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UGC Announces Third Quarter Results
Total RGUs Exceed 9.0 Million
DENVER, Nov. 13 /PRNewswire-FirstCall/ -- UnitedGlobalCom, Inc. (UGC or the
Company) today announced its operating and financial results for the quarter
ended September 30, 2003. UGC's significant and consolidated operating
subsidiaries include UGC Europe, Inc. (UGC Europe) , a leading pan-European
broadband communications company; and VTR GlobalCom S.A. (VTR), the largest
broadband communications provider in Chile.
Third Quarter Highlights
-- Revenue for the three months ended September 30, 2003 was
$475 million, an increase of 23% when compared to the same period in
2002. Adjusting for the deconsolidation of UPC Germany (1) for the
prior period, revenue increased 25%. On a sequential basis from the
quarter ended June 30, 2003, revenue increased by 2% or $9 million.
-- Adjusted EBITDA (2) for the three months ended September 30, 2003 was
$171 million, a 102% or $86 million improvement from $85 million for
the same period in 2002. Adjusting for the deconsolidation of UPC
Germany for the prior period, Adjusted EBITDA improved by 105% or
$88 million. On a sequential basis from the quarter ended June 30,
2003, Adjusted EBITDA increased by 15% or $22 million.
-- Net Income for the three months ended September 30, 2003 was
$1.7 billion, an increase of $2.0 billion when compared to the same
period in 2002. This increase primarily relates to: (i) consummation
of the United Pan-Europe Communications N.V. ("UPC") restructuring in
September 2003, resulting in a gain of approximately $2.1 billion on
the early extinguishment of debt, and (ii) improved operating results.
-- RGUs (3) at September 30, 2003 were over 9.0 million, a 3.4% increase
or 298,200 from September 30, 2002. On a sequential basis from
June 30, 2003, RGUs increased 78,700.
-- Video subscribers (4) at September 30, 2003 were 7.4 million, a 1.1%
increase, or 83,000 from September 30, 2002. On a sequential basis
from June 30, 2003, video subscribers increased 22,600.
-- Voice and Internet subscribers at September 30, 2003 were nearly
1.6 million, a 16% increase or 215,200 from September 30, 2002. On a
sequential basis from June 30, 2003, voice and Internet subscribers
increased 56,100.
(1) In July 2002, UPC sold 22.3% of its interest in UPC Germany to its
partner. As a result, UPC's ownership decreased to 28.7% of UPC
Germany and it was deconsolidated effective August 1, 2002.
(2) Adjusted EBITDA is not a GAAP measure. "EBITDA" is an acronym for
earnings before interest, taxes, depreciation and amortization. As
we use the term, Adjusted EBITDA further removes the effects of
cumulative effects of accounting changes, share in results of
affiliates, minority interests in subsidiaries, reorganization
expense, other income and expense, gain on extinguishment of debt,
gain (loss) on sale of investments in affiliates and other assets,
foreign currency exchange gain (loss), impairment and restructuring
charges, and stock-based compensation. Please refer to the
reconciliation of Adjusted EBITDA with Net Income (Loss). See notes
at end of release for more information on Adjusted EBITDA.
(3) Revenue Generating Units ("RGUs") represent the sum of analog cable,
digital, Internet, voice and DTH subscribers.
(4) Video subscribers consist of analog cable, digital cable and DTH
subscribers.
Management Comments
Gene Schneider, Chairman and CEO of UGC, said, "We are very pleased to announce
another record quarter for the company, including over $171 million of adjusted
EBITDA. Several other important milestones were achieved during the period,
most importantly the completion of our European balance sheet restructuring.
UGC also launched an exchange offer for the balance of the shares in our
subsidiary UGC Europe that we do not already own (approximately 33%). We
believe this transaction is in the best interests of both UGC and UGCE
shareholders and, as disclosed, we expect to complete the exchange offer in
mid-December."
Mike Fries, President and COO of UGC, added, "The third quarter represented a
return to normalized subscriber growth in both Europe and Chile. During the
three months we added over 78,000 RGUs, including over 42,000 Internet
customers. These trends have continued through the fourth quarter with net
subscriber additions of 28,000 in Europe and 10,000 in Chile through November 1,
2003. Just as significant, our performance in the quarter, together with the
completion of our European restructuring, has brought our consolidated debt to
adjusted EBITDA ratio to approximately 5.3x on a last quarter annualized basis.
By all accounts, we sit in a very strong financial and operating position and
currently expect to meet our key guidance targets for 2003.
UGC Recent Events
UGC Announces Tender Offer: On October 6, 2003, UGC announced that it had
commenced an exchange offer for all of the outstanding shares of UGC Europe
which it does not own. UGC currently owns 66.75% of the outstanding shares of
UGC Europe common stock. On November 12, 2003, UGC announced revised terms to
the exchange offer. Pursuant to the revised terms, UGC is offering to exchange
10.3 shares of its Class A common stock for each share of UGC Europe common
stock that it does not own (approximately 16.6 million shares). The exchange
offer is conditioned, among other things, upon the tender of a sufficient number
of shares of UGC Europe common stock such that, upon completion of the exchange
offer, UGC will own at least 90% of the outstanding common stock of UGC Europe.
If the exchange offer is successfully completed, UGC will effect a "short-form"
merger of UGC Europe, by which UGC would acquire the remaining shares of UGC
Europe for the same consideration as in the exchange offer. The exchange offer
is scheduled to expire on December 18, 2003. In connection with the exchange
offer, UGC's majority shareholder, Liberty Media Corporation ("Liberty"), has
agreed to certain limitations on the exercise of its preemptive rights to
acquire additional shares of UGC Class A common stock upon the closing of the
exchange offer.
Restructuring of Old UGC: UGC's wholly-owned subsidiary, Old UGC, Inc. ("Old
UGC"), which principally owns the company's interests in Latin America and
Australia, has reached an agreement in principle with certain of its creditors,
including UGC and IDT United, Inc. (in which UGC has a 93.7% fully diluted
interest and a 33.3% common equity interest), on the economic terms for the
restructure of Old UGC's outstanding 10.75% Senior Discount Notes ("Old UGC
Notes) and expects to formalize a restructuring proposal shortly.
The outstanding principal balance of the Old UGC Notes is $1.262 billion. Of
this amount, UGC holds $638 million directly and has an interest in another $599
million indirectly through IDT United. Third parties hold approximately $25
million of the Old UGC Notes. UGC expects that the proposal, if implemented,
would result in the acquisition by Old UGC of the Old UGC Notes held by UGC and
IDT United for Old UGC common stock. Subject to consummation of such
acquisition, UGC expects to acquire the third party interests in IDT United in
which case Old UGC would continue to be wholly owned by UGC.
Restatement Effects Related to UPC Germany Accounting Issue: UGC consolidated
the financial results of UPC Germany prior to July 2002, since UGC Europe held
an indirect approximate 51% majority voting equity interest. At the end of July
2002, UGC Europe's ownership interest in UPC Germany was reduced from
approximately 51% to approximately 29% as a result of a pre- existing call right
held by the minority shareholder, which became exercisable in February 2002 as a
result of certain events of default under several of UGC Europe's debt
agreements. Accordingly, UGC Europe deconsolidated UPC Germany effective August
1, 2002. Upon deconsolidation, UGC Europe's net negative investment in UPC
Germany was EUR 150.3 ($147.9) million. UGC Europe and UGC had previously
concluded that generally accepted accounting principles precluded the
recognition of a gain upon deconsolidation because there were significant
uncertainties regarding the realization of such gain. Based on further
analysis, UGC Europe and UGC revised their conclusion, and as such UGC Europe
and UGC have restated their consolidated financial statements as of and for the
year ended December 31, 2002 to recognize a gain from the reversal of this net
negative investment, effective August 1, 2002, and UGC Europe and UGC have
restated the unaudited condensed consolidated financial statements for the
quarters ended March 31, 2003 and June 30, 2003 for the prospective effects of
this gain. This accounting gain will have no impact on UGC Europe's or UGC's
reported Adjusted EBITDA, cash flow, or future earnings.
Founders' transaction update: On August 19, 2003 certain of our founding
stockholders (the "Founders") and Liberty entered into a share exchange
agreement pursuant to which the Founders agreed to exchange an aggregate of
8,198,016 shares of Class B common stock (representing all of the outstanding
shares of our Class B common stock) for securities of Liberty and cash. This
transaction is now expected to close in early January 2004.
Subscribers
UGC continues to focus on growing its total customer base, particularly in areas
where the Company has upgraded its networks to provide broadband services,
primarily in Western Europe and Chile. RGUs, increased 3.4% or 298,200 from
last year's third quarter to 9.0 million, and increased 78,700 on a sequential
basis from June 30, 2003. The following table shows UGC's homes in service
area, homes passed, and two-way homes passed, as well as a breakdown of
subscriber data by product line:
Operating Statistics (000s)
Q3 '03 Q3 '03
vs. vs.
Q3 '03 Q2 '03 Q3 '02 Q2 '03 Q3 '02
Homes in Service
Area 16,492 16,321 16,313 1.0% 1.1%
Homes Passed 12,600 12,558 12,395 0.3% 1.7%
Two-Way Homes Passed 7,280 7,101 6,760 2.5% 7.7%
Video Subscribers 7,422 7,399 7,339 0.3% 1.1%
Voice Subscribers 718 704 683 1.9% 5.2%
Internet Subscribers 868 826 688 5.1% 26.1%
Total RGU's 9,008 8,929 8,710 0.9% 3.4%
The following table shows a breakdown of UGC's RGU data by division:
RGU Summary by Division (000s)
Q3 '03 Q3 '03
vs. vs.
Q3 '03 Q2 '03 Q3 '02 Q2 '03 Q3 '02
UGC Europe RGUs 8,116 8,074 7,939 0.5% 2.2%
VTR RGUs 860 823 740 4.5% 16.2%
Other RGUs 32 32 31 0.0% 2.2%
Total RGUs 9,008 8,929 8,710 0.9% 3.4%
Revenue
UGC's revenue for the third quarter ended September 30, 2003 was $475 million,
an increase of 23%, or $90 million from the same period last year. The increase
was due to the appreciation of the euro relative to the U.S. dollar
(approximately $53 million), as well as increases in RGUs and average revenue
per unit ("ARPU") in both Europe and Chile. The following table shows a
breakdown of revenue by segment:
Revenue by Division
(US$ millions)
Q3 '03 Q3 '03
vs. vs.
Q3 '03 Q2 '03 Q3 '02 Q2 '03 Q3 '02
UGC Europe
Revenue (1) $413.8 $409.2 $330.1 1.1% 25.4%
VTR Revenue 58.6 54.0 47.2 8.6% 24.3%
Other Revenue 2.1 1.9 2.3 5.8% -11.2%
Ongoing Revenue 474.5 465.1 379.6 2.0% 25.0%
UPC Germany (2) -- -- 5.1 n.m. n.m.
Total Revenue $474.5 $465.1 $384.7 2.0% 23.3%
(1) UGC Europe's results for Q3 '02 revised to reflect the
deconsolidation of UPC Germany as if it had occurred on January 1,
2002.
(2) UPC Germany was deconsolidated effective August 1, 2002.
The following is provided for informational purposes only to highlight revenues
in the functional currency of UGC Europe (Euros) and VTR (Chilean Pesos), as
follows:
Revenue by Division
(Millions)
Q3 '03 Q3 '03
vs. vs.
Q3 '03 Q2 '03 Q3 '02 Q2 '03 Q3 '02
UGC Europe (1) EUR367.2 EUR359.4 EUR335.6 2.2% 9.4%
VTR CP40,629 CP38,331 CP33,407 6.0% 21.6%
(1) UGC Europe's results for Q3 '02 revised to reflect the
deconsolidation of UPC Germany as if it had occurred on
January 1, 2002.
The following table provides a summary of ARPU for each entities' functional
currency:
Monthly ARPU Summary
Q3 '03 Q3 '03
vs. vs.
Q3 '03 Q2 '03 Q3 '02 Q2 '03 Q3 '02
UGC:
Total per RGU (1) $16.49 $16.20 $13.57 1.8% 21.5%
UGC Europe:
Total per RGU (2) EUR13.99 EUR13.68 EUR13.03 2.3% 7.4%
Total per Cable
Sub-W. Europe (3) EUR21.70 EUR20.91 EUR19.71 3.8% 10.1%
Total per Cable
Sub-E. Europe (3) EUR8.89 EUR8.99 EUR8.36 -1.1% 6.3%
VTR:
Total per RGU (4) CP16,101 CP15,874 CP15,378 1.4% 4.7%
Total per RGU (US$) $23.23 $22.35 $21.71
(1) ARPU calculation for UGC based on quarterly Triple Play Broadband
Revenues divided by average RGUs for each quarter.
(2) ARPU calculations for UGC Europe Distribution (excludes Germany for
Q3 '02) based on quarterly Triple Play Broadband revenues divided by
average RGU's for each quarter.
(3) Basic cable, Internet, telephony, and digital revenue (excludes DTH)
divided by basic cable subscribers (excluding Germany).
(4) ARPU calculation for VTR based on quarterly Triple Play Broadband
Revenues divided by average RGUs for each quarter.
Reconciliation of Adjusted EBITDA with Net Income (Loss)
Q3 '03 Q3 '03
vs. vs.
(US$ millions) Q3 '03 Q2 '03 Q3 '02 Q2 '03 Q3 '02
Total Segment
Adjusted EBITDA $171.4 $149.4 $84.8 14.7% 102.0%
Loss on disposal of
Poland DTH business 0.0 (8.0) 0.0 -100.0% n.m.
Stock-based
compensation 1 (14.3) (8.2) (8.3) 72.3% 72.6%
Depreciation &
amortization (192.0) (211.5) (201.2) -9.2% -4.6%
Impairment &
restructuring
Charges (2) 0.5 1.1 1.5 -58.1% -67.0%
Operating Income
(Loss) (34.4) (77.2) (123.2) -44.6% -72.0%
Interest expense,
net (71.2) (92.4) (153.5) -22.9% -53.6%
Foreign currency
exchange gain,
net (276.5) 263.5 (62.2) -205.0% 344.5%
Gain (loss) on
sale of investments
In affiliates,
net (3) (0.3) 281.5 155.8 -100.1% -100.2%
Gain on early
extinguishments
of debt (4) 2,109.6 0.0 0.0 n.m. n.m.
Other income
(expense), net (1.2) (11.1) (31.9) -90.0% -96.5%
Subtotal 1,726.0 364.3 (215.0) 373.8% -902.8%
Income tax expense
and other, net 11.1 257.7 (60.2) -95.7% -118.5%
Net income (loss) $1,737.1 $622.0 $(275.2) 179.3% -731.2%
(1) Stock based compensation includes charges associated with fixed, or
non-cash stock options, as well as charges associated with phantom,
or cash-based, stock option plans, as more fully disclosed in UGC's
10Q and 10K.
(2) Includes certain impairment charges. Please refer to UGC's 10Q as
of September 30, 2003 for a summary.
(3) For Q2 '03, represents primarily the net effect when UAP's
bankruptcy plan became effective in April 2003, whereby UGC
recognized a gain of $284.7 million associated with the sale of its
indirect approximate 49.99% interest in UAP that occurred in
November 2001.
(4) For Q3 '03, represents the net effect of UPC's restructuring
completed on September 3, 2003.
Adjusted EBITDA
UGC's Adjusted EBITDA for the third quarter was $171 million, a 102%, or $87
million improvement over the same period last year. Approximately $20 million
of that increase was due to the appreciation of the euro relative to the U.S.
dollar, while the Chilean Peso exchange rate impact was negligible. On a
functional currency basis, UGC Europe and VTR both demonstrated a substantial
increase in Adjusted EBITDA on a year-over-year basis (79% and 63%,
respectively), as well as solid increases on a sequential basis. The following
tables show a breakdown of Adjusted EBITDA results by division in U.S. dollars:
Adjusted EBITDA by Division
Q3 '03 Q3 '03
vs. vs.
(US$ millions) Q3 '03 Q2 '03 Q3 '02 Q2 '03 Q3 '02
UGC Europe (1) $155.2 $136.6 $75.5 13.5% 105.5%
VTR 18.9 16.5 11.4 14.7% 66.5%
Other (2.7) (3.7) (3.4) -27.2% -18.0%
Ongoing Operations 171.4 149.4 83.5 14.7% 105.1%
UPC Germany (2) -- -- 1.3 n.m. n.m.
Total $171.4 $149.4 $84.8 14.7% 102.0%
(1) UGC Europe's results for Q3 '02 were revised to reflect the
deconsolidation of UPC Germany as if it had occurred on January 1,
2002.
(2) UPC Germany was deconsolidated effective August 1, 2002.
The following is provided for informational purposes only to highlight Adjusted
EBITDA in the functional currency of UGC Europe (Euros) and VTR (Chilean Pesos),
as follows:
Adjusted EBITDA (Millions)
Q3 '03 Q3 '03
vs. vs.
Q3 '03 Q2 '03 Q3 '02 Q2 '03 Q3 '02
UGC Europe (1) EUR137.7 EUR120.0 EUR77.1 14.7% 78.5%
VTR CP13,110 CP11,694 CP8,055 12.1% 62.8%
(1) UGC Europe's results for Q3 '02 revised to reflect the
deconsolidation of UPC Germany as if it had occurred on January 1,
2002.
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2003 were $228
million, a decrease of 2.7%, or $6 million compared to the same period last
year. Capital expenditures for the quarter ended September 30, 2003 were $95
million, an increase of 113%, or $50 million compared to the same period last
year. On a sequential basis from the quarter ended June 30, 2003, capital
expenditures increased by 27% or $20 million. The following represents a break
down of capital expenditures based on the NCTA cable industry guidelines for the
nine months ended September 30, 2003 as follows:
Capital Expenditures by NCTA category
(US$ thousands) UGC
Europe VTR Other YTD
Customer Premise Equipment $58,261 $16,978 $659 $75,898
Commercial Spending -- -- -- --
Scalable infrastructure 22,650 1,570 22 24,242
Line Extensions 44,079 7,297 89 51,465
Upgrade / Rebuild 16,345 -- -- 16,345
Support capital 41,367 9,143 272 50,782
Intangibles & Priority Telecom 8,966 -- -- 8,966
Total $191,668 $34,988 $1,042 $227,698
Free Cash Flow (1)
Free Cash Flow for the three months ended September 30, 2003 was $4.2 million,
an increase of $109 million compared to the same period last year. This change
is due to a substantial increase in cash flow from operating activities, which
is due to a combination of several factors, including an appreciation of the
euro relative to the U.S. dollar, an increase in both RGUs and ARPU, ongoing
cost savings (primarily in Europe) and improved working capital management. The
following table provides a reconciliation of Free Cash Flow with its most
comparable GAAP measure, Cash Flow from Operating Activities:
Free Cash Flow
(US$ Millions)
Q3 '03 Q3 '03
vs. vs.
Q3 '03 Q2 '03 Q3 '02 Q2 '03 Q3 '02
Cash Flow from
Operating
Activities $99.0 $100.3 $(60.0) -1.6% -264.4%
Less: Capital
Expenditures (94.8) (74.7) (44.6) 26.8% 112.6%
Free Cash Flow $4.2 $25.6 $(104.6) -84.6% -103.8%
Total Cash - End
of Period (2) $351.4 $370.2 $556.9 n.m. n.m.
(1) Free Cash Flow is not a GAAP measure. We define Free Cash Flow as
cash flow for operating activities less capital expenditures. See
Notes at end of release for more information on Free Cash Flow.
(2) Represents the sum of cash and cash equivalents, restricted cash and
short-term liquid investments per UGC's 10Q's.
EUROPE (UGC Europe)
UGC Europe is a leading pan-European broadband communications company offering
cable television, telephony and high-speed Internet access services in 11
European countries and serving approximately 6.9 million video subscribers,
459,600 voice subscribers and 749,400 Internet subscribers. UGC owns
approximately 66.75% of UGC Europe.
Third Quarter Highlights
-- Revenue increased 7.7% or EUR 26 million to EUR 367 million
(US$414 million) for the three months ended September 30, 2003
compared to the same period last year. On a sequential basis from
June 30, 2003, revenue increased by 2.2% or EUR 8 million.
-- Adjusted EBITDA improved 76%, or EUR 60 million to EUR 138 million
(US$155 million) for the three months ended September 30, 2003,
compared to the same period last year. On a sequential basis from
June 30, 2003, Adjusted EBITDA increased by 15%, or EUR 18 million.
-- Video subscribers at September 30, 2003 were 6.9 million, a 0.9%
increase or 60,100 from September 30, 2002. On a sequential basis
from June 30, 2003, video subscribers increased 15,100.
-- Voice subscribers at September 30, 2003, including UGC Europe's
broadband cable-phone operations and its traditional voice network in
Hungary, were 459,600, a 1.1% decrease from September 30, 2002. On a
sequential basis from June 30, 2003, voice subscribers increased 400.
-- Internet subscribers reached 749,400 at September 30, 2003, an
increase of 20%, or 122,400 from September 30, 2002. On a sequential
basis from June 30, 2003, Internet subscribers increased 26,100.
-- Total RGUs were over 8.1 million at September 30, 2003, an increase of
177,600 from September 30, 2002. On a sequential basis from June 30,
2003, RGUs increased 41,600. During the first nine months of 2003,
RGUs increased by more than 76,000, which on a run rate basis is below
guidance for the year. This shortfall is almost entirely related to
the implementation of a new subscriber management system, involving
the consolidation of a number of customer databases in the
Netherlands, (as highlighted in both our Q4 2002 and earlier 2003
results). This database consolidation began in Q4 2002 and was
effectively complete at the end of Q2 2003. This process has had and
will continue to have a positive impact on UGC Europe's cash flow as
it has enabled us to improve our near-term cash collection.
Recent Events - Europe
-- Restructuring Completed: On September 3, 2003, the European
restructuring was completed and UGC Europe commenced trading on the
NASDAQ National Market (under ticker symbol UGCE).
-- UPC Polska Restructuring Update: On October 30, 2003, UPC Polska,
Inc. ("UPC Polska"), a subsidiary of UGC Europe, Inc., announced that
the United States Court has approved UPC Polska's First Amended
Disclosure Statement with respect to its First Amended Chapter 11 Plan
of Reorganisation (the "Plan"). UPC Polska will begin soliciting
votes from creditors who would receive distributions under such Plan.
The confirmation hearing on Plan is scheduled for December 3, 2003.
-- Internet Marketing Campaign Update: Despite an increasingly
competitive market for the internet product from ADSL providers
especially in the Netherlands, UGC Europe's most significant internet
market, the Company has added more than 73,000 internet subscribers
during the first nine months of 2003, over 26,000 in the third quarter
alone. In July and November 2003 UGC Europe announced extensions of
its chello internet product range, offering subscribers a choice of
products with different connection speeds and price points in the
Netherlands, France and Austria. We expect these product launches
will further boost demand for the chello product across our footprint,
offsetting any downward pressure on average ARPU.
CHILE (VTR)
VTR, an indirect wholly-owned subsidiary of UGC, is a leading broadband
communications company offering cable television, telephony and high-speed
Internet access services in Chile and had approximately 1.7 million homes passed
and 1.0 million two-way homes passed and 486,600 video subscribers, 258,300
voice subscribers and 114,800 Internet subscribers at September 30, 2003.
Third Quarter Highlights
-- VTR's revenue for the quarter ended September 30, 2003 increased 22%
to CP 40,629 million (US$58.6 million) from CP 33,407 million
(US$47.2 million) for the same period in 2002 on a local currency
basis. On a sequential basis from June 30, 2003, revenue increased
6.0%.
-- VTR's Adjusted EBITDA for the quarter ended September 30, 2003
increased 63% to CP 13,110 million (US$18.9 million) from
CP 8,055 million (US$11.4 million) for the same period in 2002 on a
local currency basis. On a sequential basis from June 30, 2003,
Adjusted EBITDA increased 12%.
-- VTR's video subscribers at September 30, 2003 were 486,600, an
increase of 5.1% or 23,800 from September 30, 2002. On a sequential
basis from June 30, 2003, video subscribers increased 8,100.
-- VTR's voice subscribers at September 30, 2003 were 258,300 a 19%
increase or 40,400 from September 30, 2002. This represents a 25%
penetration rate based on two-way homes serviceable as of
September 30, 2003 compared to 23% as of September 30, 2002. On a
sequential basis from June 30, 2003, voice subscribers increased
13,300.
-- VTR's Internet subscribers at September 30, 2003 were 114,800, a 94%
increase from 59,100 at September 30, 2002. The increase was due to
continued strong demand for VTR's 300Kbps Broadband product as well as
its new 64Kbps "Broadband Light" service aimed at converting current
dial-up users. On a sequential basis from June 30, 2003, Internet
subscribers increased 15,700.
Recent Events - Chile
-- VTR awarded "Best Telecom Company in Latin America": Pyramid Research
recently recognized VTR as the Best Telecom Company in Latin America.
VTR's peer group consisted of all the Basic Telephony, CATV and
Broadband companies throughout Latin America.
-- VTR awarded "Best Broadband Service" in Chile: Several prominent
Chilean organizations conducted research among 15,000 broadband users
who selected VTR as the best broadband service provider in Chile.
-- Continued strong growth in telephony: Voice lines in service
increased 17% in the third quarter compared to the same period in the
prior year, currently totaling 287,200 lines. This represents a 28%
penetration rate based on two-way homes serviceable as of
September 30, 2003.
-- Bundling rollout: As of September 30, 2003, triple play subscribers
were 85,700, an 88% increase compared to the same period in the prior
year and 10% of total RGUs. As of September 30, 2003 bundled RGUs
represented 64% of VTR's total RGUs within its triple play footprint.
Other Investments
Austar Update: In August, Austar United Communications Ltd. (Austar) completed
its equity rights issue and raised approximately A$75.0 million in additional
capital. As a result, UGC currently owns indirectly approximately 38% of Austar
United. Based on the closing price of Austar's common stock (ASX:AUN.AX) of
A$0.385 on November 12, 2003, UGC's 38% interest (446 million shares) has a
market value of A$172 (US$123) million.
-- Austar's revenue was flat for the nine months ended September 30, 2003
at A$240 million compared to the same period in the prior year, while
adjusted EBITDA increased 285% to A$37.1 million over the same time
period. In addition, subscribers as of September 30, 2003 were
421,700, an increase of 3.7% compared to September 30, 2002.
SBS Broadcasting: UGC owns indirectly a 21% interest (6 million shares) of SBS
Broadcasting. Based on the closing price of SBS Broadcasting's common stock
(NASDAQ:SBTV) of $30.58 on November 12, 2003, UGC's interest has a market value
of $183 million.
About UnitedGlobalCom
UGC is the largest international broadband communications provider of video,
voice, and Internet services with operations in numerous countries. Based on the
Company's operating statistics at September 30, 2003, UGC's networks reached
approximately 12.6 million homes passed and 9 million RGUs, including
approximately 7.4 million video subscribers, 717,900 voice subscribers, and
868,000 high speed Internet access subscribers. UGC's significant and
consolidated operating subsidiaries include UGC Europe, Inc. (UGC Europe)
(NASDAQ:UGCE), a leading pan-European broadband communications company; and VTR
GlobalCom S.A. (VTR), the largest broadband communications provider in Chile.
Forward Looking Statements: Except for historical information contained herein,
this news release contains forward-looking statements which involve certain
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied by these statements. These forward-looking
statements also include our estimates of year-end revenues, capital expenditures
and other financial information, consummation of planned transactions and
financings, projections of operational targets, launch of new services and other
statements concerning growth. These risks and uncertainties include continued
use by subscribers and potential subscribers of the Company's services, changes
in the technology and competition, our ability to achieve expected operational
efficiencies and economies of scale, our ability to generate expected revenue
and achieve assumed margins, as well as other factors detailed from time to time
in the Company's filings with the Securities and Exchange Commission. These
forward-looking statements speak only as of the date of this Release. UGC
expressly disclaims any obligation or undertaking to disseminate any updates or
revisions to any forward-looking statement contained herein to reflect any
change in UGC's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
Not withstanding the above, UGC acknowledges that the "safe harbor" for
forward-looking statements under Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
does not apply to the forward-looking statements concerning the exchange offer.
Non-GAAP measures: Adjusted EBITDA is the primary measure used by our chief
operating decision makers to evaluate segment-operating performance and to
decide how to allocate resources to segments. "EBITDA" is an acronym for
earnings before interest, taxes, depreciation and amortization. As we use the
term, Adjusted EBITDA further removes the effects of cumulative effects of
accounting changes, share in results of affiliates, minority interests in
subsidiaries, reorganization expense, other income and expense, gain on
extinguishment of debt, gain (loss) on sale of investments in affiliates and
other assets, foreign currency exchange gain (loss), impairment and
restructuring charges, and stock-based compensation. We believe Adjusted EBITDA
is meaningful because it provides investors a means to evaluate the operating
performance of our segments and our company on an ongoing basis using criteria
that is used by our internal decision makers. Our internal decision makers
believe Adjusted EBITDA is a meaningful measure and is superior to other
available GAAP measures because it represents a transparent view of our
recurring operating performance and allows management to readily view operating
trends, perform analytical comparisons and benchmarking between segments in the
different countries in which we operate and identify strategies to improve
operating performance. For example, our internal decision makers believe that
the inclusion of impairment and restructuring charges within Adjusted EBITDA
distorts their ability to efficiently assess and view the core operating trends
in our segments. In addition, our internal decision makers believe our measure
of Adjusted EBITDA is important because analysts and other investors use it to
compare our performance to other companies in our industry. We reconcile the
total of the reportable segments' Adjusted EBITDA to our consolidated net income
as presented in the accompanying consolidated statements of operations, because
we believe consolidated net income is the most directly comparable financial
measure to total segment operating performance. Investors should view Adjusted
EBITDA as a supplement to, and not a substitute for, other GAAP measures of
income as a measure of operating performance. As discussed above, Adjusted
EBITDA excludes, among other items, frequently occurring impairment,
restructuring and other charges that would be included in GAAP measures of
operating performance.
Free Cash Flow is not a GAAP measure of liquidity. We define Free Cash Flow as
cash flow from operating activities less capital expenditures. We believe our
presentation of Free Cash Flow provides useful information to our investors
because it can be used to gauge our ability to service debt and fund new
investment opportunities. Investors should view Free Cash Flow as a supplement
to, and not a substitute for, GAAP cash flows from operating, investing and
financing activities as a measure of liquidity.
SEC Filings: Materials filed with the SEC will be available electronically
without charge at an Internet site maintained by the SEC. The address of that
site is http://www.sec.gov/. Documents filed with the SEC may be obtained from
UGC by directing a request to Richard Abbott, Vice President of Finance,
UnitedGlobalCom, Inc., 4643 S. Ulster Street, Suite 1300, Denver, CO 80237.
Notice For UGC Europe Stockholders -- UGC filed a Registration Statement on Form
S-4 (File No. 333-109496) containing a prospectus relating to the exchange
offer, and Europe Acquisition, Inc., the wholly-owned subsidiary of UGC which is
offering to exchange the shares of UGC Europe, filed a Schedule TO. UGC EUROPE
STOCKHOLDERS AND OTHER INTERESTED PARTIES ARE URGED TO READ THESE DOCUMENTS
(INCLUDING ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS WHEN AVAILABLE)
BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION. Materials
filed with the SEC are available electronically without charge at an Internet
site maintained by the SEC. The address of that site is http://www.sec.gov/.
Documents filed with the SEC also may obtained from UGC without charge by
directing a request to Richard Abbott, Vice President of Finance,
UnitedGlobalCom, Inc., 4643 S. Ulster Street, Suite 1300, Denver, CO 80237.
Notice for UGC Stockholders -- UGC and its directors and executive officers may
be deemed to be participants in the solicitation of proxies from United's
stockholders in connection with the special meeting of stockholders to be held
to approve the issuance of UGC's Class A Common Stock in the exchange offer and
planned merger. Information concerning United's directors and executive
officers and their direct and indirect interests in the transaction is set forth
in United's preliminary proxy statement filed with the SEC relating to the
special meeting of stockholders and the prospectus contained in the Registration
Statement on Form S-4 filed with the SEC relating to the exchange offer. UGC
expects to file shortly with the SEC an amended proxy statement and registration
statement. Materials filed with the SEC are available electronically without
charge at an Internet site maintained by the SEC. The address of that site is
http://www.sec.gov/. Documents filed with the SEC also may be obtained from UGC
without charge by directing a request to Richard Abbott, Vice President of
Finance, UnitedGlobalCom, Inc., 4643 S. Ulster Street, Suite 1300, Denver, CO
80237.
UGC'S STOCKHOLDERS SHOULD READ THE PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS
CAREFULLY BEFORE MAKING ANY VOTING DECISION BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION.
For further information contact: Investor & Media Relations, Richard S. L.
Abbott - Vice President, Finance, +1-303-220-6682,
Please visit our web site at www.unitedglobal.com for further information about
our company.
Summary Operating Data
September 30, 2003
Two-way
Homes in Homes Homes
Service Area(1) Passed(2) Passed(3)
Europe:
The Netherlands 2,651,500 2,596,000 2,338,700
Poland 1,872,800 1,872,800 336,800
Hungary 1,170,400 975,000 547,600
Austria 1,081,400 923,300 920,100
France 2,656,600 1,373,100 683,100
Norway 529,000 484,500 203,800
Czech Republic 913,000 681,400 243,100
Sweden 770,000 421,600 267,000
Romania 659,600 458,400 --
Slovak Republic 517,800 383,500 66,500
Belgium 530,000 154,100 154,100
Total 13,352,100 10,323,700 5,760,800
Latin America:
Chile 2,350,000 1,746,500 1,017,300
Brazil 650,000 463,000 463,000
Peru 140,000 66,800 30,300
Uruguay -- -- 8,300
Total 3,140,000 2,276,300 1,518,900
Grand Total 16,492,100 12,600,000 7,279,700
Video
Analog Cable Digital Cable DTH
Subscribers(4) Subscribers(5) Subscribers(6)
Europe:
The Netherlands 2,315,900 47,600 --
Poland 980,600 -- --
Hungary 697,000 -- 89,500
Austria 497,400 23,600 --
France 465,700 6,800 --
Norway 340,000 32,800 --
Czech Republic 295,600 -- 60,700
Sweden 277,700 22,000 --
Romania 330,400 -- --
Slovak Republic 282,600 -- 10,400
Belgium 130,700 -- --
Total 6,613,600 132,800 160,600
Latin America:
Chile 480,700 -- 5,900
Brazil 9,000 6,900 --
Peru 12,300 -- --
Uruguay -- -- --
Total 502,000 6,900 5,900
Grand Total 7,115,600 139,700 166,500
Telephony
Homes
Serviceable(7) Subscribers(8)
Europe:
The Netherlands 1,601,700 159,600
Poland -- --
Hungary 87,200 64,600
Austria 899,700 153,300
France 683,100 55,800
Norway 138,200 23,300
Czech Republic 17,700 3,000
Sweden -- --
Romania -- --
Slovak Republic -- --
Belgium -- --
Total 3,427,600 459,600
Latin America:
Chile 1,010,000 258,300
Brazil -- --
Peru -- --
Uruguay -- --
Total 1,010,000 258,300
Grand Total 4,437,600 717,900
Internet
Homes Total
Serviceable(9) Subscribers(10) RGUs(11)
Europe:
The Netherlands 2,338,700 315,100 2,838,200
Poland 336,800 23,200 1,003,800
Hungary 515,300 36,100 887,200
Austria 920,100 196,300 870,600
France 683,100 23,900 552,200
Norway 203,800 35,000 431,100
Czech Republic 243,100 21,500 380,800
Sweden 267,000 70,700 370,400
Romania -- -- 330,400
Slovak Republic 63,300 800 293,800
Belgium 154,100 26,800 157,500
Total 5,725,300 749,400 8,116,000
Latin America:
Chile 1,017,300 114,800 859,700
Brazil 463,000 700 16,600
Peru 30,300 2,600 14,900
Uruguay 8,300 500 500
Total 1,518,900 118,600 891,700
Grand Total 7,244,200 868,000 9,007,700
(1) "Homes in Service Area" are homes in our franchise areas that can
potentially be served, based on census data and other market
information.
(2) "Homes Passed" are homes that can be connected to our broadband
network without further extending the distribution plant.
(3) "Two-way Homes Passed" are homes passed by our network where
customers can request and receive the installation of a two-way
addressable set-top box, cable modem, transceiver and/or voice port
which, in most cases, allows for the provision of video, voice and
data (broadband) services.
(4) "Analog Cable Subscriber" is comprised of MMDS customers, lifeline
customers and basic analog customers which are counted on a per
connection basis. Commercial contracts with hotels, hospitals, etc.
are counted on an equivalent basic unit basis.
(5) "Digital Cable Subscriber" is a home or commercial unit connected to
our distribution network with one or more digital converter boxes
that receives our digital video service. A Digital Cable Subscriber
is also counted as an Analog Cable Subscriber.
(6) "DTH Subscriber" is a home or commercial unit that receives our
video programming broadcast directly to the home via geosynchronous
satellites.
(7) "Telephony Homes Serviceable" are homes that can be connected to our
broadband network (or twisted pair network in certain areas), where
customers can request and receive voice services.
(8) "Telephony Subscriber" is a home or commercial unit connected to our
broadband network (or twisted pair network in certain areas), where
a customer has requested and is receiving voice services.
(9) "Internet Homes Serviceable" are homes that can be connected to our
broadband network where customers can request and receive high-speed
Internet access services.
(10) "Internet Subscriber" is a home or commercial unit with one or more
cable modems connected to our broadband network, where a customer
has requested and is receiving high-speed Internet access services.
(11) "Revenue Generating Unit," or "RGU," is separately an Analog Cable
Subscriber, Digital Cable Subscriber, DTH Subscriber, Telephony
Subscriber or Internet Subscriber. A home may contain one or more
RGUs. For example, if a residential customer in our Austrian system
subscribed to our analog cable service, digital cable service,
telephone service and high-speed Internet access service, the
customer would constitute four RGUs. "Total RGUs" is the sum of
Analog, Digital Cable, DTH, Telephony and Internet Subscribers.
UnitedGlobalCom, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except par value and number of shares)
(Unaudited)
September 30, December 31,
2003 2002
Assets
Current assets
Cash and cash equivalents $312,777 $410,185
Restricted cash 36,897 48,219
Short-term liquid investments 1,767 45,854
Subscriber receivables, net 117,256 136,796
Related party receivables 4,131 15,402
Other receivables 48,203 50,759
Deferred financing costs, net 2,919 62,996
Other current assets, net 64,574 95,340
Total current assets 588,524 865,551
Long-term assets
Property, plant and equipment, net 3,586,494 3,640,211
Goodwill, net 1,309,033 1,184,132
Other intangible assets, net 87,760 79,977
Investments in affiliates, accounted
for under the equity method, net 136,000 153,853
Deferred financing costs, net 51,077 --
Other assets, net 14,215 7,870
Total assets $5,773,103 $5,931,594
UnitedGlobalCom, Inc.
Condensed Consolidated Balance Sheets (continued)
(In thousands, except par value and number of shares)
(Unaudited)
September 30, December 31,
2003 2002
Liabilities and Stockholders' Equity
Current liabilities
Not subject to compromise:
Accounts payable $188,152 $190,710
Accounts payable, related party 1,378 1,704
Accrued liabilities 371,155 328,927
Subscriber prepayments and deposits 149,113 127,553
Short-term debt -- 205,145
Notes payable, related party 102,728 102,728
Current portion of senior notes
and senior discount notes 39,136 --
Current portion of other long-term debt 194,517 3,366,235
Other current liabilities 15,258 16,448
Total current liabilities not subject
to compromise 1,061,437 4,339,450
Subject to compromise:
Accounts payable 401 38,647
Accrued liabilities -- 232,603
Short-term debt 6,138 --
Current portion of senior notes
and senior discount notes 385,702 2,812,988
Total current liabilities subject
to compromise 392,241 3,084,238
Long-term liabilities
Not subject to compromise:
Senior notes and senior discount notes -- 415,932
Other long-term debt 3,475,239 56,739
Net negative investment in
deconsolidated subsidiaries -- 644,471
Deferred taxes 256,674 184,858
Other long-term liabilities 97,028 88,634
Total long-term liabilities
not subject to compromise 3,828,941 1,390,634
Guarantees, commitments and contingencies
Minority interests in subsidiaries 143,897 1,402,146
Stockholders' equity
Class A common stock, $0.01 par value,
1,000,000,000 shares authorized,
112,855,363 and 110,392,692 shares
issued, respectively 1,129 1,104
Class B common stock, $0.01 par value,
1,000,000,000 shares authorized,
8,870,332 shares issued 89 89
Class C common stock, $0.01 par value,
400,000,000 shares authorized,
303,123,542 shares issued and outstanding 3,031 3,031
Additional paid-in capital 4,520,532 3,683,644
Deferred compensation -- (28,473)
Class A treasury stock, at cost (34,162) (34,162)
Class B treasury stock, at cost -- --
Accumulated deficit (2,992,043) (6,797,762)
Accumulated other comprehensive
income (loss) (1,151,989) (1,112,345)
Total stockholders' equity (deficit) 346,587 (4,284,874)
Total liabilities and stockholders' equity $5,773,103 $5,931,594
UnitedGlobalCom, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Statements of Operations
Revenue $474,515 $384,736 $1,375,666 $1,113,508
Operating expense (1) (186,406) (203,520) (574,394) (584,569)
Selling, general and
administrative expense (131,004) (104,628) (395,051) (344,632)
Depreciation and
amortization (192,002) (201,173) (598,207) (538,810)
Impairment and
restructuring 459 1,390 1,555 (21,505)
Operating income (loss) (34,438) (123,195) (190,431) (376,008)
Interest income,
including related
party income of $36,
$1,350, $965, and
$4,498, respectively 2,698 3,680 10,603 26,297
Interest expense,
including related
party expense of
$2,072, $1,985,
$6,147 and $22,734,
respectively (73,945) (157,212) (263,813) (495,707)
Foreign currency
exchange gain
(loss), net (276,529) (62,217) 137,882 434,299
Gain (loss) on sale
of investments in
affiliates, net (283) 155,754 281,321 142,842
Gain on
extinguishment
of debt 2,109,596 -- 2,183,997 2,208,782
Other expense, net (1,107) (31,808) (15,147) (194,023)
Income (loss) before
income taxes and
other items 1,725,992 (214,998) 2,144,412 1,746,482
Reorganization expense (6,276) -- (19,996) --
Income tax
expense, net (13,986) (16,736) (71,505) (175,911)
Minority interests
in subsidiaries, net 42,582 (45,450) 43,319 (87,862)
Share in results of
affiliates, net (11,203) 1,970 279,832 (75,778)
Income (loss)
before cumulative
effect of change
in accounting
principle 1,737,109 (275,214) 2,376,062 1,406,931
Cumulative effect
of change in
accounting
principle -- -- -- (1,344,722)
Net income (loss) $1,737,109 $(275,214) $2,376,062 $62,209
Earnings per share:
Basic net income
before cumulative
effect of change in
accounting principle $4.19 $(0.67) $9.17 $3.67
Cumulative effect
of change in
accounting principle -- -- -- (3.52)
Basic net income (loss) $4.19 $(0.67) $9.17 $0.15
Diluted net income
before cumulative
effect of change
in accounting principle $4.18 $(0.67) $9.17 $3.66
Cumulative effect of
change in accounting
principle -- -- -- (3.50)
Diluted net income (loss) $4.18 $(0.67) $9.17 $0.16
Statements of
Comprehensive Income
Net income (loss) $1,737,109 $(275,214) $2,376,062 $62,209
Other comprehensive
income, net of tax:
Foreign currency
translation
adjustments 335,024 (24,600) (37,852) (436,368)
Change in fair value
of derivative assets -- (10) 10,616 10,504
Other (18,465) (78) (12,408) 355
Comprehensive
income (loss) $2,053,668 $(299,902) $2,336,418 $(363,300)
(1) Exclusive of items shown separately below, including depreciation and
amortization and impairment and restructuring.
UnitedGlobalCom, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
2003 2002
Cash Flows from Operating Activities
Net income $2,376,062 $62,209
Adjustments to reconcile net income
to net cash flows from operating activities:
Depreciation and amortization 598,207 538,810
Impairment and restructuring (1,555) 21,505
Stock-based compensation 28,647 25,618
Accretion of interest on senior notes and
amortization of deferred financing costs 47,607 188,683
Unrealized foreign exchange gains, net (114,016) (431,122)
(Gain) loss on sale of investments
in affiliates and other assets, net (281,321) (142,842)
Gain on extinguishment of debt (2,183,997) (2,208,782)
Loss on derivative securities 11,450 157,764
Adjustment of UPC Polska notes to
allow claim value (19,457) --
Deferred tax provision 70,407 157,180
Minority interests in subsidiaries, net (43,319) 87,862
Share in results of affiliates, net (279,832) 75,778
Cumulative effect of change in
accounting principle -- 1,344,722
Change in receivables, net 51,930 52,565
Change in other assets 17,531 16,024
Change in accounts payable, accrued
liabilities and other (4,903) (252,406)
Net cash flows from operating activities 273,441 (306,432)
Cash Flows from Investing Activities
Capital expenditures (227,698) (234,120)
Purchase of short-term liquid investments (1,489) (98,560)
Proceeds from sale of short-term
liquid investments 45,560 94,662
Restricted cash released, net 14,427 38,393
Investments in affiliates and
other investments (20,931) (2,090)
Proceeds from sale of investments
in affiliated companies 44,558 --
New acquisitions, net of cash acquired (784) (21,098)
Purchase of interest rate swaps (9,750) --
Settlement of interest rate swaps (58,038) --
Other 4,816 24,186
Net cash flows from investing activities (209,329) (198,627)
Cash Flows from Financing Activities
Issuance of common stock 1,081 200,006
Proceeds from short-term and
long-term borrowings 11,269 9,217
Proceeds from note payable to shareholder -- 102,728
Retirement of existing senior notes -- (231,630)
Deferred financing costs (2,233) (18,293)
Repayments of short-term and
long-term borrowings (187,152) (82,090)
Net cash flows from financing activities (177,035) (20,062)
Effect of Exchange Rates on Cash 15,515 30,098
Decrease in Cash and Cash Equivalents (97,408) (495,023)
Cash and Cash Equivalents,
Beginning of Period 410,185 920,140
Cash and Cash Equivalents,
End of Period $312,777 $425,117
Supplemental Financial Data
YTD YTD
(amounts in thousands) Q3 '03 Q3 '02 Q3 '03 Q3 '02
Interest Expense by
Company(1)
UGC Europe ($68,086) ($150,184) ($245,293) ($464,139)
VTR (2,823) (3,632) (9,616) (12,230)
Other (3,036) (3,396) (8,904) (19,338)
Total ($73,945) ($157,212) ($263,813) ($495,707)
Interest Expense Breakdown:
Cash Pay:
UPC senior notes (2) $-- ($43,750) $-- ($116,254)
Old UGC senior notes (691) -- (1,655) --
UGC Europe bank
facilities and other (64,172) (56,366) (199,432) (174,059)
VTR bank facility (2,073) (2,610) (7,286) (8,398)
Other (2,826) (3,642) (7,833) (8,313)
Total ($69,762) ($106,368) ($216,206) ($307,024)
Non-Cash:
UPC & UPC Polska
senior discount
notes accretion ($1,323) ($47,615) ($29,151) ($154,097)
Old UGC senior
notes accretion -- (612) (313) (12,449)
Amortization of
deferred financing
costs (2,860) (2,617) (18,143) (17,745)
UPC Exchangeable Loan -- -- -- (4,392)
Total ($4,183) ($50,844) ($47,607) ($188,683)
Summary of Working
Capital Changes:(1)
Change in receivables,
net $5,990 $28,983 $51,930 $52,565
Change in other assets 6,920 15,109 17,531 16,024
Change in accounts
payable, acc.
liabilities & other (115) (52,647) (4,903) (252,406)
Total $12,795 ($8,555) $64,558 ($183,817)
(1) Please refer to management's discussion and analysis of financial
condition and results of operations for interest expense and
Statement of Cash Flows for working capital changes per UGC's 10Q as
of September 30, 2003.
(2) Represents the interest expense related to the UPC Senior Notes.
However, since the UPC Senior Notes were part of the Restructuring,
as part of the Agreement the Senior Notes and corresponding accrued
interest were converted into equity on September 3, 2003 and were
therefore not paid in cash.
DATASOURCE: UnitedGlobalCom, Inc.
CONTACT: Investor & Media Relations, Richard S. L. Abbott - Vice
President, Finance, +1-303-220-6682,
Web site: http://www.unitedglobal.com/