US-based cable operator Liberty Global is still on the lookout for M&A and open to changes in its capital structure management, according to company president and CEO Mike Fries.
Announcing second quarter results yesterday, he said “We will maintain our…
US-based cable operator Liberty Global is still on the lookout for M&A and open to changes in its capital structure management, according to company president and CEO Mike Fries.
Announcing second quarter results yesterday, he said “We will maintain our opportunistic approach to M&A and capital structure management which, with our substantial liquidity position, we are well-positioned to do.”
The operator reported quarterly revenue of US$2.17bn and an operating cash flow of US$985m, reflecting growth of 20% and 21%, respectively. Operating income expanded by 120% to US$327m, while cash provided by operating activities from continuing operations of US$351m. The company has a consolidated cash position of US$3.5bn at June 30, having repurchased 22 million common shares totalling some US$575m.
The company said it had performed especially well in Belgium, the Netherlands, Germany and Poland, and that it remained focused on next-generation broadband, digital TV services and on-demand programming.
Fries went on to say that Liberty Global was continuing to “optimize leverage in terms of maturity profile and interest rates. So far this year, we have extended the maturity of over US$1.6bn in debt, and now our average duration exceeds six years. During the second quarter, we significantly stepped up our stock buyback program, repurchasing over US$550m in equity and equity-linked securities”, having started July with some US$210m of availability under its share repurchase program.
During the first half of the year, Liberty Global acquired German cableco Unitymedia and disposed of its interest in J:COM.
The company estimates that as of June 30, 4% of its debt was due through 2012 with another 75% maturing in 2015 and beyond. It believes that its debt borrowing cost including swap costs was approximately 7.6% at quarter-end. The gross and net debt ratios of approximately 5.2x and 4.3x decline to 4.9x and 4.0x, after excluding a US$1bn loan backed by shares held in Sumitomo Corporation, the company said.
He said the company had borrowed US$1.3bn as of the end of June, representing the maximum undrawn commitment under each of its credit facilities, which are mainly attached to UPC Broadband Holding (75%) and Telenet (17%). An estimated E170m of UPC Broadband Holding’s capacity should be available once second quarter figures are signed off, he said.
