Liberty Global Reports Q1 2022 Results
Stable to growing revenue in Q1 across our FMC markets and strong Adjusted EBITDA growth at
Executing well on commercial convergence strategies including price adjustments at
Integration and synergy plans on track in the
Completed the sale of UPC Poland at 9x EV/EBITDA and announced the sale of
Accelerated stock buyback, having completed 50% of our minimum annual commitment through
Confirming all 2022 guidance targets
CEO
At the same time, our first quarter financial results were stable. Revenue was flat to up in all markets versus last year, with strong Adjusted EBITDA growth in the
Product innovation ramped up in the first quarter. In
We remain committed to executing on our integration plans in
Continuing our track record of smart and timely M&A transactions, we completed the sale of UPC Poland on
We are reaffirming all of our original, full-year guidance metrics, including
(i) |
Quantitative reconciliations to cash flow from operating activities for our Distributable Cash Flow guidance cannot be provided without unreasonable efforts as we do not forecast specific changes in working capital that impact cash flows from operating activities. The items we do not forecast may vary significantly form period to period. |
(ii) |
Including amounts held under separately managed accounts (SMAs). |
Q1 Operating Company Highlights
Sunrise UPC (Consolidated)
Sunrise UPC achieves strong commercial performance in broadband and postpaid adds, reiterates 2022 guidance; synergies realization in line with plan
Operating highlights: Commercial momentum continued in Q1 despite a persisting, albeit softening, competitive environment. Strong sales combined with stable low churn resulted in over 11,000 broadband net additions in Q1. Demand for mobile postpaid remained solid, delivering 45,000 net adds in the quarter across all brands. FMC penetration grew nearly 2% and now reaches 57% of the broadband base. We continue to generate value for our customer base through the launch of Sunrise Moments loyalty program, which provides reward packages and exclusive experiences, as well as the full service offering by our budget brand Yallo.
Financial highlights: Revenue of
Operational results in Q1 2022 in line with guidance. Reached binding agreement to sell the mobile tower business
Operating highlights: Continued growth of FMC customer base in Q1 2022, driven by continued uptake of
Financial highlights: Reported and rebased revenue decreased 6.3% and increased 0.7%, respectively, to
VMO2 (Non-consolidated Joint Venture)
The VMO2 JV delivers a price rise while maintaining a flat customer base. Focus on product innovation, network investment and synergy realization
Operating highlights: The VMO2 JV remains focused on innovation. Fixed and mobile price increases were implemented to support revenue growth and continued investment in the future as the demand for premium connectivity continues to increase. The broadband base remained broadly flat with a 1,000 net reduction in Q1, while mobile postpaid continued to show net adds of 11,000 during the quarter. Average speed across the company's broadband base has increased 24% YoY and now reaches 231Mbps, 4x the national average. Launch of Stream for
Financial highlights (in
For more information regarding the VMO2 JV, including full IFRS disclosures, please visit their investor relations page to access the Q1 earnings release.
VodafoneZiggo (Non-consolidated Joint Venture)
Commercial strategy execution delivers 2% Adjusted EBITDA growth. Confirming 2022 guidance
Operating highlights: Successful execution of the commercial strategy despite increased promotional intensity in the market delivered 37,000 mobile postpaid additions, passing the 5 million SIMs milestone while stabilizing mobile postpaid ARPU. The market saw some increased levels of competition around the Formula 1 season as well as increased promotional activity by competitors impacting broadband RGUs, which declined by 17,000 in Q1. Continued progress in upgrading the network which now offers Gigabit speed in almost 80% of the country and targeting nationwide coverage by the end of the year. Price increase was communicated to customers to support further investments to ensure high quality connectivity through SmartWifi and 5G.
Financial highlights: Revenue declined 7.1% on a reported basis and 0.3% on a rebased basis to
Ventures
Our Ventures portfolio valuation remained broadly flat during the quarter and is currently valued at
ESG
The first quarter continued to see significant emphasis on our ESG agenda. We are working to ensure that as our business grows, our environmental impact does not. As communicated with our recent commitment to be a net zero company across Scopes 1 and 2 by 2030, we are conducting analysis across our supply chain, network and product roadmap for readiness to add Scope 3 to our decarbonization plan. Within Scopes 1 and 2, our efforts to transition our vehicle fleet to electric or hybrid models, procure renewable energy sources for our operations and innovate through greener technologies and best practices is already underway.
In our markets, VodafoneZiggo recently published its Impact Report 2021, detailing performance across its People Planet Progress objectives. The report highlights record-breaking 15% data usage on the company’s networks, while simultaneously managing down electricity consumption by 9% for the year. As in many of our operations, VodafoneZiggo has employed various energy-saving measures, including low-energy equipment and smarter cooling systems, which is yielding sustainable results for our planet. Additionally, VodafoneZiggo sources 100% green energy. Toward its goal to help two million people progress digitally with technology by 2025, Vodafone reported to have already reached 20% of this target by the end of last year.
Diversity, Equity and Inclusion (DE&I) continues to be a focus for us, reinforcing an inclusive work environment, where our people know their voices are heard, valued, respected and everyone feels they belong. Our dedicated
Liberty Global’s board of directors considers diversity in its decisions making, and we added two new directors, with our board now having three members with diverse backgrounds out of 11 members as of the 2022 AGM. Our consideration of diversity at board levels extends beyond our
Liberty Global Consolidated Q1 Highlights
-
Q1 revenue decreased 47.0% YoY on a reported basis and increased 1.5% on a rebased basis to
$1,853.3 million -
Q1 earnings from continuing operations decreased 24.4% YoY on a reported basis to
$1,075.7 million -
Q1 Adjusted EBITDA decreased 48.0% YoY on a reported basis and increased 2.6% on a rebased basis to
$684.3 million - Q1 property & equipment additions were 20.6% of revenue, as compared to 20.9% in Q1 2021
-
Balance sheet with
$4.7 billion of total liquidity-
Comprised of
$0.9 billion of cash,$2.3 billion of investments held under SMAs and$1.5 billion of unused borrowing capacity10
-
Comprised of
-
Fully-swapped borrowing cost of 3.4% on a debt balance of
$14.7 billion for theFull Company 11
|
|
Q1 2022 |
|
Q1 2021 |
|
YoY
|
|
YoY
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Customers |
|
|
|
|
|
|
|
|
||||||
Organic customer net additions (losses) |
|
|
(3,900 |
) |
|
|
33,100 |
|
|
(111.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financial (in millions, except percentages) |
|
|
|
|
|
|
|
|
||||||
Revenue |
|
$ |
1,853.3 |
|
|
$ |
3,499.9 |
|
|
(47.0 |
%) |
|
1.5 |
% |
Earnings from continuing operations |
|
$ |
1,075.7 |
|
|
$ |
1,422.7 |
|
|
(24.4 |
%) |
|
|
|
Adjusted EBITDA |
|
$ |
684.3 |
|
|
$ |
1,316.2 |
|
|
(48.0 |
%) |
|
2.6 |
% |
P&E additions |
|
$ |
381.9 |
|
|
$ |
731.0 |
|
|
(47.8 |
%) |
|
|
|
Adjusted EBITDA less P&E Additions |
|
$ |
302.4 |
|
|
$ |
585.2 |
|
|
(48.3 |
%) |
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
||||||
Cash provided by operating activities |
|
$ |
605.6 |
|
|
$ |
771.3 |
|
|
(21.5 |
%) |
|
|
|
Cash used by investing activities |
|
$ |
(39.4 |
) |
|
$ |
(496.2 |
) |
|
92.1 |
% |
|
|
|
Cash used by financing activities |
|
$ |
(655.7 |
) |
|
$ |
(691.5 |
) |
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Full Company Adjusted FCF |
|
$ |
137.2 |
|
|
$ |
76.1 |
|
|
80.3 |
% |
|
|
|
Full Company Distributable Cash Flow |
|
$ |
137.2 |
|
|
$ |
76.1 |
|
|
80.3 |
% |
|
|
Customer Growth
|
|
Three months ended |
||||
|
|
|
||||
|
|
2022 |
|
2021 |
||
|
|
|
|
|
||
Organic customer net additions (losses) by market |
|
|
|
|
||
|
|
5,400 |
|
|
5,100 |
|
|
|
(5,500 |
) |
|
(4,500 |
) |
|
|
— |
|
|
28,400 |
|
|
|
(1,400 |
) |
|
2,600 |
|
|
|
(2,400 |
) |
|
1,500 |
|
Total |
|
(3,900 |
) |
|
33,100 |
|
______________________
(i) |
The 2021 amount represents organic net additions of the |
Earnings from Continuing Operations
-
Earnings from continuing operations was
$1,075.7 million and$1,422.7 million for the three months endedMarch 31, 2022 and 2021, respectively
Financial Highlights
The following tables present (i) revenue, Adjusted EBITDA and Adjusted EBITDA less P&E Additions for each of our reportable segments, including the non-consolidated VMO2 JV and VodafoneZiggo JV, for the comparative periods and (ii) the percentage change from period to period on both a reported and rebased basis. Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA less P&E Additions are non-GAAP measures. For additional information on how these measures are defined and why we believe they are meaningful, see the Glossary.
|
|
Three months ended |
|
Increase/(decrease) |
||||||||||
|
|
|
|
|||||||||||
Revenue |
|
|
2022 |
|
|
|
2021 |
|
|
Reported % |
|
|
Rebased % |
|
|
|
in millions, except % amounts |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||
Continuing operations: |
|
|
|
|
|
|
|
|
||||||
|
|
$ |
821.4 |
|
|
$ |
841.8 |
|
|
(2.4 |
) |
|
1.0 |
|
|
|
|
724.4 |
|
|
|
772.7 |
|
|
(6.3 |
) |
|
0.7 |
|
|
|
|
127.8 |
|
|
|
136.1 |
|
|
(6.1 |
) |
|
0.9 |
|
|
|
|
— |
|
|
|
1,635.0 |
|
|
(100.0 |
) |
|
— |
|
Central and Other |
|
|
181.4 |
|
|
|
120.3 |
|
|
50.8 |
|
|
8.9 |
|
Intersegment eliminations |
|
|
(1.7 |
) |
|
|
(6.0 |
) |
|
N.M. |
|
N.M. |
||
Total |
|
$ |
1,853.3 |
|
|
$ |
3,499.9 |
|
|
(47.0 |
) |
|
1.5 |
|
|
|
|
|
|
|
|
|
|
||||||
VMO2 JV(ii) |
|
$ |
3,398.0 |
|
|
$ |
— |
|
|
N.M. |
|
N.M. |
||
VodafoneZiggo JV(ii) |
|
$ |
1,130.0 |
|
|
$ |
1,217.0 |
|
|
(7.1 |
) |
|
(0.3 |
) |
______________________
(i) |
The 2021 amount represents the revenue of the |
(ii) |
Amounts reflect 100% of the 50:50 non-consolidated VMO2 JV and VodafoneZiggo JV's revenue. |
N.M. - Not Meaningful |
|
|
Three months ended |
|
Increase/(decrease) |
||||||||||
|
|
|
|
|||||||||||
Adjusted EBITDA |
|
|
2022 |
|
|
|
2021 |
|
|
Reported % |
|
|
Rebased % |
|
|
|
in millions, except % amounts |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||
Continuing operations: |
|
|
|
|
|
|
|
|
||||||
|
|
$ |
301.2 |
|
|
$ |
281.6 |
|
|
7.0 |
|
|
9.6 |
|
|
|
|
340.4 |
|
|
|
371.8 |
|
|
(8.4 |
) |
|
(1.7 |
) |
|
|
|
50.9 |
|
|
|
47.6 |
|
|
6.9 |
|
|
14.9 |
|
|
|
|
— |
|
|
|
640.4 |
|
|
(100.0 |
) |
|
— |
|
Central and Other |
|
|
(7.4 |
) |
|
|
(26.3 |
) |
|
71.9 |
|
|
N.M. |
|
Intersegment eliminations |
|
|
(0.8 |
) |
|
|
1.1 |
|
|
N.M. |
|
N.M. |
||
Total |
|
$ |
684.3 |
|
|
$ |
1,316.2 |
|
|
(48.0 |
) |
|
2.6 |
|
|
|
|
|
|
|
|
|
|
||||||
VMO2 JV(ii) |
|
$ |
1,395.3 |
|
|
$ |
— |
|
|
N.M. |
|
N.M. |
||
VodafoneZiggo JV(ii) |
|
$ |
537.8 |
|
|
$ |
565.2 |
|
|
(4.8 |
) |
|
2.1 |
|
______________________
(i) |
The 2021 amount represents the Adjusted EBITDA of the |
(ii) |
Amounts reflect 100% of the 50:50 non-consolidated VMO2 JV and VodafoneZiggo JV's Adjusted EBITDA. |
N.M. - Not Meaningful |
|
|
Three months ended |
|
Increase/(decrease) |
||||||||
|
|
|
|
|||||||||
Adjusted EBITDA less P&E Additions |
|
2022 |
|
|
2021 |
|
|
Reported % |
|
|
Rebased % |
|
|
|
in millions, except % amounts |
||||||||||
|
|
|
|
|
|
|
|
|
||||
Continuing operations: |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
23.8 |
|
|
26.9 |
|
|
|
189.1 |
|
|
218.4 |
|
|
(13.4 |
) |
|
(7.2 |
) |
|
|
24.4 |
|
|
28.5 |
|
|
(14.4 |
) |
|
(8.1 |
) |
|
|
— |
|
|
308.2 |
|
|
(100.0 |
) |
|
— |
|
Central and Other |
|
(68.0 |
) |
|
(98.4 |
) |
|
30.9 |
|
|
(4.8 |
) |
Intersegment eliminations |
|
(0.8 |
) |
|
1.1 |
|
|
N.M. |
|
N.M. |
||
Total |
|
|
|
|
|
|
|
(48.3 |
) |
|
4.9 |
|
|
|
|
|
|
|
|
|
|
||||
VMO2 JV (ii) |
|
|
|
|
$ — |
|
|
N.M. |
|
N.M. |
||
VodafoneZiggo JV(ii) |
|
|
|
|
|
|
|
(4.0 |
) |
|
3.0 |
|
______________________
(i) |
The 2021 amount represents the Adjusted EBITDA less P&E Additions of the |
(ii) |
Amounts reflect 100% of the 50:50 non-consolidated VMO2 JV and VodafoneZiggo JV's Adjusted EBITDA less P&E Additions. |
N.M. - Not Meaningful |
Leverage and Liquidity
-
Total principal amount of debt and finance leases:
$14.7 billion for theFull Company
-
Average debt tenor
12: Approximately 7 years, with ~94% not due until 2028 or thereafter on a
Full Company basis
-
Borrowing costs: Blended, fully-swapped cost of debt was 3.4% for the
Full Company
-
Liquidity:
$4.7 billion on aFull Company basis, including (i)$0.9 billion of cash atMarch 31, 2022 , (ii)$2.3 billion of investments held under SMAs and (iii)$1.5 billion of aggregate unused borrowing capacity under our credit facilities
Forward-Looking Statements and Disclaimer
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; expectations regarding our and our businesses' financial performance, including Rebased Revenue, Adjusted Free Cash Flow and Distributable Cash Flow at the consolidated level, as well as the 2022 financial guidance provided by our operating companies and joint ventures; expectations of price increases for our products or services; anticipated shareholder distributions from our joint ventures; expectations with respect to the integration and synergy plans at
Share Repurchase Program
As previously announced, our Board of Directors authorized a share repurchase program whereby we have committed to repurchasing 10 percent of our outstanding shares in each of 2022 and 2023. Under the program,
About
Our consolidated businesses generate annual revenue of more than
* |
Represents aggregate consolidated and 50% owned non-consolidated fixed and mobile subscribers. Includes wholesale mobile subscribers of the VMO2 JV and B2B fixed subscribers of the VodafoneZiggo JV. |
** |
Revenue figures above are provided based on full year 2021 |
Balance Sheets, Statements of Operations and Statements of Cash Flows
The condensed consolidated balance sheets, statements of operations and statements of cash flows of
Rebase Information
Rebase growth percentages, which are non-GAAP measures, are presented as a basis for assessing growth rates on a comparable basis. For purposes of calculating rebased growth rates on a comparable basis for all businesses that we owned during 2022, we have adjusted our historical revenue, Adjusted EBITDA and Adjusted EBITDA less P&E Additions for the three months ended
The following table provides adjustments made to the 2021 amounts (i) in aggregate for our consolidated reportable segments and (ii) for the non-consolidated VodafoneZiggo JV to derive our rebased growth rates:
|
Three months ended |
||||||||||
|
Revenue |
|
Adjusted
|
|
Adjusted
|
||||||
|
in millions |
||||||||||
|
|
|
|
|
|
||||||
Consolidated |
|
|
|
|
|
||||||
Acquisitions and Dispositions(i) |
$ |
(1,547.4 |
) |
|
$ |
(594.8 |
) |
|
$ |
(271.8 |
) |
Foreign Currency |
|
(127.4 |
) |
|
|
(54.2 |
) |
|
|
(25.0 |
) |
Total |
$ |
(1,674.8 |
) |
|
$ |
(649.0 |
) |
|
$ |
(296.8 |
) |
|
|
|
|
|
|
||||||
VodafoneZiggo JV(ii): |
|
|
|
|
|
||||||
Foreign Currency |
$ |
(84.1 |
) |
|
$ |
(38.3 |
) |
|
$ |
(3.4 |
) |
______________________
(i) |
In addition to our acquisitions and dispositions, these rebase adjustments also include amounts related to agreements to provide transitional and other services to the VMO2 JV, the VodafoneZiggo JV, Vodafone, Liberty Latin America, Deutsche Telekom and |
(ii) |
Amounts reflect 100% of the adjustments made related to the VodafoneZiggo JV's revenue, Adjusted EBITDA and Adjusted EBITDA less P&E Additions, respectively, which we do not consolidate, as we hold a 50% noncontrolling interest. |
Liquidity
The following table(i) details the
|
Cash |
|
|
|
Unused |
|
|
||||
|
and Cash |
|
|
|
Borrowing |
|
Total |
||||
|
Equivalents |
|
SMAs(ii) |
|
Capacity(iii) |
|
Liquidity |
||||
|
in millions |
||||||||||
|
|
|
|
|
|
|
|
||||
|
$ |
610.4 |
|
$ |
2,332.6 |
|
$ |
— |
|
$ |
2,943.0 |
|
|
51.9 |
|
|
— |
|
|
791.9 |
|
|
843.8 |
|
|
180.5 |
|
|
— |
|
|
615.0 |
|
|
795.5 |
VM Ireland |
|
0.6 |
|
|
— |
|
|
110.8 |
|
|
111.4 |
Total |
$ |
843.4 |
|
$ |
2,332.6 |
|
$ |
1,517.7 |
|
$ |
4,693.7 |
______________________
(i) |
Except as otherwise indicated, the amounts reported in the table include the named entity and its subsidiaries. |
(ii) |
Represents investments held under SMAs which are maintained by investment managers acting as agents on our behalf. |
(iii) |
Our aggregate unused borrowing capacity of |
Summary of Debt & Finance Lease Obligations
The following table(i) details the
|
|
|
|
Finance |
|
Debt & Finance |
|
Principal Related |
|
Swapped Debt |
||||||
|
|
|
|
Lease |
|
Lease |
|
Derivative |
|
& Finance Lease |
||||||
|
|
Debt(ii) |
|
Obligations |
|
Obligations |
|
Cash Payments |
|
Obligations |
||||||
|
|
in millions |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
$ |
7,428.7 |
|
$ |
16.6 |
|
$ |
7,445.3 |
|
$ |
216.0 |
|
|
$ |
7,661.3 |
|
|
|
5,646.5 |
|
|
412.7 |
|
|
6,059.2 |
|
|
(54.3 |
) |
|
|
6,004.9 |
VM Ireland |
|
|
997.4 |
|
|
— |
|
|
997.4 |
|
|
— |
|
|
|
997.4 |
Other |
|
|
117.9 |
|
|
37.5 |
|
|
155.4 |
|
|
— |
|
|
|
155.4 |
Total |
|
$ |
14,190.5 |
|
$ |
466.8 |
|
$ |
14,657.3 |
|
$ |
161.7 |
|
|
$ |
14,819.0 |
______________________
(i) |
Except as otherwise indicated, the amounts reported in the table include the named entity and its subsidiaries. |
(ii) |
Debt amounts for |
(iii) |
Amounts are presented on a |
Property and Equipment Additions and Capital Expenditures
The table below highlights the categories of property and equipment additions of our continuing operations for the indicated periods and reconciles those additions to the capital expenditures of our continuing operations that are presented in the condensed consolidated statements of cash flows in our 10-Q.
|
Three months ended |
||||||
|
|
||||||
|
|
2022 |
|
|
|
2021 |
|
|
in millions, except % amounts |
||||||
|
|
|
|
||||
Customer premises equipment |
$ |
71.2 |
|
|
$ |
147.3 |
|
New build & upgrade |
|
22.8 |
|
|
|
137.5 |
|
Capacity |
|
43.8 |
|
|
|
54.7 |
|
Baseline |
|
134.8 |
|
|
|
221.6 |
|
Product & enablers |
|
109.3 |
|
|
|
169.9 |
|
Total P&E additions |
|
381.9 |
|
|
|
731.0 |
|
Reconciliation of P&E additions to capital expenditures: |
|
|
|
||||
Assets acquired under capital-related vendor financing arrangements(i) |
|
(66.7 |
) |
|
|
(320.0 |
) |
Assets acquired under finance leases |
|
(8.7 |
) |
|
|
(9.6 |
) |
Changes in current liabilities related to capital expenditures |
|
66.3 |
|
|
|
61.1 |
|
Total capital expenditures, net(ii) |
$ |
372.8 |
|
|
$ |
462.5 |
|
|
|
|
|
||||
P&E additions as % of revenue |
|
20.6 |
% |
|
|
20.9 |
% |
______________________
(i) |
Amounts exclude related VAT of |
(ii) |
The capital expenditures that we report in our condensed consolidated statements of cash flows do not include amounts that are financed under vendor financing or finance 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. |
ARPU per Fixed Customer Relationship
The following table provides ARPU per fixed customer relationship and percentage change from period to period on both a reported and rebased basis for the indicated periods:
|
|
ARPU per Fixed Customer Relationship |
||||||||||
|
|
Three months ended |
|
Increase/(decrease) |
||||||||
|
|
2022 |
|
2021 |
|
Reported % |
|
Rebased % |
||||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
$ |
66.47 |
|
$ |
69.39 |
|
(4.2 |
%) |
|
(0.9 |
%) |
|
|
€ |
61.02 |
|
€ |
60.66 |
|
0.6 |
% |
|
0.6 |
% |
|
|
€ |
58.75 |
|
€ |
58.90 |
|
(0.3 |
%) |
|
(0.3 |
%) |
|
|
€ |
59.28 |
|
€ |
57.69 |
|
2.8 |
% |
|
(2.2 |
%) |
Mobile ARPU
The following tables provide ARPU per mobile subscriber and percentage change from period to period on both a reported and rebased basis for the indicated periods:
|
|
ARPU per Mobile Subscriber |
||||||||||
|
|
Three months ended |
|
Increase/(decrease) |
||||||||
|
|
2022 |
|
2021 |
|
Reported % |
|
Rebased % |
||||
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
Including interconnect revenue |
|
$ |
26.81 |
|
$ |
24.57 |
|
9.1 |
% |
|
(3.8 |
%) |
Excluding interconnect revenue |
|
$ |
24.10 |
|
$ |
21.15 |
|
13.9 |
% |
|
(2.2 |
%) |
|
|
Operating Data — |
||||||||
|
|
Homes
|
Fixed-Line
|
Internet
|
Video
|
Telephony
|
Total
|
|
|
Total Mobile
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
Continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
3,412,900 |
2,026,800 |
1,728,600 |
1,747,300 |
1,078,400 |
4,554,300 |
|
|
2,946,700 |
|
|
2,489,700 |
1,482,300 |
1,177,600 |
1,243,400 |
1,028,200 |
3,449,200 |
|
|
2,647,100 |
|
|
956,300 |
430,400 |
388,300 |
293,200 |
272,500 |
954,000 |
|
|
131,600 |
|
|
634,300 |
186,300 |
146,700 |
167,500 |
89,700 |
403,900 |
|
|
— |
Total continuing operations |
|
7,493,200 |
4,125,800 |
3,441,200 |
3,451,400 |
2,468,800 |
9,361,400 |
|
|
5,725,400 |
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
3,713,600 |
1,582,200 |
1,367,600 |
1,411,500 |
588,200 |
3,367,300 |
|
|
133,500 |
|
|
|
|
|
|
|
|
|
|
|
VodafoneZiggo JV(vi) |
|
7,336,600 |
3,714,900 |
3,311,700 |
3,705,300 |
1,993,900 |
9,010,900 |
|
|
5,389,400 |
VMO2 JV(vi) |
|
15,749,700 |
5,760,200 |
5,595,800 |
|
|
13,228,000 |
|
|
32,595,000 |
|
|
Subscriber Variance Table — |
||||||||||||||
|
|
Homes
|
Fixed-Line
|
Internet
|
Video
|
Telephony
|
Total
|
|
|
Total Mobile
|
||||||
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Organic Change Summary: |
|
|
|
|
|
|
|
|
|
|
||||||
Continuing operations: |
|
|
|
|
|
|
|
|
|
|
||||||
|
|
7,100 |
(5,500 |
) |
2,900 |
|
(14,700 |
) |
(21,800 |
) |
(33,600 |
) |
|
|
(3,500 |
) |
|
|
5,300 |
5,400 |
|
11,400 |
|
3,600 |
|
7,000 |
|
22,000 |
|
|
|
36,800 |
|
|
|
2,300 |
(1,400 |
) |
(100 |
) |
(9,100 |
) |
(5,200 |
) |
(14,400 |
) |
|
|
2,200 |
|
|
|
1,400 |
(2,400 |
) |
(100 |
) |
(1,700 |
) |
(300 |
) |
(2,100 |
) |
|
|
— |
|
Total continuing operations |
|
16,100 |
(3,900 |
) |
14,100 |
|
(21,900 |
) |
(20,300 |
) |
(28,100 |
) |
|
|
35,500 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
||||||
|
|
10,200 |
12,800 |
|
17,100 |
|
14,300 |
|
(10,400 |
) |
21,000 |
|
|
|
12,200 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
VodafoneZiggo JV(vi) |
|
8,600 |
(23,900 |
) |
(16,500 |
) |
(24,500 |
) |
(70,800 |
) |
(111,800 |
) |
|
|
31,300 |
|
VMO2 JV(vi) |
|
99,800 |
(8,100 |
) |
(1,000 |
) |
|
|
(162,200 |
) |
|
|
318,200 |
|
Footnotes for Operating Data and Subscriber Variance Tables
(i) |
In |
(ii) |
We have approximately 31,500 “lifeline” customers that are counted on a per connection basis, representing the least expensive regulated tier of video service, with only a few channels. |
(iii) |
In |
(iv) |
In a number of countries, our mobile subscribers receive mobile services pursuant to prepaid contracts. As of |
(v) |
Pursuant to service agreements, |
(vi) |
Prepaid mobile customers are excluded from the VodafoneZiggo JV's and the VMO2 JV's mobile subscriber counts after a period of inactivity of nine months and three months, respectively. The mobile subscriber count for the VMO2 JV includes IoT connections, which are Machine-to-Machine contract mobile connections including Smart Metering contract connections. Fixed subscriber counts for the VodafoneZiggo JV include B2B subscribers. |
Additional General Notes to Tables:
Most of our broadband communications subsidiaries provide telephony, broadband internet, data, video or other B2B services. Certain of our B2B revenue is derived from 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.” To the extent our existing customers upgrade from a residential product offering to a SOHO product offering, the number of SOHO RGUs or SOHO customers will increase, but there is no impact to our total RGU or customer counts. With the exception of our B2B SOHO subscribers and mobile subscribers at medium and large enterprises, we generally do not count customers of B2B services as customers or RGUs for external reporting purposes.
In
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 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.
Footnotes
1 |
This release includes the actual |
2 |
EBITDAaL represents Adjusted EBITDA as further adjusted to include finance lease-related depreciation and interest expense. |
3 |
Represents aggregate consolidated and 50% owned non-consolidated broadband and mobile subscribers. Includes B2B fixed subscribers of the VodafoneZiggo JV. |
4 |
Distributable Cash Flow is defined as Adjusted Free Cash Flow, as re-defined during the fourth quarter of 2021, plus any dividends received from our equity affiliates that are funded by activities outside of their normal course of operations, including, for example, those funded by recapitalizations (referred to as “Other Affiliate Dividends”). Distributable Cash Flow guidance reflects FX rates of EUR/ |
5 |
Liquidity refers to cash and cash equivalents and investments held under separately managed accounts plus the maximum undrawn commitments under subsidiary borrowing facilities, without regard to covenant compliance calculations or other conditions precedent to borrowing. |
6 |
The indicated growth rates are rebased for acquisitions, dispositions, FX and other items that impact the comparability of our year-over-year results. Please see Rebase Information for information on rebased growth. |
7 |
Costs to capture generally include incremental, third-party operating and capital related costs that are directly associated with integration activities, restructuring activities, and certain other costs associated with aligning an acquiree to our business processes to derive synergies. These costs are necessary to combine the operations of a business being acquired (or joint venture being formed) with ours or are incidental to the acquisition. As a result, costs to capture may include certain (i) operating costs that are included in Adjusted EBITDA, (ii) capital related costs that are included in property and equipment additions and Adjusted EBITDA less P&E Additions and (iii) certain integration related restructuring expenses that are not included within Adjusted EBITDA or Adjusted EBITDA less P&E Additions. Given the achievement of synergies occurs over time, certain of our costs to capture are recurring by nature, and generally incurred within a few years of completing the transaction. |
8 |
The US GAAP YoY Adjusted EBITDA and Adjusted EBITDA less P&E growth rates are significantly impacted by the Q1 restructuring of the legacy O2 securitization structure that was previously required to be accounted for as an on-balance sheet structure under US GAAP, however, was accounted for as an off-balance sheet structure under IFRS. As a result of the Q1 restructuring, the securitization structure will now be accounted for as an off-balance sheet structure under both US GAAP and IFRS. As a result, the VMO2 JV recorded a one-off derecognition gain of approximately £174 million ( |
|
Three months ended |
||
|
|
||
|
in millions |
||
|
|
||
Adjusted EBITDA: |
|
||
IFRS transaction adjusted Adj EBITDA (including costs to capture) |
$ |
1,236.0 |
|
Transaction adjustments (i) |
|
17.9 |
|
IFRS Adjusted EBITDA |
|
1,253.9 |
|
IFRS/US GAAP adjustments (ii) |
|
141.4 |
|
US GAAP Adjusted EBITDA |
$ |
1,395.3 |
|
|
|
||
Property & equipment additions: |
|
||
IFRS property & equipment additions (including costs to capture) |
$ |
722.3 |
|
IFRS/US GAAP adjustments (iii) |
|
(63.0 |
) |
US GAAP property & equipment additions |
$ |
659.3 |
|
|
|
||
Adjusted EBITDA less property & equipment additions: |
|
||
IFRS transaction adjusted Adj EBITDA (including costs to capture) |
$ |
1,236.0 |
|
IFRS property & equipment additions (including costs to capture) |
|
722.3 |
|
IFRS transaction adjusted Adj EBITDA less P&E additions |
|
513.7 |
|
Transaction adjustments |
|
17.9 |
|
IFRS/US GAAP adjustments (ii)(iii) |
|
204.4 |
|
US GAAP Adjusted EBITDA less P&E additions |
$ |
736.0 |
|
______________________
(i) |
In connection with the completion of the formation of the VMO2 joint venture, the opening balance sheet of the combined business was reported at its estimated fair value. As such, certain amounts were adjusted to reflect the new basis of accounting. These transaction adjustments therefore reverse the effect of (i) deferred commissions and install costs write-off and (ii) deferred revenue write-off. |
(ii) |
Adjusted EBITDA IFRS/US GAAP differences primarily relate to (i) the VMO2 JV's investment in CTIL, (ii) lease accounting, and (iii) certain handset securitization transactions. |
(iii) |
Property & equipment additions IFRS/US GAAP differences primarily relate to (i) the VMO2 JV's investment in CTIL and (ii) lease accounting. |
|
|
9 |
Amounts exclude fair values for the VMO2 JV, the VodafoneZiggo JV and SMAs and also reflect fair value adjustments for certain investments that have a higher estimated fair value than reported book value. The decrease in our ventures portfolio from |
10 |
Our aggregate unused borrowing capacity of |
11 |
The term " |
12 |
For purposes of calculating our average tenor, total third-party debt excludes vendor financing. |
13 |
Our debt and net debt ratios are prepared on a |
Reconciliation of reported LTM net earnings to adjusted LTM earnings: |
|
||
Reported LTM net earnings |
$ |
13,280.1 |
|
Transaction related adjustments(i) |
|
(236.2 |
) |
Adjusted LTM earnings |
$ |
13,043.9 |
|
|
|
||
Reconciliation of adjusted LTM earnings to LTM Adjusted EBITDA: |
|
||
Adjusted LTM earnings |
$ |
13,043.9 |
|
Income tax expense |
|
379.1 |
|
Other expense, net |
|
18.5 |
|
Gain on Atlas Edge JV Transactions |
|
(227.5 |
) |
Gain on |
|
(10,873.8 |
) |
Share of results of affiliates, net |
|
(53.4 |
) |
Losses on debt extinguishment, net |
|
90.6 |
|
Realized and unrealized gains due to changes in fair values of certain investments and debt, net |
|
(446.8 |
) |
Foreign currency transaction gains, net |
|
(1,382.4 |
) |
Realized and unrealized gains on derivative instruments, net |
|
(513.7 |
) |
Interest expense |
|
551.6 |
|
Operating income |
|
586.1 |
|
Impairment, restructuring and other operating items, net |
|
(135.9 |
) |
Depreciation and amortization |
|
2,359.5 |
|
Share-based compensation expense |
|
278.5 |
|
LTM Adjusted EBITDA |
$ |
3,088.2 |
|
|
|
||
Debt to reported LTM net earnings and LTM Adjusted EBITDA: |
|
||
Debt and finance lease obligations before deferred financing costs, discounts and premiums |
$ |
14,657.3 |
|
Principal related projected derivative cash payments |
|
161.7 |
|
Adjusted debt and finance lease obligations before deferred financing costs, discounts and premiums |
$ |
14,819.0 |
|
|
|
||
Reported LTM net earnings |
$ |
13,280.1 |
|
Debt to reported LTM net earnings ratio |
|
1.1 |
|
|
|
||
LTM Adjusted EBITDA |
$ |
3,088.2 |
|
Debt to LTM Adjusted EBITDA ratio |
|
4.8 |
|
|
|
||
Net Debt to reported LTM net earnings and LTM Adjusted EBITDA: |
|
||
Adjusted debt and finance lease obligations before deferred financing costs, discounts and premiums |
$ |
14,819.0 |
|
Cash and cash equivalents and investments held under separately managed accounts |
|
(3,176.0 |
) |
Adjusted net debt and finance lease obligations before deferred financing costs, discounts and premiums |
$ |
11,643.0 |
|
|
|
||
Reported LTM net earnings |
$ |
13,280.1 |
|
Net debt to reported LTM net earnings ratio |
|
0.9 |
|
|
|
||
LTM Adjusted EBITDA |
$ |
3,088.2 |
|
Net debt to LTM Adjusted EBITDA ratio |
|
3.8 |
|
______________________
(i) |
Consistent with how we calculate our leverage ratios under our debt agreements, we have adjusted our debt and net debt to LTM Adjusted EBITDA ratios to (i) exclude the Adjusted EBITDA of the |
Glossary
10-Q or 10-K: As used herein, the terms 10-Q and 10-K refer to our most recent quarterly or annual report as filed with the
Adjusted EBITDA, Adjusted EBITDA less P&E Additions and Property and Equipment Additions (P&E Additions):
-
Adjusted EBITDA
: Adjusted EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and 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, Adjusted EBITDA is defined as earnings (loss) from continuing operations before net income tax benefit (expense), other non-operating income or expenses, net share of results of affiliates, net gains (losses) on debt extinguishment, net realized and unrealized gains (losses) due to changes in fair values of certain investments and debt, net foreign currency transaction gains (losses), net gains (losses) on derivative instruments, net interest expense, 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 Adjusted EBITDA 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 consolidated Adjusted EBITDA measure, which is a non-GAAP 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. Consolidated Adjusted EBITDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for,
U.S. GAAP measures of income included in our condensed consolidated statements of operations.
-
Adjusted EBITDA less P&E Additions
: We define Adjusted EBITDA less P&E Additions, which is a non-GAAP measure, as Adjusted EBITDA less property and equipment additions on an accrual basis. Adjusted EBITDA less P&E Additions is a meaningful measure because it provides (i) a transparent view of Adjusted EBITDA that remains after our capital spend, which we believe is important to take into account when evaluating our overall performance and (ii) a comparable view of our performance relative to other telecommunications companies. Our Adjusted EBITDA less P&E Additions measure may differ from how other companies define and apply their definition of similar measures. Adjusted EBITDA less P&E Additions should be viewed as a measure of operating performance that is a supplement to, and not a substitute for,
U.S. GAAP measures of income included in our condensed consolidated statements of operations.
- P&E Additions : Includes capital expenditures on an accrual basis, amounts financed under vendor financing or finance lease arrangements and other non-cash additions. A reconciliation of earnings from continuing operations to Adjusted EBITDA and Adjusted EBITDA less P&E Additions is presented in the following table:
|
Three months ended |
||||||
|
|
||||||
|
|
2022 |
|
|
|
2021 |
|
|
in millions |
||||||
|
|
|
|
||||
Earnings from continuing operations |
$ |
1,075.7 |
|
|
$ |
1,422.7 |
|
Income tax expense |
|
81.2 |
|
|
|
165.2 |
|
Other income, net |
|
(11.9 |
) |
|
|
(10.1 |
) |
Share of results of affiliates, net |
|
(230.5 |
) |
|
|
(1.7 |
) |
Realized and unrealized losses (gains) due to changes in fair values of certain investments, net |
|
93.6 |
|
|
|
(194.6 |
) |
Foreign currency transaction gains, net |
|
(575.0 |
) |
|
|
(303.8 |
) |
Realized and unrealized gains on derivative instruments, net |
|
(508.5 |
) |
|
|
(811.2 |
) |
Interest expense |
|
134.2 |
|
|
|
334.7 |
|
Operating income |
|
58.8 |
|
|
|
601.2 |
|
Impairment, restructuring and other operating items, net |
|
9.4 |
|
|
|
44.4 |
|
Depreciation and amortization |
|
564.7 |
|
|
|
607.2 |
|
Share-based compensation expense |
|
51.4 |
|
|
|
63.4 |
|
Adjusted EBITDA |
|
684.3 |
|
|
|
1,316.2 |
|
Property and equipment additions |
|
(381.9 |
) |
|
|
(731.0 |
) |
Adjusted EBITDA less P&E Additions |
$ |
302.4 |
|
|
$ |
585.2 |
|
Adjusted Free Cash Flow (Adjusted FCF) & Distributable Cash Flow:
-
Adjusted FCF
:We define Adjusted FCF as net cash provided by the operating activities of our continuing operations, plus operating-related vendor financed expenses (which represents an increase in the period to our actual cash available as a result of extending vendor payment terms beyond normal payment terms, which are typically 90 days or less, through non-cash financing activities), less (i) cash payments in the period for capital expenditures, (ii) principal payments on operating- and capital-related amounts financed by vendors and intermediaries (which represents a decrease in the period to our actual cash available as a result of paying amounts to vendors and intermediaries where we previously had extended vendor payments beyond the normal payment terms), and (iii) principal payments on finance leases (which represents a decrease in the period to our actual cash available), each as reported in our condensed consolidated statements of cash flows with each item excluding any cash provided or used by our discontinued operations. Prior to the fourth quarter of 2021, our definition of Adjusted FCF excluded cash payments for third-party costs directly associated with successful and unsuccessful acquisitions and dispositions. During the fourth quarter of 2021, we changed our definition of Adjusted FCF to include these cash payments. Cash paid for third-party costs directly associated with successful and unsuccessful acquisition and dispositions was
$13.4 million and$13.2 million during the three months endedMarch 31, 2022 and 2021, respectively.
- Distributable Cash Flow :We define Distributable Cash Flow as Adjusted FCF, as re-defined during the fourth quarter of 2021, plus any dividends received from our equity affiliates that are funded by activities outside of their normal course of operations, including, for example, those funded by recapitalizations (referred to as “Other Affiliate Dividends”).
We believe our presentation of Adjusted FCF and Distributable Cash Flow, each of which is a non-GAAP measure, provides useful information to our investors because these measures can be used to gauge our ability to (a) service debt and (b) fund new investment opportunities after consideration of all actual cash payments related to our working capital activities and expenses that are capital in nature, whether paid inside normal vendor payment terms or paid later outside normal vendor payment terms (in which case we typically pay in less than 365 days). Adjusted FCF and Distributable 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, that are not deducted to arrive at these amounts. Investors should view Adjusted FCF and Distributable Cash Flow as supplements to, and not substitutes for,
|
Three months ended |
||||||
|
|
||||||
|
|
2022 |
|
|
|
2021 |
|
|
in millions |
||||||
|
|
|
|
||||
Net cash provided by operating activities |
$ |
656.7 |
|
|
$ |
821.2 |
|
Operating-related vendor financing additions(i) |
|
140.2 |
|
|
|
852.3 |
|
Cash capital expenditures, net |
|
(388.6 |
) |
|
|
(475.8 |
) |
Principal payments on operating-related vendor financing |
|
(211.7 |
) |
|
|
(659.5 |
) |
Principal payments on capital-related vendor financing |
|
(41.4 |
) |
|
|
(442.4 |
) |
Principal payments on finance leases |
|
(18.0 |
) |
|
|
(19.7 |
) |
Full Company Adjusted FCF |
|
137.2 |
|
|
|
76.1 |
|
Other affiliate dividends |
|
— |
|
|
|
— |
|
Full Company Distributable Cash Flow |
$ |
137.2 |
|
|
$ |
76.1 |
|
_______________
(i) |
For purposes of our condensed consolidated statements of cash flows, operating-related vendor financing additions represent operating-related expenses financed by an intermediary that are treated as constructive operating cash outflows and constructive financing cash inflows when the intermediary settles the liability with the vendor. When we pay the financing intermediary, we record financing cash outflows in our condensed consolidated statements of cash flows. For purposes of our Adjusted FCF definition, we (i) add in the constructive financing cash inflow when the intermediary settles the liability with the vendor as our actual net cash available at that time is not affected and (ii) subsequently deduct the related financing cash outflow when we actually pay the financing intermediary, reflecting the actual reduction to our cash available to service debt or fund new investment opportunities. |
ARPU: Average Revenue Per Unit is the average monthly subscription revenue per average fixed customer relationship or mobile subscriber, as applicable. ARPU per average fixed-line customer relationship is calculated by dividing the average monthly subscription revenue from residential fixed and SOHO services by the average number of fixed-line customer relationships for the period. ARPU per average mobile subscriber is calculated by dividing mobile subscription revenue for the indicated period by the average number of mobile subscribers for the period. Unless otherwise indicated, ARPU per fixed customer relationship or mobile subscriber is not adjusted for currency impacts. ARPU per RGU refers to average monthly revenue per average RGU, which is calculated by dividing the average monthly subscription revenue from residential and SOHO services for the indicated period, by the average number of the applicable RGUs for the period. Unless otherwise noted, ARPU in this release is considered to be ARPU per average fixed customer relationship or mobile subscriber, as applicable. Fixed-line customer relationships, mobile subscribers and RGUs of entities acquired during the period are normalized. In addition, for purposes of calculating the percentage change in ARPU on a rebased basis, which is a non-GAAP measure, we adjust the prior-year subscription revenue, fixed-line customer relationships, mobile subscribers and RGUs, as applicable, to reflect acquisitions, dispositions and FX on a comparable basis with the current year, consistent with how we calculate our rebased growth for revenue and Adjusted EBITDA, as further described in the body of this release.
ARPU per Mobile Subscriber: Our ARPU per mobile subscriber calculation that excludes interconnect revenue refers to the average monthly mobile subscription revenue per average mobile subscriber and is calculated by dividing the average monthly mobile subscription revenue (excluding 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.
Blended fully-swapped debt borrowing cost: The weighted average interest rate on our aggregate variable- and fixed-rate indebtedness (excluding finance leases 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.
B2B: Business-to-Business.
Customer Churn: The rate at which customers relinquish their subscriptions. The annual rolling average basis is calculated by dividing the number of disconnects during the preceding 12 months by the average number of customer relationships. For the purpose of computing churn, a disconnect is deemed to have occurred if the customer no longer receives any level of service from us and is required to return our equipment. A partial product downgrade, typically used to encourage customers to pay an outstanding bill and avoid complete service disconnection, is not considered to be disconnected for purposes of our churn calculations. Customers who move within our footprint and upgrades and downgrades between services are also excluded from the disconnect figures used in the churn calculation.
Fixed-Line Customer Relationships: The number of customers who receive at least one of our internet, video or telephony services that we count as RGUs, without regard to which or to how many services they subscribe. Fixed-Line 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 Fixed-Line Customer Relationships. We exclude mobile-only customers from Fixed-Line Customer Relationships.
Fixed-Mobile Convergence (FMC): Fixed-mobile convergence penetration represents the number of customers who subscribe to both a fixed broadband internet service and postpaid mobile telephony service, divided by the total number of customers who subscribe to our fixed broadband internet service.
Homes Passed: Homes, residential multiple dwelling units or commercial units that can be connected to our networks without materially extending the distribution plant. Certain of our Homes Passed counts are based on census data that can change based on either revisions to the data or from new census results.
Internet Subscriber: A home, residential multiple dwelling unit or commercial unit that receives internet services over our networks, or that we service through a partner network.
Lightning Premises: Includes homes, residential multiple dwelling units and commercial premises that potentially could subscribe to our residential or SOHO services, which have been connected to the VMO2 JV networks in the
Mobile Subscriber Count: For residential and business subscribers, the number of active 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 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. In a number of countries, our mobile subscribers receive mobile services pursuant to prepaid contracts.
MVNO: Mobile Virtual Network Operator.
RGU: A Revenue Generating Unit is separately a Video Subscriber, Internet Subscriber or Telephony Subscriber. A home, residential multiple dwelling unit, or commercial unit may contain one or more RGUs. For example, if a residential customer subscribed to our video service, fixed-line telephony service and broadband internet service, the customer would constitute three RGUs. Total RGUs is the sum of Video, Internet and Telephony Subscribers. RGUs generally are counted on a unique premises basis such that a given premise 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 video, 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 or 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 RGU counts exclude our separately reported postpaid and prepaid mobile subscribers.
SIM: Subscriber Identification Module.
SOHO: Small or Home Office Subscribers.
Telephony Subscriber: 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.
Video Subscriber: A home, residential multiple dwelling unit or commercial unit that receives our video service over our broadband network or through a partner network.
YoY: Year-over-year.
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Investor Relations
Amy Ocen +1 303 784 4528
Corporate Communications
Source: