LGI sees profits of USD700 million for Q2 2012

3 Aug 2012

International cableco Liberty Global Inc (GBI) has reported net profits of USD701.6 million for the three months ended 30 June 2012, compared to losses of USD347 million in the corresponding period of 2011. Profits for the six months to that date were USD676.5 million, having booked a net loss in Q1 2012. Total revenues for Q2 2012 were USD2.524 billion, rising 3.9% year-on-year. LGI attributes the increase to positive contributions from its recent acquisitions, principally Kabel BW in Germany in addition to organic growth. Operating income for the three month period declined to USD479.0 million from USD494.2 million a year earlier as operating expenses grew by 3.7% y-o-y.

CAPEX for the quarter was USD472.8 million, down slightly from USD477.4 million in the year-ago period. The lion’s share of the expenditure (USD258.9 million) was due to customer premises equipment (CPE), whilst some infrastructure-related spending was scaled back. USD62.3 million was spent on extending lines (USD87.3 million in 2011), though spending on upgrading or rebuilding lines was increased to USD91.1 million from USD75.6 million.

In terms of subscribers, LGI reported total net revenue generating unit (RGU) additions of 439,000 during the period under review, fuelled by organic growth of 364,000 additions and small acquisitions in Hungary, Switzerland and the Netherlands. Its strategy of bundling services is continuing to draw subscribers, the company noting that almost half of its 19.6 million subscribers (44%) were signed up to more than one product. The cableco claimed a bundling ratio of 1.72 products per customer.

LGI’s European division, UPC/Unity had 6.48 million broadband subscribers and 5.14 million telephony customers. Its broadband-capable network passes more 26 million homes. In total, the UPC/Unity division reported 26.78 million RGUs and 16.21 million unique subscribers. Its Belgian operation, Telenet, claimed 2.15 million unique subscribers and 4.41 million RGUs, of which, 1.34 million were broadband subscribers. Its Latin American arms – in Chile and Puerto Rico – claimed 1.24 million customers and 2.62 million RGUs.

United States, Liberty Global (incl. LGI)