Liberty Global adds 370k digital cable subscribers in 2Q09
Tuesday, August 4th, 2009ENGLEWOOD, Colorado — Liberty Global, Inc. (“Liberty Global,” “LGI,” or the “Company”) (NASDAQ: LBTYA, LBTYB and LBTYK), today announces financial and operating results for the second quarter
(“Q2”) ended June 30, 2009.
Subscriber Statistics
At June 30, 2009, our 16.7 million customers subscribed to a total of 26.6 million services, represented by 15.3 million video, 6.4 million broadband internet and 4.9 million telephony RGUs. We added 206,000 new RGUs from our continuing operations in the quarter, of which 198,000 were organic additions, and the balance added through small acquisitions in Austria and Hungary. Of our organic total, telephony and broadband internet accounted for 150,000 and 128,000 additions, respectively, and video accounted for a loss of 80,000 RGUs.
Our organic subscriber growth continues to be driven by the success of our advanced services, which have grown to represent 70% of our total RGU base. For the three and six months ended June 30, 2009, we organically added 650,000 and 1.5 million advanced service subscriptions, respectively, which reflect a 4% decrease and a 10% increase, respectively, over the comparable prior year periods. In both 2009 periods, Telenet’s advanced service additions grew approximately 70% as compared to the corresponding 2008 periods, capitalizing on an expanded digital footprint and bundled product offerings. Our continued growth in advanced services across LGI has resulted in part from the success of our bundling strategy. We ended the second quarter with 6.6 million or 40% of our customers taking a multi-product bundle, which reflects a 15% improvement in bundled customers over the last twelve months.
Digital cable remains the strongest of our advanced services, as we added 370,000 and 865,000 organic subscribers in the three and six months ended June 30, 2009, respectively. These gains represent improvements of 10% and 42%, respectively, over the corresponding prior year periods. For the fifth consecutive quarter, our Central and Eastern European (“CEE”) operations posted the highest regional total for organic digital cable additions. As a result, we have increased digital penetration in CEE from 8% at June 30, 2008 to 24% at June 30, 2009.
We finished Q2 with nearly 6.0 million digital cable RGUs and consolidated penetration of 43%, which is a significant increase above our 30% penetration rate at June 30, 2008. We continue to realize ARPU uplift from migrating customers from analog to digital and by upselling digital customers to premium tiers and advanced services. For example, at our UPC Broadband Division (“UPC”), we estimate that on average our digital cable ARPU is more than 90% higher than our analog ARPU. This ARPU uplift is driven in part by the fact that we now offer DVR functionality in all nine UPC markets, HD in eight markets and VoD in three markets. At UPC, more than 35% of our digital cable subscriber base is taking a DVR and/or HD service.
Offsetting our strong growth in digital cable is the ongoing trend of analog subscriber losses at both UPC and Telenet. These two operations were responsible for LGI’s organic loss of 80,000 video subscribers in the second quarter. However, as compared to the first quarter of 2009, we experienced 16,000 fewer organic video subscriber losses. This improvement was driven largely by stronger sequential results at J:COM, which added 20,000 video subscribers in Q2 as compared to a small loss in Q1, as well as better performances at VTR and Austar.
Subscribers – June 30, 2009:
Total Analog Digital Video Cable Cable DTH MMDS Homes --------- --------- --------- ------- ---------- UPC Broadband Division: The Netherlands 1,299,400 687,000 -- -- 1,986,400 Switzerland 1,195,400 356,800 -- -- 1,552,200 Austria 336,700 208,300 -- -- 545,000 Ireland 187,500 251,000 -- 80,200 518,700 Total Western Europe 3,019,000 1,503,100 -- 80,200 4,602,300 Hungary 511,400 124,300 182,900 -- 818,600 Romania 912,900 179,600 155,800 -- 1,248,300 Poland 855,400 160,400 -- -- 1,015,800 Czech Republic 187,500 353,100 111,100 -- 651,700 Slovakia 205,000 42,700 30,300 4,600 282,600 Total Central and Eastern Europe 2,672,200 860,100 480,100 4,600 4,017,000 Total UPC Broadband Division 5,691,200 2,363,200 480,100 84,800 8,619,300 Variance vs. March 31, 2009 (240,400) 149,400 (4,600) (4,000) (99,600) Telenet (Belgium) 1,519,900 854,100 -- -- 2,374,000 Variance vs. March 31, 2009 (86,000) 73,800 -- -- (12,200) J:COM (Japan) 396,200 2,178,400 -- -- 2,574,600 Variance vs. March 31, 2009 (73,200) 93,100 -- -- 19,900 The Americas: VTR (Chile) 417,500 472,600 -- -- 890,100 Puerto Rico -- 90,600 -- -- 90,600 Total The Americas 417,500 563,200 -- -- 980,700 Variance vs. March 31, 2009 (42,600) 53,800 -- -- 11,200 Austar (Australia) -- -- 728,700 -- 728,700 Variance vs. March 31, 2009 -- -- 6,500 -- 6,500 Total Continuing Operations 8,024,800 5,958,900 1,208,800 84,800 15,277,300 Variance vs. March 31, 2009 (442,200) 370,100 1,900 (4,000) (74,200) Discontinued Operations Slovenia 135,100 17,200 -- 4,400 156,700 Variance vs. March 31, 2009 (5,200) 3,000 -- 400 (1,800) Grand Total 8,159,900 5,976,100 1,208,800 89,200 15,434,000 Variance vs. March 31, 2009 (447,400) 373,100 1,900 (3,600) (76,000)
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