Yesterday, after market close, Liberty Global Inc. (LBTYA) declared better-than-expected financial results for the fourth quarter of 2009. Quarterly GAAP net income was $100 million, or 34 cents per share, compared to a net loss of $862.6 million, or $2.60 per share, in the prior-year quarter. Fourth-quarter EPS of 34 cents was significantly above the Zacks Consensus Estimate of 11 cents. This was primarily due to higher tax benefits and favorable foreign currency exchange rates.
Quarterly total revenue of $3.04 billion was an improvement of 19% year-over-year and also better than the Zacks Consensus Estimate of $2.88 billion. This was mainly due to revenue growth of Telnet (which provides broadband services in Belgium ) and Poland operations. Quarterly organic subscriber growth was the highest in two years.
Quarterly cost of operation was $1.17 billion, up 19.9% year-over-year. Selling, General and Administrative expense was $594.5 million, up 17.5% year-over-year. Fourth-quarter operating income was $469.4 million, up 109% year-over-year.
During full fiscal 2009, Liberty Global generated $3,353.3 million of cash from operations compared to $3,138 million in the previous year. Yearly free cash flow (cash flow from operations less capital expenditures) was $1,118 million, compared to $777.6 million in the previous year.
At the end of fiscal 2009, the company had $4,278.2 million of cash and marketable securities and $25,852.6 million of outstanding debt on its balance sheet, compared to $2,353.8 million of cash and marketable securities and $20,502.9 million of outstanding debt on its balance sheet at the end of fiscal 2008.
Subscriber Statistics
At the end of fiscal 2009, Liberty Global had 16.642 million customers in 14 countries, down 0.6% year-over-year. UPC Broadband customer was 9.1022 million, down 2.2% year-over-year. Telnet customer was 2.3424 million, down 2.5% year-over-year. J:COM customer was 3.2748 million, up 3.4% year-over-year. VTR customer was 1.0543 million, up 2.4% year-over-year. Other segment customer was 868,300, up 3.2% year-over-year.
During fiscal 2009, Liberty Global added 932,000 organic RGUs (Revenue Generating Units) of which 322,000 RGUs were added only in the fourth quarter, reflecting 13% year-over-year growth. Total Single-Play customer was 9.723 million, down 6.8% year-over-year. Total Double-Play customer was 3.333 million, up 5% year-over-year. Total Triple-Play customer was 3.586 million, up 14% year-over-year.
Segment-wise Results
Revenue from the total UPC Broadband division was $1,111.3 million, up 11.6% year-over-year. Within this segment, revenue from Western Europe was $808.5 million, up 13.6% year-over-year. Revenue from Central and Eastern Europe was $300.1 million, up 6.5% year-over-year. Revenue from Central and Corporate operation was $2.7 million, up 28.6% year-over-year.
Telnet revenue was $469.3 million, up 26.2% year-over-year. J:COM revenue was $978.3 million, up 22.6% year-over-year. VTR revenue was $192.6 million, up 25.8% year-over-year. Austar revenue was $156.7 million, up 41.9% year-over-year. Corporate and other revenue was $153.1 million, up 4.7% year-over-year.
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