LGI announces revenue increase of 16%; Western Europe leads the charge

4 Nov 2010

International cable company Liberty Global Inc (LGI) has reported revenues of USD2.25 billion for the three months ended 30 September 2010. This figure represents an increase of 16% on the USD1.93 billion recorded in the same period a year earlier. Operating income increased from USD309.2 million to USD446.7 million during the corresponding period, whilst net profits were USD279 million, compared to a loss of USD120 million in Q3 2009. According to Liberty Global the increased net profit was driven largely by a strong performance in Western Europe thanks to the uptake of bundled products.

Liberty Global’s Belgian unit Telenet generated the largest portion of revenues, with sales of USD425.7 million, down 11.2% from the USD436.9 million reported a year earlier. UPC, the group’s broadband division, (comprising companies in Germany, Netherlands, Switzerland and other countries across both Western and Eastern Europe) generated revenues of USD1.33 billion, up 26.6% from the USD1.05 billion reported one year earlier. UPC’s German unit, which was acquired in January 2010, recorded revenues of USD306.5 million. UPC recorded 13.42 million broadband customers as of 30 September 2010, a rise of 47.5%, thanks to the acquisition of operations in Germany in January 2010. However, quarter-on-quarter the firm’s subscriber base dropped 0.6% from 13.5 million. In terms of multi-play bundles, single-play customers increased 36.4% to 11.46 million, whilst double-play subscriber figures rose 9.7% to 2.62 million. Triple-play bundle users saw the largest percentage increase, growing 38% to 3.59 million.

Liberty Global President and CEO Mike Fries commented: ‘Our third quarter performance was highlighted by accelerating revenue and operating cash flow growth. Led by Western Europe, we delivered our third consecutive quarter of improved rebased revenue growth, while the addition of Germany helped drive even faster operating cash flow (OCF) growth for LGI overall. Our bundled products are clearly gaining traction with consumers as we continue leveraging our next-generation digital TV and broadband services. In the last twelve months, we’ve added over 2.2 million digital TV, voice and data revenue generating units (RGUs) on an organic basis. High-definition programming and digital video recorders are also resonating with our 6.5 million digital cable customers, with over 900,000 new subscriptions to one or both of these products since Q3 2009. On the internet front, we’ve added 625,000 RGUs over that same time period, and now offer 100+Mbps broadband products in nine European markets with an aggregate ‘3.0-ready’ footprint of more than 15 million homes. Overall, we are encouraged by the demand that we have seen for our products during the month of October and look forward to reporting a strong fourth quarter in organic additions’.

United States, Liberty Global (incl. LGI)