Liberty Global Ups EPS, Misses Rev. - Analyst Blog


Yesterday, after market close, Liberty Global Inc. (LBTYA) declared financial results for the second quarter of 2010. Quarterly GAAP net loss from continuing operations was $656.3 million or a loss of $2.58 per share compared with a net loss of $57.3 million or a loss of 35 cents per share in the prior-year quarter. Second quarter 2010 adjusted net loss $2.42 per share was significantly higher than the Zacks Consensus Estimate of a net loss of 14 cents per share. This was primarily due to a $758.3 million of loss in foreign currency transaction.
 
Quarterly total revenue of $2,172.7 million improved 20% year over year but fell below the Zacks Consensus Estimate of $2,197 million. Year-over-year growth in revenue was primarily due to consolidation of Unitymedia operations.
 
Quarterly cost of operation was $800.7 million, up 16.5% year over year. Selling, general and administrative expense was $419.7 million, up 21.7% year over year. Second quarter operating income was $326.5 million, up 119.6% year over year.
 
During the first half of 2010, Liberty Global generated $1,154.4 million of cash from operations compared with $1,591.2 million in the prior-year period. Free cash flow (cash flow from operations less capital expenditures) during the first half of 2010 was $315 million compared with $755.6 million in the prior-year period.
 
At the end of the second quarter 2010, Liberty Global had $4,325.4 million of cash and marketable securities and $20,352.4 million of outstanding debt on its balance sheet compared with $4,278.2 million of cash and marketable securities and $25,852.6 million of outstanding debt on its balance sheet at the end of fiscal 2009. At the end of the same quarter, debt-to-capitalization ratio was 0.87 compared with 0.80 at the end of fiscal 2009.
 
Subscriber Statistics
 
At the end of the second quarter 2010, Liberty Global had 17.7373 million customers in 14 countries, up 32% year over year. UPC Broadband customer was 13.4981 million, up 47.3% year over year. Telnet customer was 2.3031 million, down 3% year over year. VTR customer was 1.0662 million, up 2.6% year-over-year. Other segment customer was 869,900, up 1.4% year over year.
 
During the reported quarter, Liberty Global net added 169,000 RGUs (Revenue Generating Units) consisting of net gain of 152,000 and 126,000 subscribers respectively for broadband Internet and telephony services and a net loss of 116,00 subscribers for the video services.
 
Total Single-Play customer was 11.6742 million, up 36.4% year over year. Total Double-Play customer was 2.5698 million, up 9.9% year over year. Total Triple-Play customer was 3.4933 million, up 37.5% year over year.
 
Segment-wise Results
 
Revenue from total UPC Broadband division was $1,278.7 million, up 27.9% year over year. Within this segment, revenue from Western Europe was $1,013.4 million, up 39.1% year over year. Revenue from Central and Eastern Europe was $264.8 million, down 2.2% year over year. Revenue from Central operation was $0.5 million.
 
Telnet revenue was $410.2 million, up 3.1% year over year. VTR revenue was $191.3 million, up 10.8% year over year. Austar revenue was $156.5 million, up 22.6% year over year. Corporate and other revenue was $156.4 million, up 18.8% year over year.
 
In the after market trade on NASDAQ, stock price of Liberty Global was up $0.01 (0.03%) to $29.79. We maintain our Underperform recommendation for Liberty Global. Currently it is a Zacks #5 Rank (Strong Sell) stock.

 
LIBERTY GLBL-A (LBTYA): Free Stock Analysis Report
 
Zacks Investment Research
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Broadcasting & Cable TVConsumer Discretionary
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!