John Malone's Liberty Global Loses TV Subscribers in Second Quarter
"Strong demand for our triple- and quad-play bundles continues to support our results despite difficulties in the Netherlands," says CEO Mike Fries.
John Malone's Liberty Global reported a widened second-quarter loss as it lost more TV subscribers than in the year-ago period.
The company's quarterly loss of $409.9 million widened from the year-ago loss of $241.2 million. Revenue fell 0.7 percent to $4.57 billion, in line with analysts' expectations.
Liberty Global recorded revenue generating units (RGUs) additions of 138,000, including 115,000 in Europe, where the firm saw higher video subscriber losses of 113,000, compared with 82,000 in the year-ago period and weaker broadband additions following price increases in Germany. The company cited "difficulties in the Netherlands," where it has been integrating an acquisition, as a key driver of the slower subscriber momentum.
"The negative variance was primarily a result of our Dutch business, which lost 45,000 more video subscribers than in the prior-year period," Liberty Global said. "When excluding the Netherlands for both periods, video attrition improved by 13,000 RGUs year-over-year, primarily driven by improvements in Romania, Poland and the U.K."
As of June 30, Liberty Global provided 52.9 million subscription services to 25.7 million unique customers. These services consisted of 22.8 million video, 16.4 million broadband and 13.7 million telephony subscriptions.
Including its Latin American business, the company's total video subscribers fell from 24.18 million to 24.14 million.
"Subscriber additions and operating cash flow growth each accelerated in the second quarter, with most of our markets delivering improved sequential performance as compared to the first quarter," said Liberty Global CEO Mike Fries. "Strong demand for our triple- and quad-play bundles continues to support our results despite difficulties in the Netherlands, which continued to face competitive and integration challenges. We have taken measures to improve our results in that market."