MUMBAI: International cable company Liberty Global has reported a 5.2 per cent jump in revenue to $2.52 billion for the second quarter ended 30 June.
Operating Cash Flow was $1.19 billion, reflecting rebased growth of 2.5 per cent. Operating income decreased by three per cent to $479 million. Adjusted Free Cash Flow increased by 24 per cent to $186 million.
Liberty Global has added over 800,000 RGUs during the first six months of the year, reflecting strong demand for our market-leading, triple-play bundles.
Liberty Global president, CEO Mike Fries said, “These gains helped drive our second consecutive quarter of more than five per cent rebased revenue growth. As we expected, rebased OCF growth was modestly below our first quarter result at 2.5 per cent for Q2, which should represent the low point for the year. We remain committed to driving free cash flow growth, with Adjusted FCF increasing 19 per cent year-to-date to $466 million compared to the same period last year.”
Providing guidance for the full year, the company said that as it moved into Q3 and Q4, it expected to generate accelerating rebased OCF growth due largely to the strong volume growth achieved during the first six months, as well as margin expansion in Germany.
“Product innovation remains a core focus of ours as we strengthen our leadership position in digital video products and services. We intend to roll out our next-generation Horizon video platform in the Dutch market next month, followed by Switzerland in Q4. On the wireless front, we launched our 4G mobile service in Chile in mid-May. Although it’s still early, we are very encouraged by the traction that we are getting from existing, as well as new customers," said Fries.
Also, having added nearly 30,000 wireless subscribers in the first six months, the company expects to see customer take-up accelerate.
The company was engaged in several merger and acquisition activities during the second quarter. First, it closed the sale of its interest in Australian business, Austar, in late May, generating roughly $1.1 billion in proceeds.
Subsequently, Liberty announced an agreement to create the leading cable operator in Puerto Rico by combining OneLink’s and its own cable operations into a joint venture that gives the entity control and consolidation with a 60 per cent majority interest.
"We are also pleased to report that our integration in Germany is proceeding on track with a new management team in place since July 1, combining the best of Unitymedia and KBW,” Fries said.
Liberty‘s consolidated liquidity position stands at approximately $4.0 billion, including $1.9 billion of cash and cash equivalents. "This gives us ample capital to deploy into high return investment opportunities, including acquisitions and our stock buyback program. As of June 30, we had repurchased approximately $430 million of equity this year and remain committed to completing our $1 billion target for 2012,” Fries stated.
