Liberty Global, which we joined in May of this year, recently announced second-quarter results for 2016/17, updating the investment community on company developments.
We’re pleased to share operating and financial highlights from the group’s report:
- 9,000 organic revenue generating units (RGUs) were added in Q2 2016/17.
- Q2 2016/17 mobile revenue saw a 2% year-over-year drop, except in the Bahamas.
- Flow established itself as a leading sports broadcaster in the Caribbean.
- The Olympics campaign was successful. More than 4.6 million viewers tuned into Flow channels.
- 85% increase in Flow Sports viewership in August as compared to the May–July average
- Exclusive broadcasting rights to Premier League matches began this quarter.
- Strengthened customer proposition in Panama through launch of MAST3R fixed bundles in September
- Features include rewind, live pause, play from start, and high definition (HD)
- 300 Mbps broadband service now available to 135,000 homes
- 27,000 broadband subscribers were added during the quarter, representing a 4% year-over-year increase.
- Year-to-date revenue of $1.14 billion, 2% year-over-year drop, after rebasing
- 10% rebased revenue growth in Jamaica was largely offset by declines in other major markets, mainly due to strong competition and lower managed services revenue
- Net earnings of $18 million and a net loss of $80 million in Q2 2016/17
- Year-to-date earnings before interest, tax, depreciation and amortization (EBITDA) of $411 million, up 1.5% year-over-year, after rebasing
- $9 million (4%) sequential EBITDA improvement from Q1 to Q2 2016/17, for a margin improvement of 200 basis points
- Property, equipment and intangible asset additions fell to 17% of revenue in Q2 2016/17 from 25% in Q2 2015/16.
- The Bahamas Telecommunication Company (BTC) suffered major infrastructure damage and business interruption as a result of Hurricane Matthew in early October 2016.
- An adverse adjusted segment EBITDA impact of $8 to $12 million is anticipated in Q3 2016/17.
- Total infrastructure repair costs are estimated at $35 to $45 million.
- We anticipate that our third-party insurance will cover a significant portion of the hurricane-related losses.
Synergies from the combination with LiLAC
- LiLAC is targeting $150 million worth of synergies by December 31, 2020.
- 50% is related to operating cash flow while the other 50% is related to capital expenditures.
- It is anticipated that a substantial number of LiLAC synergies will benefit CWC.
- Substantial savings due to the combination with LiLAC are expected.