating growth over the medium term."
"On the subscriber front, we increased our 2016 RGU4 additions in Europe by 24% year-over-year and finished the year with 946,000 new subscribers. This improved performance can be credited to the wide range of innovative new products that we've launched, including our superior and ever-increasing broadband speeds, and our aggressive network expansion program, which delivered over 1.4 million5 new gigabit-ready homes in 2016, including nearly half a million at Virgin Media6 alone."
"Looking ahead, we will continue to enrich our bundled portfolios with compelling 4G mobile offers and the addition of new content and functionality, including the launch of Netflix across our footprint. We will also expand the deployment of exciting new products like our 4K cloud-based set-top and our WiFi Connect Box. Also, in late 2017, we will start field trials of the unrivaled DOCSIS 3.1 technology, which will provide gigabit speeds. On the guidance front, we expect to deliver 6% to 7% rebased OCF growth in Europe in 2017, stepping up to 7% to 8%7 annual growth over the medium-term with upside in 2018. Finally, we are guiding towards Adjusted FCF16 of $1.5 billion8 from our European operations for 2017. This target includes the impact of our capital plan to connect 1.4 million new homes in 20179, which will help support our growth ambition over the coming years."
"On the M&A front, 2016 was a busy year. We completed our joint venture with Vodafone in the Netherlands at year-end, which was a terrific transaction for shareholders as total cash proceeds were nearly $3 billion10 over 2016 and we now own 50% of the most innovative converged player in the market. In October, we announced the proposed acquisition of Multimedia Polska, the third largest cable operator in Poland, and expect that deal to boost our market-leading position when it closes around year-end 2017. With regards to LiLAC, our Latin American and Caribbean business, we closed the acquisition of Cable & Wireless ('CWC') in May 2016. Despite some initial challenges, we believe in the prospects for this business as we exploit our organic growth potential and scale efficiencies across the region."
"The LiLAC Group delivered 6% rebased OCF growth in 2016, including 9% growth from our legacy LiLAC operations, which exclude Cable & Wireless. CWC11 delivered $226 million of OCF in Q4, just above the high-end of our expectations for the quarter. From an organizational perspective, we have changed CWC's operating model and recently placed a number of key personnel in critical roles within the business, including the confirmation of John Reid as CEO. As we head into 2017, we are laser focused on improving the results at CWC and expect the LiLAC Group to deliver approximately $1.5 billion12,8 of OCF for the full year."
"We ended 2016 with a strong balance sheet, purposely geared at 4.8x13 net leverage in Europe and 3.6x in LatAm. Our debt remains hedged against virtually all currency and interest rate exposures, and we don't have any material maturities until 2021. With total Liberty Global plc liquidity14 of $8 billion, we are in a great position heading into 2017. During Q4, we were active with repurchases of both stocks. For Liberty Global Group, we purchased over $450 million of equity at attractive price levels in Q4, ending 2016 with total buybacks of $2 billion. And today, we are announcing a $1 billion increase to our previously planned $2 billion buyback target for our Liberty Global Group equity in 2017. For LiLAC, we initiated a $300 million repurchase program in early November and LiLAC bought over $20 million of stock before year end. The valuation of LiLAC looks very attractive, and we are keen to continue repurchasing stock under this $300 million program."
European Highlights
YOY Growth/(Decline)*
FY 2016YOY Growth/(Decline)*
Subscribers
Organic RGU Net Additions 323,700 (3.6 %) 946,100 24.5 %Financial (in USD millions, unless noted)
Revenue $ 4,217 2.2 % $ 17,285 2.5 % Revenue (excluding Ziggo) 3,556 2.6 % 14,594 3.3 % OCF 2,036 5.0 % 8,164 3.0 % OCF (excluding Ziggo) 1,670 7.5 % 6,691 4.3 % Operating income 683 22.4 % 2,482 18.1 % Adjusted FCF 1,009 29.5 % 1,979 (18.6 %) Cash provided by operating activities 1,653 - 5,467 - Cash used by investing activities (642 ) - (3,475 ) - Cash used by financing activities (420 ) - (1,634 ) -* Revenue and OCF YoY growth rates are rebased growth rates
LiLAC Group Highlights
YOY Growth/(Decline)*
FY 2016YOY Growth/(Decline)*
Subscribers
Organic RGU Net Additions (200 ) - 94,000 (14.4 %)Financial (in USD millions, unless noted)
Revenue $ 923 1.8 % $ 2,724 1.2 % OCF 377 7.3 % 1,084 5.9 % Operating income 141 123.1 % 319 28.6 % Adjusted FCF 116 144.3 % 62 (29.3 %) Cash provided by operating activities 241 - 468 - Cash used by investing activities (133 ) - (441 ) - Cash provided (used) by financing activities (23 ) - 247 -* Revenue and OCF YoY growth rates are rebased growth rates
Subscriber Growth - Liberty Global Group (Europe)
Three months ended Year ended December 31, December 31, 2016 2015 2016 2015 Organic RGU net additions (losses) by product Video (24,400 ) (59,100 ) (276,900 ) (400,300 ) Data 230,600 207,600 721,600 645,600 Voice 117,500 187,300 501,400 514,800 Total Liberty Global Group 323,700 335,800 946,100 760,100 Organic RGU net additions (losses) by market U.K./Ireland 28,200 116,400 251,600 202,500 The Netherlands 51,100 (51,900 ) (27,800 ) (203,200 ) Germany 98,000 93,800 320,300 316,400 Belgium 700 25,800 28,300 80,200 Switzerland/Austria 25,000 (13,100 ) (400 ) 15,600 Central and Eastern Europe 120,700 164,800 374,100 348,600 Total Liberty Global Group 323,700 335,800 946,100 760,100 Organic Mobile SIM additions (losses) by product Postpaid 72,800 106,000 402,100 433,900 Prepaid (69,200 ) (52,600 ) (245,200 ) (187,800 ) Total Liberty Global Group 3,600 53,400 156,900 246,100 Organic Mobile SIM additions (losses) by market U.K./Ireland (1,800 ) (4,400 ) 16,200 (29,000 ) Belgium (28,100 ) 24,000 (6,900 ) 106,900 Other 33,500 33,800 147,600 168,200 Total Liberty Global Group 3,600 53,400 156,900 246,100Revenue 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 rebased basis:
Three months ended Increase/(decrease) Year ended Increase/(decrease) December 31, December 31, Revenue 2016 2015 % Rebased % 2016 2015 % Rebased % in millions, except % amounts European Division: U.K./Ireland $ 1,523.2 $ 1,804.4 (15.6 ) 0.8 $ 6,508.8 $ 7,058.7 (7.8 ) 2.6 Belgium 680.2 505.5 34.6 2.5 2,691.1 2,021.0 33.2 2.9 The Netherlands 660.4 672.6 (1.8 ) (0.3 ) 2,690.8 2,745.3 (2.0 ) (1.6 ) Germany 639.7 607.1 5.4 7.0 2,539.7 2,399.5 5.8 6.2 Switzerland/Austria 435.9 432.2 0.9 1.5 1,755.6 1,758.2 (0.1 ) 1.6 Total Western Europe 3,939.4 4,021.8 (2.0 ) 1.9 16,186.0 15,982.7 1.3 2.4 Central and Eastern Europe 273.8 265.0 3.3 5.6 1,088.4 1,066.6 2.0 3.9 Central and other (2.8 ) (1.7 ) N.M. * (8.0 ) (5.4 ) (48.1 ) * Total European Division 4,210.4 4,285.1 (1.7 ) 2.1 17,266.4 17,043.9 1.3 2.5 Corporate and other 18.9 8.4 N.M. * 66.7 42.3 57.7 * Intersegment eliminations (12.7 ) (3.6 ) N.M. * (48.1 ) (23.5 ) N.M. * Total Liberty Global Group $ 4,216.6 $ 4,289.9 (1.7 ) 2.2 $ 17,285.0 $ 17,062.7 1.3 2.5 Total Liberty Global Group excluding the Netherlands^ (1.7 ) 2.6 1.9 3.3* - Omitted; N.M. - Not Meaningful
^ - We provide a rebased revenue growth rate for the Liberty Global Group that excludes the Netherlands in light of the deconsolidation of the Netherlands that occurred on December 31, 2016 in connection with the closing of our joint venture in the Netherlands with Vodafone Group.
2016 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 rebased basis:
Three months ended Increase/(decrease) Year ended Increase/(decrease) December 31, December 31, OCF 2016 2015 % Rebased % 2016 2015 % Rebased % in millions, except % amounts European Division: U.K./Ireland $ 724.8 $ 816.2 (11.2 ) 7.9 $ 2,930.9 $ 3,162.1 (7.3 ) 4.6 Belgium 281.2 224.2 25.4 8.8 1,173.4 990.3 18.5 3.7 The Netherlands 365.2 392.0 (6.8 ) (5.4 ) 1,472.7 1,519.5 (3.1 ) (2.7 ) Germany 398.7 390.3 2.2 3.8 1,586.4 1,502.1 5.6 5.9 Switzerland/Austria 274.2 262.0 4.7 5.5 1,069.3 1,040.1 2.8 4.8 Total Western Europe 2,044.1 2,084.7 (1.9 ) 4.3 8,232.7 8,214.1 0.2 3.3 Central and Eastern Europe 125.6 118.5 6.0 8.8 471.5 474.0 (0.5 ) 1.5 Central and other (83.5 ) (74.6 ) (11.9 ) * (327.2 ) (289.2 ) (13.1 ) * Total European Division 2,086.2 2,128.6 (2.0 ) 4.3 8,377.0 8,398.9 (0.3 ) 2.9 Corporate and other (50.7 ) (62.9 ) 19.4 * (213.3 ) (222.6 ) 4.2 * Total Liberty Global Group $ 2,035.5 $ 2,065.7 (1.5 ) 5.0 $ 8,163.7 $ 8,176.3 (0.2 ) 3.0 Total Liberty Global Group excluding the Netherlands^ — 7.5 — 4.3 OCF Margin 48.3 % 48.2 % 47.2 % 47.9 %* - Omitted; N.M. - Not Meaningful
^ - We provide a rebased OCF growth rate for the Liberty Global Group that excludes the Netherlands in light of the deconsolidation of the Netherlands that occurred on December 31, 2016 in connection with the closing of our joint venture in the Netherlands with Vodafone Group. This is also the basis on which we provided our 2016 OCF guidance for the Liberty Global Group.
2016 Rebased Operating Cash Flow Growth - Segment Highlights
Net Earnings (Loss) - Liberty Global Group (Europe)
Property and Equipment Additions - Liberty Global Group (Europe)
Three months ended Year ended December 31, December 31, 2016 2015 2016 2015 in millions, except % amounts Customer premises equipment $ 292.4 $ 233.7 $ 1,148.6 $ 1,057.1 Scalable infrastructure 334.4 223.4 965.0 807.2 Line extensions 318.8 167.4 808.6 493.3 Upgrade/rebuild 131.1 131.0 465.1 519.4 Support capital & other 452.3 333.9 1,251.3 1,033.2 Property and equipment additions 1,529.0 1,089.4 4,638.6 3,910.2 Property and equipment additions as % of revenue 36.3 % 25.4 % 26.8 % 22.9 %Consolidated Statements of Cash Flows - Liberty Global Group (Europe)
Year ended December 31, 2016 2015 Variance in millions Net cash provided (used) by: Operating Activities $ 5,467.3 $ 5,399.3 $ 68.0 Investing Activities $ (3,475.2 ) $ (3,429.0 ) $ (46.2 ) Financing Activities $ (1,634.4 ) $ (2,311.3 ) $ 676.9Adjusted Free Cash Flow - Liberty Global Group (Europe)
Three months ended Year ended December 31, December 31, 2016 2015 2016 2015 in millions in millions Adjusted Free Cash Flow $ 1,009.1 $ 779.0 $ 1,978.9 $ 2,432.1Leverage and Liquidity - Liberty Global Group (Europe - at December 31, 2016)
Subscriber Growth - LiLAC Group
Three months ended Year ended December 31, December 31, 2016 2015 2016 2015 Organic RGU net additions (losses) by product Video (6,200 ) (1,300 ) 11,600 7,900 Data 14,500 15,000 100,200 88,400 Voice (8,500 ) (5,900 ) (17,800 ) 13,500 Total LiLAC Group (200 ) 7,800 94,000 109,800 Organic RGU net additions (losses) by market CWC (20,400 ) — (4,700 ) — Chile 10,300 200 76,500 79,700 Puerto Rico 9,900 7,600 22,200 30,100 Total LiLAC Group (200 ) 7,800 94,000 109,800 Organic Mobile SIM additions (losses) by product Postpaid 3,300 (900 ) 33,100 30,400 Prepaid 58,600 (1,100 ) 14,300 (8,900 ) Total LiLAC Group 61,900 (2,000 ) 47,400 21,500 Organic Mobile SIM additions (losses) by market CWC 48,500 — 13,200 — Chile 13,400 (2,000 ) 34,200 21,500 Puerto Rico — — — — Total LiLAC Group 61,900 (2,000 ) 47,400 21,500Revenue Highlights - LiLAC Group
On May 16, 2016, a subsidiary of Liberty Global acquired CWC. Accordingly, CWC has been included in our financial results under Liberty Global's U.S. GAAP accounting policies since May 16, 2016.
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 rebased basis:
Three months ended Increase Year ended Increase/(decrease) December 31, December 31, Revenue 2016 2015 % Rebased % 2016 2015 % Rebased % in millions, except % amounts LiLAC Division: CWC $ 590.7 $ — * 0.5 $ 1,444.8 $ — * (1.4 ) Chile 227.6 204.2 11.5 6.2 859.5 838.1 2.6 6.0 Puerto Rico 105.2 105.1 0.1 0.1 420.8 379.2 11.0 1.1 Total LiLAC Division 923.5 309.3 198.6 1.8 2,725.1 1,217.3 123.9 1.2 Intersegment eliminations (0.6 ) — N.M. * (1.3 ) — N.M. * Total LiLAC Group $ 922.9 $ 309.3 198.4 1.8 $ 2,723.8 $ 1,217.3 123.8 1.2 LiLAC Group excluding CWC^ 7.6 4.2 5.2 4.3* - Omitted; N.M. - Not Meaningful
^ - We provide a rebased revenue growth rate for the LiLAC Group that excludes CWC in light of the fact that CWC is only included in our 2016 results from the May 16, 2016 acquisition date.
2016 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 rebased basis:
Three months ended Increase Year ended Increase December 31, December 31, OCF 2016 2015 % Rebased % 2016 2015 % Rebased % in millions, except % amounts LiLAC Division: CWC $ 226.4 $ — N.M. 3.2 $ 541.9 $ — N.M. 3.0 Chile 94.3 82.0 15.0 9.7 339.3 328.1 3.4 6.8 Puerto Rico 58.9 46.5 26.7 26.7 211.8 167.2 26.7 15.0 Total LiLAC Division 379.6 128.5 195.4 7.9 1,093.0 495.3 120.7 6.3 Corporate and other (3.1 ) (1.1 ) N.M. * (8.9 ) (4.3 ) N.M. * Total segment OCF $ 376.5 $ 127.4 195.5 7.3 $ 1,084.1 $ 491.0 120.8 5.9 LiLAC Group excluding CWC^ 14.2 8.9 OCF Margin 40.8 % 41.2 % 39.8 % 40.3 %* - Omitted; N.M. - Not Meaningful
^ - We provide a rebased OCF growth rate for the LiLAC Group that excludes CWC in light of the fact that CWC is only included in our 2016 results from the May 16, 2016 acquisition date. This is also the basis on which we provided our 2016 OCF guidance for the LiLAC Group.
2016 Rebased OCF Growth - Segment Highlights
Net Earnings (Loss) - LiLAC Group
Property and Equipment Additions - LiLAC Group
Three months ended Year ended December 31, December 31, 2016 2015 2016 2015 in millions, except % amounts Customer premises equipment $ 27.9 $ 16.1 $ 140.2 $ 111.5 Scalable infrastructure 13.2 9.8 48.6 48.6 Line extensions 7.2 5.4 37.8 21.0 Upgrade/rebuild 1.7 1.3 9.4 6.3 Support capital & other 15.5 9.7 49.6 39.7 CWC P&E Additions 137.7 — 282.6 — Property and equipment additions 203.2 42.3 568.2 227.1 Property and equipment additions as % of revenue 22.0 % 13.7 % 20.9 % 18.7 %Consolidated Statements of Cash Flows - LiLAC Group
Year ended December 31, 2016 2015 Variance in millions Net cash provided (used) by: Operating Activities $ 468.2 $ 306.5 $ 161.7 Investing Activities $ (441.1 ) $ (490.6 ) $ 49.5 Financing Activities $ 247.3 $ 363.7 $ (116.4 )Adjusted Free Cash Flow - LiLAC Group
Three months ended Year ended December 31, December 31, 2016 2015 2016 2015 in millions in millions Adjusted Free Cash Flow $ 116.3 $ 47.6 $ 61.6 $ 87.1Leverage and Liquidity - LiLAC Group (at December 31, 2016)
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; expected RGU additions; our expectations with respect to 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 roll-out of our 4G mobile product and cloud-based products; plans and expectations relating to new build and network extension opportunities; the timing of proposed acquisitions and the anticipated benefits, costs and synergies in connection with acquisitions, including the CWC acquisition and the proposed acquisition of Multimedia Polska; expectations with respect to our joint venture in the Netherlands; expectations regarding our share buyback program; the strength of our balance sheet and tenor of our third-party debt; 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 services and their willingness to upgrade to our more advanced offerings; our ability to meet challenges from competition, to manage rapid technological change or to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers; the effects of changes in laws or regulation; general economic factors; our ability to obtain regulatory approval and satisfy regulatory conditions associated with acquisitions and dispositions; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from businesses we acquire; the availability of attractive programming for our video services and the costs associated with such programming; our ability to achieve forecasted financial and operating targets; the outcome of any pending or threatened litigation; the ability of our operating companies to access cash of their respective subsidiaries; the impact of our operating companies' 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 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. 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 5 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 reflect or “track” the economic performance of the Liberty Global Group and the LiLAC Group (each as defined and described below), respectively. For more information regarding the tracking shares, see note 1 to our consolidated financial statements included in our annual report on Form 10-K filed on February 15, 2017 (the "10-K"). “Liberty Global Group” does not represent a separate legal entity, rather it represents those businesses, assets and liabilities that have been attributed to that group. The Liberty Global Group comprises our businesses, assets and liabilities not attributed to the LiLAC Group, including Virgin Media, Unitymedia, UPC Holding BV, Telenet and, through December 31, 2016, Ziggo Group Holding. “LiLAC Group” does not represent a separate legal entity, rather it represents those businesses, assets and liabilities that have been attributed to that group. The LiLAC Group comprises our operations in Latin America and the Caribbean and has attributed to it CWC, VTR and Liberty Puerto Rico. The consolidated financial statements of Liberty Global are included in our 10-K. For attributed financial information of the Liberty Global Group and the LiLAC Group, see Exhibit 99.1 to our 10-K. 2Please see Revenue and Operating Cash Flow for information on rebased growth.
3Please see OCF Definition and Reconciliation for our Operating Cash Flow ("OCF") definition and the required reconciliations.
4Please 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.
5 Figure includes upgrades in Germany and U.K./Ireland. 6 The 465,000 premises added by Virgin Media in 2016 include 142,000 inactive premises at December 31, 2016 that have not yet received power and/or where head-end capacity upgrades or connection activities are required. These inactive premises are planned to be connected during the first quarter of 2017. Most of these inactive premises were related to fourth quarter 2016 activity. As of February 13, 2017, the number of these inactive premises had declined to 110,000. In addition, the 465,000 premises added include 25,000 technical upgrades and 18,000 commercial premises. 7 A reconciliation to a U.S. GAAP measure of the Liberty Global Group 2017 and medium-term OCF figures that underly our guidance ranges 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. For example, impairments or other operating charges such as direct acquisition costs are contingent upon the underlying activity, which cannot be reasonably forecasted. 8 FX rates as of February 12, 2017. 9 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. 10 The nearly $3 billion of proceeds that are related to the joint venture with Vodafone comprise (i) amounts received in connection with the closing of the transaction, including (a) our 50% share of the $2.9 billion of net proceeds from the recapitalization transactions completed by VodafoneZiggo Holding B.V., formerly known as Ziggo Group Holding B.V. ("Ziggo Group Holding"), during the third quarter of 2016 and (b) an equalization payment from Vodafone of $841 million, and (ii) over $500 million of cash generated and up-streamed by Ziggo Group Holding from the date the deal was announced in February 2016 through December 31, 2016. 11 On May 16, 2016, we acquired Cable & Wireless Communications Limited (formerly Cable & Wireless Communications Plc) ("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. 13 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. For Liberty Global Group, our ratios are adjusted to exclude debt and OCF of Ziggo Sport and Ziggo and its subsidiaries. 14 Liquidity refers to cash and cash equivalents plus the maximum undrawn commitments under subsidiary borrowing facilities, without regard to covenant compliance calculations. 15Please see Footnotes for Operating Data and Subscriber Variance Tables for the definition of Customer Relationships.
16Please 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 consolidated statements of cash flows included in our 10-K. A reconciliation of our 2017 and 2016 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.
17 Consistent with how our guidance was developed, the 1.4 million new homes that we built across Europe through year-end 2016 included 139,000 upgraded homes in Germany. 18 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. 19 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. 20 On February 11, 2016, Telenet acquired Telenet Group BVBA, formerly known as BASE Company NV ("BASE"). 21 In the U.K., Belgium and Switzerland we now offer our customers 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 Total B2B includes subscription (SOHO) and non-subscription revenue. Non-subscription revenue includes the amortization of deferred upfront installation fees and deferred nonrecurring fees received on B2B contracts where we maintain ownership of the installed equipment. Most of this deferred revenue relates to Virgin Media's B2B contracts, and in connection with the application of the Virgin Media acquisition accounting, we eliminated all of Virgin Media's B2B deferred revenue as of the June 7, 2013 acquisition date. Due primarily to this acquisition accounting, the amortization of Virgin Media's B2B deferred revenue is accounting for $1.5 million and $13.1 million of the increase in Liberty Global Group's total B2B revenue for the three months and year ended December 31, 2016, respectively. 23 Liberty Global Group's (3.4%) rebased mobile contraction (including interconnect and mobile handset sales revenue) and 0.3% growth for Q4 2016 and full-year 2016, respectively, includes the impact of our split-contract and non-subsidized handset sale programs in the U.K., Belgium, Switzerland, Ireland and Hungary, as further described above. Our split-contract and non-subsidized handset sale programs in the U.K., Belgium and Switzerland had net negative effects on our mobile subscription and handset revenue of $36.2 million in Q4 2016 and $42.7 million in 2016. The net negative effects of the split-contract and non-subsidized handset sale programs are comprised of (i) a decrease of $1.4 million and an increase of $76.6 million in handset revenue and (ii) decreases in mobile subscription revenue of $34.8 million and $119.3 million during Q4 2016 and full-year 2016, respectively. 24 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 and installation fees) 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, as applicable, for the Liberty Global Group and LiLAC Group 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. 25 OCF margin is calculated by dividing OCF by total revenue for the applicable period. 26 Our property and equipment additions include our capital expenditures on an accrual basis and amounts financed under vendor financing or capital lease arrangements. 27 For purposes of calculating our average tenor, total third-party debt excludes vendor financing. 28 Our blended fully-swapped debt borrowing cost represents the weighted average interest rate on our aggregate variable- and fixed-rate indebtedness (excluding capital lease 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. 29 Our aggregate unused borrowing capacity of $3.9 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 $989 million attributed to the LiLAC Group. Upon completion of the relevant December 31, 2016 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 $3.8 billion. This consists of $3.0 billion attributed to the Liberty Global Group and $845 million attributed to the LiLAC Group. LiLAC cash of $553 million includes $271 million of cash held by the consolidated CWC group, 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 "Liquidity and Capital Resources" in our 10-K.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-K. For attributed financial information of the Liberty Global Group and the LiLAC Group, see Exhibit 99.1 to our 10-K.
Revenue and Operating Cash Flow
In the following tables, we present revenue and operating cash flow by reportable segment for the three months and year ended December 31, 2016, 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 18 to our consolidated financial statements included in our 10-K.
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 and year ended December 31, 2015 to (i) include the pre-acquisition revenue and OCF of certain entities acquired during 2015 and 2016 in our rebased amounts for the three months and year ended December 31, 2015 to the same extent that the revenue and OCF of such entities are included in our results for the three months and year ended December 31, 2016, (ii) exclude the pre-disposition revenue and OCF of "offnet" subscribers in the U.K. that were disposed in the fourth quarter of 2014 and the first half of 2015 from our rebased amounts for the year ended December 31, 2015 to the same extent that the revenue and OCF of these disposed subscribers is excluded from our results for the year ended December 31, 2016, (iii) exclude the revenue and OCF related to a partner network agreement that was terminated shortly after the Ziggo acquisition from our rebased amounts for the year ended December 31, 2015 to the same extent that the revenue and OCF from this partner network is excluded from our results for the year ended December 31, 2016, (iv) exclude the pre-disposition revenue, OCF and associated intercompany eliminations of Film1, which was disposed in the third quarter of 2015, from our rebased amounts for the year ended December 31, 2015 to the same extent that the revenue, OCF and associated intercompany eliminations are excluded from our results for the year ended December 31, 2016, (v) 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 and year ended December 31, 2015 to the same extent that the revenue and OCF of these subscribers is excluded from our results for the three months and year ended December 31, 2016 and (vi) reflect the translation of our rebased amounts for the three months and year ended December 31, 2015 at the applicable average foreign currency exchange rates that were used to translate our results for the three months and year ended December 31, 2016. We have included CWC, BASE and five small entities in whole or in part in the determination of our rebased revenue and OCF for the three months ended December 31, 2015. We have included CWC, BASE, Choice and five small entities in whole or in part in the determination of our rebased revenue and OCF for the year ended December 31, 2015. We have reflected the revenue and OCF of the acquired entities in our 2015 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 2015 amounts to derive our rebased growth rates for the Liberty Global Group and the LiLAC Group:
Revenue OCFThree monthsendedDecember 31,2015
Year endedDecember 31,2015
Three months endedDecember 31,2015
Year endedDecember 31,2015
Liberty Global Group in millions Acquisitions $ 192.9 $ 667.4 $ 36.1 $ 136.2 Dispositions (3.1 ) (22.6 ) (2.0 ) (6.4 ) Foreign Currency (352.7 ) (839.3 ) (160.6 ) (380.4 ) Total decrease $ (162.9 ) $ (194.5 ) $ (126.5 ) $ (250.6 ) LiLAC Group Acquisitions $ 596.5 $ 1,523.1 $ 223.2 $ 550.0 Foreign Currency 0.9 (49.7 ) 0.2 (17.2 ) Total increase $ 597.4 $ 1,473.4 $ 223.4 $ 532.8In each case, the following tables present (i) the amounts reported by each of our reportable segments for the comparative periods, (ii) the U.S. dollar change and percentage change from period to period and (iii) the percentage change from period to period on a rebased basis:
Three months ended
Increase Increase December 31, (decrease) (decrease) Revenue 2016 2015 $ % Rebased % in millions, except % amounts Liberty Global Group: European Division: U.K./Ireland $ 1,523.2 $ 1,804.4 $ (281.2 ) (15.6 ) 0.8 Belgium 680.2 505.5 174.7 34.6 2.5 The Netherlands 660.4 672.6 (12.2 ) (1.8 ) (0.3 ) Germany 639.7 607.1 32.6 5.4 7.0 Switzerland/Austria 435.9 432.2 3.7 0.9 1.5 Total Western Europe 3,939.4 4,021.8 (82.4 ) (2.0 ) 1.9 Central and Eastern Europe 273.8 265.0 8.8 3.3 5.6 Central and other (2.8 ) (1.7 ) (1.1 ) N.M. * Total European Division 4,210.4 4,285.1 (74.7 ) (1.7 ) 2.1 Corporate and other 18.9 8.4 10.5 125.0 * Intersegment eliminations (12.7 ) (3.6 ) (9.1 ) N.M. * Total Liberty Global Group 4,216.6 4,289.9 (73.3 ) (1.7 ) 2.2 LiLAC Group: LiLAC Division: CWC 590.7 — 590.7 * 0.5 Chile 227.6 204.2 23.4 11.5 6.2 Puerto Rico 105.2 105.1 0.1 0.1 0.1 Total LiLAC Division 923.5 309.3 614.2 198.6 1.8 Intersegment eliminations (0.6 ) — (0.6 ) N.M. * Total LiLAC Group 922.9 309.3 613.6 198.4 1.8 Total $ 5,139.5 $ 4,599.2 $ 540.3 11.7 2.1 Liberty Global Group excluding the Netherlands(1) 2.6 LiLAC Group excluding CWC(2) 4.2* - Omitted; N.M. - Not Meaningful
(1) We provide a rebased revenue growth rate for the Liberty Global Group that excludes the Netherlands in light of the deconsolidation of the Netherlands that occurred on December 31, 2016 in connection with the closing of our joint venture in the Netherlands with Vodafone Group.
(2) We provide a rebased revenue growth rate for the LiLAC Group that excludes CWC in light of the fact that CWC is only included in our 2016 results from the May 16, 2016 acquisition date.
Year ended Increase Increase December 31, (decrease) (decrease) Revenue 2016 2015 $ % Rebased % in millions, except % amounts Liberty Global Group: European Division: U.K./Ireland $ 6,508.8 $ 7,058.7 $ (549.9 ) (7.8 ) 2.6 Belgium 2,691.1 2,021.0 670.1 33.2 2.9 The Netherlands 2,690.8 2,745.3 (54.5 ) (2.0 ) (1.6 ) Germany 2,539.7 2,399.5 140.2 5.8 6.2 Switzerland/Austria 1,755.6 1,758.2 (2.6 ) (0.1 ) 1.6 Total Western Europe 16,186.0 15,982.7 203.3 1.3 2.4 Central and Eastern Europe 1,088.4 1,066.6 21.8 2.0 3.9 Central and other (8.0 ) (5.4 ) (2.6 ) (48.1 ) * Total European Division 17,266.4 17,043.9 222.5 1.3 2.5 Corporate and other 66.7 42.3 24.4 N.M. * Intersegment eliminations (48.1 ) (23.5 ) (24.6 ) N.M. * Total Liberty Global Group 17,285.0 17,062.7 222.3 1.3 2.5 LiLAC Group: LiLAC Division: CWC 1,444.8 — 1,444.8 * (1.4 ) Chile 859.5 838.1 21.4 2.6 6.0 Puerto Rico 420.8 379.2 41.6 11.0 1.1 Total LiLAC Division 2,725.1 1,217.3 1,507.8 123.9 1.2 Intersegment eliminations (1.3 ) — (1.3 ) N.M. * Total LiLAC Group 2,723.8 1,217.3 1,506.5 123.8 1.2 Total $ 20,008.8 $ 18,280.0 $ 1,728.8 9.5 2.3 Liberty Global Group excluding the Netherlands (1) 3.3 LiLAC Group excluding CWC (2) 4.3* - Omitted; N.M. - Not Meaningful
(1) We provide a rebased revenue growth rate for the Liberty Global Group that excludes the Netherlands in light of the deconsolidation of the Netherlands that occurred on December 31, 2016 in connection with the closing of our joint venture in the Netherlands with Vodafone Group.
(2) We provide a rebased revenue growth rate for the LiLAC Group that excludes CWC in light of the fact that CWC is only included in our 2016 results from the May 16, 2016 acquisition date.
Three months ended Increase Increase December 31, (decrease) (decrease) OCF 2016 2015 $ % Rebased % in millions, except % amounts Liberty Global Group: European Division: U.K./Ireland $ 724.8 $ 816.2 $ (91.4 ) (11.2 ) 7.9 Belgium 281.2 224.2 57.0 25.4 8.8 The Netherlands 365.2 392.0 (26.8 ) (6.8 ) (5.4 ) Germany 398.7 390.3 8.4 2.2 3.8 Switzerland/Austria 274.2 262.0 12.2 4.7 5.5Total Western Europe
2,044.1 2,084.7 (40.6 ) (1.9 ) 4.3 Central and Eastern Europe 125.6 118.5 7.1 6.0 8.8 Central and other (83.5 ) (74.6 ) (8.9 ) (11.9 ) * Total European Division 2,086.2 2,128.6 (42.4 ) (2.0 ) 4.3 Corporate and other (50.7 ) (62.9 ) 12.2 19.4 * Total Liberty Global Group 2,035.5 2,065.7 (30.2 ) (1.5 ) 5.0 LiLAC Group: LiLAC Division: CWC 226.4 — 226.4 N.M. 3.2 Chile 94.3 82.0 12.3 15.0 9.7 Puerto Rico 58.9 46.5 12.4 26.7 26.7 Total LiLAC Division 379.6 128.5 251.1 195.4 7.9 Corporate and other (3.1 ) (1.1 ) (2.0 ) N.M. * Total LiLAC Group 376.5 127.4 249.1 195.5 7.3 Total $ 2,412.0 $ 2,193.1 $ 218.9 10.0 5.3 Liberty Global Group excluding the Netherlands (1) 7.5 LiLAC Group excluding CWC (2) 14.2 Operating Income Liberty Global Group $ 683.0 $ 558.0 $ 125.0 22.4 LiLAC Group 141.2 63.3 77.9 123.1 Total $ 824.2 $ 621.3 $ 202.9 32.7
* - Omitted; N.M. - Not Meaningful
Year ended Increase Increase December 31, (decrease) (decrease) OCF 2016 2015 $ % Rebased % in millions, except % amounts Liberty Global Group: European Division: U.K./Ireland $ 2,930.9 $ 3,162.1 $ (231.2 ) (7.3 ) 4.6 Belgium 1,173.4 990.3 183.1 18.5 3.7 The Netherlands 1,472.7 1,519.5 (46.8 ) (3.1 ) (2.7 ) Germany 1,586.4 1,502.1 84.3 5.6 5.9 Switzerland/Austria 1,069.3 1,040.1 29.2 2.8 4.8 Total Western Europe 8,232.7 8,214.1 18.6 0.2 3.3 Central and Eastern Europe 471.5 474.0 (2.5 ) (0.5 ) 1.5 Central and other (327.2 ) (289.2 ) (38.0 ) (13.1 ) * Total European Division 8,377.0 8,398.9 (21.9 ) (0.3 ) 2.9 Corporate and other (213.3 ) (222.6 ) 9.3 4.2 * Total Liberty Global Group 8,163.7 8,176.3 (12.6 ) (0.2 ) 3.0 LiLAC Group: LiLAC Division: CWC 541.9 — 541.9 N.M. 3.0 Chile 339.3 328.1 11.2 3.4 6.8 Puerto Rico 211.8 167.2 44.6 26.7 15.0 Total LiLAC Division 1,093.0 495.3 597.7 120.7 6.3 Corporate and other (8.9 ) (4.3 ) (4.6 ) N.M. * Total LiLAC Group 1,084.1 491.0 593.1 120.8 5.9 Total $ 9,247.8 $ 8,667.3 $ 580.5 6.7 3.3 Liberty Global Group excluding the Netherlands (1) 4.3 LiLAC Group excluding CWC (2) 8.9 Operating Income Liberty Global Group $ 2,482.2 $ 2,101.1 $ 381.1 18.1 LiLAC Group 319.1 248.1 71.0 28.6 Total $ 2,801.3 $ 2,349.2 $ 452.1 19.2* - Omitted; N.M. - Not Meaningful
(1) We provide a rebased OCF growth rate for the Liberty Global Group that excludes the Netherlands in light of the deconsolidation of the Netherlands that occurred on December 31, 2016 in connection with the closing of our joint venture in the Netherlands with Vodafone Group. This is also the basis on which we provided our 2016 OCF guidance for the Liberty Global Group. (2) We provide a rebased OCF growth rate for the LiLAC Group that excludes CWC in light of the fact that CWC is only included in our 2016 results from the May 16, 2016 acquisition date. This is also the basis on which we provided our 2016 OCF guidance for the LiLAC Group.OCF Definition and Reconciliation
As used herein, OCF has the same meaning as the term "Adjusted OIBDA" that is referenced in our 10-K. 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 operating income to total segment OCF is presented below.
Three months ended Year ended December 31, December 31, 2016 2015 2016 2015 in millions in millions Consolidated Liberty Global Operating income $ 824.2 $ 621.3 $ 2,801.3 $ 2,349.2 Share-based compensation expense 90.5 65.2 296.9 318.2 Depreciation and amortization 1,395.7 1,438.2 5,801.1 5,825.8 Impairment, restructuring and other operating items, net 101.6 68.4 348.5 174.1 Total segment OCF $ 2,412.0 $ 2,193.1 $ 9,247.8 $ 8,667.3 Liberty Global Group Operating income $ 683.0 $ 558.0 $ 2,482.2 $ 2,101.1 Share-based compensation expense 85.8 65.0 281.5 315.8 Inter-group fees and allocations (2.1 ) (2.2 ) (8.5 ) (4.3 ) Depreciation and amortization 1,187.5 1,382.6 5,213.8 5,609.4 Impairment, restructuring and other operating items, net 81.3 62.3 194.7 154.3 Total segment OCF $ 2,035.5 $ 2,065.7 $ 8,163.7 $ 8,176.3 LiLAC Group Operating income $ 141.2 $ 63.3 $ 319.1 $ 248.1 Share-based compensation expense 4.7 0.2 15.4 2.4 Inter-group fees and allocations 2.1 2.2 8.5 4.3 Depreciation and amortization 208.2 55.6 587.3 216.4 Impairment, restructuring and other operating items, net 20.3 6.1 153.8 19.8 Total segment OCF $ 376.5 $ 127.4 $ 1,084.1 $ 491.0Summary 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 December 31, 2016:
Capital Debt & Capital Cash Lease Lease and Cash Debt2 Obligations Obligations Equivalents in millions Liberty Global and Liberty Global Group unrestricted subsidiaries $ 2,190.6 $ 65.4 $ 2,256.0 $ 913.8 Virgin Media3 14,903.1 91.2 14,994.3 27.1 UPC Holding 6,784.0 33.5 6,817.5 28.2 Unitymedia 8,021.5 657.0 8,678.5 2.9 Telenet 4,658.2 374.0 5,032.2 104.6 Total Liberty Global Group 36,557.4 1,221.1 37,778.5 1,076.6 LiLAC Group unrestricted subsidiaries — — — 77.9 CWC 3,593.0 20.8 3,613.8 271.2 VTR Finance 1,448.9 0.7 1,449.6 125.0 Liberty Puerto Rico 942.5 0.2 942.7 78.5 Total LiLAC Group 5,984.4 21.7 6,006.1 552.6 Total $ 42,541.8 $ 1,242.8 $ 43,784.6 $ 1,629.2Property 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-K:
Liberty Global Group
Three months ended Year ended December 31, December 31, 2016 2015 2016 2015 in millions, except % amounts Customer premises equipment $ 292.4 $ 233.7 $ 1,148.6 $ 1,057.1 Scalable infrastructure 334.4 223.4 965.0 807.2 Line extensions 318.8 167.4 808.6 493.3 Upgrade/rebuild 131.1 131.0 465.1 519.4 Support capital & other 452.3 333.9 1,251.3 1,033.2 Property and equipment additions 1,529.0 1,089.4 4,638.6 3,910.2 Assets acquired under capital-related vendor financing arrangements4 (613.1 ) (390.9 ) (2,018.7 ) (1,481.5 ) Assets acquired under capital leases (31.2 ) (16.8 ) (104.2 ) (106.1 ) Changes in current liabilities related to capital expenditures (333.3 ) (91.1 ) (361.8 ) (50.3 ) Capital expenditures5 $ 551.4 $ 590.6 $ 2,153.9 $ 2,272.3 Property and equipment additions as % of revenue 36.3 % 25.4 % 26.8 % 22.9 %LiLAC Group
Three months ended Year ended December 31, December 31, 2016 2015 2016 2015 in millions, except % amounts Customer premises equipment $ 27.9 $ 16.1 $ 140.2 $ 111.5 Scalable infrastructure 13.2 9.8 48.6 48.6 Line extensions 7.2 5.4 37.8 21.0 Upgrade/rebuild 1.7 1.3 9.4 6.3 Support capital & other 15.5 9.7 49.6 39.7 CWC P&E Additions 137.7 — 282.6 — Property and equipment additions 203.2 42.3 568.2 227.1 Assets acquired under capital-related vendor financing arrangements (11.8 ) — (45.5 ) — Assets acquired under capital leases (2.4 ) — (7.4 ) — Changes in current liabilities and cash derivatives related to capital expenditures (41.1 ) 15.1 (24.9 ) 0.1 Capital expenditures $ 147.9 $ 57.4 $ 490.4 $ 227.2 Property and equipment additions as % of revenue 22.0 % 13.7 % 20.9 % 18.7 %________________________________
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 $0.2 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 $85 million and $50 million during the three months ended December 31, 2016 and 2015, respectively, and $278 million and $189 million during the year ended December 31, 2016 and 2015, respectively, that were also financed by our vendors under these arrangements. 5 The capital expenditures that we report in our 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) excess tax benefits related to the exercise of share-based incentive awards, (ii) cash payments for third-party costs directly associated with successful and unsuccessful acquisitions and dispositions and (iii) 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. Beginning with the third quarter of 2016, we changed the name of this metric from "Free Cash Flow" to "Adjusted Free Cash flow." We have not changed how we calculate this metric. 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 Year ended December 31, December 31, 2016 2015 2016 2015 in millions Consolidated Liberty Global Net cash provided by operating activities $ 1,894.0 $ 1,546.5 $ 5,935.5 $ 5,705.8 Excess tax benefits from share-based compensation6 0.4 (0.3 ) 4.4 26.7 Cash payments for direct acquisition and disposition costs 25.8 14.7 115.3 264.2 Expenses financed by an intermediary7 208.0 161.4 815.0 294.2 Capital expenditures (699.3 ) (648.0 ) (2,644.3 ) (2,499.5 ) Principal payments on amounts financed by vendors and intermediaries (278.5 ) (215.7 ) (2,074.7 ) (1,125.4 ) Principal payments on certain capital leases (25.0 ) (32.0 ) (110.7 ) (146.8 ) Adjusted FCF $ 1,125.4 $ 826.6 $ 2,040.5 $ 2,519.2 Liberty Global Group Net cash provided by operating activities $ 1,653.3 $ 1,441.6 $ 5,467.3 $ 5,399.3 Excess tax benefits from share-based compensation 0.4 (0.3 ) 4.4 23.0 Cash payments for direct acquisition and disposition costs 2.5 14.4 29.3 259.3 Expenses financed by an intermediary 206.1 161.4 812.0 294.2 Capital expenditures (551.4 ) (590.6 ) (2,153.9 ) (2,272.3 ) Principal payments on amounts financed by vendors and intermediaries (278.5 ) (215.7 ) (2,074.7 ) (1,125.4 ) Principal payments on certain capital leases (23.3 ) (31.8 ) (105.5 ) (146.0 ) Adjusted FCF $ 1,009.1 $ 779.0 $ 1,978.9 $ 2,432.1 LiLAC Group Net cash provided by operating activities $ 240.7 $ 104.9 $ 468.2 $ 306.5 Excess tax benefits from share-based compensation — — — 3.7 Cash payments for direct acquisition and disposition costs 23.3 0.3 86.0 4.9 Expenses financed by an intermediary 1.9 — 3.0 — Capital expenditures (147.9 ) (57.4 ) (490.4 ) (227.2 ) Principal payments on certain capital leases (1.7 ) (0.2 ) (5.2 ) (0.8 ) Adjusted FCF $ 116.3 $ 47.6 $ 61.6 $ 87.1________________________________
6 Excess tax benefits from share-based compensation represent the excess of tax deductions over the related financial reporting share-based compensation expense. The hypothetical cash flows associated with these excess tax benefits are reported as an increase to cash flows from financing activities and a corresponding decrease to cash flows from operating activities in our consolidated statements of cash flows. 7 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 Relationship8
The following table provides ARPU per customer relationship for the indicated periods:
Three months ended Dec. 31, % FX-Neutral9 2016 2015 Change % Change Liberty Global Consolidated $ 42.04 $ 44.14 (4.8 )% 1.8 % Liberty Global Group10 € 38.39 € 39.68 (3.3 )% 2.7 % U.K. & Ireland (Virgin Media) £ 50.15 £ 48.80 2.8 % 1.3 % The Netherlands (Ziggo) € 46.18€ 44.97 2.7 % 2.7 % Germany (Unitymedia) € 24.65
€ 23.51 4.8 % 4.8 % Belgium (Telenet) € 53.96 € 51.23 5.3 % 5.3 % Other Europe (UPC Holding) € 26.98 € 26.72 1.0 % 1.1 % LiLAC Group11 $ 47.82 $ 55.12 (13.2 )% (16.0 )% Chile (VTR) CLP 33,953 CLP 33,382 1.7 % 1.7 % CWC $ 34.27 $ N/A N/A N/A Puerto Rico $ 77.54 $ 78.13 (0.8 )% (0.8 )%
____________________________
8 The amounts presented for the 2016 period reflect the post-acquisition revenue for CWC, which was acquired on May 16, 2016. The impact of CWC is not included in the three months ended December 31, 2015. 9 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. 10 Excluding the Netherlands, the Liberty Global Group ARPU was €36.96 for the three months ended December 31, 2016. 11 The decrease in the LiLAC Group ARPU is primarily due to the inclusion of CWC. Excluding CWC, the LiLAC Group ARPU was $57.20 for the three months ended December 31, 2016.Mobile Statistics
The following tables provide ARPU per mobile subscriber12 and mobile subscribers13 for the indicated periods:
ARPU per Mobile Subscriber Three months ended Dec. 31, % FX-Neutral 2016 2015 Change % Change Liberty Global Group: Including interconnect revenue $ 18.41 $ 21.38 (13.9 )% (1.6 )% Excluding interconnect revenue $ 14.95 $ 17.66 (15.3 )% (2.5 )% LiLAC Group: Including interconnect revenue $ 17.47 $ 24.91 (29.9 )% (33.2 )% Excluding interconnect revenue $ 16.26 $ 22.84 (28.8 )% (32.1 )% Mobile Subscribers Dec 31, 2016 Sept. 30, 2016 Change Liberty Global Group: U.K. 3,022,300 3,028,400 (6,100 ) Belgium 2,991,900 3,020,000 (28,100 ) Germany 353,100 356,400 (3,300 ) The Netherlands — 227,000 (227,000 ) Switzerland 80,300 70,100 10,200 Austria 30,500 24,300 6,200 Ireland 17,900 13,600 4,300 Total Western Europe 6,496,000 6,739,800 (243,800 ) Hungary 62,500 56,700 5,800 Poland 5,300 5,800 (500 ) Total CEE 67,800 62,500 5,300 Liberty Global Group 6,563,800 6,802,300 (238,500 ) LiLAC Group: Panama14 1,736,300 1,760,200 (23,900 ) Jamaica 944,800 888,800 56,000 Bahamas 315,200 309,200 6,000 Barbados 131,500 129,000 2,500 Other 399,000 379,100 19,900 CWC Total 3,526,800 3,466,300 60,500 Chile 166,200 152,800 13,400 LiLAC Group 3,693,000 3,619,100 73,900 Grand Total 10,256,800 10,421,400 (164,600 )_______________________________
12 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 December 31, 2015 do not include the impact of CWC and BASE in Belgium. 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 December 31, 2016 was $26.64 (including interconnect) and $24.38 (excluding interconnect). 13 In a number of countries, our mobile subscribers received mobile services pursuant to prepaid contracts. As of December 31, 2016, the prepaid mobile subscriber count included the following: Panama (1,566,500), Jamaica (922,100), Belgium (880,800), U.K. (638,600), Bahamas (282,600), Barbados (101,900), Chile (8,000) and twelve remaining CWC geographies (342,900). 14 The decline includes a 30,200 nonorganic adjustment to prepaid mobile subscribers to comply with Liberty Global subscriber counting policies.RGUs, Customers and Bundling15
The following table provides information on the breakdown of our RGUs and customer base and highlights our customer bundling metrics at December 31, 2016, September 30, 2016, and December 31, 2015:
December 31,2016
September 30,2016
December 31,2015
Q4’16 / Q3’16(% Change)
Q4’16 / Q4’15(% Change)
Liberty Global Group
Total RGUs Video RGUs 18,483,800 22,477,000 22,756,100 (17.8 %) (18.8 %) Broadband Internet RGUs 14,334,600 17,287,900 16,798,400 (17.1 %) (14.7 %) Telephony RGUs 11,962,900 14,378,200 13,997,600 (16.8 %) (14.5 %) Total Liberty Global Group 44,781,300 54,143,100 53,552,100 (17.3 %) (16.4 %) Customers Single-Play Customers 8,417,300 9,297,700 9,777,100 (9.5 %) (13.9 %) Dual-Play Customers 3,889,900 4,536,600 4,316,500 (14.3 %) (9.9 %) Triple-Play Customers 9,528,100 11,924,100 11,714,000 (20.1 %) (18.7 %) Total Liberty Global Group 21,835,300 25,758,400 25,807,600 (15.2 %) (15.4 %) % of Single-Play Customers 38.6%
36.1 % 37.9 % 6.9 % 1.8 % % of Dual-Play Customers 17.8 % 17.6 % 16.7 % 1.1 % 6.6 % % of Triple-Play Customers 43.6 % 46.3 % 45.4 % (5.8 %) (4.0 %) RGUs per customer relationship 2.05 2.10 2.08 (2.4 %) (1.4 %)LiLAC Group
Total RGUs Video RGUs 1,714,300 1,733,700 1,289,900 (1.1 %) 32.9 % Broadband Internet RGUs 2,022,900 2,031,900 1,322,100 (0.4 %) 53.0 % Telephony RGUs 1,641,200 1,667,400 883,900 (1.6 %) 85.7 % Total LiLAC Group 5,378,400 5,433,000 3,495,900 (1.0 %) 53.8 % Customers Single-Play Customers 1,249,000 1,298,700 562,300 (3.8 %) 122.1 % Dual-Play Customers 793,900 802,900 372,400 (1.1 %) 113.2 % Triple-Play Customers 847,200 842,800 729,600 0.5 % 16.1 % Total LiLAC Group 2,890,100 2,944,400 1,664,300 (1.8 %) 73.7 % % of Single-Play Customers 43.2 % 44.1 % 33.8 % (2.0 %) 27.8 % % of Dual-Play Customers 27.5 % 27.3 % 22.4 % 0.7 % 22.8 % % of Triple-play Customers 29.3 % 28.6 % 43.8 % 2.4 % (33.1 %) RGUs per customer relationship 1.86 1.85 2.10 0.5 % (11.4 %)_____________________________
15 The December 31, 2015 figures for the LiLAC Group do not include the impact of the CWC acquisition and the December 31, 2016 figures for Liberty Global Group do not include Ziggo Group Holding, which was contributed to the joint venture with Vodafone on December 31, 2016.Consolidated Operating Data — December 31, 2016
VideoHomesPassed(1)
Two-wayHomesPassed(2)
CustomerRelationships(3)
TotalRGUs(4)
Basic VideoSubscribers(5)
Enhanced VideoSubscribers(6)
DTHSubscribers(7)
TotalVideo
InternetSubscribers(8)
TelephonySubscribers(9)
U.K. 13,610,200 13,597,400 5,284,000 13,035,900 — 3,729,100 — 3,729,100 4,916,700 4,390,100 Germany 12,894,500 12,767,100 7,162,200 12,839,000 4,822,900 1,582,800 — 6,405,700 3,325,600 3,107,700 The Netherlands — — — — — — — — — — Belgium 2,987,600 2,987,600 2,149,300 4,874,600 284,600 1,732,900 — 2,017,500 1,601,700 1,255,400 Switzerland(10) 2,236,800 2,236,800 1,294,700 2,513,400 576,500 675,200 — 1,251,700 749,800 511,900 Austria 1,391,400 1,391,400 654,000 1,411,300 115,700 367,300 — 483,000 502,800 425,500 Ireland 852,300 807,500 454,700 1,020,700 29,700 275,100 — 304,800 363,500 352,400 Total Western Europe 33,972,800 33,787,800 16,998,900 35,694,900 5,829,400 8,362,400 — 14,191,800 11,460,100 10,043,000 Poland 3,157,600 3,094,900 1,439,200 2,954,100 209,600 1,004,900 — 1,214,500 1,105,100 634,500 Hungary 1,731,400 1,713,900 1,112,700 2,167,300 131,200 532,200 292,000 955,400 632,100 579,800 Romania 2,887,700 2,838,400 1,296,000 2,273,600 263,400 640,400 363,500 1,267,300 535,400 470,900 Czech Republic 1,480,000 1,446,700 714,000 1,233,000 143,400 354,800 111,500 609,700 473,900 149,400 Slovakia 587,800 564,800 274,500 458,400 28,500 143,800 72,800 245,100 128,000 85,300 Total CEE 9,844,500 9,658,700 4,836,400 9,086,400 776,100 2,676,100 839,800 4,292,000 2,874,500 1,919,900 Total Liberty Global Group 43,817,300 43,446,500 21,835,300 44,781,300 6,605,500 11,038,500 839,800 18,483,800 14,334,600 11,962,900 Chile 3,216,600 2,710,500 1,328,900 2,795,500 79,500 967,800 — 1,047,300 1,091,200 657,000 CWC Panama 527,800 416,300 336,000 453,400 — 42,800 39,700 82,500 95,700 275,200 Jamaica 424,300 424,300 295,900 496,000 — 102,500 — 102,500 172,300 221,200 Trinidad & Tobago 310,500 310,500 166,400 271,400 — 117,200 — 117,200 123,500 30,700 Barbados 121,800 121,800 92,200 162,500 — 18,400 — 18,400 62,500 81,600 Bahamas 155,000 155,000 55,200 83,100 — 1,600 — 1,600 26,400 55,100 Other 354,300 334,500 211,800 317,400 10,100 73,400 — 83,500 122,300 111,600 Total CWC 1,893,700 1,762,400 1,157,500 1,783,800 10,100 355,900 39,700 405,700 602,700 775,400 Puerto Rico 1,092,300 1,092,300 403,700 799,100 — 261,300 — 261,300 329,000 208,800 Total LiLAC Group 6,202,600 5,565,200 2,890,100 5,378,400 89,600 1,585,000 39,700 1,714,300 2,022,900 1,641,200 Grand Total 50,019,900 49,011,700 24,725,400 50,159,700 6,695,100 12,623,500 879,500 20,198,100 16,357,500 13,604,100Subscriber Variance Table - December 31, 2016 vs September 30, 2016
VideoHomesPassed(1)
Two-wayHomesPassed(2)
CustomerRelationships(3)
TotalRGUs(4)
Basic VideoSubscribers(5)
EnhancedVideoSubscribers(6)
DTHSubscribers(7)
TotalVideo
InternetSubscribers(8)
TelephonySubscribers(9)
U.K. 455,700 458,300 34,100 35,700 — 5,600 — 5,600 48,800 (18,700 ) Germany 15,800 81,900 5,200 98,000 (42,900 ) 18,500 — (24,400 ) 62,100 60,300 The Netherlands (7,070,000 ) (7,056,200 ) (4,013,100 ) (9,649,300 ) (703,500 ) (3,289,000 ) — (3,992,500 ) (3,132,700 ) (2,524,100 ) Belgium 13,900 13,900 (7,000 ) 700 (13,000 ) 1,900 — (11,100 ) 7,400 4,400 Switzerland(10) 9,900 9,900 4,900 28,400 (7,700 ) 14,800 — 7,100 5,200 16,100 Austria 5,600 5,600 1,200 9,300 (4,700 ) (1,000 ) — (5,700 ) 4,800 10,200 Ireland 10,200 14,900 (3,000 ) (7,500 ) 1,000 (8,400 ) — (7,400 ) (300 ) 200 Total Western Europe (6,558,900 ) (6,471,700 ) (3,977,700 ) (9,484,700 ) (770,800 ) (3,257,600 ) — (4,028,400 ) (3,004,700 ) (2,451,600 ) Poland 62,400 63,500 9,500 29,100 (7,200 ) 14,600 — 7,400 19,000 2,700 Hungary 39,200 39,200 400 20,500 (10,200 ) 12,900 (3,400 ) (700 ) 11,600 9,600 Romania 76,300 86,000 36,600 47,800 (8,700 ) 10,800 14,000 16,100 10,500 21,200 Czech Republic 34,900 34,900 4,200 15,100 9,300 1,800 (2,100 ) 9,000 8,200 (2,100 ) Slovakia 28,000 29,100 3,900 10,400 (1,600 ) 1,400 3,600 3,400 2,100 4,900 Total CEE 240,800 252,700 54,600 122,900 (18,400 ) 41,500 12,100 35,200 51,400 36,300 Total Liberty Global Group (6,318,100 ) (6,219,000 ) (3,923,100 ) (9,361,800 ) (789,200 ) (3,216,100 ) 12,100 (3,993,200 ) (2,953,300 ) (2,415,300 ) Chile 18,200 21,200 11,100 10,300 (2,900 ) 5,400 — 2,500 14,400 (6,600 ) CWC Panama 112,100 176,100 (60,100 ) (67,200 ) — (8,200 ) (3,800 ) (12,000 ) (28,900 ) (26,300 ) Jamaica (45,500 ) (35,500 ) (5,200 ) (1,000 ) — (3,000 ) — (3,000 ) (900 ) 2,900 Trinidad & Tobago — — (3,100 ) (700 ) — (4,400 ) — (4,400 ) 100 3,600 Barbados — — (2,300 ) (7,400 ) — (1,500 ) — (1,500 ) (3,600 ) (2,300 ) Bahamas — — 200 2,300 — 700 — 700 1,500 100 Other — — (700 ) (800 ) (2,000 ) (400 ) — (2,400 ) 2,800 (1,200 ) Total CWC 66,600 140,600 (71,200 ) (74,800 ) (2,000 ) (16,800 ) (3,800 ) (22,600 ) (29,000 ) (23,200 ) Puerto Rico 6,500 6,500 5,800 9,900 — 700 — 700 5,600 3,600 Total LiLAC Group 91,300 168,300 (54,300 ) (54,600 ) (4,900 ) (10,700 ) (3,800 ) (19,400 ) (9,000 ) (26,200 ) Grand Total (6,226,800 ) (6,050,700 ) (3,977,400 ) (9,416,400 ) (794,100 ) (3,226,800 ) 8,300 (4,012,600 ) (2,962,300 ) (2,441,500 )
Subscriber Variance Table - December 31, 2016 vs September 30, 2016
Video
HomesPassed(1)
Two-wayHomesPassed(2)
CustomerRelationships(3)
TotalRGUs(4)
Basic VideoSubscribers(5)
EnhancedVideoSubscribers(6)
DTHSubscribers(7)
TotalVideo
InternetSubscribers(8)
TelephonySubscribers(9)
Organic Change Summary:
U.K. 193,900 196,500 34,100 35,700 — 5,600 — 5,600 48,800 (18,700 ) Germany 22,100 86,800 5,200 98,000 (42,900 ) 18,500 — (24,400 ) 62,100 60,300 The Netherlands 19,500 21,900 (24,000 ) 51,100 (34,300 ) 17,400 — (16,900 ) 55,800 12,200 Belgium 13,900 13,900 (7,000 ) 700 (13,000 ) 1,900 — (11,100 ) 7,400 4,400 Other Europe 251,500 268,100 37,200 138,200 (34,500 ) 44,800 12,100 22,400 56,500 59,300 Total Liberty Global Group 500,900 587,200 45,500 323,700 (124,700 ) 88,200 12,100 (24,400 ) 230,600 117,500 Chile 18,200 21,200 11,100 10,300 (2,900 ) 5,400 — 2,500 14,400 (6,600 ) CWC Panama — 64,000 (42,400 ) (12,800 ) — 5,000 (3,800 ) 1,200 (5,400 ) (8,600 ) Jamaica — — (5,200 ) (1,000 ) — (3,000 ) — (3,000 ) (900 ) 2,900 Trinidad & Tobago — — (3,100 ) (700 ) — (4,400 ) — (4,400 ) 100 3,600 Barbados — — (2,300 ) (7,400 ) — (1,500 ) — (1,500 ) (3,600 ) (2,300 ) Bahamas — — 200 2,300 — 700 — 700 1,500 100 Other — — (700 ) (800 ) (2,000 ) (400 ) — (2,400 ) 2,800 (1,200 ) Total CWC — 64,000 (53,500 ) (20,400 ) (2,000 ) (3,600 ) (3,800 ) (9,400 ) (5,500 ) (5,500 ) Puerto Rico 6,500 6,500 5,800 9,900 — 700 — 700 5,600 3,600 Total LiLAC Group 24,700 91,700 (36,600 ) (200 ) (4,900 ) 2,500 (3,800 ) (6,200 ) 14,500 (8,500 ) Total Organic Change 525,600 678,900 8,900 323,500 (129,600 ) 90,700 8,300 (30,600 ) 245,100 109,000Q4 2016 Adjustments:
Q4 2016 UK adjustments 261,800 261,800 — — — — — — — — Q4 2016 Germany adjustments (6,300 ) (4,900 ) — — — — — — — — Q4 2016 Disposition - Netherlands (7,089,500 ) (7,078,100 ) (3,978,600 ) (9,689,900 ) (637,400 ) (3,338,000 ) — (3,975,400 ) (3,178,200 ) (2,536,300 ) Q4 2016 Netherlands adjustments — — (10,500 ) (10,500 ) (31,800 ) 31,600 — (200 ) (10,300 ) — Q4 2016 Switzerland adjustments — — — 12,700 3,000 2,100 — 5,100 4,100 3,500 Q4 2016 Acquisition - Hungary 12,900 12,900 — — — — — — — — Q4 2016 Acquisition - Romania 2,100 2,100 1,800 2,200 1,700 — — 1,700 500 — Q4 2016 Romania adjustments — — 18,700 — — — — — — — Q4 2016 Panama adjustments 112,100 112,100 (17,700 ) (54,400 ) — (13,200 ) — (13,200 ) (23,500 ) (17,700 ) Q4 2016 Jamaica adjustments (45,500 ) (35,500 ) — — — — — — — — Net Adjustments (6,752,400 ) (6,729,600 ) (3,986,300 ) (9,739,900 ) (664,500 ) (3,317,500 ) — (3,982,000 ) (3,207,400 ) (2,550,500 ) Net Adds (Reductions) (6,226,800 ) (6,050,700 ) (3,977,400 ) (9,416,400 ) (794,100 ) (3,226,800 ) 8,300 (4,012,600 ) (2,962,300 ) (2,441,500 )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. 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)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 December 31, 2016 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 164,900 “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 45,700 and 45,600 digital subscriber line (“DSL”) subscribers within Belgium and Austria, 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 97,400 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 34,900 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 88,900 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 December 31, 2016, Switzerland’s partner networks account for 138,600 Customer Relationships, 290,900 RGUs, 106,300 Enhanced Video Subscribers, 108,500 Internet Subscribers, and 76,100 Telephony Subscribers.Additional General Notes to Tables:
As a result of our decision to discontinue our Multi-channel Multipoint Distribution System (“MMDS”) service in Ireland, we have excluded subscribers to our MMDS service from our externally reported operating statistics effective January 1, 2016, which resulted in a reduction to Homes Passed, RGUs, and Customer Relationships in Ireland and Slovakia of 22,000 and 500, respectively.
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.” SOHO customers of CWC are not included in our respective RGU and customer counts as of December 31, 2016. 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/20170215006338/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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