Telewest Global, Inc. ("Telewest" or the "Reorganized Company")
(NASDAQ: TLWT) today announces second quarter financial results for
2005. Highlights -- Adjusted EBITDA growth of 30% over Q2 04 * --
Operating income increased 140% over Q2 04 * -- Consumer sales
division revenue growth of 5% (before VAT recovery) over Q2 04 --
Triple play penetration increased by 11 percentage points over Q2
04 to 32.8% -- Revenue Generating Units grew by 89,000 in the
quarter; RGUs per customer grew from 1.97 at Q2 04 to 2.11 at Q2 05
-0- *T Financial highlights
----------------------------------------------------------------------
Telewest Telewest Global, Inc.(a) Global, Inc. Predecessor
----------------------------------------------------------------------
(unaudited in GBP m) Q2 2005 Q1 2005 Q2 2004 Revenue 381 338 326
Operating income 48 24 20 Adjusted EBITDA 158 134 122 Net
income/(loss) 19 1 (126) Free cash flow 64 63 37
----------------------------------------------------------------------
Operational highlights
----------------------------------------------------------------------
Q2 2005 Q1 2005 Q2 2004 Customer net adds 15,000 23,000 10,000
Broadband net adds 66,000 88,000 72,000 RGU net adds 89,000 113,000
84,000 Triple play percentage 32.8% 30.3% 21.8%
----------------------------------------------------------------------
(a) Includes GBP 40m of Revenue, GBP 20m of Operating income, GBP
20m of Adjusted EBITDA, GBP 22m of Net income, and GBP 20m of Free
cash flow resulting from (a) the consolidation of sit-up Limited
from May 12, 2005, (b) a GBP 16m VAT recovery and (c) a GBP 4m
rates (local government tax) rebate. *T Barry Elson, Acting Chief
Executive Officer of Telewest Global, Inc., commented: "Telewest
has delivered strong financial results and good subscriber growth
in television, telephony and broadband internet. Our focus on
marketing the bundle has led to increased triple play penetration,
now at 33%. Our business sales division has returned to top-line
revenue growth and our Content assets, Flextech and UKTV along with
sit-up are performing well and continue to increase their market
share. We continue to focus upon free cash flow in all of our
divisions and remain confident of profitable growth." -0- *T
ENQUIRIES Richard Williams Head of investor relations +44 (0) 20
7299 5479 Vani Gupta Investor relations manager +44 (0) 20 7299
5353 Kirstine Cox Head of media +44 (0) 20 7299 5115 Brunswick
Diana Drobiner US +212 333 3810 Sarah Tovey UK +44 (0) 20 7396 5388
*T OPERATIONAL REVIEW Cable segment Consumer sales division The
consumer sales division had a good quarter with a net increase of
15,000 customer relationships, up 41% on the same quarter in 2004.
This was lower than in the previous quarter primarily due to
seasonally higher churn. As expected, churn at 1.2%, was higher
than the previous quarter. It was affected by a higher level of
movers due to a seasonal increase in people moving house and
students finishing college and an increase in non-pay churn.
Non-pay churn is up as a result of higher acquisition levels in
recent periods together with the impact of a tightened credit
policy under which we have reduced the time period before we
disconnect newly acquired customers who do not adhere to our
payment terms. This change is in line with our focus on maintaining
profitable growth and managing credit risk. It is likely that these
factors will continue to have an impact in the third quarter.
Household ARPU (excluding the revenue impact of the GBP 16 million
VAT recovery, described below) was GBP 44.86 in the quarter, down
from GBP 45.34 in the previous quarter. This reduction was
principally attributable to lower telephony usage due to the start
of the summer and the continued impact of fixed-to-mobile
substitution. A reduction in premium and pay-per-view revenue after
the end of the football season also negatively impacted ARPU.
Partially offsetting these impacts was the continued growth in RGUs
per customer, which grew to 2.11, and triple play penetration,
which grew to 32.8%. This reflects our successful focus on
profitable growth and on selling bundled products. We remain on
target to achieve 40% triple play penetration during 2007. Consumer
internet We experienced good growth in the number of broadband
subscribers, with 66,000 net additions in the quarter. Growth was
slower than in the previous quarter, partly due to the factors
indicated above. We believe that we have continued to maintain
market share at around 67% in our addressable areas. Growth
continued to be strongest in our lowest broadband tier. This
impacted the mix of broadband subscribers and broadband ARPU, which
fell GBP 0.50 to GBP 19.39 as compared to the previous quarter.
Broadband continued to be successful in attracting new customers to
Telewest - 49% of broadband installations in the quarter were for
customers who were not existing customers. Multi-service
penetration remained high in broadband, with 71% of all broadband
internet subscribers subscribing to the full "triple play" and 93%
subscribing to at least one other product. In September 2005, we
will commence the increase of our broadband speeds, which we expect
to complete by early 2006. This will be at no additional charge to
our customers. The 512Kb tier speed will be increased to 2Mb. The
1Mb tier speed will be increased to 4Mb. The currently existing 2Mb
and 4Mb tier speeds will be increased to 10Mb. Consumer television
The number of TV subscribers grew by 11,000 in the quarter compared
to 8,000 in the previous quarter. This represents the best second
quarter performance for four years. TV ARPU (excluding the revenue
impact of the GBP 16 million VAT recovery, described below) of GBP
20.78 fell GBP 0.34 compared to the previous quarter, primarily due
to reduced premium and pay-per-view revenue at the end of the
football season. On July 1, 2005, we increased the price of our two
lowest digital TV tiers by GBP 1 each. We expect this to have a
positive impact on TV ARPU in the third quarter. The number of
digital TV subscribers rose by 40,000 compared to 27,000 in the
previous quarter. 89% of our TV subscribers now take our digital
service. We estimate that we will be fully digital by the end of
2006. Once complete, this will free up significant amounts of
bandwidth in our network, which will allow extra capacity for
Video-On-Demand (VOD), High Definition TV, broadband speed
increases and other services. Our VOD roll-out is continuing and is
now available to approximately 120,000 subscribers in the South
West. We branded this service "Teleport" and have expanded the
content available. In addition to the "Teleport Movies" service, we
launched "Teleport Replay" which gives access to some of the best
television from the BBC and others from the preceding seven days.
Subscribers to our top tier "Supreme" pack will also receive free
access to "Teleport TV", which makes available a range of library
content from the BBC, Flextech, Discovery and others. This service
costs GBP 5 per month for non-Supreme customers, therefore
encouraging upward migration to higher digital tiers. We plan to
continue our region-by-region roll-out during the second half of
this year and to complete the national roll-out by early 2006. We
expect to launch DVR (Digital Video Recorder) services towards the
end of this year. Consumer telephony The number of telephony
subscribers increased by 12,000 in the quarter. This represents the
best second quarter performance for four years. Telephony ARPU was
GBP 22.42 in the quarter, down from GBP 23.00 in the previous
quarter. This reduction was principally attributable to lower
telephony usage due to the start of the summer and the continued
impact of fixed-to-mobile substitution. We have continued our
strategy of migrating subscribers to flat rate packages to reduce
the impact of declining telephony usage. As a result, 38% of all
telephony subscribers now subscribe to one of our two main "Talk"
packages - "Talk Unlimited" or "Talk Evenings and Weekends". On
July 1, 2005 we migrated all of our existing "3-2-1" subscribers to
"Talk Weekends" which gives subscribers free local and national
calls at weekends. This package is charged at GBP 10.50 per month
compared to GBP 10 for the "3-2-1" service. Business sales division
Our business sales division had an improved quarter with revenues
up GBP 2 million on the previous quarter to GBP 63 million, driven
by growth in new business acquired. The division is operating in
challenging market conditions and we are encouraged that this is
the first growth in quarterly revenues for seven quarters. In
particular, data revenues are up 12% compared to the same quarter
last year. Content segment Overall revenue in Flextech was GBP 32
million in the quarter, up 14% on the second quarter of 2004, and
up GBP 1 million on the previous quarter. Advertising revenue was
up 14% on the same quarter last year at GBP 16 million, resulting
primarily from an increase in market share, driven by improved
viewing share of Flextech's channels. Advertising revenue was down
GBP 1 million from the previous quarter after an exceptionally
strong first quarter in the UK television advertising market.
Subscription revenue remained flat at GBP 11 million compared to
both the previous quarter and the same quarter last year. During
the quarter we signed a new carriage agreement with NTL for
Flextech and UKTV channels to be carried on its platform for three
years. Other revenue increased by GBP 2 million compared to both
the previous quarter and the same quarter last year principally due
to sales of international programming rights and increased
commercial revenue. sit-up segment On May 12, 2005, Telewest
acquired a controlling interest in sit-up Limited ("sit-up") for an
aggregate purchase price of approximately GBP 103 million including
fees. Telewest completed the acquisition of 100% of the ordinary
shares of sit-up on July 7, 2005. sit-up markets and retails a wide
variety of consumer products primarily by means of televised
shopping programs using an auction-based format. sit-up's financial
results were consolidated into the Group's results from May 12,
2005. As a result, Group revenues of GBP 24 million and Adjusted
EBITDA of GBP 0 have been recognized in respect of sit-up in the
second quarter. On a pro forma basis, assuming that sit-up was
acquired on January 1, 2005, revenues would have been GBP 46
million in the second quarter. Revenues in the same quarter last
year were GBP 36 million on a pro forma basis, assuming that sit-up
was acquired on January 1, 2004, thus implying pro forma revenue
growth of 28%. On the same pro forma basis, Adjusted EBITDA in the
quarter would have been GBP 0, flat compared to the same quarter
last year. sit-up's revenues increased due to growth in
multi-channel penetration and the continued success of its
innovative auction-based home shopping channels. sit-up recently
launched a third live-auction channel, speed auction tv, on Sky,
NTL and Telewest. -0- *T FINANCIAL RESULTS GAAP Financial Measures
3 months ended June 30, ------------------------- (unaudited in GBP
millions) 2005 2004 Reorganized Predecessor Company Company
----------------------------------------------------------------------
Operating income 48 20 Net income/(loss) 19 (126) Net cash provided
by operating activities 123 88
----------------------------------------------------------------------
*T Total revenue and consumer sales division revenue include a
credit of GBP 16 million resulting from the recovery of Value Added
Tax (VAT) from HM Customs and Excise, which had been the subject of
a court case and subsequent appeals since 2002. A GBP 16 million
charge was taken against revenue in 2002 when the case commenced.
This recovery has not been included in any ARPU calculations.
Operating income for the second quarter of 2005 was GBP 48 million,
up from GBP 20 million for the second quarter of 2004, due
principally to the recovery of VAT, revenue growth in our consumer
sales division and content segment, and lower SG&A, partially
offset by increased depreciation and amortization. SG&A in the
second quarter of 2004 was impacted by GBP 12 million of financial
restructuring charges compared to GBP 0 in the second quarter of
2005. The second quarter of 2005 was impacted by GBP 7 million of
expense relating to sit-up and GBP 3 million of stock-based
compensation expense, neither of which arose in the second quarter
of 2004. Additionally GBP 4 million of rates (local government tax)
rebate was received in the second quarter of 2005 compared with GBP
0 in the second quarter of 2004. The improvement from net loss of
GBP 126 million for the second quarter of 2004 to net income of GBP
19 million for the second quarter of 2005 was due principally to
significantly reduced interest costs and decreased foreign exchange
losses following our predecessor's financial restructuring, and
enhanced operating income. Net cash provided by operating
activities increased from GBP 88 million for the second quarter of
2004 to GBP 123 million for the second quarter of 2005. This
increase arose principally as a result of improvements in operating
income. -0- *T Non-GAAP Financial Measures 3 months ended June 30,
------------------------- (unaudited in GBP millions) 2005 2004
Reorganized Predecessor Company Company
----------------------------------------------------------------------
Adjusted EBITDA 158 122 Free cash flow 64 37
----------------------------------------------------------------------
*T Adjusted EBITDA (earnings before interest, taxation,
depreciation, amortization and financial restructuring expenses)
for the second quarter of 2005 was GBP 158 million, up 30% as
compared to the second quarter of 2004. This increase reflects the
recovery of VAT, the rates rebate and increased revenues in the
consumer sales division and content segment, and lower operating
costs and expenses in the cable segment, partially offset by higher
operating costs and expenses in the content segment. Adjusted
EBITDA margin (Adjusted EBITDA as a percentage of revenue) has
increased from 37.4% to 41.5%. Excluding the VAT recovery and rates
rebate, Adjusted EBITDA margin would have been 37.8% for the second
quarter of 2005. Stock-based compensation expense ("SBCE") of GBP 3
million was incurred in the second quarter of 2005. SBCE arises as
a result of options and restricted stock granted to our employees.
SBCE will similarly affect future periods. This is a non-cash item
and no such expense was incurred in the second quarter of 2004.
Adjusted EBITDA before the deduction of SBCE was GBP 161 million in
the second quarter of 2005, an increase of GBP 39 million, or 32%,
over the second quarter of 2004 on the same basis. Free cash flow
(cash flow from operating activities excluding financial
restructuring expenses less capital expenditure) for the three
months ended June 30, 2005 was GBP 64 million, compared with GBP 37
million for the three months ended June 30, 2004. The increase was
primarily due to increased Adjusted EBITDA. Reconciliations of
these and other non-GAAP financial measures to the most directly
comparable GAAP financial measures are explained and shown on pages
16 to 19. Costs Total gross margin (excluding the credit of GBP 16
million VAT recovery), was flat for the quarter as compared to 72%
for the same quarter last year due primarily to the growing number
of high margin broadband subscribers, television price increases
and reduced cable segment expenses partially offset by the
consolidation of sit-up, which is comparatively a much lower gross
margin business. Total gross margin was 73%, including the credit
of GBP 16 million VAT recovery. Gross margin was down from 74% in
the previous quarter due to the consolidation of the comparatively
lower margin sit-up segment. Selling, general and administrative
expenses (SG&A) SG&A of GBP 119 million was up GBP 4
million from the previous quarter primarily due to the
consolidation of GBP 7 million of sit-up SG&A, partially offset
by a rates rebate received of GBP 4 million. This relates to rates
charged on our core network. The rebate was for the period April 1,
2001 to March 31, 2005 and is not expected to recur in future
quarters. Debt and Capital Resources Capital expenditure was GBP 59
million for the quarter. Capital expenditure has been lower than
expected in the first half of the year due to further savings on
consumer contract installation costs and the phasing of capital
project spend. As a result, capital expenditure for the full year
is now expected to be in the range of GBP 220 million to GBP 230
million. During the quarter, certain of Telewest's Flextech
subsidiaries entered into a new bank facility related to the
acquisition of sit-up. GBP 110 million of the facility has been
fully drawn with a GBP 20 million revolver facility, currently
undrawn. Interest rates on the facility start at 1.75 percentage
points above LIBOR with leverage ratchets down to 1% above LIBOR.
The facility matures in June 2009 repayable semi-annually over the
life of the facility from December 2005. The facility is secured on
the assets of certain Flextech subsidiaries and sit-up along with
Telewest's 50% share of the issued equity of UKTV. As at June 30,
2005, net debt was GBP 1,712 million. This consisted of GBP 1,809
million drawn down on our credit facilities and GBP 116 million of
leases and other loans, offset by cash balances of GBP 213 million.
The GBP 1,809 million drawn amount includes US$150 million and
Euro100 million. -0- *T Principal affiliate UKTV (unaudited in GBP
millions) 3 months ended June 30, ------------------------- 2005
2004
----------------------------------------------------------------------
Share of net income of UKTV 7 5 Cash inflow from UKTV, being
interest received, repayment of loans made, net, and dividends
received 10 6
----------------------------------------------------------------------
*T Telewest owns 50% of the companies that comprise UKTV, a group
of joint ventures formed with BBC Worldwide. UKTV offers a
portfolio of multi-channel television channels based on the BBC's
program library. Telewest accounts for its interest in UKTV under
the equity method and recognized its share of net income of GBP 7
million for the three months ended June 30, 2005. This compares
with GBP 5 million share of net income for the three months ended
June 30, 2004. UKTV is funded by a loan from Telewest, the balance
of which was GBP 178 million at June 30, 2005. Total cash interest
and repayments received in respect of this loan by Telewest were
GBP 8 million in the second quarter of 2005. Telewest's cash
interest receipts from UKTV are recorded in free cash flow but not
in Telewest's Adjusted EBITDA. During the three months ended June
30, 2005, we received GBP 2 million of dividends from UKTV. We
expect to continue to receive dividends from UKTV as it continues
to generate cash. -0- *T Telewest Global, Inc. Consolidated
Statements of Operations (amounts in GBP millions, except share and
per share data) (unaudited)
----------------------------------------------------------------------
Three months ended Six months ended June 30, June 30,
------------------------- ------------------------- 2005 2004 2005
2004 ------------ ------------ ------------ ------------
Reorganized Predecessor Reorganized Predecessor Company Company
Company Company
----------------------------------------------------------------------
Revenue Consumer Sales Division 262 235 508 470 Business Sales
Division 63 63 124 130
----------------------------------------------------------------------
Total Cable Segment 325 298 632 600 Content Segment 32 28 63 54
sit-up Segment 24 - 24 -
----------------------------------------------------------------------
Total revenue 381 326 719 654
----------------------------------------------------------------------
Operating costs and expenses Cable segment expenses 70 74 139 153
Content segment expenses 17 18 37 34 sit-up segment expenses 17 -
17 - Depreciation 101 90 202 184 Amortization 9 - 18 - Selling,
general and administrative expenses 119 124 234 244
----------------------------------------------------------------------
333 306 647 615
----------------------------------------------------------------------
Operating income 48 20 72 39 Other income/(expense) Interest income
7 8 11 15 Interest expense (including amortization of debt
discount) (41) (121) (70) (230) Foreign exchange (losses)/gains,
net (3) (37) (7) 40 Share of net income of affiliates 7 5 13 8
Other, net 1 - 1 (1)
----------------------------------------------------------------------
Income/(loss) before income taxes 19 (125) 20 (129) Income tax
charge - (1) - (1)
----------------------------------------------------------------------
Net income/(loss) 19 (126) 20 (130)
----------------------------------------------------------------------
Basic and diluted earnings per share of common stock GBP 0.08 GBP
0.08 Weighted average number of shares of common stock - (millions)
245 245
----------------------------------------------------------------------
Telewest Global, Inc. Consolidated Balance Sheets (amounts in GBP
millions, except share and per share data) (unaudited)
----------------------------------------------------------------------
June 30, December 31, 2005 2004 ------------ ------------
Reorganized Reorganized Company Company
----------------------------------------------------------------------
Assets Cash and cash equivalents 213 68 Restricted cash 16 26 Trade
receivables 118 108 Other receivables 32 33 Prepaid expenses 38 17
Inventory for re-sale, net 15 - Other assets 4 -
----------------------------------------------------------------------
Total current assets 436 252 Investments accounted for under the
equity method 286 304 Property and equipment, net 2,888 2,974
Intangible assets, net 296 314 Reorganization value in excess of
amounts allocable to identifiable assets 425 425 Goodwill 142 -
Programming inventory 30 24 Deferred financing costs (net of
amortization of GBP 3 million; 2004: GBP 0 million) 52 51
----------------------------------------------------------------------
Total assets 4,555 4,344
----------------------------------------------------------------------
Liabilities and shareholders' equity Accounts payable 153 93 Other
liabilities 446 424 Debt repayable within one year 55 21 Capital
lease obligations repayable within one year 45 38
----------------------------------------------------------------------
Total current liabilities 699 576 Other liabilities 6 - Deferred
taxes 105 105 Debt repayable after more than one year 1,760 1,686
Capital lease obligations repayable after more than one year 65 69
----------------------------------------------------------------------
Total liabilities 2,635 2,436
----------------------------------------------------------------------
----------------------------------------------------------------------
Minority interest (1) (1)
----------------------------------------------------------------------
Shareholders' equity Preferred stock - US$0.01 par value;
authorized 5,000,000 shares, issued none (2005 and 2004) - - Common
stock - US$0.01 par value; authorized 1,000,000,000 shares, issued
245,171,054 (2005) and 245,080,629 (2004) 1 1 Additional paid-in
capital 1,960 1,954 Accumulated other comprehensive loss (14) -
Accumulated deficit (26) (46)
----------------------------------------------------------------------
Total shareholders' equity 1,921 1,909
----------------------------------------------------------------------
----------------------------------------------------------------------
Total liabilities and shareholders' equity 4,555 4,344
----------------------------------------------------------------------
Telewest Global, Inc. Consolidated Statements of Cash Flows
(amounts in GBP millions) (unaudited)
----------------------------------------------------------------------
Six months ended June 30, ------------------------- 2005 2004
------------ ------------ Reorganized Predecessor Company Company
----------------------------------------------------------------------
Cash flows from operating activities Net income/(loss) 20 (130)
Adjustments to reconcile net income/(loss) to net cash provided by
operating activities: Depreciation 202 184 Amortization 18 -
Amortization of deferred financing costs and debt discount 3 30
Deferred tax charge - 1 Fair value adjustment of interest rate
swaps (10) - Accretion expense 1 - Unrealized losses/(gains) on
foreign currency translation 7 (40) Stock-based compensation
expense 6 - Share of net income of affiliates (9) (8) Profit on
disposal of assets (1) - Amounts written off investments - 1
Changes in operating assets and liabilities, net of effect of
acquisition of subsidiaries: Change in receivables (9) 9 Change in
prepaid expenses (19) (25) Change in other assets (11) (3) Change
in accounts payable 35 27 Change in other liabilities 6 124
----------------------------------------------------------------------
Net cash provided by operating activities 239 170
----------------------------------------------------------------------
Cash flows from investing activities Capital expenditure (113)
(127) Proceeds from disposal of fixed assets 2 - Cash paid for
acquisition of subsidiaries, net of cash acquired (107) -
Repayment/(advance) of loans made to affiliates, net 9 (4) Disposal
of affiliate - 7 Proceeds from sale and leaseback 12 -
----------------------------------------------------------------------
Net cash used in investing activities (197) (124)
----------------------------------------------------------------------
Cash flows from financing activities Release of restricted cash 10
2 Proceeds from new debt 110 - Repayment of debt (6) - Cash paid
for financing costs (4) - Principal element of capital lease
repayments (19) (23) Proceeds from the issue of redeemable
preferred stock 12 -
----------------------------------------------------------------------
Net cash provided by/ (used in) financing activities 103 (21)
----------------------------------------------------------------------
Net increase in cash and cash equivalents 145 25 Cash and cash
equivalents at beginning of period 68 427
----------------------------------------------------------------------
Cash and cash equivalents at end of period 213 452
----------------------------------------------------------------------
Supplementary cash flow information: Cash paid for interest, net 41
61 Cash received for income taxes - (2) Telewest Global, Inc.
Selected Quarterly Operating Data - unaudited The following table
sets out certain operating data for the three-month periods shown.
The information represents combined operating statistics for all of
our franchises.
----------------------------------------------------------------------
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2005 2005 2004 2004
2004 Predecessor Reorganized Company Company
-------------------------------------------- ----------- Customer
Data ------------- Homes passed and marketed (1) 4,698,510
4,694,480 4,686,794 4,686,799 4,682,777 Total customer
relationships (2) 1,837,191 1,822,530 1,799,556 1,769,263 1,752,553
Customer penetration 39.1% 38.8% 38.4% 37.7% 37.4% Customer
additions 79,365 78,695 89,452 78,707 67,118 Customer
disconnections (64,704) (55,721) (59,159) (61,997) (56,709) Net
customer additions 14,661 22,974 30,293 16,710 10,409 Revenue
Generating Units ("RGUs")(3) 3,873,792 3,784,835 3,671,402
3,539,185 3,447,254 RGUs per customer 2.11 2.08 2.04 2.00 1.97 Net
RGU additions 88,957 113,433 132,217 91,931 84,014 Average monthly
revenue per customer(4) GBP 44.86 GBP 45.34 GBP 45.13 GBP 45.05 GBP
44.98 Average monthly churn(5) 1.2% 1.0% 1.1% 1.2% 1.1%
----------------------------------------------------------
----------- Bundled customers ----------------- Customers
subscribing to two or more services 1,434,161 1,409,998 1,379,057
1,338,632 1,312,842 Customers subscribing to three services
("triple play") 602,430 552,307 492,789 431,290 381,859 Percentage
of dual or triple play customers 78.1% 77.4% 76.6% 75.7% 74.9%
Percentage of triple play customers 32.8% 30.3% 27.4% 24.4% 21.8%
----------------------------------------------------------
----------- Consumer Television ------------------- Television
ready homes passed and marketed 4,698,510 4,694,480 4,686,794
4,686,799 4,682,777 Total subscribers 1,331,742 1,320,487 1,312,825
1,297,304 1,288,272 Quarterly net additions 11,255 7,662 15,521
9,032 2,475 Television penetration 28.3% 28.1% 28.0% 27.7% 27.5%
Digital ready homes passed and marketed 4,501,169 4,451,420
4,420,388 4,405,162 4,401,860 Digital subscribers 1,189,521
1,149,641 1,122,301 1,078,623 1,052,855 Quarterly net digital
additions 39,880 27,340 43,678 25,768 23,096 Penetration of digital
subscribers to total subscribers 89.3% 87.1% 85.5% 83.1% 81.7%
Average monthly churn (5) 1.5% 1.4% 1.5% 1.4% 1.3% Average monthly
revenue per subscriber (4) GBP 20.78 GBP 21.12 GBP 20.88 GBP 20.72
GBP 20.53
----------------------------------------------------------
----------- Consumer Telephony ------------------ Telephony ready
homes passed and marketed 4,694,030 4,691,704 4,683,153 4,682,002
4,677,861 "3-2-1" and "Talk Weekends" telephony subscribers
1,045,139 1,053,226 1,080,893 1,082,125 1,105,056 "Talk Unlimited"
and "Talk Evenings and Weekends" subscribers 644,073 624,417
579,448 552,534 516,313 Total subscribers 1,689,212 1,677,643
1,660,341 1,634,659 1,621,369 Quarterly net additions 11,569 17,302
25,682 13,290 9,222 Telephony penetration 36.0% 35.8% 35.5% 34.9%
34.7% Average monthly churn(5) 1.2% 1.0% 1.1% 1.2% 1.1% Average
monthly revenue per subscriber(4) GBP 22.42 GBP 23.00 GBP 23.18 GBP
23.53 GBP 23.70 Telewest Global, Inc. Selected Quarterly Operating
Data - unaudited (continued)
----------------------------------------------------------------------
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2005 2005 2004 2004
2004 Predecessor Reorganized Company Company
-------------------------------------------- ----------- Consumer
Internet ----------------- Broadband ready homes passed and
marketed 4,501,169 4,451,420 4,420,388 4,405,162 4,401,860 Total
metered dial-up internet subscribers 25,048 29,376 33,417 39,196
47,884 Total unmetered dial-up internet subscribers 65,516 85,909
107,220 127,745 151,457 Total broadband internet subscribers
852,838 786,705 698,236 607,222 537,613 Quarterly net broadband
internet additions 66,133 88,469 91,014 69,609 72,317 Broadband
internet penetration 18.9% 17.7% 15.8% 13.8% 12.2% Average monthly
broadband internet churn (5) 1.3% 1.0% 1.0% 1.3% 1.2% Average
monthly revenue per broadband internet subscriber (4) GBP19.39
GBP19.89 GBP20.23 GBP21.50(a) GBP22.45(a)
----------------------------------------------------------
----------- NCTA Capital expenditure(6) GBP m GBP m GBP m GBP m GBP
m ------------ ------------------------------------------
----------- Customer premise equipment ("CPE") 18 16 25 19 23
Scaleable infrastructure 12 7 14 8 7 Commercial 11 8 8 12 9 Line
extensions 1 2 1 1 1 Upgrade/rebuild 3 6 10 1 4 Support capital 12
13 7 10 9 ------------------------------------------ -----------
Total NCTA Capital expenditure 57 52 65 51 53 Non NCTA Capital
expenditure: Content Segment 1 - 1 - 1 sit-up Segment 1 - - - -
Change in capital accruals - 2 (2) (1) 7
----------------------------------------------------------
----------- Total Capital expenditure 59 54 64 50 61
----------------------------------------------------------
----------- (a) The product ARPUs for broadband internet in these
quarters have been adjusted to reflect the full value of
promotional discounts offered. (1) The number of homes within our
service area that can potentially be served by our network with
minimal connection costs. Information concerning the number of
homes "passed and marketed" is based on physical counts made by us
during network construction or marketing phases. (2) The number of
customers who receive at least one of our television, telephony or
broadband internet services. (3) Revenue Generating Units ("RGUs"),
refer to subscriptions to each of our analog television, digital
television, telephony and broadband internet services on an
individual basis. For example, when we provide one customer with
digital television and broadband internet services, we record two
RGUs. Dial-up internet services, second telephone lines and
additional TV outlets are not recorded as RGUs although they
generate revenue for us. (4) Average monthly revenue per customer
(often referred to as "ARPU" or "Average Revenue per User")
represents the consumer sales division's total quarterly revenue of
residential customers, including installation revenues, but
excluding the recovery of GBP 16 million VAT, divided by the
average number of residential customers in the quarter, divided by
three. The same methodology is used for television, telephony and
broadband internet ARPU. (5) Average monthly churn represents the
total number of customers who disconnected during the quarter
divided by the average number of customers in the quarter, divided
by three. Subscribers who move premises within our addressable
areas (known as "Moves and Transfers") and retain our services are
excluded from this churn calculation. (6) In order to provide
comparable data to the US and UK cable industry, and in accordance
with NCTA (National Cable & Telecommunications Association)
reporting guidelines, Telewest has allocated capital expenditure to
the standard reporting categories as per below. Telewest is not a
member of the NCTA and is providing this information solely for
comparative purposes. CPE - costs incurred at the customer's house
to secure new customers, revenue units and additional bandwidth
revenues. Includes connections to previously unserved houses in
accordance with SFAS 51 and customer premise equipment. Scaleable
infrastructure - costs, not CPE or network related, to secure
growth of new customers, revenue units and additional bandwidth
revenues or provide service enhancements. Commercial - costs to
provide high-speed data and telephony services to businesses and
institutions. Includes network and infrastructure expenditures.
Line extensions - network costs associated with entering new
service areas including costs of fiber, coaxial cable, amplifiers,
electronic equipment, make-ready and design/engineering.
Upgrade/rebuild - costs to modify or replace existing coax and
fiber networks. Includes materials, contract labor, in-house labor,
make-ready, design engineering and other miscellaneous costs
associated with all aspects of the construction of the plant miles
along an existing route. Benefits include added bandwidth and/or
reliability/extended life to the existing plant. Support capital -
costs associated with the replacement or enhancement of non-network
assets due to obsolescence and wear-out, replacement of network
assets unrelated to line extensions, rebuild/upgrade or customer
growth. *T Telewest Global, Inc. Supplemental Analysis --
Forward-Looking Statements -- Fresh-Start Reporting -- Pro forma
Consolidated Statements of Operations -- Quarterly Historical
Information -- Segmental Information -- Use of Non-GAAP Financial
Measures Forward-Looking Statements Some of the statements in this
earnings release constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements relate to future events or our future financial
performance, including, but not limited to, strategic plans,
potential growth (including customer net additions and average
monthly revenue per customer), product introductions and
innovation, meeting customer expectations, planned operational
changes (including product improvements and the impact of price
increases), expected capital expenditures, future cash sources and
requirements, liquidity, customer service improvements, cost
savings and the benefits of acquisitions or joint ventures -
potential and/or completed - that involve known and unknown risks,
uncertainties and other factors that may cause our or our
businesses' actual results, levels of activity, performance or
achievements to be materially different from those expressed or
implied by any forward-looking statements. In some cases, you can
identify forward-looking statements by terminology such as "may,"
"will," "could," "would," "should," "expect," "plan," "anticipate,"
"intend," "believe," "estimate," "predict," "potential," or
"continue," or the negative of those terms or other comparable
terminology. There are a number of important factors that could
cause our actual results and future development to differ
materially from those expressed or implied by those forward-looking
statements. These factors include those discussed under the caption
"Risk Factors" in the Annual Report on Form 10-K for the year ended
December 31, 2004 (No. 000-50886) filed by Telewest Global, Inc. on
March 22, 2005 with the United States Securities and Exchange
Commission, although those risk factors may not be exhaustive.
Other sections of this earnings release may describe additional
factors that could adversely impact our business and financial
performance. We operate in a continually changing business
environment, and new risk factors may emerge from time to time.
Management cannot anticipate all of these new risk factors, nor can
they definitively assess the impact, if any, of new risk factors on
us or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those projected
in any forward-looking statements. Accordingly, forward-looking
statements should not be relied upon as a prediction of actual
results. Unless otherwise required by applicable securities laws,
we assume no obligation to publicly update or revise any of the
forward-looking statements after the date of this earnings release
to reflect actual results, whether as a result of new information,
future events or otherwise. Fresh-Start Reporting As a result of
the completion of the financial restructuring of Telewest
Communications plc, our predecessor, on July 15, 2004, Telewest
adopted fresh-start reporting in accordance with Statement of
Position 90-7, "Reporting by Entities in Reorganization under the
Bankruptcy Code", ("SOP 90-7"), with effect from July 1, 2004.
Under SOP 90-7, Telewest established a new accounting basis,
recording our predecessor's assets at their fair value and
liabilities at the present value of amounts to be paid. A
reconciliation of our predecessor's balance sheet at June 30, 2004
to the fresh-start balance sheet at July 1, 2004, is included in
Telewest's Annual Report on Form 10-K for the year ended December
31, 2004. As a result of the adoption of fresh-start reporting, our
balance sheets and results of operations subsequent to July 1, 2004
will not be comparable in many material respects to the balance
sheets or results of operations reflected in our predecessor's
historical financial statements for periods prior to July 1, 2004.
-0- *T Telewest Global, Inc. Pro forma Consolidated Statements of
Operations (a) (amounts in GBP millions, except share and per share
data) (unaudited)
----------------------------------------------------------------------
Three months ended Six months ended June 30, June 30,
------------------------- ------------------------- 2005 2004 2005
2004 ------------- ----------- ------------ ------------
Reorganized Predecessor Reorganized Predecessor Company (a) Company
(a) Company (a) Company (a)
----------------------------------------------------------------------
Revenue Consumer Sales Division 262 235 508 470 Business Sales
Division 63 63 124 130
----------------------------------------------------------------------
Total Cable Segment 325 298 632 600 Content Segment 32 28 63 54
sit-up Segment 46 36 98 76
----------------------------------------------------------------------
Total revenue 403 362 793 730
----------------------------------------------------------------------
Operating costs and expenses Cable segment expenses 70 74 139 153
Content segment expenses 17 18 37 34 sit-up segment expenses 34 27
72 57 Depreciation 101 91 203 185 Amortization 9 - 18 - Selling,
general and administrative expenses 124 133 251 262
----------------------------------------------------------------------
355 343 720 691
----------------------------------------------------------------------
Operating income 48 19 73 39 Other income/(expense) Interest income
7 7 11 14 Interest expense (including amortization of debt
discount) (41) (122) (72) (233) Foreign exchange (losses)/gains,
net (3) (37) (7) 40 Share of net income of affiliates 7 4 12 7
Other, net 1 - 1 (1)
----------------------------------------------------------------------
Income/(loss) before income taxes 19 (129) 18 (134) Income tax
charge - (1) - (1)
----------------------------------------------------------------------
Net income/(loss) 19 (130) 18 (135)
----------------------------------------------------------------------
Basic and diluted earnings per share of common stock GBP 0.08 GBP
0.07 Weighted average number of shares of common stock - (millions)
245 245
----------------------------------------------------------------------
(a) To show pro forma effect as if sit-up Limited had been
purchased on January 1, 2005 and 2004, for the periods ended June
30, 2005 and 2004, respectively. Pro forma adjustments reflect the
revenue, segment expenses, depreciation and SG&A for sit-up for
the periods January 1, 2005 to May 11, 2005 and January 1, 2004 to
June 30, 2004. Interest income and expense have been adjusted to
reflect the interest income earned by sit-up during the above
periods and the additional interest expense that would have been
incurred by Telewest to fund the acquisition at January 1, 2005 and
2004, respectively. Share of net income of affiliates has been
adjusted to reverse the equity accounting of sit-up for the periods
presented. Telewest Global, Inc. Quarterly Historical Information
(amounts in GBP millions, except share and per share data)
----------------------------------------------------------------------
Three months ended
------------------------------------------------- Jun. 30, Mar. 31,
Dec. 31, Sep. 30, Jun. 30, 2005 2005 2004 2004 2004 Predecessor
Reorganized Company Company
----------------------------------------------------------
----------- Revenue Consumer Sales Division 262 246 241 238 235
Business Sales Division 63 61 63 63 63
----------------------------------------------------------
----------- Total Cable Segment 325 307 304 301 298 Content Segment
32 31 32 27 28 sit-up Segment 24 - - - -
----------------------------------------------------------
----------- Total revenue 381 338 336 328 326
----------------------------------------------------------
----------- Operating costs and expenses Cable segment expenses 70
69 69 72 74 Content segment expenses 17 20 25 17 18 sit-up segment
expenses 17 - - - - Depreciation 101 101 101 103 90 Amortization 9
9 9 9 - ----------------------------------------------------------
----------- Cost of revenue 214 199 204 201 182 Selling, general
and administrative expenses 119 115 114 117 124
----------------------------------------------------------
----------- 333 314 318 318 306
----------------------------------------------------------
----------- Operating income 48 24 18 10 20 Other income/(expense)
Interest income 7 4 5 6 8 Interest expense (including amortization
of debt discount) (41) (29) (47) (49) (121) Foreign exchange
(losses)/gains, net (3) (4) 3 - (37) Share of net income of
affiliates 7 6 4 4 5 Other, net 1 - - - -
----------------------------------------------------------
----------- Income/(loss) before income taxes 19 1 (17) (29) (125)
Income tax charge - - - - (1)
----------------------------------------------------------
----------- Net income/(loss) 19 1 (17) (29) (126)
----------------------------------------------------------
----------- Basic and diluted earnings/(loss) per share of common
stock GBP 0.08 - GBP(0.07) GBP(0.12) Weighted average number of
shares of common stock - (millions) 245 245 245 245
----------------------------------------------------------
----------- Telewest Global, Inc. Segment Information (amounts in
GBP millions) Three months ended Six months ended June 30, June 30,
------------------------- ------------------------- 2005 2004 2005
2004 ------------ ------------ ------------ ------------
Reorganized Predecessor Reorganized Predecessor Company Company
Company Company
----------------------------------------------------------------------
CABLE SEGMENT Consumer Sales Division revenue 262 235 508 470
Business Sales Division revenue 63 63 124 130
----------------------------------------------------------------------
Third party revenue 325 298 632 600 Operating costs and expenses
(before financial restructuring charges) (174) (181) (353) (369)
----------------------------------------------------------------------
Adjusted EBITDA including inter- segment costs 151 117 279 231
Inter-segment costs (1) 2 2 5 5
----------------------------------------------------------------------
Adjusted EBITDA 153 119 284 236
----------------------------------------------------------------------
CONTENT SEGMENT Content Segment revenue 34 30 68 59 Operating costs
and expenses (before financial restructuring charges) (27) (25)
(55) (46)
----------------------------------------------------------------------
Adjusted EBITDA including inter- segment revenues 7 5 13 13
Inter-segment revenues (1) (2) (2) (5) (5)
----------------------------------------------------------------------
Adjusted EBITDA 5 3 8 8
----------------------------------------------------------------------
SIT-UP SEGMENT sit-up Segment revenue 24 - 24 - Operating costs and
expenses (before financial restructuring charges) (24) - (24) -
----------------------------------------------------------------------
Adjusted EBITDA - - - -
----------------------------------------------------------------------
Reconciliation to operating income Cable Segment Adjusted EBITDA
153 119 284 236 Content Segment Adjusted EBITDA 5 3 8 8 sit-up
Segment Adjusted EBITDA - - - -
----------------------------------------------------------------------
Adjusted EBITDA 158 122 292 244 Financial restructuring charges -
(12) - (21) Depreciation (101) (90) (202) (184) Amortization (9) -
(18) -
----------------------------------------------------------------------
Operating income 48 20 72 39
----------------------------------------------------------------------
(1) Inter-segment revenues are revenues of our Content Segment
which are costs in our Cable Segment and which are eliminated on
consolidation. *T Telewest Global, Inc. Use of Non-GAAP Financial
Measures Adjusted EBITDA Telewest's primary measure of income or
loss for each of our reportable segments is Adjusted EBITDA. Our
management, including our chief operating decision-maker, considers
Adjusted EBITDA an important indicator of the operational strength
and performance of our reportable segments. Adjusted EBITDA for
each segment and in total excludes the impact of costs and expenses
that do not directly affect our cash flows or do not directly
relate to the operating performance of that segment. These costs
and expenses include depreciation, amortization, financial
restructuring charges, interest expense, foreign exchange
gains/(losses), share of net income/(loss) from affiliates and
income taxes. It is the belief of management that the legal and
professional costs relating to our financial restructuring are not
characteristic of our underlying business operations. Furthermore
management believes that some of the components of these charges
are not directly related to the performance of a single reportable
segment. Adjusted EBITDA is not a financial measure recognised
under GAAP. This measure is most directly comparable to the GAAP
financial measure net income/(loss). Some of the significant
limitations associated with the use of Adjusted EBITDA as compared
to net income/(loss) are that Adjusted EBITDA does not reflect the
amount of required reinvestment in depreciable fixed assets,
financial restructuring charges, interest expense, foreign exchange
gains or losses, income taxes expense or benefit and similar items
on our results of operations. We believe Adjusted EBITDA is helpful
for understanding our performance and assessing our prospects for
the future, and that it provides useful supplemental information to
investors. In particular, this non-GAAP financial measure reflects
an additional way of viewing aspects of our operations that, when
viewed with our GAAP results and the reconciliations to net
income/(loss), shown below, provide a more complete understanding
of factors and trends affecting our business. Because non-GAAP
financial measures are not standardized, it may not be possible to
compare Adjusted EBITDA with other companies' non-GAAP financial
measures that have the same or similar names. The presentation of
this supplemental information is not meant to be considered in
isolation or as a substitute for net cash provided by operating
activities, operating income/(loss), net income/(loss), or other
measures of financial performance reported in accordance with GAAP.
Free cash flow Telewest's primary measure of cash flow is free cash
flow. Free cash flow is defined as net cash provided by/(used in)
operating activities excluding cash paid for financial
restructuring charges, less capital expenditure. Our management,
including our chief operating decision-maker, considers free cash
flow an important indicator of the operational performance of our
business. Free cash flow is not a financial measure recognized
under GAAP. This measure is most directly comparable to the GAAP
financial measure net cash provided by/(used in) operating
activities. The significant limitation associated with the use of
free cash flow as compared to net cash provided by/(used in)
operating activities is that free cash flow does not consider the
amount of cash required to pay financial restructuring charges. We
believe free cash flow is helpful for understanding our performance
and it provides useful supplemental information to investors.
Because non-GAAP financial measures are not standardized, it may
not be possible to compare free cash flow with other companies'
non-GAAP financial measures that have the same or similar names.
The presentation of this supplemental information is not meant to
be considered in isolation or as a substitute for net cash provided
by/(used in) operating activities, or other measures of financial
performance reported in accordance with GAAP. Net debt Net debt is
defined as the sum of debt repayable, capital lease obligations and
accrued interest payable on notes and debentures less cash and cash
equivalents. The Company's management, including its chief
operating decision-maker, considers net debt an important measure
of the financing obligations undertaken by the Company. Net debt is
not a financial measure recognized under GAAP. This measure is most
directly comparable to the GAAP financial measure, total
liabilities. The significant limitation associated with the use of
net debt as compared total liabilities is that net debt does not
consider current liabilities due in respect of accounts payable and
other liabilities. It also assumes that all of cash and cash
equivalents is available to service debt. Telewest believes net
debt is helpful for understanding its entire net debt funding
obligations and it provides useful supplemental information to
investors. Because non-GAAP financial measures are not
standardized, it may not be possible to compare net debt with other
companies' non-GAAP financial measures that have the same or
similar names. The presentation of this supplemental information is
not meant to be considered in isolation or as a substitute for
total liabilities, or other measures of financial performance
reported in accordance with GAAP. Telewest Global, Inc. Use of
Non-GAAP Financial Measures (continued) Average monthly revenue per
customer or "Household ARPU (excluding impact of the GBP 16 million
VAT recovery)" For a three month period, Household ARPU (excluding
impact of the GBP 16 million VAT recovery) represents the consumer
sales division's total quarterly revenue of residential customers,
including installation revenues, but excluding the recovery of GBP
16 million VAT, divided by the average number of residential
customers in the quarter, divided by three. For a six month period,
Household ARPU (excluding impact of the GBP 16 million VAT
recovery) represents the consumer sales division's total half
yearly revenue of residential customers, including installation
revenues, but excluding the recovery of GBP 16 million VAT, divided
by the average number of residential customers in the half year,
divided by six. Household ARPU (excluding impact of the GBP 16
million VAT recovery) is not a financial measure recognized under
GAAP. This measure is most directly comparable to the GAAP
financial measure, Household ARPU. The significant limitation
associated with the use of Household ARPU (excluding impact of the
GBP 16 million VAT recovery) as compared to Household ARPU is that
Household ARPU (excluding impact of the GBP 16 million VAT
recovery) does not consider GBP 16 million of revenues received in
respect of recovered VAT. Telewest believes Household ARPU
(excluding impact of the GBP 16 million VAT recovery) is helpful
for understanding the trend in respect of its residential revenues
derived from customers during the periods and it provides useful
supplemental information to investors. The VAT recovery is not
expected to recur. Because non-GAAP financial measures are not
standardized, it may not be possible to compare Household ARPU
(excluding impact of the GBP 16 million VAT recovery) with other
companies' non-GAAP financial measures that have the same or
similar names. The presentation of this supplemental information is
not meant to be considered in isolation or as a substitute for
Household ARPU, or other measures of financial performance reported
in accordance with GAAP. Average monthly revenue per television
subscriber or "Television ARPU (excluding impact of the GBP 16
million VAT recovery)" For a three month period, Television ARPU
(excluding impact of the GBP 16 million VAT recovery) represents
the sum of the consumer sales division's total quarterly revenue of
television subscribers, including installation revenues, but
excluding the recovery of GBP 16 million VAT, divided by the
average number of television subscribers in the quarter, divided by
three. For a six month period, Television ARPU (excluding impact of
the GBP 16 million VAT recovery) represents the sum of the consumer
sales division's total half yearly revenue of television
subscribers, including installation revenues, but excluding the
recovery of GBP 16 million VAT, divided by the average number of
television subscribers in the half year, divided by six. Television
ARPU (excluding impact of the GBP 16 million VAT recovery) is not a
financial measure recognized under GAAP. This measure is most
directly comparable to the GAAP financial measure, Television ARPU.
The significant limitation associated with the use of Television
ARPU (excluding impact of the GBP 16 million VAT recovery) as
compared to Television ARPU is that Television ARPU (excluding
impact of the GBP 16 million VAT recovery) does not consider GBP 16
million of revenues received in respect of recovered VAT. Telewest
believes Television ARPU (excluding impact of the GBP 16 million
VAT recovery) is helpful for understanding the trend in respect of
its television revenues derived from subscribers during the periods
and it provides useful supplemental information to investors. The
VAT recovery is not expected to recur. Because non-GAAP financial
measures are not standardized, it may not be possible to compare
Television ARPU (excluding impact of the GBP 16 million VAT
recovery) with other companies' non-GAAP financial measures that
have the same or similar names. The presentation of this
supplemental information is not meant to be considered in isolation
or as a substitute for Television ARPU, or other measures of
financial performance reported in accordance with GAAP. -0- *T
Telewest Global, Inc. Use of Non-GAAP Financial Measures
(continued)
----------------------------------------------------------------------
Reconciliations of Non-GAAP Financial Measures (amounts in GBP
millions)
----------------------------------------------------------------------
Three months ended Six months ended Three months June 30, June 30,
ended March 31, ----------------------- -----------------------
------------ 2005 2004 2005 2004 2005 ----------- -----------
----------- ----------- ------------ Reorganized Predecessor
Reorganized Predecessor Reorganized Company Company Company Company
Company
----------------------------------------------------------------------
Reconciliation of Adjusted EBITDA to net income/(loss)
----------------------------------------------------------------------
Adjusted EBITDA 158 122 292 244 134 Financial restructuring charges
- (12) - (21) - Depreciation (101) (90) (202) (184) (101)
Amortization (9) - (18) - (9)
----------------------------------------------------------------------
Operating income 48 20 72 39 24 Interest income 7 8 11 15 4
Interest expense (including amortization of debt discount) (41)
(121) (70) (230) (29) Foreign exchange (losses)/gains, net (3) (37)
(7) 40 (4) Share of net income of affiliates 7 5 13 8 6 Other, net
1 - 1 (1) - Income tax charge - (1) - (1) -
----------------------------------------------------------------------
Net income/(loss) 19 (126) 20 (130) 1
----------------------------------------------------------------------
Reconciliation of free cash flow to net cash provided by operating
activities
----------------------------------------------------------------------
Free cash flow 64 37 127 62 63 Deduct cash paid for financial
restructuring charges - (10) (1) (19) (1) Add capital expenditure
59 61 113 127 54
----------------------------------------------------------------------
Net cash provided by operating activities 123 88 239 170 116
----------------------------------------------------------------------
Free cash flow is reported after cash paid for interest, net, and
cash received for income taxes. Supplementary cash flow
information: Cash paid for interest, net 29 29 41 61 12 Cash
received for income taxes - - - (2) -
----------------------------------------------------------------------
Jun. 30, Dec. 31, 2005 2004 ------------ ------------ Reorganized
Reorganized Company Company
----------------------------------------------------------------------
Reconciliation of net debt to total liabilities Net debt 1,712
1,746 Cash and cash equivalents 213 68
----------------------------------------------------------------------
Total debt 1,925 1,814 Accounts payable 153 93 Other liabilities
452 424 Deferred taxes 105 105
----------------------------------------------------------------------
Total liabilities 2,635 2,436
----------------------------------------------------------------------
Telewest Global, Inc. Use of Non-GAAP Financial Measures
(continued)
----------------------------------------------------------------------
Three months Six months ended ended June 30, 2005 June 30, 2005
----------------------------------------------------------------------
Reconciliation of Household ARPU to Household ARPU (excluding
impact of the GBP 16 million VAT recovery)
----------------------------------------------------------------------
Consumer sales division revenue in the period GBP 262 million GBP
508 million Average number of residential customers in the period
1,830,895 1,820,654 --------------------------------- Household
ARPU GBP 47.72 GBP 46.54 --------------------------------- Consumer
sales division revenue in the period GBP 262 million GBP 508
million VAT recovery GBP(16) million GBP(16) million
--------------------------------- Consumer sales division revenue
(excluding GBP 16 million VAT recovery) GBP 246 million GBP 492
million Average number of residential customers in the period
1,830,895 1,820,654 --------------------------------- Household
ARPU (excluding impact of the GBP 16 million VAT recovery) GBP
44.86 GBP 45.11 ---------------------------------
----------------------------------------------------------------------
Reconciliation of Television ARPU to Television ARPU (excluding
impact of the GBP 16 million VAT recovery)
----------------------------------------------------------------------
Consumer television revenue in the period GBP 98 million GBP 182
million Average number of television subscribers in the period
1,326,317 1,321,291 --------------------------------- Television
ARPU GBP 24.72 GBP 22.93 --------------------------------- Consumer
television revenue in the period GBP 98 million GBP 182 million VAT
recovery GBP(16)million GBP(16) million
--------------------------------- Consumer television revenue
(excluding GBP 16 million VAT recovery) GBP 82 million GBP 166
million Average number of television subscribers in the period
1,326,317 1,321,291 --------------------------------- Television
ARPU (excluding impact of the GBP 16 million VAT recovery) GBP
20.78 GBP 20.95 ---------------------------------
----------------------------------------------------------------------
*T
Telewest Global (NASDAQ:TLWT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Telewest Global (NASDAQ:TLWT)
Historical Stock Chart
From Jul 2023 to Jul 2024