Rising costs hit Liberty Global

1 Mar 2007

International cable operator Liberty Global Inc (LGI) has reported a loss in the fourth quarter of 2006 on the back of an increase in operating costs and expenses. Revenues were up 39% to USD1.79 billion, but operating expenses grew by 44% to USD1.74 billion, resulting in a net loss of USD31.2 million, compared to a profit of USD145.3 million in the year-ago period. The firm is the largest cable operator in Europe and in Japan, and it also has operations in Latin America and Australia. It ended the year with 19.4 million ‘revenue generating units’ or RGUs, an increase of 1.63 million over twelve months; this figure counts each service taken, so one customer can be counted as three RGUs if they subscribe to TV, telephony and internet services. UPC in Europe counted 12.6 million RGUs at year-end, while J-Com in Japan had 4.3 million.

Liberty Global (incl. LGI)