Liberty Global Reports First Quarter 2013 Results

  Liberty Global Reports First Quarter 2013 Results

6% Rebased Revenue Growth Driven by Strong Subscriber Volume

Completion of Virgin Media Transaction on Track for Q2

Business Wire

ENGLEWOOD, Colo. -- May 06, 2013

Liberty Global, Inc. (“Liberty Global,” “LGI,” or the “Company”) (NASDAQ:
LBTYA, LBTYB and LBTYK), today announces financial and operating results for
the first quarter ended March 31, 2013 (“Q1 2013”). Highlights for Q1 2013 as
compared to the same period for 2012 (“Q1 2012”) (unless noted) include:

  *Total RGUs^1 of 35.2 million, including organic RGU additions of 373,000
    during Q1 2013
  *Revenue of $2.8 billion, representing rebased^2 growth of 6%
  *Operating Cash Flow (“OCF”)^3 of $1.3 billion, reflecting rebased growth
    of 4%
  *Operating income of $525 million, an increase of 6%

Liberty Global’s President and CEO Mike Fries commented, “Our track record of
strong operating and financial performance from 2012 continued into the first
quarter of 2013. We delivered mid-single-digit rebased revenue and OCF growth
of 6% and 4%, respectively, with both results comparing favorably to the prior
year period. Fueled by the addition of 1.5 million RGUs and over 500,000
mobile subscriptions over the last twelve months, we posted our fifth
consecutive quarter with rebased revenue growth of better than 5%, led by
Belgium and Germany.”

“Innovation remains a core focus this year as we continue to invest in the
development of new product offerings. We launched our Horizon TV platform in
Switzerland in Q1, with Ireland and Germany to follow later this year. Through
April, we had over 200,000 Horizon TV subscribers in the Netherlands and
Switzerland. In addition, we have significantly increased our broadband speeds
in markets like the Netherlands, where we have key bundles positioned with 100
Mbps and a top-tier bundle at 200 Mbps.”

“We remain on track to complete the acquisition of Virgin Media^4 before the
end of the second quarter. We recently received regulatory approval from the
European Commission and both companies have scheduled their respective
shareholder votes for early June to approve the transaction. With a combined
customer base of 25 million and an aggregate reach of over 45 million homes
passed, we are excited about our collective growth potential and we will
remain focused on delivering superior value to customers and shareholders.”

“Year-to-date, we have been active in the capital markets, raising the
necessary financing to fund the Virgin Media acquisition, as well as
opportunistically refinancing roughly $5 billion of debt at the UPC Holding
and Unitymedia KabelBW credit pools. Upon completion of the Virgin Media
transaction, we expect to have more than sufficient liquidity to fulfill our
$3.5 billion share buyback target over the ensuing two years.”

Subscriber Statistics

At March 31, 2013, our 19.7 million unique customers received 35.2 million
total services, an increase of over 5% (inclusive of acquisitions) in our RGU
base since March 31, 2012. On a product level, our RGU base consisted of 18.2
million video, 9.5 million broadband internet and 7.5 million telephony
subscriptions at quarter-end. Bundling remains an important driver of our
subscriber growth, particularly sales of our triple-play product offerings, as
over 30% of our customer base, or approximately 6.2 million customers,
subscribed to triple-play packages at March 31, 2013. In total, we finished
the first quarter with aggregate bundled customers of 9.3 million (or 47% of
our total customer base), which reflects an increase of over 920,000
(inclusive of acquisitions) over the last twelve months.

During Q1 2013, we added 373,000 RGUs as compared to 445,000 RGUs in Q1 2012.
Geographically, our RGU additions in Central and Eastern Europe (“CEE”) grew
year-over-year by 30% to 70,000 and Latin America^5 increased by 88% to
63,000, while western Europe^6 experienced a decline of 33% to 240,000. The
lower comparative western European result was directly attributable to our
German and Dutch businesses, as each had their best quarterly subscriber
performance of 2012 in the first quarter. With respect to Germany, we added
169,000 RGUs during Q1 2013 as compared to the record 219,000 we achieved in
Q1 2012. A portion of this lower result is due to a housing association
contract that we lost in Germany in December 2011, as approximately 16,000 of
the impacted RGUs were transferred to the new provider during the quarter.

With respect to our Dutch operation, we lost 3,000 RGUs in Q1 2013, as
compared to a gain of 42,000 in Q1 2012. However, this result is consistent
with our Dutch subscriber performance in both the third and fourth quarters of
2012, as the Dutch market remains very competitive. To that point and
subsequent to quarter-end, we further strengthened our customer proposition in
the Netherlands, as we introduced basic digital unencryption and launched new
triple-play bundles that include increased broadband speeds with our primary
bundle offering 100 Mbps along with the introduction of a 200 Mbps internet
product in certain areas.

In terms of broadband internet, we added 233,000 RGUs during the quarter with
key contributions from our German, Swiss, Belgian and Chilean operations. In
particular, our 22,000 Swiss broadband internet additions in Q1 2013 resulted
partly from the market-leading speeds included in our recently launched
Horizon bundles. From a voice perspective, we added 231,000 telephony
subscribers in Q1 2013, largely mirroring our broadband growth, as we upsell
our single- and double-play customer base to triple-play services.

From a video standpoint, we lost 92,000 video subscribers during the quarter,
broadly in line with the corresponding prior year period. Our Chilean, CEE and
Belgian operations all improved their year-over-year video subscriber
performance. A key development that has taken shape over the last six months
is that we have introduced basic digital unencryption to promote the
digitalization process and enhance our competitive position in a number of
markets, including Switzerland, the Netherlands (as noted earlier), Austria,
Romania, Czech Republic and in Germany’s Unitymedia footprint. By unencrypting
the digital signal, we are providing our customers with incremental value and
an easy introduction to our basic digital video services.

We continue to promote Horizon TV in the Dutch market and we launched this
platform in January 2013 in Switzerland. Currently we have over 200,000
Horizon TV subscribers with more than 145,000 in the Netherlands and over
55,000 in Switzerland. In addition, we launched our unique Horizon Online
platform with 45 channels in Ireland in mid-April and have plans to launch the
full Horizon TV platform this summer in the Irish market, followed by Germany
later in the year.

Revenue

For the three months ended March 31, 2013, our consolidated revenue increased
9% or $231 million to $2.77 billion, as compared to $2.54 billion in the prior
year period. Our organic growth, led by volume growth in broadband internet
and mobile, fueled the majority of our year-over-year top-line expansion. In
addition, we also benefitted from the positive contribution of acquisitions,
principally OneLink in Puerto Rico, and to a lesser extent, foreign exchange
(“FX”) movements. Adjusting for both the impact of acquisitions and FX, we
achieved year-over-year rebased revenue growth of 6% in Q1 2013, our best
first quarter result in six years.

Our western European operations, which accounted for over 70% of our
consolidated revenue in the quarter, achieved year-over-year rebased growth of
7%. This strong performance resulted largely from our Belgian and German
operations, which delivered rebased growth of 12% and 10%, respectively. Our
German result was particularly impressive given the fact that in the first
quarter of 2013 we did not recognize revenue associated with public
broadcaster carriage fees, which had contributed approximately $8 million of
revenue in Q1 2012.

Furthermore, within western Europe, our businesses in Ireland and Switzerland
generated rebased revenue growth of 9% and 5%, respectively, as each
benefitted from more than 100,000 advanced service RGU additions^7 during the
last twelve months. Our Swiss operation continued to demonstrate strong
quarterly top-line growth, supported not only by volume growth but also by a
video price increase in the quarter. Turning to CEE, our cable business in
this region, which represents approximately 10% of our consolidated revenue,
posted 1% rebased revenue growth for the three months ended March 31, 2013.
Finally, moving beyond Europe, our Chilean business, aided by the positive
contribution from mobile services, delivered 8% rebased revenue growth in Q1
2013.

Operating Cash Flow

As compared to the corresponding prior year period, total OCF increased 6% to
$1.27 billion for the three months ended March 31, 2013. Our reported increase
in OCF was largely due to continued organic growth, while acquisitions and FX
movements played a smaller role. After adjusting for both acquisitions and FX,
our year-over-year rebased OCF growth was 4%, with our Chilean, western
European and CEE operations reporting rebased OCF growth of 10%, 6% and 1%,
respectively.

Our strong performance in western Europe was led by our operations in Ireland
and Germany, which reported rebased OCF growth of 12% and 11%, respectively.
With respect to our German business, it was our third consecutive quarter of
double-digit rebased OCF growth, as we continue to generate strong revenue
growth and streamline our cost structure in the region. In addition to our
Irish and German businesses, our Belgian and Swiss operations generated
rebased OCF growth of 4% in the quarter, while our Dutch operation reported
flat rebased results, due largely to increased competition over the last three
quarters. Within Europe, we also realized a $9 million year-over-year increase
in costs in our central and other category resulting in part from our
centralization and procurement initiatives.

Our consolidated OCF margin^8 for Q1 2013 was 45.9%, as compared to 47.1% for
the corresponding prior year period. This 120 basis point decline was
attributable in part to our Belgian operation, which experienced a 320 basis
point decrease in year-over-year OCF margin to 46.2% in Q1 2013. This decrease
was a result of higher handset and other subscriber acquisition costs
associated with the rapid expansion of Telenet’s mobile business. Excluding
our Belgian operation, our remaining European distribution businesses posted a
collective OCF margin of 51.4%, which was lower year-over-year by 30 basis
points, as both our Western European and CEE operations achieved relatively
flat year-over-year OCF margins of 56.1% and 48.9%, respectively.

Operating Income

For the three months ended March 31, 2013, our reported operating income
increased by 6% to $525 million as compared to $494 million for the three
months ended March 31, 2012. The year-over-year improvement was driven by our
9% increase in revenue and lower selling, general and administrative expenses
and depreciation and amortization, each of which are measured as a percentage
of revenue. These factors were partially offset by higher operating expenses
measured as a percentage of revenue and increased expenses relating to
impairment, restructuring and other operating items.

Net Loss Attributable to LGI Stockholders

We reported a net loss attributable to LGI stockholders (“Net Loss”) of $1
million or nil per basic and diluted share for the three months ended March
31, 2013. This compares favorably to a Net Loss of $25 million or $0.09 per
basic and diluted share for the same period last year. The year-over-year
improvement in our Net Loss resulted from, among other factors, positive
changes in the fair value adjustments associated with our derivative
instruments and increased operating income, partially offset by increased
losses from foreign currency transactions and debt modification and
extinguishment, as well as higher interest expense.

For the three months ended March 31, 2013 and 2012, our basic and diluted per
share calculations utilized weighted average common shares of 257 million and
273 million, respectively. At April 30, 2013, we had 257 million shares
outstanding. During the first quarter of 2013, we repurchased $169 million of
our equity.

Property and Equipment Additions, Capital Expenditures and Free Cash Flow

Measured as a percentage of revenue, our property and equipment additions^9
and capital expenditures^10 declined for the three months ended March 31,
2013, as compared to the prior year period. We reported property and equipment
additions of $536 million, which represented 19% of revenue for Q1 2013, as
compared to $507 million or 20% of revenue for the corresponding prior year
period. Our aggregate spend in the quarter was slightly weighted towards
customer premises equipment, which accounted for 45% of our property and
equipment additions as compared to 41% in Q1 2012. This was due in part to
spend attributable to our Horizon TV roll-outs in the Netherlands and
Switzerland.

We remain focused on optimizing working capital and improving our capital
efficiency. To that point, we continue to increase our use of non-cash vendor
financing and capital lease arrangements, which were $57 million higher in Q1
2013 as compared to Q1 2012. These arrangements contributed to a reduction in
our capital expenditures in Q1 2013, as we reported capital expenditures of
$504 million or 18% of revenue, compared to $521 million or 21% of revenue for
the corresponding prior year period.

For the three months ended March 31, 2013, we reported Free Cash Flow (“FCF”)
of $23 million and Adjusted Free Cash Flow (“Adjusted FCF”),^11 which excludes
costs associated with our Chilean wireless project, of $68 million. This
compares to FCF and Adjusted FCF of $242 million and $279 million,
respectively, for the three months ended March 31, 2012. The lower FCF and
Adjusted FCF in Q1 2013, as compared to the corresponding prior year period,
was primarily attributable to a decrease of approximately $200 million or 26%
in cash provided by the operating activities of our continuing operations,
even though our OCF was higher by $74 million. The decrease was due primarily
to the expected reversal of favorable working capital movements during the
fourth quarter of 2012 and, to a lesser extent, higher cash outflow in the
quarter relating to cash paid for interest expense. Vendor financing and
capital lease arrangements provided a $22 million net benefit to the
year-over-year comparison of our FCF and Adjusted FCF. In this regard, the
positive impacts of vendor financing and capital lease arrangements on capital
expenditures, as noted above, more than offset a $35 million increase in cash
payments on the vendor financing and capital lease obligations that we had
entered into last year.

Leverage and Liquidity

At March 31, 2013, we had total debt^12 of $30.7 billion, including $3.6
billion relating to senior secured and senior notes (collectively, the “Lynx
Bonds”) that were issued in February 2013 by certain of our subsidiaries in
connection with the announced Virgin Media acquisition. We intend to push down
the Lynx Bonds to the Virgin Media level upon completion of the acquisition.
Excluding the impact of the Lynx Bonds, our aggregate debt was down $0.4
billion as compared to our debt at December 31, 2012, resulting primarily from
the translation impact associated with a strengthening U.S. dollar.

Year-to-date, we have completed a number of opportunistic financing
transactions at Unitymedia KabelBW and UPC Holding, our two primary credit
pools. As a result of these transactions, we have refinanced total debt of
approximately $5 billion at these two credit pools and in April, we raised
incremental debt of approximately $450 million at Unitymedia KabelBW.
Collectively, these transactions further extended our maturity schedule and
lowered our consolidated borrowing rate. As of March 31, 2013 and adjusting
for the aforementioned transactions that occurred subsequent to Q1, we
estimate that approximately 90% of our total debt is due in 2017 and beyond,
and that our fully-swapped borrowing cost^13 is approximately 6.9%.

In addition, we have made an opportunistic and strategic investment in
publicly-traded Ziggo N.V. (“Ziggo”), the largest cable operator in the
Netherlands. We have purchased 36.4 million shares of Ziggo for approximately
€926 million ($1,187 million) and as a result, we own approximately 18.2% of
the company based on shares outstanding at March 31, 2013. Of the shares
purchased, we bought 25.3 million shares in March 2013 (which were settled in
April 2013), and the remaining 11.1 million shares were purchased near the end
of April. We intend to fund a significant portion of the aggregate investment
through a limited recourse margin loan.

In terms of our consolidated liquidity,^14 we had reported cash and cash
equivalents of $2.9 billion, including $1.6 billion at the parent level,^15 at
March 31, 2013. Including $2.2 billion in aggregate borrowing capacity, as
represented by the maximum undrawn commitments under each of our credit
facilities,^16 we had consolidated liquidity of approximately $5.1 billion at
March 31, 2013. This liquidity amount excludes $3.5 billion of cash
attributable to the net proceeds from the Lynx Bonds that is held as
restricted cash on our balance sheet.

We ended Q1 2013 with reported gross and net leverage ratios^17 of 6.0x and
4.8x, respectively. After excluding the $1.0 billion loan that is backed by
the shares we hold in Sumitomo Corporation and the $3.6 billion of Lynx Bonds
and related net proceeds in escrow accounts, our adjusted gross and net
leverage ratios decline to 5.1x and 4.6x. These adjusted ratios are down
modestly from our ratios at December 31, 2012.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including our
expectations with respect to our operating momentum and 2013 prospects,
including our expectations for continued organic growth in subscribers, the
penetration of our advanced services, and our ARPU per customer; our
assessment of the strength of our balance sheet, our liquidity and access to
capital markets, including our borrowing availability, potential uses of our
excess capital, including for acquisitions and continued stock buybacks, our
ability to continue to do opportunistic refinancings and debt maturity
extensions and the adequacy of our currency and interest rate hedges; our
expectations with respect to the timing and impact of our expanded roll-out of
advanced products and services, including Horizon TV; our assessment of the
impacts of the unencryption of our basic digital channels; our insight and
expectations regarding competitive and economic factors in our markets,
statements regarding the acquisition of Virgin Media, including the
anticipated consequences and benefits of the acquisition and the targeted
quarter in which we expect to close the transaction, the availability of
accretive M&A opportunities and the impact of our M&A activity on our
operations and financial performance and other information and statements that
are not historical fact. These forward-looking statements involve certain
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied by these statements. These risks and
uncertainties include the continued use by subscribers and potential
subscribers of the Company's services and willingness to upgrade to our more
advanced offerings, our ability to meet challenges from competition and
economic factors, the continued growth in services for digital television at a
reasonable cost, the effects of changes in technology, law and regulation, our
ability to obtain regulatory approval and satisfy the conditions necessary to
close acquisitions and dispositions, our ability to achieve expected
operational efficiencies and economies of scale, our ability to generate
expected revenue and operating cash flow, control property and equipment
additions as measured by percentage of revenue, achieve assumed margins and
control the phasing of our FCF, our ability to access cash of our subsidiaries
and the impact of our future financial performance and market conditions
generally, on the availability, terms and deployment of capital, fluctuations
in currency exchange and interest rates, the continued creditworthiness of our
counterparties, the ability of vendors and suppliers to timely meet delivery
requirements, as well as other factors detailed from time to time in the
Company's filings with the Securities and Exchange Commission including our
most recently filed Forms 10-K/A and 10-Q. These forward-looking statements
speak only as of the date of this release. The Company expressly disclaims any
obligation or undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in the
Company's expectations with regard thereto or any change in events, conditions
or circumstances on which any such statement is based.

About Liberty Global

Liberty Global is the leading international cable company, with operations in
13 countries. We connect people to the digital world and enable them to
discover and experience its endless possibilities. Our market-leading
triple-play services are provided through next-generation networks and
innovative technology platforms that connect 20 million customers subscribing
to 35 million television, broadband internet and telephony services as of
March 31, 2013.

Liberty Global’s consumer brands include UPC, Unitymedia, KabelBW, Telenet and
VTR. Our operations also include Chellomedia, our content division, Liberty
Global Business Services, our commercial division and Liberty Global Ventures,
our investment fund. For more information, please visit www.lgi.com.

_______________________________________

      Please see page 19 for the definition of revenue generating units
      (“RGUs”). Organic figures exclude RGUs of acquired entities at the date
^1   of acquisition, but include the impact of changes in RGUs from the date
      of acquisition. All subscriber/RGU additions or losses refer to net
      organic changes, unless otherwise noted.

      For purposes of calculating rebased growth rates on a comparable basis
      for all businesses that we owned during 2012 and 2013, we have adjusted
      our historical revenue and OCF for the three months ended March 31, 2012
      to (i) include the pre-acquisition revenue and OCF of certain entities
^2    acquired during 2012 and 2013 in the respective 2012 rebased amounts to
      the same extent that the revenue and OCF of such entities are included
      in our 2013 results and (ii) reflect the translation of our rebased
      amounts for the 2012 period at the applicable average exchange rates
      that were used to translate our 2013 results. Please see page 11 for
      supplemental information.

^3    Please see page 13 for our operating cash flow definition and the
      required reconciliation.

      On February 5, 2013, Liberty Global and Virgin Media Inc. (“Virgin
      Media”) (NASDAQ: VMED; LSE: VMED) announced that they have entered into
      an agreement, subject to shareholder and regulatory approvals, pursuant
      to which Liberty Global will acquire Virgin Media in a stock and cash
^4    merger. Under the terms of the agreement, Virgin Media shareholders will
      receive $17.50 in cash, 0.2582 Liberty Global Series A shares and 0.1928
      Liberty Global Series C shares for each Virgin Media share that they
      hold. Please see our press release dated February 5, 2013 for further
      details.

^5    Latin America includes both our broadband communications operations in
      Chile and Puerto Rico.

      References to western Europe include our operations in Germany, the
^6    Netherlands, Switzerland, Austria and Ireland, as well as in Belgium.
      References to our Western Europe reporting segment include the
      aforementioned countries, with the exception of Belgium.

      Advanced service RGUs represent our services related to digital video,
^7    including digital cable and direct-to-home satellite, broadband internet
      and telephony.

^8    OCF margin is calculated by dividing OCF by total revenue for the
      applicable period.

      Our property and equipment additions include our capital expenditures on
^9    an accrual basis and amounts financed under vendor financing or capital
      lease arrangements.

^10   Capital expenditures refer to capital expenditures on a cash basis, as
      reported in our condensed consolidated statements of cash flows.

      Free Cash Flow is defined as net cash provided by our operating
      activities, plus (i) excess tax benefits related to the exercise of
      stock incentive awards and (ii) cash payments for direct acquisition
      costs, less (a) capital expenditures, as reported in our consolidated
      cash flow statements, (b) principal payments on vendor financing
      obligations and (c) principal payments on capital leases (exclusive of
^11   the portions of the network lease in Belgium and the duct leases in
      Germany that we assumed in connection with certain acquisitions), with
      each item excluding any cash provided or used by our discontinued
      operation. We also present Adjusted FCF, which adjusts FCF to eliminate
      the incremental FCF deficit associated with the VTR Wireless mobile
      initiative. Please see page 15 for more information on FCF and Adjusted
      FCF and the required reconciliations.

^12   Total debt includes capital lease obligations.

      Our fully-swapped debt borrowing cost represents the weighted average
      interest rate on our aggregate variable and fixed rate indebtedness
^13   (excluding capital lease obligations), including the effects of
      derivative instruments, original issue premiums or discounts and
      commitment fees, but excluding the impact of financing costs.

      Liquidity refers to our consolidated cash and cash equivalents plus our
      aggregate unused borrowing capacity, as represented by the maximum
^14   undrawn commitments under our subsidiaries’ applicable facilities
      without regard to covenant compliance calculations, excluding $740
      million attributable to our Binan Facility.

^15   Refers to cash at the parent and non-operating subsidiaries.

      The $2.2 billion amount reflects the aggregate unused borrowing
      capacity, as represented by the maximum undrawn commitments under our
      subsidiaries’ applicable facilities without regard to covenant
^16   compliance calculations, excluding $740 million attributable to our
      Binan Facility. Upon completion of Q1 2013 compliance reporting, we
      would expect to be able to borrow approximately $1.4 billion of this
      aggregate borrowing capacity.

      Our gross and net debt ratios are defined as total debt and net debt to
      annualized OCF of the latest quarter. Net debt is defined as total debt
      less cash and cash equivalents and $3.5 billion of restricted cash in
^17   segregated escrow accounts related to the pending Virgin Media
      acquisition. For our adjusted ratios, the debt amount excludes the loan
      that is backed by the shares we hold in Sumitomo Corporation and the
      Lynx Bonds while the cash excludes the net proceeds from the Lynx Bonds
      that are held in escrow accounts.

                                                   
Liberty Global, Inc.
Condensed Consolidated Balance Sheets (unaudited)
                                                     
                                                     
                                                     March 31,   December 31,
                                                     2013         2012
ASSETS                                               in millions
Current assets:
Cash and cash equivalents                            $ 2,906.8    $  2,038.9
Trade receivables, net                                 893.4         1,031.0
Deferred income taxes                                  78.0          98.4
Other current assets                                  651.2        557.5
Total current assets                                   4,529.4       3,725.8
                                                                  
Restricted cash                                        3,556.4       1,516.7
Investments                                            1,807.1       950.1
Property and equipment, net                            13,018.5      13,437.6
Goodwill                                               13,449.9      13,877.6
Intangible assets subject to amortization, net         2,397.8       2,581.3
Other assets, net                                     2,213.2      2,218.6
                                                                  
Total assets                                         $ 40,972.3   $  38,307.7
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable                                     $ 578.9      $  774.0
Deferred revenue and advance payments from             903.5         849.7
subscribers and others
Current portion of debt and capital lease              1,065.8       363.5
obligations
Derivative instruments                                 538.0         569.9
Accrued interest                                       324.7         351.8
Accrued programming                                    276.8         251.0
Other accrued and current liabilities                 2,232.0      1,460.4
Total current liabilities                              5,919.7       4,620.3
                                                                  
Long-term debt and capital lease obligations           29,600.1      27,161.0
Other long-term liabilities                           3,883.8      4,441.3
Total liabilities                                     39,403.6     36,222.6
                                                                  
                                                                  
Commitments and contingencies
                                                                  
Equity:
Total LGI stockholders                                 1,597.5       2,210.0
Noncontrolling interests                              (28.8)       (124.9)
Total equity                                          1,568.7      2,085.1
                                                                  
Total liabilities and equity                         $ 40,972.3   $  38,307.7
                                                                     

Liberty Global, Inc.
Condensed Consolidated Statements of Operations (unaudited)
                                               
                                                 Three months ended
                                                 March 31,
                                                 2013             2012
                                                 in millions, except per share
                                                 amounts
Revenue                                          $  2,767.7       $ 2,537.0 
                                                                   
Operating costs and expenses:
Operating (other than depreciation and
amortization) (including stock-based                1,027.0          897.7
compensation)
Selling, general and administrative (including      497.9            471.4
stock-based compensation)
Depreciation and amortization                       693.1            670.7
Impairment, restructuring and other operating      24.3           2.9     
items, net
                                                   2,242.3        2,042.7 
Operating income                                   525.4          494.3   
                                                                   
Non-operating income (expense):
Interest expense                                    (470.1   )       (418.1  )
Interest and dividend income                        13.9             19.0
Realized and unrealized gains (losses) on           195.8            (614.1  )
derivative instruments, net
Foreign currency transaction gains (losses),        (134.9   )       479.0
net
Realized and unrealized gains due to changes
in fair values of certain investments,              72.2             50.9
net
Losses on debt modification and                     (158.3   )       (6.8    )
extinguishment, net
Other expense, net                                 (1.6     )      (0.3    )
                                                   (483.0   )      (490.4  )
Earnings from continuing operations before          42.4             3.9
income taxes
Income tax expense                                 (20.5    )      (33.1   )
Earnings (loss) from continuing operations          21.9             (29.2   )
Earnings from discontinued operation, net of       —              38.1    
taxes
Net earnings                                        21.9             8.9
Net earnings attributable to noncontrolling        (22.9    )      (34.0   )
interests
Net loss attributable to LGI stockholders        $  (1.0     )     $ (25.1   )
                                                                   
                                                                   
Basic and diluted earnings (loss) attributable
to LGI stockholders per share:
Continuing operations                            $  —              $ (0.17   )
Discontinued operation                             —              0.08    
                                                 $  —             $ (0.09   )
                                                                             

Liberty Global, Inc.
Condensed Consolidated Statements of Cash Flows  
(unaudited)
                                                   Three months ended
                                                   March 31,
                                                   2013          2012
Cash flows from operating activities:              in millions
Net earnings                                       $ 21.9         $ 8.9
Earnings from discontinued operation                —            (38.1    )
Earnings (loss) from continuing operations           21.9           (29.2    )
                                                                  
Adjustments to reconcile earnings (loss) from
continuing operations to net cash                    535.8          784.0
provided by operating activities
Net cash provided by operating activities of        —            51.0     
discontinued operation
Net cash provided by operating activities           557.7        805.8    
                                                                  
Cash flows from investing activities:
Capital expenditures                                 (504.3   )     (521.3   )
Cash paid in connection with acquisitions, net       —              (32.3    )
of cash acquired
Other investing activities, net                      5.9            12.2
Net cash used by investing activities of            —            (53.0    )
discontinued operation
Net cash used by investing activities               (498.4   )    (594.4   )
                                                                  
Cash flows from financing activities:
Decrease in restricted cash related to the LGI       1,539.7        —
Telenet Tender
Borrowings of debt                                   1,103.9        1,054.6
Repayments and repurchases of debt and capital       (1,019.9 )     (1,106.4 )
lease obligations
Shares acquired related to LGI Telenet Tender        (454.5   )     —
Repurchase of LGI common stock                       (185.5   )     (230.5   )
Payment of financing costs and debt premiums         (181.7   )     (20.0    )
Payment of net settled employee withholding          (13.6    )     (6.6     )
taxes on stock incentive awards
Change in cash collateral                            (0.2     )     64.0
Other financing activities, net                     42.7         0.2      
Net cash provided (used) by financing activities    830.9        (244.7   )
                                                                  
Effect of exchange rate changes on cash:
Continuing operations                                (22.3    )     42.5
Discontinued operation                              —            2.0      
Total                                               (22.3    )    44.5     
                                                                  
Net increase in cash and cash equivalents:
Continuing operations                                867.9          11.2
Discontinued operation                              —            —        
Net increase in cash and cash equivalents            867.9          11.2
                                                                  
Cash and cash equivalents:
Beginning of period                                 2,038.9      1,651.2  
End of period                                      $ 2,906.8     $ 1,662.4  

Cash paid for interest:
Continuing operations                              $ 467.6        $ 377.8
Discontinued operation                              —            12.5     
Total                                              $ 467.6       $ 390.3    
Net cash paid (refunded) for taxes – continuing    $ 20.5        $ (1.7     )
operations
                                                                             

Revenue and Operating Cash Flow

In the following tables, we present revenue and operating cash flow by
reportable segment of our continuing operations for the three months ended
March 31, 2013, as compared to the corresponding prior year period. All of our
reportable segments derive their revenue primarily from broadband
communications services, including video, broadband internet and telephony
services. All of our reportable segments also provide business-to-business
services. At March 31, 2013, our operating segments in the UPC/Unity Division
provided broadband communications services in 10 European countries and DTH
services to customers in the Czech Republic, Hungary, Romania and Slovakia
through a Luxembourg-based organization that we refer to as “UPC DTH”. Our
Other Western Europe segment includes our broadband communications operating
segments in Austria and Ireland. Our Central and Eastern Europe segment
includes our broadband communications operating segments in the Czech
Republic, Hungary, Poland, Romania and Slovakia. The UPC/Unity Division’s
central and other category includes (i) the UPC DTH operating segment, (ii)
costs associated with certain centralized functions, including billing
systems, network operations, technology, marketing, facilities, finance and
other administrative functions and (iii) intersegment eliminations within the
UPC/Unity Division. Telenet provides video, broadband internet and telephony
services in Belgium. In Chile, the VTR Group includes VTR, which provides
video, broadband internet and telephony services, and VTR Wireless, which
provides mobile services through a combination of its own wireless network and
certain third-party wireless access arrangements. Our corporate and other
category includes (i) less significant consolidated operating segments that
provide (a) broadband communications services in Puerto Rico and (b)
programming and other services primarily in Europe and Latin America and (ii)
our corporate category. Intersegment eliminations primarily represent the
elimination of intercompany transactions between our broadband communications
and programming operations, primarily in Europe.

For purposes of calculating rebased growth rates on a comparable basis for all
businesses that we owned during 2013, we have adjusted our historical revenue
and OCF for the three months ended March 31, 2012 to (i) include the
pre-acquisition revenue and OCF of certain entities acquired during 2012 and
2013 in our rebased amounts for the three months ended March 31, 2012 to the
same extent that the revenue and OCF of such entities are included in our
results for the three months ended March 31, 2013 and (ii) reflect the
translation of our rebased amounts for the three months ended March 31, 2012
at the applicable average foreign currency exchange rates that were used to
translate our results for the three months ended March 31, 2013. The acquired
entities that have been included in whole or in part in the determination of
our rebased revenue and OCF for the three months ended March 31, 2012 include
OneLink and five small entities. We have reflected the revenue and OCF of the
acquired entities in our 2012 rebased amounts based on what we believe to be
the most reliable information that is currently available to us (generally
pre-acquisition financial statements), as adjusted for the estimated effects
of (i) any significant differences between GAAP and local generally accepted
accounting principles, (ii) any significant effects of acquisition accounting
adjustments, (iii) any significant differences between our accounting policies
and those of the acquired entities and (iv) other items we deem appropriate.
We do not adjust pre-acquisition periods to eliminate non-recurring items or
to give retroactive effect to any changes in estimates that might be
implemented during post-acquisition periods. As we did not own or operate the
acquired businesses during the pre-acquisition periods, no assurance can be
given that we have identified all adjustments necessary to present the revenue
and OCF of these entities on a basis that is comparable to the corresponding
post-acquisition amounts that are included in our historical results or that
the pre-acquisition financial statements we have relied upon do not contain
undetected errors. The adjustments reflected in our rebased amounts have not
been prepared with a view towards complying with Article 11 of Regulation S-X.
In addition, the rebased growth percentages are not necessarily indicative of
the revenue and OCF that would have occurred if these transactions had
occurred on the dates assumed for purposes of calculating our rebased amounts
or the revenue and OCF that will occur in the future. The rebased growth
percentages have been presented as a basis for assessing growth rates on a
comparable basis,  and are not presented as a measure of our pro forma
financial performance. Therefore, we believe our rebased data is not a
non-GAAP financial measure as contemplated by Regulation G or Item 10 of
Regulation S-K.

In each case, the following tables present (i) the amounts reported by each of
our reportable segments for the comparative periods, (ii) the U.S. dollar
change and percentage change from period to period and (iii) the percentage
change from period to period on a rebased basis:

                                                                
Revenue                Three months ended          Increase         Increase
                       March 31,                   (decrease)       (decrease)
                       2013         2012          $        %      Rebased %
                       in millions, except % amounts
UPC/Unity Division:
Germany                $ 618.2       $ 560.7       $ 57.5    10.3   9.5
The Netherlands          314.8         310.7         4.1     1.3    0.5
Switzerland              326.0         313.3         12.7    4.1    5.0
Other Western Europe    222.6       211.9       10.7    5.0    4.5
Total Western Europe     1,481.6       1,396.6       85.0    6.1    5.8
Central and Eastern      287.8         280.9         6.9     2.5    0.9
Europe
Central and other       32.0        28.2        3.8     13.5   *
Total UPC/Unity          1,801.4       1,705.7       95.7    5.6    5.1
Division
Telenet (Belgium)        536.2         477.5         58.7    12.3   11.5
VTR Group (Chile)        250.4         224.5         25.9    11.5   7.7
Corporate and other      199.3         151.4         47.9    31.6   *
Intersegment            (19.6   )    (22.1   )    2.5     11.3   *
eliminations
Total                  $ 2,767.7    $ 2,537.0    $ 230.7   9.1    5.8
                                                                    

Operating Cash    Three months ended         Increase            Increase
Flow               March 31,                   (decrease)           (decrease)
                   2013         2012          $         %         Rebased %
                   in millions, except % amounts
UPC/Unity
Division:
Germany            $ 360.0       $ 323.0       $ 37.0     11.5      10.8
The Netherlands      184.8         182.7         2.1      1.1       0.4
Switzerland          182.2         177.0         5.2      2.9       3.9
Other Western       104.8       98.6        6.2     6.3      5.4
Europe
Total Western        831.8         781.3         50.5     6.5       6.1
Europe
Central and          140.6         137.6         3.0      2.2       0.6
Eastern Europe
Central and         (45.6   )    (37.1   )    (8.5 )   (22.9 )   *
other
Total UPC/Unity      926.8         881.8         45.0     5.1       4.6
Division
Telenet              247.5         235.8         11.7     5.0       4.3
(Belgium)
VTR Group            85.2          75.2          10.0     13.3      9.5
(Chile)
Corporate and       10.1        2.8         7.3     N.M.     *
other
Total              $ 1,269.6    $ 1,195.6    $ 74.0    6.2      4.1
                                                                    
Total (excluding                                                    4.4
VTR Wireless)^1

N.M. - Not Meaningful

* - Omitted

_______________________________________

^1  Represents our consolidated rebased growth rate, excluding the
     incremental OCF deficit of VTR Wireless.
     

Operating Cash Flow Definition and Reconciliation

Operating cash flow is the primary measure used by our chief operating
decision maker to evaluate segment operating performance. Operating cash flow
is also a key factor that is used by our internal decision makers to (i)
determine how to allocate resources to segments and (ii) evaluate the
effectiveness of our management for purposes of annual and other incentive
compensation plans. As we use the term, operating cash flow is defined as
revenue less operating and selling, general and administrative expenses
(excluding stock-based compensation, depreciation and amortization, provisions
for litigation and impairment, restructuring and other operating items). Other
operating items include (i) gains and losses on the disposition of long-lived
assets, (ii) direct acquisition costs, such as third-party due diligence,
legal and advisory costs, and (iii) other acquisition-related items, such as
gains and losses on the settlement of contingent consideration. Our internal
decision makers believe operating cash flow is a meaningful measure and is
superior to available GAAP measures because it represents a transparent view
of our recurring operating performance that is unaffected by our capital
structure and allows management to (i) readily view operating trends, (ii)
perform analytical comparisons and benchmarking between segments and (iii)
identify strategies to improve operating performance in the different
countries in which we operate. We believe our operating cash flow measure is
useful to investors because it is one of the bases for comparing our
performance with the performance of other companies in the same or similar
industries, although our measure may not be directly comparable to similar
measures used by other public companies. Operating cash flow should be viewed
as a measure of operating performance that is a supplement to, and not a
substitute for, operating income, net earnings (loss), cash flow from
operating activities and other GAAP measures of income or cash flows. A
reconciliation of total segment operating cash flow to our operating income is
presented below.

                                                    Three months ended
                                                     March 31,
                                                     2013         2012
                                                     in millions
Total segment operating cash flow from continuing    $ 1,269.6     $ 1,195.6
operations
Stock-based compensation expense                       (26.8   )     (27.7   )
Depreciation and amortization                          (693.1  )     (670.7  )
Impairment, restructuring and other operating         (24.3   )    (2.9    )
items, net
Operating income                                     $ 525.4      $ 494.3   
                                                                             

Summary of Debt, Capital Lease Obligations and Cash and Cash Equivalents

The following table^2 details the U.S. dollar equivalent balances of our
third-party consolidated debt, capital lease obligations and cash and cash
equivalents at March 31, 2013:

                                   Capital      Debt and       Cash
                                     Lease         Capital Lease   and Cash
                        Debt^3       Obligations   Obligations     Equivalents
                        in millions
LGI and its
non-operating           $ 1,148.2    $  17.6       $   1,165.8     $  1,603.0
subsidiaries
UPC Holding               12,524.4      31.1           12,555.5       50.1
(excluding VTR Group)
Lynx I and II             3,580.5       —              3,580.5        —
Unitymedia KabelBW        6,752.1       904.2          7,656.3        33.9
Telenet                   4,535.6       406.2          4,941.8        1,152.5
Liberty Puerto Rico       662.8         0.6            663.4          4.9
VTR Group^4               101.8         0.5            102.3          33.9
Other operating          0.3          —             0.3           28.5
subsidiaries
Total LGI               $ 29,305.7   $  1,360.2    $   30,665.9    $  2,906.8
                                                                   
Restricted cash in segregated escrow accounts for the Virgin       $  3,548.8
Media acquisition
                                                                      

Property and Equipment Additions and Capital Expenditures

The table below highlights the categories of our property and equipment
additions for the indicated periods and reconciles those additions to the
capital expenditures that we present in our condensed consolidated statements
of cash flows:

                                                Three months ended
                                                 March 31,
                                                 2013            2012
                                                 in millions, except % amounts
Customer premises equipment                      $   242.8        $  207.4
Scalable infrastructure                              75.4            79.4
Line extensions                                      67.4            64.6
Upgrade/rebuild                                      74.8            84.6
Support capital                                      70.6            70.2
Other, including Chellomedia                        4.8           1.2    
Property and equipment additions                     535.8           507.4
Assets acquired under capital-related vendor         (76.1  )        (24.7  )
financing arrangements
Assets acquired under capital leases                 (18.3  )        (12.7  )
Changes in current liabilities related to           62.9          51.3   
capital expenditures
Total capital expenditures^5                     $   504.3       $  521.3  
                                                                  
Property and equipment additions as % of             19.4   %        20.0   %
revenue
Capital expenditures as % of revenue                 18.2   %        20.5   %
                                                                            

_______________________________________

^2  Except as otherwise indicated, the amounts reported in the table include
     the named entity and its subsidiaries.
^3  Debt amounts for UPC Holding and Telenet include senior secured notes
     issued by special purpose entities that are consolidated by each.
^4   Of these amounts, VTR Wireless accounts for $102 million of the debt and
     $10 million of the cash of the VTR Group.
     The capital expenditures that we report in our consolidated cash flow
     statements do not include amounts that are financed under vendor
^5   financing or capital lease arrangements. Instead, these expenditures are
     reflected as non-cash additions to our property and equipment when the
     underlying assets are delivered, and as repayments of debt when the
     related principal is repaid.
     

Free Cash Flow and Adjusted Free Cash Flow Definition and Reconciliation

We define free cash flow as net cash provided by our operating activities,
plus (i) excess tax benefits related to the exercise of stock incentive awards
and (ii) cash payments for direct acquisition costs, less (a) capital
expenditures, as reported in our consolidated cash flow statements, (b)
principal payments on vendor financing obligations and (c) principal payments
on capital leases (exclusive of the portions of the network lease in Belgium
and the duct leases in Germany that we assumed in connection with certain
acquisitions), with each item excluding any cash provided or used by our
discontinued operation. We also present Adjusted FCF, which adjusts FCF to
eliminate the incremental FCF deficit associated with the VTR Wireless mobile
initiative. We believe that our presentation of free cash flow provides useful
information to our investors because this measure can be used to gauge our
ability to service debt and fund new investment opportunities. Free cash flow
should not be understood to represent our ability to fund discretionary
amounts, as we have various mandatory and contractual obligations, including
debt repayments, which are not deducted to arrive at this amount. Investors
should view free cash flow as a supplement to, and not a substitute for, GAAP
measures of liquidity included in our consolidated cash flow statements. The
following table provides the reconciliation of our continuing operations’ net
cash provided by operating activities to FCF and Adjusted FCF for the
indicated periods:

                                                      Three months ended
                                                       March 31,
                                                       2013        2012
                                                       in millions
Net cash provided by operating activities of our       $ 557.7      $ 754.8
continuing operations
Excess tax benefits from stock-based compensation^6      1.3          0.5
Cash payments for direct acquisition costs^7             8.5          12.9
Capital expenditures                                     (504.3 )     (521.3 )
Principal payments on vendor financing obligations       (37.0  )     (2.0   )
Principal payments on certain capital leases            (3.1   )    (3.0   )
FCF                                                    $ 23.1      $ 241.9  
                                                                    
FCF                                                    $ 23.1       $ 241.9
FCF deficit of VTR Wireless                             44.4       37.4   
Adjusted FCF                                           $ 67.5      $ 279.3  
                                                                             

ARPU per Customer Relationship

The following table provides ARPU per customer relationship^8 for the
indicated periods:

                    Three months ended Mar. 31,            FX Neutral
                     2013            2012         % Change   % Change^9
UPC/Unity Division   €     24.96      €   23.76    5.1   %    5.3    %
Telenet              €     47.40      €   45.42    4.4   %    4.4    %
VTR                  CLP   30,721     CLP 30,613   0.4   %    0.4    %
LGI Consolidated     $     38.68      $   36.36    6.4   %    5.6    %
                                                                     

_______________________________________

     Excess tax benefits from stock-based compensation represent the excess of
     tax deductions over the related financial reporting stock-based
^6  compensation expense. The hypothetical cash flows associated with these
     excess tax benefits are reported as an increase to cash flows from
     financing activities and a corresponding decrease to cash flows from
     operating activities in our consolidated cash flow statements.
^7   Represents costs paid during the period to third parties directly related
     to acquisitions.
     ARPU per customer relationship refers to the average monthly subscription
     revenue per average customer relationship and is calculated by dividing
     the average monthly subscription revenue (excluding installation, late
     fees and mobile services revenue) for the indicated period, by the
^8   average of the opening and closing balances for customer relationships
     for the period. Customer relationships of entities acquired during the
     period are normalized. Unless otherwise indicated, ARPU per customer
     relationship for the UPC/Unity Division and LGI Consolidated are not
     adjusted for currency impacts.
     The FX neutral change represents the percentage change on a
^9   year-over-year basis adjusted for FX impacts and is calculated by
     adjusting the prior year figures to reflect translation at the foreign
     currency rates used to translate the current year amounts.
     

RGUs, Customers and Bundling

The following table provides information on the breakdown of our RGUs and
customer base and highlights our customer bundling metrics at March 31, 2013,
December 31, 2012 and March 31, 2012:

                                                            Q1’13 /   Q1’13 /
              March 31,     December 31,  March 31,     Q4’12    Q1’12
               2013           2012           2012^10        (%        (%
                                                            Change)   Change)
Total RGUs
Total Video    18,210,300     18,308,500     18,349,200     (0.5 %)   (0.8  %)
RGUs
Total
Broadband      9,488,300      9,244,300      8,480,700      2.6  %    11.9  %
Internet
RGUs
Total
Telephony      7,513,300     7,281,700     6,546,500     3.2  %    14.8  %
RGUs
Liberty
Global         35,211,900     34,834,500     33,376,400     1.1  %    5.5   %
Consolidated
                                                                      
Total
Customers
UPC/Unity      16,198,400     16,250,300     16,174,600     (0.3 %)   0.1   %
Division
Telenet        2,106,200      2,122,700      2,180,700      (0.8 %)   (3.4  %)
VTR            1,167,900      1,144,400      1,108,900      2.1  %    5.3   %
Other          273,200       270,800       122,700       0.9  %    122.7 %
Liberty
Global         19,745,700     19,788,200     19,586,900     (0.2 %)   0.8   %
Consolidated
                                                                      
Total
Single-Play    10,466,600     10,727,200     11,231,600     (2.4 %)   (6.8  %)
Customers
Total
Double-Play    3,092,000      3,075,700      2,920,700      0.5  %    5.9   %
Customers
Total
Triple-Play    6,187,100      5,985,300      5,434,600      3.4  %    13.8  %
Customers
                                                                      
%
Double-Play
Customers
UPC/Unity      13.2       %   13.1       %   12.7       %   0.8  %    3.9   %
Division
Telenet        30.4       %   29.9       %   28.3       %   1.7  %    7.4   %
VTR            20.8       %   20.7       %   20.6       %   0.5  %    1.0   %
Liberty
Global         15.7       %   15.5       %   14.9       %   1.3  %    5.4   %
Consolidated
                                                                      
%
Triple-Play
Customers
UPC/Unity      29.0       %   27.9       %   25.2       %   3.9  %    15.1  %
Division
Telenet        41.7       %   40.5       %   37.0       %   3.0  %    12.7  %
VTR            46.0       %   46.1       %   46.2       %   (0.2 %)   (0.4  %)
Liberty
Global         31.3       %   30.2       %   27.7       %   3.6  %    13.0  %
Consolidated
                                                                      
RGUs per
Customer
Relationship
UPC/Unity      1.71           1.69           1.63           1.2  %    4.9   %
Division
Telenet        2.14           2.11           2.02           1.4  %    5.9   %
VTR            2.13           2.13           2.13           —         —
Liberty
Global         1.78           1.76           1.70           1.1  %    4.7   %
Consolidated
                                                                      

_______________________________________

^10  The March 31, 2012 amounts do not include the impacts of the November 8,
      2012 OneLink transaction in Puerto Rico.
      

                  Consolidated Operating Data – March 31, 2013
                                                                          Video                                                                               Internet                            Telephony
                   Homes        Two-way      Customer            Total        Analog Cable      Digital Cable     DTH               MMDS              Total        Homes                                Homes
                  Passed^(1)   Homes        Relationships^(3)   RGUs^(4)     Subscribers^(5)  Subscribers^(6)  Subscribers^(7)  Subscribers^(8)  Video        Serviceable^(9)  Subscribers^(10)   Serviceable^(11)  Subscribers^(12)
                                Passed^(2)
UPC/Unity
Division:
Germany            12,582,500   12,174,800   7,059,300           11,309,600   4,489,400         2,177,800         —                 —                 6,667,200    12,174,800        2,319,100          12,174,800         2,323,300
The                2,828,100    2,814,900    1,699,100           3,682,600    607,600           1,089,300         —                 —                 1,696,900    2,827,600         1,036,200          2,824,800          949,500
Netherlands^(13)
Switzerland^(13)   2,077,700    1,835,500    1,471,600           2,492,700    820,200           613,000           —                 —                 1,433,200    2,302,800         626,800            2,302,800          432,700
Austria            1,315,500    1,299,500    729,100             1,410,700    191,900           339,300           —                 —                 531,200      1,299,500         493,100            1,299,500          386,400
Ireland            863,000      742,100      540,300             1,012,600    59,900            338,400           —                 43,900            442,200      742,100           315,700            723,900            254,700
Total Western      19,666,800   18,866,800   11,499,400          19,908,200   6,169,000         4,557,800         —                 43,900            10,770,700   19,346,800        4,790,900          19,325,800         4,346,600
Europe
Poland             2,672,200    2,544,400    1,466,100           2,654,900    494,400           797,400           —                 —                 1,291,800    2,544,400         874,800            2,534,800          488,300
Hungary            1,528,200    1,511,200    1,035,500           1,784,000    288,200           342,400           250,600           —                 881,200      1,511,200         493,600            1,513,600          409,200
Romania            2,085,300    1,715,800    1,169,600           1,750,200    409,300           435,100           319,800           —                 1,164,200    1,715,800         343,200            1,654,000          242,800
Czech Republic     1,346,800    1,238,400    740,200             1,204,900    71,200            397,700           105,700           —                 574,600      1,238,400         439,900            1,238,300          190,400
Slovakia           496,200      465,800      287,600             429,000      77,700            126,300           56,600            700               261,300      434,900           106,300            433,200            61,400
Total CEE          8,128,700    7,475,600    4,699,000           7,823,000    1,340,800         2,098,900         732,700           700               4,173,100    7,444,700         2,257,800          7,373,900          1,392,100
Total UPC/Unity    27,795,500   26,342,400   16,198,400          27,731,200   7,509,800         6,656,700         732,700           44,600            14,943,800   26,791,500        7,048,700          26,699,700         5,738,700
                                                                                                                                                                                                                           
Telenet            2,875,100    2,875,100    2,106,200           4,503,100    673,100           1,433,100         —                 —                 2,106,200    2,875,100         1,409,200          2,875,100          987,700
(Belgium)^(14)
VTR (Chile)        2,867,800    2,337,400    1,167,900           2,485,800    155,000           799,900           —                 —                 954,900      2,337,400         846,500            2,329,400          684,400
Puerto Rico        703,000      703,000      273,200             491,800      —                 205,400           —                 —                 205,400      703,000           183,900            703,000            102,500
                                                                                                                                                                                                                           
Grand Total        34,241,400   32,257,900   19,745,700          35,211,900   8,337,900         9,095,100         732,700           44,600            18,210,300   32,707,000        9,488,300          32,607,200         7,513,300
                                                                                                                                                                                                                           

                  Subscriber Variance Table – March 31, 2013 vs. December 31, 2012
                                                                        Video                                                                              Internet                            Telephony
                   Homes        Two-way      Customer            Total      Analog Cable      Digital Cable     DTH               MMDS              Total       Homes                                Homes
                   Passed^(1)   Homes        Relationships^(3)   RGUs^(4)   Subscribers^(5)  Subscribers^(6)  Subscribers^(7)  Subscribers^(8)  Video       Serviceable^(9)  Subscribers^(10)   Serviceable^(11)  Subscribers^(12)
                                Passed^(2)
UPC/Unity
Division:
Germany            14,600       12,400       10,200              168,900    (14,200)          (8,100)           —                 —                 (22,300)    12,400            99,900             12,400             91,300
The                2,900        4,100        (32,700)            (2,900)    (44,000)          11,300            —                 —                 (32,700)    4,100             10,800             4,100              19,000
Netherlands^(13)
Switzerland^(13)   3,000        10,100       (14,000)            28,300     (22,300)          7,000             —                 —                 (15,300)    10,800            32,300             (21,100)           11,300
Austria            2,100        2,100        (3,900)             2,700      (7,500)           3,400             —                 —                 (4,100)     2,200             2,400              34,100             4,400
Ireland            100          4,900        1,500               23,800     (3,100)           600               —                 (1,700)           (4,200)     4,900             11,400             8,900              16,600
Total Western      22,700       33,600       (38,900)            220,800    (91,100)          14,200            —                 (1,700)           (78,600)    34,400            156,800            38,400             142,600
Europe
Poland             4,300        6,800        (5,900)             38,900     (51,600)          41,100            —                 —                 (10,500)    6,800             20,100             7,200              29,300
Hungary            2,500        2,900        5,900               23,700     (18,700)          15,300            7,700             —                 4,300       2,900             7,000              2,900              12,400
Romania            2,500        7,800        (8,000)             16,300     (19,400)          11,500            100               —                 (7,800)     7,800             10,200             7,800              13,900
Czech Republic     1,600        1,500        (5,100)             (12,400)   (4,900)           (8,300)           3,500             —                 (9,700)     1,500             —                  4,100              (2,700)
Slovakia           700          1,000        100                 3,400      (6,400)           3,200             2,300             (400)             (1,300)     1,300             2,500              1,400              2,200
Total CEE          11,600       20,000       (13,000)            69,900     (101,000)         62,800            13,600            (400)             (25,000)    20,300            39,800             23,400             55,100
Total UPC/Unity    34,300       53,600       (51,900)            290,700    (192,100)         77,000            13,600            (2,100)           (103,600)   54,700            196,600            61,800             197,700
                                                                                                                                                                                                                        
Telenet            6,300        6,300        (16,500)            24,000     123,900           (140,400)         —                 —                 (16,500)    6,300             21,500             6,300              19,000
(Belgium)^(14)
VTR (Chile)        6,700        7,000        23,500              50,100     (8,200)           30,600            —                 —                 22,400      7,000             21,000             7,300              6,700
Puerto Rico        600          600          2,400               12,600     —                 (500)             —                 —                 (500)       600               4,900              600                8,200
                                                                                                                                                                                                                        
Grand Total        47,900       67,500       (42,500)            377,400    (76,400)          (33,300)          13,600            (2,100)           (98,200)    68,600            244,000            76,000             231,600
                                                                                                                                                                                                                        
                                                                                                                                                                                                                        
ORGANIC CHANGE
SUMMARY:
UPC/Unity (excl.   18,900       39,700       (61,200)            112,100    (177,900)         86,400            13,600            (2,100)           (80,000)    40,800            86,000             47,900             106,100
Germany)
Germany            14,600       12,400       10,200              168,900    (14,200)          (8,100)           —                 —                 (22,300)    12,400            99,900             12,400             91,300
Total UPC/Unity    33,500       52,100       (51,000)            281,000    (192,100)         78,300            13,600            (2,100)           (102,300)   53,200            185,900            60,300             197,400
Telenet            6,300        6,300        (11,400)            29,100     (44,700)          33,300            —                 —                 (11,400)    6,300             21,500             6,300              19,000
(Belgium)
VTR (Chile)        6,700        7,000        23,500              50,100     (8,200)           30,600            —                 —                 22,400      7,000             21,000             7,300              6,700
Puerto Rico        600          600          2,400               12,600     —                 (500)             —                 —                 (500)       600               4,900              600                8,200
Total Organic      47,100       66,000       (36,500)            372,800    (245,000)         141,700           13,600            (2,100)           (91,800)    67,100            233,300            74,500             231,300
Change
                                                                                                                                                                                                                        
Q1 2013
ADJUSTMENTS:
Poland             800          1,500        —                   —          —                 —                 —                 —                 —           1,500             —                  1,500              —
adjustments
Belgium            —            —            (5,100)             (5,100)    168,600           (173,700)         —                 —                 (5,100)     —                 —                  —                  —
adjustments^(14)
Switzerland        —            —            (1,300)             9,500      —                 (1,300)           —                 —                 (1,300)     —                 10,800             (31,900)           —
adjustments
Austria            —            —            400                 200        —                 —                 —                 —                 —           —                 (100)              31,900             300
adjustments
Net Adjustments    800          1,500        (6,000)             4,600      168,600           (175,000)         —                 —                 (6,400)     1,500             10,700             1,500              300
                                                                                                                                                                                                                        
Net Adds           47,900       67,500       (42,500)            377,400    (76,400)          (33,300)          13,600            (2,100)           (98,200)    68,600            244,000            76,000             231,600
(Reductions)
                                                                                                                                                                                                                        

Footnotes for Operating Data and Subscriber Variance Tables
     
       Homes Passed are homes, residential multiple dwelling units or
       commercial units that can be connected to our networks without
       materially extending the distribution plant, except for
       direct-to-home (“DTH”) and Multi-channel Multipoint (“microwave”)
       Distribution System (“MMDS”) homes. Our Homes Passed counts are based
       on census data that can change based on either revisions to the data
(1)    or from new census results. We do not count homes passed for DTH.
       With respect to MMDS, one MMDS customer is equal to one Home Passed.
       Due to the fact that we do not own the partner networks (defined
       below) used in Switzerland and the Netherlands (see note 13) or the
       unbundled loop and shared access network used by one of our Austrian
       subsidiaries, UPC Austria GmbH (“Austria GmbH”), we do not report
       homes passed for Switzerland’s and the Netherlands’ partner networks
       or the unbundled loop and shared access network used by Austria GmbH.
       Two-way Homes Passed are Homes Passed by those sections of our
       networks that are technologically capable of providing two-way
       services, including video, internet and telephony services. Due to
(2)    the fact that we do not own the partner networks used in Switzerland
       and the Netherlands or the unbundled loop and shared access network
       used by Austria GmbH, we do not report two-way homes passed for
       Switzerland’s or the Netherlands’ partner networks or the unbundled
       loop and shared access network used by Austria GmbH.
       Customer Relationships are the number of customers who receive at
       least one of our video, internet or telephony services that we count
       as Revenue Generating Units (“RGUs”), without regard to which or to
       how many services they subscribe. To the extent that RGU counts
       include equivalent billing unit (“EBU”) adjustments, we reflect
       corresponding adjustments to our Customer Relationship counts. For
       further information regarding our EBU calculation, see Additional
(3)    General Notes to Tables below. Customer Relationships generally are
       counted on a unique premises basis. Accordingly, if an individual
       receives our services in two premises (e.g., a primary home and a
       vacation home), that individual generally will count as two Customer
       Relationships. We exclude mobile customers from Customer
       Relationships. For Belgium, Customer Relationships only include
       customers who subscribe to an analog or digital cable service due to
       billing system limitations.
       Revenue Generating Unit is separately an Analog Cable Subscriber,
       Digital Cable Subscriber, DTH Subscriber, MMDS Subscriber, Internet
       Subscriber or Telephony Subscriber. A home, residential multiple
       dwelling unit, or commercial unit may contain one or more RGUs. For
       example, if a residential customer in our Austrian system subscribed
       to our digital cable service, telephony service and broadband
       internet service, the customer would constitute three RGUs. Total
       RGUs is the sum of Analog Cable, Digital Cable, DTH, MMDS, Internet
       and Telephony Subscribers. RGUs generally are counted on a unique
       premises basis such that a given premises does not count as more than
       one RGU for any given service. On the other hand, if an individual
       receives one of our services in two premises (e.g. a primary home and
(4)    a vacation home), that individual will count as two RGUs for that     .
       service. Each bundled cable, internet or telephony service is counted
       as a separate RGU regardless of the nature of any bundling discount
       or promotion. Non-paying subscribers are counted as subscribers
       during their free promotional service period. Some of these
       subscribers may choose to disconnect after their free service period.
       Services offered without charge on a long-term basis (e.g., VIP
       subscribers, free service to employees) generally are not counted as
       RGUs. We do not include subscriptions to mobile services in our
       externally reported RGU counts. In this regard, our March 31, 2013
       RGU counts exclude 625,000, 152,800, 47,500, 27,600, 4,100 and 3,300
       postpaid subscriber identification module (“SIM”) cards in service in
       Belgium, Germany, Chile, Poland, Hungary and the Netherlands,
       respectively, and 93,100 prepaid SIM cards in service in Chile
       Analog Cable Subscriber is a home, residential multiple dwelling unit
       or commercial unit that receives our analog cable service over our
       broadband network. Our Analog Cable Subscriber counts also include
       subscribers who may use a purchased set-top box or other means to
       receive our basic digital cable channels without subscribing to any
       services that would require the payment of recurring monthly fees in
(5)    addition to the basic analog service fee (“Basic Digital Cable
       Subscriber”). Our Basic Digital Cable Subscribers are attributable to
       the fact that our basic digital cable channels are not encrypted in
       certain portions of our footprint and the use of purchased digital
       set-top boxes in Belgium. In Europe, we have approximately 382,400
       “lifeline” customers that are counted on a per connection basis,
       representing the least expensive regulated tier of video cable
       service, with only a few channels.
       Digital Cable Subscriber is a home, residential multiple dwelling
       unit or commercial unit that receives our digital cable service over
       our broadband network or through a partner network. We count a
       subscriber with one or more digital converter boxes that receives our
       digital cable service in one premises as just one subscriber. A
       Digital Cable Subscriber is not counted as an Analog Cable
       Subscriber. As we migrate customers from analog to digital cable
(6)    services, we report a decrease in our Analog Cable Subscribers equal
       to the increase in our Digital Cable Subscribers. As discussed in
       further detail in note 5 above, Basic Digital Cable Subscribers are
       not included in the respective Digital Cable Subscriber counts.
       Subscribers to digital cable services provided by our operations in
       Switzerland and the Netherlands over partner networks receive analog
       cable services from the partner networks as opposed to our
       operations.
       DTH Subscriber is a home, residential multiple dwelling unit or
(7)    commercial unit that receives our video programming broadcast
       directly via a geosynchronous satellite.
(8)    MMDS Subscriber is a home, residential multiple dwelling unit or
       commercial unit that receives our video programming via MMDS.
       Internet Homes Serviceable are Two-way Homes Passed that can be
       connected to our network, or a partner network with which we have a
       service agreement, for the provision of broadband internet services
(9)    if requested by the customer, building owner or housing association,
       as applicable. With respect to Austria GmbH, we do not report as
       Internet Homes Serviceable those homes served either over an
       unbundled loop or over a shared access network.
       Internet Subscriber is a home, residential multiple dwelling unit or
       commercial unit that receives internet services over our networks, or
       that we service through a partner network. Our Internet Subscribers
       in Austria include 80,300 digital subscriber line (“DSL”) subscribers
       of Austria GmbH that are not serviced over our networks. Our Internet
       Subscribers do not include customers that receive services from
       dial-up connections. In Switzerland, we offer a 2 Mbps internet
(10)   service to our Analog and Digital Cable Subscribers without an
       incremental recurring fee. Our Internet Subscribers in Switzerland
       include 17,200 subscribers who have requested and received a modem
       that enables receipt of this 2 Mbps internet service. In certain
       portions of our German market, we offer a 128 Kbps wholesale internet
       service to housing associations on a bulk basis. Our Internet
       Subscribers in Germany include 6,600 subscribers within such housing
       associations who have requested and received a modem that enables the
       receipt of this 128 Kbps wholesale internet service.
       Telephony Homes Serviceable are Two-way Homes Passed that can be
       connected to our network, or a partner network with which we have a
       service agreement, for the provision of telephony services if
(11)   requested by the customer, building owner or housing association, as
       applicable. With respect to Austria GmbH, we do not report as
       Telephony Homes Serviceable those homes served over an unbundled loop
       rather than our network.
       Telephony Subscriber is a home, residential multiple dwelling unit or
       commercial unit that receives voice services over our networks, or
(12)   that we service through a partner network. Telephony Subscribers
       exclude mobile telephony subscribers. Our Telephony Subscribers in
       Austria include 57,800 subscribers of Austria GmbH that are not
       serviced over our networks.
       Pursuant to service agreements, Switzerland and, to a much lesser
       extent, the Netherlands offer digital cable, broadband internet and
       telephony services over networks owned by third-party cable operators
       (“partner networks”). A partner network RGU is only recognized if
       there is a direct billing relationship with the customer. Homes
       Serviceable for partner networks represent the estimated number of
       homes that are technologically capable of receiving the applicable
       service within the geographic regions covered by the applicable
       service agreements. Internet and Telephony Homes Serviceable with
(13)   respect to partner networks have been estimated by our Switzerland
       operations. These estimates may change in future periods as more
       accurate information becomes available. At March 31, 2013,
       Switzerland’s partner networks account for 127,400 Customer
       Relationships, 244,700 RGUs, 92,700 Digital Cable Subscribers,
       467,300 Internet and Telephony Homes Serviceable, 88,000 Internet
       Subscribers, and 64,000 Telephony Subscribers. In addition, partner
       networks account for 438,700 of Switzerland’s digital cable homes
       serviceable that are not included in Homes Passed or Two-way Homes
       Passed in our March 31, 2013 subscriber table.
       Effective January 1, 2013, we reclassified 173,300 Digital Cable
       Subscribers in Belgium to Analog Cable Subscribers to reflect a
       change in our definition of Basic Digital Cable Subscribers to
(14)   include all Subscribers who access our basic digital television
       channels without subscribing to services that would require the
       payment of recurring monthly fees in addition to the basic analog
       service fee.
                                                                             

Additional General Notes to Tables:

All of our broadband communications subsidiaries provide telephony, broadband
internet, data, video or other business-to-business (“B2B”) services. Certain
of our B2B revenue is derived from small or home office (“SOHO”) subscribers
that pay a premium price to receive enhanced service levels along with video,
internet or telephony services that are the same or similar to the mass
marketed products offered to our residential subscribers. All mass marketed
products provided to SOHOs, whether or not accompanied by enhanced service
levels and/or premium prices, are included in the respective RGU and customer
counts of our broadband communications operations, with only those services
provided at premium prices considered to be “SOHO RGUs” or “SOHO customers.”
With the exception of our B2B SOHO subscribers, we generally do not count
customers of B2B services as customers or RGUs for external reporting
purposes.

Certain of our residential and commercial RGUs are counted on an EBU basis,
including residential multiple dwelling units and commercial establishments,
such as bars, hotels and hospitals, in Chile and Puerto Rico and certain
commercial establishments in Europe (with the exception of Germany and
Belgium, where we do not count any RGUs on an EBU basis).Our EBUs are
generally calculated by dividing the bulk price charged to accounts in an area
by the most prevalent price charged to non-bulk residential customers in that
market for the comparable tier of service. As such, we may experience
variances in our EBU counts solely as a result of changes in rates. In
Germany, homes passed reflect the footprint, and two-way homes passed and
internet and telephony homes serviceable reflect the technological capability,
of our network up to the street cabinet, with drops from the street cabinet to
the building generally added, and in-home wiring generally upgraded, on an as
needed or success-based basis. In Belgium, Telenet leases a portion of its
network under a long-term capital lease arrangement. These tables include
operating statistics for Telenet’s owned and leased networks.

While we take appropriate steps to ensure that subscriber statistics are
presented on a consistent and accurate basis at any given balance sheet date,
the variability from country to country in (i) the nature and pricing of
products and services, (ii) the distribution platform, (iii) billing systems,
(iv) bad debt collection experience and (v) other factors add complexity to
the subscriber counting process. We periodically review our subscriber
counting policies and underlying systems to improve the accuracy and
consistency of the data reported on a prospective basis. Accordingly, we may
from time to time make appropriate adjustments to our subscriber statistics
based on those reviews.

Subscriber information for acquired entities is preliminary and subject to
adjustment until we have completed our review of such information and
determined that it is presented in accordance with our policies.

Contact:

Liberty Global, Inc.
Investor Relations:
Christopher Noyes, +1 303-220-6693
Oskar Nooij, +1 303-220-4218
John Rea, +1 303-220-4238
or
Corporate Communications:
Marcus Smith, +44 20 7190 6374
Bert Holtkamp, +31 20 778 9800
Hanne Wolf, +1 303-220-6678
 
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