Cable group Liberty Global reported first-quarter revenues of USD 4.6 billion, up 3 percent on an organic basis, helped by customer growth and price increases. Sales growth was strongest in Chile at 8 percent and Germany and Belgium at 5 percent. The company's adjusted operating cash flow increased 3 percent year-on-year to USD 2.1 billion, and operating profit was up 5 percent to USD 587 million. On a reported basis, revenues rose 1 percent and OCF was flat, due to negative currency effects.
Customer growth improved to 156,000 revenue-generating units added, more than double last year's amount thanks to strong growth at Virgin Media in the UK, the company said. In total the company counted 53.6 million RGUs and 25.7 million customers at the end of March, meaning an average 2.1 services delivered to each customer. Nearly half (46%) of customers took a triple-play subscription.
Liberty Global said it also reached over 2 million customers using its advanced Horizon box, led by another quarter of over 100,000 net additions in the Netherlands. The takeover of Base in Belgium gave the group 6.7 million mobile customers at the end of the quarter, including organic additions of 99,000 postpaid mobile subscribers in Q1.
Liberty Global recorded negative free cash flow of USD 85 million for the quarter but said it still expected cash flow of over USD 2 billion for the full year. The company also maintained its forecast for 5-7 percent organic growth in OCF this year. This excludes Base, acquired in February, and the Dutch operation Ziggo. Liberty Global said it was in "constructive" talks with the European Commission about its proposed merger of Ziggo with Vodafone Netherlands and expects to close the deal by the end of the year.
Liberty Global said it also aims to accelerate its share buyback programme after completing the acquisition of Cable & Wireless. In addition, it's considering distributing the remaining 67 percent in its Caribbean business tracker stock LiLAC to shareholders, giving it a 100 percent free float. A decision on this should be taken soon.
