Liberty Global Inc. (LBTYA) declared mixed financial results for the third quarter of 2009. Quarterly total revenue of $2.82 billion was an improvement of 7% year-over-year and also better than the Zacks Consensus Estimate of $2.75 billion. This was primarily due to the fabulous growth of Telnet and J:COM operations, which provides broadband services in Belgium and Japan respectively. 

Quarterly GAAP net loss was $120.3 million or 45 cents per share compared to a net loss of $308.9 million or $1.01 in the prior-year quarter. However, third quarter net loss from continuing operation was 22 cents per share, above the Zacks Consensus estimate of a loss of 20 cents. Quarterly cost of operation was $1,059.2 million, up 5.5% year-over-year. 

Selling, General and Administrative expense was $523.8 million, up 2.4% year-over-year. Third quarter operating income was $463.8 million, up 13.6% year-over-year. During the reported quarter, Liberty Global generated $691.4 million of cash from operations compared to $692.6 million in the year-ago quarter. 

Quarterly free cash flow (cash flow from operations less capital expenditures) was $166.5 million compared to $101.1 million in the year-ago quarter. At the end of the third quarter 2009, the company had $2.4 billion of cash and marketable securities and $21.7 billion of outstanding debt on its balance sheet. 

Subscriber Statistics 

At the end of the third quarter, Liberty Global had 16.6 million customers in 14 countries. During the reported quarter, the company added 500,000 net new customers. 

At the end of the reported quarter, Liberty Global had 26.8 million (up 8% year-over-year) RGUs (revenue generating units) consisting of 15.2 million video, 6.5 million broadband internet and 5.1 million telephony subscribers. Quarterly consolidated ARPU (average revenue per user) was $47.51, up 4% year-over-year. 

Segment wise Results 

Revenue from total UPC Broadband division was $1,053 million, down 6.7% year-over-year. Within this segment, revenue from Western Europe was $759 million, down 2.7% year-over-year. Revenue from Central and Eastern Europe was $291.9 million, down 15.5% year-over-year. Revenue from Central and Corporate operation was $2.1 million, down 25% year-over-year. 

Telnet revenue was $439.4 million, up 17.2% year-over-year. J:COM revenue was $891.2 million, up 29.9% year-over-year. VTR revenue was $179.7 million, remaining the same year-over-year. Corporate and other revenue was $281 million, down 1.1% year-over-year.
Read the full analyst report on “LBTYA”
Zacks Investment Research