Liberty Global Reports First Half 2014 Results

  Liberty Global Reports First Half 2014 Results  239,000 Organic RGU Additions in Q2 and 584,000 YTD  Rebased OCF Growth of 7% YTD to $4.3 Billion  Adjusted FCF Increased 40% YTD to $1.1 Billion^1  Repurchased ~$900 Million of Equity YTD  Business Wire  DENVER -- August 5, 2014  Liberty Global plc (“Liberty Global” or the “Company”) (NASDAQ: LBTYA, LBTYB and LBTYK), today announces financial and operating results for the three months (“Q2”) and six months (“YTD”) ended June 30, 2014. Some of the information below concerning Virgin Media Inc. (“Virgin Media”) relates to periods prior to our ownership of the business. Please also note that we sold substantially all of our content business on January 31, 2014 (the “Chellomedia Sale”) and, accordingly, we have presented the disposed business as a discontinued operation for all periods presented. Highlights for the 2014 periods as compared to the same periods in 2013 (unless noted) include:    *Organic RGU^2 additions of 584,000 YTD, including 239,000 in Q2         *Q2 driven by strong broadband gains and our lowest Q2 video attrition          since 2006    *Rebased^3 revenue growth of 3% YTD and in Q2, reaching $9.1 billion YTD         *Reflects improved Q2 performance in Western Europe    *YTD and Q2 rebased Operating Cash Flow^4 growth of 7% and 6%, respectively         *Fueled by strong results in Germany, U.K., Belgium and Latin America    *Operating income increased 29% to $1.3 billion YTD   *Adjusted FCF increased 40%^1 on a combined basis to $1.1 billion YTD         *Record Q2 Adjusted FCF of $725 million    *Share repurchases of ~$900 million YTD, including nearly $500 million in     Q2   *Completion of Ziggo transaction on track for second half of 2014  Mike Fries, Chief Executive Officer, stated, “Our business is thriving on all fronts - operationally, strategically and financially. We added nearly 240,000 new RGUs in the second quarter, a 25% improvement over last year, fueled again by our superior broadband speeds and advanced TV services like Horizon and TiVo. This volume growth, along with price increases and improving momentum in B2B and mobile, drove rebased revenue growth above 3% in the second quarter. In addition, we are heavily focused on using our operating leverage and scale to drive efficiencies across our footprint and these initiatives helped us achieve 7% rebased OCF growth year-to-date and 40% Adjusted Free Cash Flow growth^1. Not surprisingly, we remain confident that we'll achieve or exceed all our public guidance targets for the full year."  “Strategically, we're making steady progress on the Ziggo transaction, which we remain confident will close in the second half of 2014. We are also executing on our content strategy, with plans to invest in All3Media, a U.K.-based global production company, and De Vijver Media, a leading commercial broadcaster in Belgium, and with the recently completed acquisition of an interest in ITV, the largest commercial broadcaster in the U.K. These financially attractive investments require limited equity capital and will allow us to participate or partner with great content businesses that should bolster our core cable operations over the long-term. And lastly, we continue our focus on returning capital through share buybacks, with approximately $900 million in repurchases during the first half of 2014, and we're targeting an additional $2.6 billion by year-end 2015.”  Subscriber Statistics  At June 30, 2014, we provided our 24.5 million unique customers with 48.9 million subscription services ("RGUs") across our footprint of 47.4 million homes passed. These services consisted of 21.7 million video, 14.8 million broadband internet and 12.4 million telephony subscriptions. During Q2 2014, we increased our total RGUs by 268,000, driven primarily by our 239,000 organic additions and a small acquisition in Poland. At the end of Q2 2014, 14.2 million or 58% of our customers were bundled and we reached 2.0 products per customer for the first time. With over 10 million single-play customers, four million dual-play customers and innovative products powered by our superior network, we see an excellent opportunity for substantial RGU growth ahead.  Our organic additions of 239,000 RGUs during Q2 2014 represent our second best Q2 result ever, and an increase of 48,000, as compared to our 191,000 RGU additions in Q2 2013. This 25% year-over-year increase was driven by improved broadband RGU additions and reduced video attrition, partially offset by lower year-over-year telephony RGU additions.  In terms of video, our video loss of 72,000 RGUs was our lowest Q2 video attrition since 2006. During Q2 2014, Western Europe had a particularly strong performance as Germany reported its best video result ever, while our Dutch operation achieved its lowest quarterly video attrition of the last four years. This strong performance was partly driven by the investment in our next-generation TV platforms. We added 240,000 next-generation video subscribers in Q2 2014 driving our total next-generation video base to 2.9 million subscribers. This base includes 2.3 million TiVo subscribers in the U.K. and over 645,000 Horizon TV subscribers across four countries, reflecting 22% penetration of our total digital cable base, or 36% of our total digital cable base in the five markets where we offer our advanced video services. On the product innovation front, we successfully launched our TV everywhere app, Horizon Go, in our four Horizon markets and in Poland in July. With this launch, we have significantly enhanced the multi-screen viewing experience for our customers, partly driven by the expansion of the number of live TV channels that can be watched in, as well as out of the home. We ended the second quarter of 2014 with 13.4 million digital cable subscribers, representing 64% digital penetration^5 and 7.5 million analog cable subscribers.  Our broadband additions of 185,000 RGUs represented the second best Q2 result ever, led by strong improvements in the U.K., the Netherlands and Poland. This result was further supported by a wide range of countries including 82,000 additions in Germany, 22,000 additions in Chile and five other countries adding at least 11,000 RGUs each. On the telephony front, we added 125,000 RGUs during Q2, as compared to 142,000 RGUs during the prior year period. This decrease was mainly attributable to slower triple-play take up in Germany and Poland that was only partially offset by improvements in telephony additions in the Belgium and the U.K.  Geographically, our Q2 RGU additions consisted of 165,000 RGUs in Western Europe, 50,000 RGUs in Latin America^6 and 24,000 RGUs in Central and Eastern Europe ("CEE"). In Western Europe, our German operation remained our primary growth engine and delivered 124,000 RGU additions in Q2 led by consistent broadband additions and a flat video base. Two other notable performers were the U.K. and the Netherlands. In particular, as a result of our ongoing investment in products and services in these two markets, our British operation halved its RGU losses to 17,000 as compared to the prior year period and the Netherlands continued a positive RGU trend by adding 7,000 RGUs in Q2. Also of note, our Chilean business reported 41,000 RGU additions, which was driven by its highest quarterly broadband additions (22,000) of the last two years. In CEE, we delivered a 15,000 organic RGU addition increase as compared to Q2 2013, as our Hungarian operation boosted results on the back of attractive triple-play offers in combination with reduced churn levels.  In terms of mobile, we ended the second quarter of 2014 with 4.3 million mobile subscribers^7. The 111,000 increase in Q2 was our best result over the past year and was led by over 100,000 net mobile additions in our European operations including over 40,000 additions in both the U.K. and Belgium.  Revenue  We reported consolidated revenue of $4.6 billion and $9.1 billion for the three and six months ended June 30, 2014, respectively. As compared to the corresponding 2013 periods, these results reflect increases of 51% and 59%, respectively. Our growth in both periods was driven by the inclusion of acquisitions (primarily Virgin Media, which we acquired on June 7, 2013), and, to a lesser extent, positive foreign currency movements ("FX"), as all of our key European currencies strengthened against the U.S. dollar, and organic growth. When adjusting for the impact of acquisitions and FX, we achieved year-over-year rebased revenue growth of 3% for both the three and six months ended June 30, 2014, respectively. Our quarterly rebased top-line growth improved from 2% during Q1 2014 to 3% during Q2 2014, each as compared to the corresponding prior year period. Such improvement is due in part to our continued broadband internet success, and supported by selective price increases and growth in both our mobile and business-to-business ("B2B") segments.  From a geographic perspective for Q2, we generated 4% rebased revenue growth in Chile and 3% in Western Europe, while our CEE operations remained flat on a rebased basis, in-line with recent quarterly results. Our performance in Western Europe was led by our business in Switzerland, which delivered 6% rebased revenue growth in Q2, its best quarterly result in six years, driven by a mix of volume and ARPU^8 growth and a positive contribution from B2B. Our British operation also improved sequentially and posted 3% rebased growth for Q2 2014, as compared to 1% growth in Q1 2014. Our cable subscription business in the U.K. reported 3% year-over-year rebased growth, despite a $12 million negative impact as a result of a May 1, 2014 legislative change to the VAT rules. In addition, our mobile and B2B businesses in the U.K. delivered improved Q2 results with 12% and 6% rebased revenue growth, respectively, but were partly offset by a decrease in revenue from Virgin Media's off-net business and lower interconnect rates.  Rounding out our five largest markets, in Q2 our German and Belgian businesses recorded rebased revenue growth of 5% and 4%, respectively, while our Dutch operation experienced a rebased revenue decline of 1%, which represents the third consecutive quarter that we have improved our rebased revenue performance in the Netherlands on a year-over-year basis.  Operating Cash Flow  For the three and six months ended June 30, 2014, our reported OCF increased 49% to $2.1 billion and 58% to $4.3 billion, respectively, as compared to the corresponding prior year periods. Similar to our reported revenue results, our reported OCF increased as a result of acquisitions (primarily Virgin Media), organic growth and favorable FX movements. Adjusting for both acquisitions and currencies, we delivered rebased OCF growth of 6% and 7% for the three and six months ended June 30, 2014, respectively. Our strong rebased OCF performance during the YTD period included the favorable net impact of nonrecurring items during Q1 2014, the most significant of which include the impact of accrual releases related to the settlement of operational contingencies of $17 million in Belgium and $7 million in Poland and an $11 million favorable revenue settlement in Germany.  From a regional perspective, our European business produced 6% rebased OCF growth in Q2 2014, with our Western European operations delivering 7% rebased growth. Our Q2 2014 growth in Western Europe was somewhat offset by a 2% rebased OCF decline in CEE and higher year-over-year central and other costs. Beyond Europe, our Chilean operation delivered 13% rebased OCF growth in the quarter, primarily driven by a reduction of the OCF deficit generated by its mobile business.  Turning back to Western Europe, our strong Q2 performance was underpinned by our German, Swiss and British operations, which delivered 11%, 9% and 6% rebased OCF growth, respectively. In Switzerland, our rebased OCF growth was our best Q2 performance since 2008, and was powered by its aforementioned revenue growth and a favorable quarterly comparison due to higher Horizon TV expenses in the prior year period. With respect to Virgin Media, our Q2 rebased OCF growth of 6% was delivered primarily through a combination of top-line growth, cost savings and synergies, as a nonrecurring item that reduced programming costs in Q2 largely offset the adverse impact of the aforementioned legislative change to the VAT rules. Also noteworthy was our Dutch performance, which reflects our best quarterly result in this market in over a year with 3% rebased OCF growth. This result was helped by strong cost control and further operational efficiencies. These results were partly offset by slower growth in our Belgian business, which delivered 2% rebased OCF growth in the quarter, due in part to higher costs associated with handset subsidies.  We reported consolidated OCF margins^9 of 47% for the three and six months ended June 30, 2014, respectively, in line with the corresponding prior year periods on a reported basis. If we were to adjust our margin calculations^10 to include Virgin Media for the full three- and six-month periods ended June 30, 2013, our combined OCF margins would have been 45% for each of the 2013 periods. The resulting year-over-year margin improvements for the three and six month periods were primarily driven by our two largest operations, Virgin Media and UnityMedia KabelBW.  Operating Income  We reported operating income of $670 million and $1.3 billion for the three and six months ended June 30, 2014, respectively. As compared to the corresponding prior year periods, our operating income increased 50% for the three-month period and 29% for the six-month period. These increases are primarily attributable to the net impacts of the Virgin Media acquisition, which accounted for a large part of the growth in our OCF and depreciation and amortization expenses. In addition, decreases in share-based compensation expense also contributed to the increases in operating income.  Net Loss Attributable to Shareholders  For the three and six months ended June 30, 2014, we reported net losses attributable to shareholders (“Net Losses”) of $250 million or $0.32 per basic and diluted^11 share and $329 million or $0.42 per basic and diluted share. This compares to Net Losses of $12 million or $0.02 per basic and diluted share ^ and $13 million or $0.02 per basic and diluted share for the three and six months ended June 30, 2013, respectively. The Net Loss for both the three and six months ended June 30, 2014, as compared to the prior year periods, was driven to a large extent by increases in realized and unrealized losses on derivative instruments, which more than offset a $333 million gain on the January 2014 Chellomedia Sale.  At July 30, 2014, we had 779 million shares outstanding, including 215 million Class A ordinary shares, 10 million Class B ordinary shares and 554 million Class C ordinary shares.  Property and Equipment Additions  For the three months ended June 30, 2014, we reported property and equipment ("P&E") additions^12 of $971 million or 21% of revenue, as compared to $735 million or 24% of revenue for the corresponding prior year period. For the YTD periods, we incurred P&E additions of $1.9 billion or 21% of revenue during 2014 as compared to $1.3 billion or 22% of revenue for the corresponding prior year period. In absolute terms, both year-over-year increases were primarily related to the inclusion of Virgin Media, which accounted for $356 million and $700 million of our P&E additions during the three- and six-month periods of 2014, as compared to $93 million in each of the prior year periods.  Adjusting our Q2 and YTD 2013 results for the inclusion of Virgin Media for the full period, our combined P&E additions would have been $1.0 billion or 23% of combined revenue for Q2 2013 and $1.9 billion or 22% for the YTD 2013 period.  In terms of a breakdown of our YTD 2014 spend, approximately 55% was related to customer premises equipment and scalable infrastructure, 25% was attributable to line extensions and upgrade/rebuild activity and 20% was due to support capital including information technology upgrades and general support systems.  Free Cash Flow & Adjusted Free Cash Flow  For the three and six months ended June 30, 2014, we generated FCF of $711 million and $1.0 billion, respectively, as compared to FCF of $203 million and $225 million in the corresponding prior year periods. Similarly, on an adjusted basis, which excludes certain cash costs, we increased FCF to $725 million for Q2 2014, as compared to $269 million for the second quarter of 2013. For the first half of 2014, we generated $1.1 billion of Adjusted FCF as compared to $336 million for the 2013 six-month period. The growth in both FCF and Adjusted FCF over the prior year three- and six-month periods was aided primarily by the inclusion of Virgin Media.  Finally, if we were to combine the Adjusted FCF of both Liberty Global and Virgin Media for the prior year periods, our Adjusted FCF of $1.1 billion for YTD 2014 represents a 40% increase over the combined Adjusted FCF of $769 million for YTD 2013. For the second quarter of 2014, we realized a year-over-year Adjusted FCF improvement of 36% to $725 million, as compared to $532 million of combined Adjusted FCF in Q2 2013. These increases were driven by organic OCF growth and favorable net working capital and FX movements that were only partially offset by higher cash interest payments. With respect to the remainder of 2014, we expect our Adjusted FCF to be significantly weighted toward the fourth quarter as compared to the third quarter.  Leverage & Liquidity  We had total debt^13 of $42.6 billion at June 30, 2014, as compared to $44.5 billion at March 31, 2014. Our decrease in total debt during the quarter was primarily due to over $2.0 billion of net debt repayments, most of which occurred at Virgin Media. These repayments more than offset the translation effect associated with a weakening U.S. dollar relative to the British pound sterling.  Subsequent to quarter-end, we took advantage of favorable market conditions to complete a $715 million leverage neutral refinancing in Puerto Rico, which extended our average maturity and reduced our cost of debt. Furthermore, we acquired a 6.4% stake in ITV plc for a total consideration of £481 million ($822 million) on July 17, 2014. Most of the purchase price was financed through a loan linked to a hedging transaction, while the remainder of this opportunistic investment was funded with existing liquidity.  With respect to our leverage at June 30, 2014, we had consolidated gross and net leverage ratios^14 of 4.9x and 4.8x, respectively, after excluding $1.6 billion of debt backed by shares we hold in Sumitomo and Ziggo. Our fully-swapped borrowing cost^15 decreased from 6.8% at March 31, 2014 to 6.6% at June 30, 2014, primarily reflecting the recent refinancing transactions at both Virgin Media and Telenet in combination with the repayment of higher cost debt at UPC Holding. In addition, the average duration of our debt improved to over seven years at June 30, 2014, with less than 20% of our total debt due before 2020.  In terms of our liquidity position, we finished the second quarter of 2014 with $1.1 billion of cash and cash equivalents, as compared to $3.1 billion at Q1 2014. During the second quarter of 2014, our cash position decreased as a result of the aforementioned debt repayments and stock repurchases, partially offset by strong free cash flow generation. Our consolidated liquidity^16 at June 30, 2014 was approximately $4.7 billion, including the aforementioned cash and cash equivalents of $1.1 billion and aggregate maximum undrawn commitments under our credit facilities^17 of $3.6 billion.  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 2014 and future prospects, including our expectations for continued organic growth in subscribers, higher rebased OCF growth, growth in and phasing of Adjusted FCF, the penetration of our advanced services, increased broadband internet speeds and acceptance of our product bundles including our mobile offers; our insight and expectations regarding competitive and economic factors in our markets, including the Netherlands, statements regarding the acquisition of Ziggo 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 our services and their 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 satisfy regulatory conditions associated with 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 deliver quality products, as well as other factors detailed from time to time in our filings with the Securities and Exchange Commission including the most recently filed Forms 10-K/A and 10-Q. These forward-looking statements speak only as of the date of this release. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our 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 largest international cable company with operations in 14 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 connected 24 million customers subscribing to 49 million television, broadband internet and telephony services at June 30, 2014.  Liberty Global's consumer brands include Virgin Media, UPC, Unitymedia, Kabel BW, Telenet and VTR. Our operations also include Liberty Global Business Services, our commercial division, and Liberty Global Ventures, our investment fund. For more information, please visit www.libertyglobal.com or contact:  _______________________________________               Please see page 17 for information on Free Cash Flow (“FCF”) and               Adjusted Free Cash Flow ("Adjusted FCF") and the required               reconciliations. The combined Adjusted FCF growth rates of 36% ^1         and 40% for the Q2 and YTD periods, respectively, are calculated               by comparing our reported Adjusted FCF during the Q2 and YTD               2014 periods to the combined Adjusted FCF of our company and               Virgin Media during the Q2 and YTD 2013 periods, as calculated               on pages 17 and 18.               Please see page 24 for the definition of RGUs. Organic figures               exclude RGUs of acquired entities at the date of acquisition, ^2            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. ^3            Please see page 12 for information on rebased growth. ^4            Please see page 15 for our OCF definition and the required               reconciliation.               Digital penetration is calculated by dividing the number of ^5            digital cable RGUs by the total number of digital and analog               cable RGUs. ^6            Latin America includes our broadband communications operations               in both Chile and Puerto Rico.               Our mobile subscriber count represents the number of active               subscriber identification module (“SIM”) cards in service rather               than services provided. For example, if a mobile subscriber has               both a data and voice plan on a smartphone this would equate to               one mobile subscriber. Alternatively, a subscriber who has a               voice and data plan for a mobile handset and a data plan for a ^7            laptop (via a dongle) would be counted as two mobile               subscribers. Customers who do not pay a recurring monthly fee               are excluded from our mobile telephony subscriber counts after               periods of inactivity ranging from 30 to 90 days, based on               industry standards within the respective country. Our June 30,               2014 mobile subscriber counts for the U.K. and Chile include               1,021,000 and 24,500 prepaid mobile subscribers, respectively.               Average Revenue Per Unit (“ARPU”) 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, interconnect and mobile               services revenue) for the indicated period, by the average of ^8            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 Liberty Global Consolidated, the               European Operations Division and Other Europe are not adjusted               for currency impacts. ^9            OCF margin is calculated by dividing OCF by total revenue for               the applicable period. ^10           Please see page 19 for information on combined OCF and combined               OCF margins.               All share and per share amounts presented herein have been               retroactively adjusted to give effect to the March 3, 2014 share               split in the form of a share dividend ("2014 Share Dividend"), ^11           which constitutes a bonus issue under our articles of               association and English law, of one Liberty Global Class C               ordinary share for each outstanding Class A, Class B and Class C               ordinary share.               Our property and equipment additions include our capital ^12           expenditures on an accrual basis and amounts financed under               vendor financing or capital lease arrangements. ^13           Total debt includes capital lease obligations.               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. For ^14           purposes of these calculations, debt excludes the loans backed               by the shares we hold in Sumitomo Corp. and Ziggo and is               measured using swapped foreign currency rates, consistent with               the covenant calculation requirements of our subsidiary debt               agreements.               Our fully-swapped debt borrowing cost represents the weighted               average interest rate on our aggregate variable- and fixed-rate ^15           indebtedness (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.               Consolidated liquidity refers to our consolidated cash and cash ^16           equivalents plus the maximum undrawn commitments under our               subsidiaries' borrowing facilities without regard to covenant               compliance calculations.               The $3.6 billion reflects the aggregate unused borrowing               capacity, as represented by the maximum undrawn commitments               under our subsidiaries' applicable facilities without regard to ^17           covenant compliance calculations. Upon completion of the               relevant June 30, 2014 compliance reporting requirements for our               credit facilities, and assuming no further changes from               quarter-end borrowing levels, we anticipate that our               subsidiaries' borrowing availability will be $3.6 billion.                  Liberty Global plc Condensed Consolidated Balance Sheets (unaudited)                                                June 30,       December 31,                                                  2014             2013                                                  in millions ASSETS Current assets: Cash and cash equivalents                        $ 1,110.2        $ 2,701.9 Trade receivables, net                           1,511.9          1,588.7 Derivative instruments                           499.2            252.1 Deferred income taxes                            319.8            226.1 Prepaid expenses                                 252.1            238.2 Current assets of discontinued operation         —                238.7 Other current assets                             263.8           236.9       Total current assets                             3,957.0          5,482.6                                                                               Investments                                      3,593.1          3,491.2 Property and equipment, net                      23,820.6         23,974.9 Goodwill                                         23,950.5         23,748.8 Intangible assets subject to amortization,       5,382.2          5,795.4 net Long-term assets of discontinued operation       —                513.6 Other assets, net                                4,826.0         4,707.8                                                                                   Total assets                                     $ 65,529.4      $ 67,714.3                                                                                LIABILITIES AND EQUITY Current liabilities: Accounts payable                                 $ 1,207.5        $ 1,072.9 Deferred revenue and advance payments from       1,443.7          1,406.2 subscribers and others Current portion of debt and capital lease        1,850.9          1,023.4 obligations Derivative instruments                           1,271.4          751.2 Accrued interest                                 666.6            598.7 Accrued programming and copyright fees           387.6            359.1 Current liabilities of discontinued              —                127.5 operation Other accrued and current liabilities            2,431.9         2,344.0     Total current liabilities                        9,259.6          7,683.0                                                                               Long-term debt and capital lease                 40,709.3         43,680.9 obligations Long-term liabilities of discontinued            —                19.8 operation Other long-term liabilities                      4,772.9         4,789.1     Total liabilities                                54,741.8        56,172.8                                                                                  Commitments and contingencies                                                                               Equity: Total Liberty Global shareholders                11,440.2         12,025.8 Noncontrolling interests                         (652.6     )     (484.3     ) Total equity                                     10,787.6        11,541.5                                                                                  Total liabilities and equity                     $ 65,529.4      $ 67,714.3                                                                                 Liberty Global plc Condensed Consolidated Statements of Operations (unaudited)                     Three months ended            Six months ended                       June 30,                        June 30,                       2014          2013            2014          2013                       in millions, except per share amounts                                                                                  Revenue               $ 4,602.2      $ 3,057.8      $ 9,135.9      $ 5,729.7                                                                                   Operating costs and expenses: Operating (other than depreciation and                   1,719.2         1,098.1         3,418.0         2,064.9 amortization) (including share-based compensation) Selling, general and administrative (SG&A)                792.5           613.0           1,555.0         1,084.4 (including share-based compensation) Depreciation and                   1,393.4         855.8           2,770.5         1,540.4 amortization Impairment, restructuring and other             27.6           45.8           141.2          66.7       operating items, net                       3,932.7        2,612.7        7,884.7        4,756.4    Operating             669.5          445.1          1,251.2        973.3      income                                                                                  Non-operating income (expense): Interest              (641.8    )     (542.4    )     (1,295.3  )     (1,013.9  ) expense Interest and          2.2             35.0            16.0            48.7 dividend income Realized and unrealized gains (losses)        (328.6    )     (3.4      )     (705.2    )     192.1 on derivative instruments, net Foreign currency transaction           (36.4     )     91.3            (57.2     )     (45.0     ) gains (losses), net Realized and unrealized gains due to changes in fair       157.4           193.8           97.2            264.6 values of certain investments, net Losses on debt modification and                   (53.0     )     (11.7     )     (73.9     )     (170.0    ) extinguishment, net Other expense,        (3.9      )     (1.5      )     (4.4      )     (3.2      ) net                       (904.1    )     (238.9    )     (2,022.8  )     (726.7    ) Earnings (loss) from continuing operations            (234.6    )     206.2           (771.6    )     246.6 before income taxes Income tax benefit               0.6            (193.3    )     117.6          (213.6    ) (expense) Earnings (loss) from continuing       (234.0    )     12.9           (654.0    )     33.0       operations Discontinued operation: Earnings (loss) from discontinued          —               (4.2      )     0.8             (2.4      ) operation, net of taxes Gain (adjustment to gain) on disposal of           (7.2      )     —              332.7          —          discontinued operation, net of taxes                       (7.2      )     (4.2      )     333.5          (2.4      ) Net earnings          (241.2    )     8.7             (320.5    )     30.6 (loss) Net earnings attributable to       (8.7      )     (20.3     )     (8.2      )     (43.2     ) noncontrolling interests Net loss attributable to       $ (249.9  )     $ (11.6   )     $ (328.7  )     $ (12.6   ) Liberty Global shareholders                                                                                  Basic and diluted earnings (loss) attributable to Liberty Global shareholders per share: Continuing            $ (0.31   )     $ (0.01   )     $ (0.84   )     $ (0.02   ) operations Discontinued          (0.01     )     (0.01     )     0.42           —          operation                       $ (0.32   )     $ (0.02   )     $ (0.42   )     $ (0.02   )                                                                                    Liberty Global plc Condensed Consolidated Statements of Cash Flows (unaudited)                                                  Six months ended                                                    June 30,                                                    2014          2013                                                    in millions                                                                               Cash flows from operating activities: Net earnings (loss)                                $ (320.5  )     $ 30.6 Loss (earnings) from discontinued operation        (333.5    )     2.4        Earnings (loss) from continuing operations         (654.0    )     33.0 Adjustments to reconcile earnings (loss) from continuing operations to net cash             3,570.7         1,315.6 provided by operating activities Net cash used by operating activities of           (9.6      )     (2.4      ) discontinued operation Net cash provided by operating activities          2,907.1        1,346.2    Cash flows from investing activities: Capital expenditures                               (1,402.0  )     (987.0    ) Proceeds received upon disposition of discontinued operation, net of disposal            985.2           — costs Cash paid in connection with acquisitions,         (32.3     )     (4,064.2  ) net of cash acquired Investments in and loans to affiliates and         (18.6     )     (1,202.7  ) others Other investing activities, net                    11.1            (17.2     ) Net cash used by investing activities of           (3.8      )     (7.1      ) discontinued operation Net cash used by investing activities              (460.4    )     (6,278.2  ) Cash flows from financing activities: Repayments and repurchases of debt and             (6,328.9  )     (7,339.1  ) capital lease obligations Borrowings of debt                                 3,605.8         8,845.2 Repurchase of Liberty Global and LGI shares        (895.9    )     (346.4    ) Net cash paid related to derivative                (177.6    )     (4.4      ) instruments Payment of financing costs and debt premiums       (172.2    )     (341.0    ) Net cash received (paid) associated with call option contracts on Liberty Global and        (98.8     )     45.2 LGI shares Distributions by subsidiaries to                   (2.2      )     (524.4    ) noncontrolling interests Decrease in restricted cash related to the         —               3,594.4 Virgin Media Acquisition Decrease in restricted cash related to the         —               1,539.7 Telenet Tender Purchase of additional Telenet shares              —               (454.5    ) Other financing activities, net                    9.9             6.4 Net cash used by financing activities of           (1.2      )     (5.4      ) discontinued operation Net cash provided (used) by financing              (4,061.1  )     5,015.7    activities Effect of exchange rate changes on cash: Continuing operations                              22.7            3.3 Discontinued operation                             —              (0.9      ) Total                                              22.7           2.4        Net increase (decrease) in cash and cash equivalents: Continuing operations                              (1,577.1  )     101.9 Discontinued operation                             (14.6     )     (15.8     ) Net increase (decrease) in cash and cash           (1,591.7  )     86.1 equivalents Cash and cash equivalents: Beginning of period                                2,701.9        2,038.9    End of period                                      $ 1,110.2      $ 2,125.0                                                                                Cash paid for interest - continuing                $ 1,199.1      $ 886.2    operations                                                                               Net cash paid for taxes: Continuing operations                              $ 54.5          $ 54.6 Discontinued operation                             2.2            6.2        Total                                              $ 56.7         $ 60.8                                                                                    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 and six months ended June 30, 2014, as compared to the corresponding prior year periods. All of our reportable segments derive their revenue primarily from broadband communications services, including video, broadband internet and fixed-line telephony services. Most of our reportable segments also provide B2B services and certain of our reportable segments provide mobile services. Segment information for the prior periods has been retrospectively revised to present the disposed Chellomedia operations as a discontinued operation. Unless otherwise noted, we present only the reportable segments of our continuing operations in the tables below. For additional information, see note 15 to the condensed consolidated financial statements included in our most recently filed Form 10-Q.  At June 30, 2014, our operating segments in the European Operations Division provided broadband communications services in 12 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 European Operations 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 European Operations Division. In Chile, VTR includes VTR GlobalCom, which provides video, broadband internet and fixed-line telephony services, and VTR Wireless, which provides mobile services through a third-party wireless access arrangement. Our corporate and other category includes (a) less significant consolidated operating segments that provide (1) broadband communications services in Puerto Rico and (2) programming and other services and (b) our corporate category. Intersegment eliminations primarily represent the elimination of intercompany transactions between our broadband communications and programming operations.  For purposes of calculating rebased growth rates on a comparable basis for all businesses that we owned during 2014, we have adjusted our historical revenue and OCF for the three and six months ended June 30, 2013 to (i) include the pre-acquisition revenue and OCF of certain entities acquired during 2013 and 2014 in our rebased amounts for the three and six months ended June 30, 2013 to the same extent that the revenue and OCF of such entities are included in our results for the three and six months ended June 30, 2014, (ii) remove intercompany eliminations for the applicable periods in 2013 to conform to the presentation during the 2014 periods following the disposal of the Chellomedia operations, which resulted in previously eliminated intercompany costs becoming third-party costs and (iii) reflect the translation of our rebased amounts for the three and six months ended June 30, 2013 at the applicable average foreign currency exchange rates that were used to translate our results for the three and six months ended June 30, 2014. We have included Virgin Media and four small entities in whole or in part in the determination of our rebased revenue and OCF for the three and six months ended June 30, 2013. We have reflected the revenue and OCF of the acquired entities in our 2013 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 Generally Accepted Accounting Principles in the United States (“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 nonrecurring 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:                                                                                            Three months ended              Increase                  Increase                    June 30,                        (decrease)                (decrease) Revenue            2014          2013            $             %         Rebased %                    in millions, except % amounts European Operations Division: U.K. (Virgin       $ 1,774.6       $ 401.3         $ 1,373.3       N.M.      3.0 Media) Germany (Unitymedia        688.8           624.6           64.2            10.3      5.1 KabelBW) Belgium            582.4           534.4           48.0            9.0       3.9 (Telenet) The                316.3           303.2           13.1            4.3       (0.6    ) Netherlands Switzerland        365.3           323.9           41.4            12.8      6.3 Other Western            233.5          219.6          13.9           6.3      1.1      Europe Total Western            3,960.9         2,407.0         1,553.9         64.6      3.4 Europe Central and Eastern            290.7           281.5           9.2             3.3       0.1 Europe Central and        32.6           31.5           1.1            3.5      * other Total European           4,284.2         2,720.0         1,564.2         57.5      3.1 Operations Division Chile (VTR)        229.8           252.7           (22.9     )     (9.1 )    4.0 Corporate          94.2            94.5            (0.3      )     (0.3 )    * and other Intersegment       (6.0      )     (9.4      )     3.4            N.M.      * eliminations Total              $ 4,602.2      $ 3,057.8      $ 1,544.4      50.5     3.1                                                                                            Supplemental Information: Total Liberty Global (excluding Virgin Media)                                3.2                                                                                                        Six months ended              Increase                 Increase                    June 30,                        (decrease)                (decrease) Revenue            2014          2013            $             %         Rebased %                    in millions, except % amounts European Operations Division: U.K. (Virgin       $ 3,502.5       $ 401.3         $ 3,101.2       N.M.      2.0 Media) Germany (Unitymedia        1,384.7         1,242.8         141.9           11.4      6.7 KabelBW) Belgium            1,156.6         1,070.6         86.0            8.0       3.5 (Telenet) The                634.4           618.0           16.4            2.7       (1.6    ) Netherlands Switzerland        718.1           649.9           68.2            10.5      4.9 Other Western            464.1          442.2          21.9           5.0      0.3      Europe Total Western            7,860.4         4,424.8         3,435.6         77.6      2.9 Europe Central and Eastern            579.9           569.3           10.6            1.9       (0.2    ) Europe Central and        66.5           63.3           3.2            5.1      * other Total European           8,506.8         5,057.4         3,449.4         68.2      2.7 Operations Division Chile (VTR)        455.1           503.1           (48.0     )     (9.5 )    4.6 Corporate          187.3           187.5           (0.2      )     (0.1 )    * and other Intersegment       (13.3     )     (18.3     )     5.0            N.M.      * eliminations Total              $ 9,135.9      $ 5,729.7      $ 3,406.2      59.4     2.7                                                                                            Supplemental Information: Total Liberty Global (excluding Virgin Media)                                3.2                                                                                        * - Omitted; N.M. - Not Meaningful                                                                                            Three months ended              Increase                 Increase                    June 30,                        (decrease)               (decrease) Operating          2014          2013            $           %          Rebased % Cash Flow                    in millions, except % amounts European Operations Division: U.K. (Virgin       $ 772.4         $ 175.3         $ 597.1       N.M.       6.2 Media) Germany (Unitymedia        431.0           369.4           61.6          16.7       11.2 KabelBW) Belgium            287.9           269.2           18.7          6.9        2.0 (Telenet) The                185.1           171.1           14.0          8.2        3.1 Netherlands Switzerland        219.6           189.2           30.4          16.1       9.2 Other Western            114.9          105.6          9.3          8.8       3.4      Europe Total Western            2,010.9         1,279.8         731.1         57.1       6.5 Europe Central and Eastern            136.9           135.1           1.8           1.3        (1.8    ) Europe Central and        (61.6     )     (54.2     )     (7.4    )     (13.7 )    * other Total European           2,086.2         1,360.7         725.5         53.3       5.8 Operations Division Chile (VTR)        85.8            86.8            (1.0    )     (1.2  )    12.7 Corporate          (27.1     )     (18.8     )     (8.3    )     (44.1 )    * and other Intersegment       —              11.4           (11.4   )     N.M.       * eliminations Total              $ 2,144.9      $ 1,440.1      $ 704.8      48.9      5.8                                                                                           Supplemental Information: Total Liberty Global (excluding Virgin Media)                               5.6                                                                                                                                                                                  Six months ended                Increase                   Increase                    June 30,                        (decrease)                 (decrease) Operating          2014          2013            $             %          Rebased % Cash Flow                    in millions, except % amounts European Operations Division: U.K. (Virgin       $ 1,508.9       $ 175.3         $ 1,333.6       N.M.       6.0 Media) Germany (Unitymedia        860.0           729.4           130.6           17.9       12.9 KabelBW) Belgium            590.0           516.7           73.3            14.2       9.4 (Telenet) The                368.4           355.9           12.5            3.5        (0.8    ) Netherlands Switzerland        426.0           371.4           54.6            14.7       8.8 Other Western            228.0          210.4          17.6           8.4       3.5      Europe Total Western            3,981.3         2,359.1         1,622.2         68.8       7.4 Europe Central and Eastern            283.9           275.7           8.2             3.0        1.0 Europe Central and        (121.3    )     (100.0    )     (21.3     )     (21.3 )    * other Total European           4,143.9         2,534.8         1,609.1         63.5       6.7 Operations Division Chile (VTR)        168.5           172.0           (3.5      )     (2.0  )    13.1 Corporate          (44.0     )     (29.4     )     (14.6     )     (49.7 )    * and other Intersegment       4.0            22.7           (18.7     )     N.M.       * eliminations Total              $ 4,272.4      $ 2,700.1      $ 1,572.3      58.2      6.7                                                                                             Supplemental Information: Total Liberty Global (excluding Virgin Media)                                 7.0                                                                                         * - Omitted; N.M. - Not Meaningful   Operating Cash Flow Definition and Reconciliation  OCF is the primary measure used by our chief operating decision maker to evaluate segment operating performance. OCF 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, OCF is defined as revenue less operating and SG&A expenses (excluding share-based compensation, depreciation and amortization, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items).Other operating items include (a) gains and losses on the disposition of long-lived assets, (b) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (c) 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 U.S. GAAP measures because it represents a transparent view of our recurring operating performance that is unaffected by our capital structure and allows management to (1) readily view operating trends, (2) perform analytical comparisons and benchmarking between segments and (3) 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.OCF 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              Six months ended                     June 30,                        June 30,                     2014          2013            2014          2013                     in millions Total segment operating           $ 2,144.9       $ 1,440.1       $ 4,272.4       $ 2,700.1 cash flow Share-based compensation        (54.4     )     (93.4     )     (109.5    )     (119.7    ) expense Depreciation and                 (1,393.4  )     (855.8    )     (2,770.5  )     (1,540.4  ) amortization Impairment, restructuring and other           (27.6     )     (45.8     )     (141.2    )     (66.7     ) operating items, net Operating           $ 669.5        $ 445.1        $ 1,251.2      $ 973.3    income                                                                                 Summary of Debt, Capital Lease Obligations and Cash and Cash Equivalents  The following table^1 details the U.S. dollar equivalent balances of our third-party consolidated debt, capital lease obligations and cash and cash equivalents at June 30, 2014:                                                                                               Capital         Debt &          Cash                                                    Capital                                    Lease           Lease           and Cash                     Debt^2         Obligations     Obligations     Equivalents                     in millions Liberty Global and          $ 1,722.0      $  40.5         $  1,762.5      $  577.2 unrestricted subsidiaries Virgin              13,653.5       350.7           14,004.2        72.6 Media^3 UPC Holding         10,864.7       31.2            10,895.9        72.0 Unitymedia          7,809.8        931.0           8,740.8         27.4 KabelBW Telenet             4,636.3        466.2           5,102.5         249.0 VTR Finance         1,400.0        0.7             1,400.7         110.5 Liberty             652.3          1.3             653.6           1.5 Puerto Rico Total Liberty       $ 40,738.6     $  1,821.6      $  42,560.2     $  1,110.2 Global                                                                         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          Six months ended                          June 30,                    June 30,                          2014        2013          2014          2013                          in millions, except % amounts Customer premises        $ 354.3       $ 209.4       $ 698.8         $ 452.2 equipment Scalable                 174.7         160.8         343.5           236.2 infrastructure Line extensions          89.9          104.6         196.7           172.0 Upgrade/rebuild          138.1         95.0          272.9           169.8 Support capital &        213.8        165.5        369.1          236.1    other Property and equipment                970.8         735.3         1,881.0         1,266.3 additions Assets acquired under capital-related          (231.3  )     (145.5  )     (401.8    )     (221.6  ) vendor financing arrangements Assets acquired under capital            (40.8   )     (26.6   )     (89.8     )     (44.9   ) leases Changes in current liabilities              (31.7   )     (75.6   )     12.6           (12.8   ) related to capital expenditures Capital                  $ 667.0      $ 487.6      $ 1,402.0      $ 987.0  expenditures^4                                                                               Property and equipment                21.1    %     24.0    %     20.6      %     22.1    % additions as % of revenue                                                                                _________________________________ ^1        Except as otherwise indicated, the amounts reported in the table              include the named entity and its subsidiaries.              Debt amounts for UPC Holding and Telenet include senior secured ^2           notes issued by special purpose entities that are consolidated by              each.              The Virgin Media borrowing group includes certain subsidiaries of              Virgin Media Inc. ("Virgin Media"), but excludes Virgin Media.              The cash and cash equivalents amount includes cash and cash              equivalents held by the Virgin Media borrowing group, but              excludes $128 million of cash and cash equivalents held by Virgin ^3           Media. This amount is included in the amount shown for Liberty              Global and unrestricted subsidiaries. In addition, the $57              million carrying value of the 6.5% convertible notes of Virgin              Media is excluded from the debt of the Virgin Media borrowing              group and included in the debt of Liberty Global and unrestricted              subsidiaries.              The capital expenditures that we report in our condensed              consolidated statements of cash flows do not include amounts that              are financed under vendor financing or capital lease ^4           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 share-based incentive awards and (ii) cash payments for third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, less (a) capital expenditures, as reported in our consolidated statements of cash flows, (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 operations. We also present Adjusted FCF, which adjusts FCF to eliminate the incremental FCF deficit associated with the VTR Wireless mobile initiative and certain financing and other costs associated with the Virgin Media acquisition. 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 statements of cash flows. 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            Six months ended                      June 30,                      June 30,                      2014          2013          2014          2013                      in millions Net cash provided by operating            $ 1,596.3       $ 796.9       $ 2,916.7       $ 1,348.6 activities of our continuing operations Excess tax benefits from        —               (0.8    )     —               0.5 share-based compensation^5 Cash payments for direct acquisition          9.2             30.0          20.4            38.4 and disposition costs^6 Capital              (667.0    )     (487.6  )     (1,402.0  )     (987.0    ) expenditures Principal payments on vendor               (177.1    )     (130.4  )     (397.9    )     (167.4    ) financing obligations Principal payments on          (50.8     )     (5.1    )     (97.2     )     (8.2      ) certain capital leases FCF                  $ 710.6        $ 203.0      $ 1,040.0      $ 224.9                                                                                  FCF                  $ 710.6         $ 203.0       $ 1,040.0       $ 224.9 FCF deficit of       14.1            34.0          34.7            78.4 VTR Wireless Virgin Media acquisition          —              32.3         —              32.3       adjustments^7 Adjusted FCF         $ 724.7        $ 269.3      $ 1,074.7      $ 335.6                                                                                   ______________________________________              Excess tax benefits from share-based compensation represent the              excess of tax deductions over the related financial reporting              share-based compensation expense. The hypothetical cash flows ^5        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. ^6           Represents costs paid during the period to third parties directly              related to acquisitions and dispositions.              Represents costs associated with the Virgin Media Acquisition              consisting of (i) cash paid of $19.8 million during the period              related to the pre-acquisition costs of the new Virgin Media ^7           capital structure and (ii) cash paid of $12.5 million during the              period for withholding taxes associated with certain intercompany              transactions completed in connection with the Virgin Media              Acquisition.                Combined Free Cash Flow and Adjusted Free Cash Flow Information for Historical Q2 and YTD 2013  The combined amounts presented below have been included in this release to provide a means for comparison. The Liberty Global amounts presented below are on a reported basis. The Virgin Media pre-acquisition amounts presented below are on a reported basis for the period from January 1, 2013 to June 7, 2013, as adjusted to conform to the FCF and Adjusted FCF definitions of Liberty Global as set forth earlier. The Virgin Media pre-acquisition amounts have been converted into U.S. dollars at the average GBP/USD foreign exchange rate for the pre-acquisition period in 2013 as applicable. The combined Liberty Global/Virgin Media results have not been prepared with a view towards complying with Article 11 of Regulation S-X. In addition, the combined Liberty Global/Virgin Media results are not necessarily indicative of the FCF and Adjusted FCF that would have occurred if the Liberty Global/Virgin Media transaction had occurred on the dates assumed for purposes of calculating the combined results, or the FCF and Adjusted FCF that will occur in the future. The below FCF and Adjusted FCF table should be read in conjunction with the information included in the footnotes to the tables on page 17.                                                                             Three months ended                                        June 30, 2013                                                    Virgin                                              Liberty       Media Pre-                                        Global        acquisition   Combined                                       in millions Net cash provided by operating activities of our continuing           $ 796.9       $   433.8     $ 1,230.7 operations Excess tax benefits from               (0.8    )     —             (0.8      ) share-based compensation Cash payments for direct acquisition and disposition            30.0          76.7          106.7 costs Capital expenditures                   (487.6  )     (213.9    )   (701.5    ) Principal payments on vendor           (130.4  )     —             (130.4    ) financing obligations Principal payments on certain          (5.1    )     (34.4     )   (39.5     ) capital leases FCF                                    $ 203.0      $   262.2    $ 465.2                                                                                  FCF                                    $ 203.0       $   262.2     $ 465.2 FCF deficit of VTR Wireless            34.0          —             34.0 Virgin Media acquisition               32.3         —            32.3       adjustments Adjusted FCF                           $ 269.3      $   262.2    $ 531.5                                                                                                                    Six months ended                                    June 30, 2013                                                  Virgin                                           Liberty         Media Pre-                                    Global          acquisition     Combined                              in millions Net cash provided by operating activities of our        $ 1,348.6       $   906.1       $ 2,254.7 continuing operations Excess tax benefits from           0.5             —               0.5 share-based compensation Cash payments for direct acquisition and disposition        38.4            80.0            118.4 costs Capital expenditures               (987.0    )     (483.1    )     (1,470.1  ) Principal payments on vendor       (167.4    )     —               (167.4    ) financing obligations Principal payments on              (8.2      )     (69.4     )     (77.6     ) certain capital leases FCF                                $ 224.9        $   433.6      $ 658.5                                                                                  FCF                                $ 224.9         $   433.6       $ 658.5 FCF deficit of VTR Wireless        78.4            —               78.4 Virgin Media acquisition           32.3           —              32.3       adjustments Adjusted FCF                       $ 335.6        $   433.6      $ 769.2                                                                                   Combined Revenue, Property & Equipment Additions and OCF for Historical Q2 and YTD 2013  The combined amounts presented below have been included in this release to provide a means for comparison. The Liberty Global amounts presented below are on a reported basis. The Virgin Media pre-acquisition amounts presented below are on a reported basis for the period from January 1, 2013 to June 7, 2013. The Virgin Media pre-acquisition amounts have been converted into U.S. dollars at the average GBP/USD foreign exchange rate for the pre-acquisition period in 2013 as applicable. The combined Liberty Global/Virgin Media results have not been prepared with a view towards complying with Article 11 of Regulation S-X.                                                                   Three months ended                                   June 30, 2013                                                 Virgin Media                                     Liberty         Pre-                                   Global        acquisition    Combined                                   in millions                                                                               Revenue                           $ 3,057.8      $  1,174.6      $ 4,232.4                                                                                OCF                               $ 1,440.1       $  480.4         $ 1,920.5 Share-based compensation          (93.4     )     (17.7      )     (111.1    ) Depreciation and                  (855.8    )     (280.8     )     (1,136.6  ) amortization Impairment, restructuring         (45.8     )     (67.3      )     (113.1    ) and other Operating Income                  $ 445.1        $  114.6        $ 559.7                                                                                  Property & Equipment              $ 735.3        $  256.9        $ 992.2    Additions                                                                               OCF Margin                        47.1      %     40.9       %     45.4      % Property & Equipment Additions as a percentage         24.0      %     21.9       %     23.4      % of Revenue                                                                                                               Six months ended                                   June 30, 2013                                                 Virgin Media                                     Liberty         Pre-                                   Global        acquisition    Combined                                   in millions                                                                               Revenue                           $ 5,729.7      $  2,790.1      $ 8,519.8                                                                                OCF                               $ 2,700.1       $  1,126.1       $ 3,826.2 Share-based compensation          (119.7    )     (33.8      )     (153.5    ) Depreciation and                  (1,540.4  )     (667.1     )     (2,207.5  ) amortization Impairment, restructuring         (66.7     )     (78.5      )     (145.2    ) and other Operating Income                  $ 973.3        $  346.7        $ 1,320.0                                                                                Property & Equipment              $ 1,266.3      $  598.7        $ 1,865.0  Additions                                                                               OCF Margin                        47.1      %     40.4       %     44.9      % Property & Equipment Additions as a percentage         22.1      %     21.5       %     21.9      % of Revenue                                                                                ARPU per Customer Relationship  The following table provides ARPU per customer relationship^8 for the indicated periods:                                                                                      Three months ended June 30,     %          FX-Neutral                         2014           2013            Change     % Change^10 Liberty Global          $    50.09      $   40.74       23.0 %     18.6    % Consolidated^9 European Operations              €    35.95      €   29.62       21.4 %     20.8    % Consolidated^9 U.K. (Virgin            £    49.95      £   48.66       2.7  %     2.7     % Media)^9 Germany (Unitymedia             €    21.36      €   20.24       5.5  %     5.5     % KabelBW) Belgium (Telenet)       €    50.83      €   48.06       5.8  %     5.8     % Other Europe            €    30.09      €   28.87       4.2  %     4.4     % VTR                     CLP  31,699     CLP 31,268      1.4  %     1.4     %                                                                              Mobile Statistics^11  The following tables provide ARPU per mobile subscriber^12 and mobile subscribers^13 for the indicated periods:                                               ARPU per Mobile Subscriber                         Three months ended June 30,   %        FX-Neutral                         2014            2013          Change     % Change^10 Liberty Global Consolidated:^9 Including interconnect            $   26.68         $  26.58      0.4  %     (5.0    )% revenue Excluding interconnect            $   21.68         $  20.30      6.8  %     1.0     % revenue                                                                                                                                           Mobile Subscribers                                 June 30, 2014   March 31, 2014   Change European Operations: U.K. (Virgin Media)             3,041,300         2,998,500          42,800 Germany (Unitymedia             276,400           255,300            21,100 KabelBW) Belgium (Telenet)               820,800           779,800            41,000 The Netherlands                 2,500             3,500              (1,000  ) Switzerland                     500              —                 500      Total Western Europe            4,141,500        4,037,100         104,400  Poland                          13,300            14,600             (1,300  ) Hungary                         9,300            8,500             800      Total CEE                       22,600           23,100            (500    ) Total European Operations       4,164,100         4,060,200          103,900 Chile (VTR Wireless)            89,700           83,000            6,700    Grand Total                     4,253,800        4,143,200         110,600                                                                                 _________________________________               Average Revenue Per Unit (“ARPU”) 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, interconnect 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               Liberty Global Consolidated, the European Operations Division               and Other Europe are not adjusted for currency impacts               The Liberty Global consolidated and Virgin Media ARPU ^9            calculations for the 2013 period only include Virgin Media               results for the 23-day post-acquisition stub period.               The FX-neutral change represents the percentage change on a               year-over-year basis adjusted for FX impacts and is calculated ^10           by adjusting the prior year figures to reflect translation at               the foreign currency rates used to translate the current year               amounts. ^11           Please see page 7 for the definition of mobile subscriber.               Our ARPU per mobile subscriber calculation that excludes               interconnect revenue refers to the average monthly mobile               subscription revenue per average mobile subscribers in service               and is calculated by dividing the average monthly mobile               subscription revenue (excluding activation, handset fees and ^12           late fees) for the indicated period, by the average of the               opening and closing balances of mobile subscribers in service               for the period. Our ARPU per mobile subscriber calculation               that includes interconnect revenue increases the numerator in               the above-described calculation by the amount of mobile               interconnect revenue during the period.               With the exception of the U.K. and Chile, all of our mobile               subscribers receive mobile services pursuant to postpaid               contracts. As of June 30, 2014 and March 31, 2014, the mobile ^13           subscriber count in the U.K. included 1,021,000 and 1,040,800               prepaid mobile subscribers, respectively, and the mobile               subscriber count in Chile included 24,500 and 29,200 prepaid               mobile subscribers, respectively.                                                                                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 June30, 2014, March 31, 2014 and June 30, 2013:                  June 30,      March 31,     June 30,      Q2’14 /   Q2’14 /                                                                 Q1’14       Q2’13                    2014           2014           2013           (%          (%                                                                 Change)     Change) Total RGUs Total Video        21,658,200     21,727,400     21,877,900     (0.3 %)     (1.0 %) RGUs Total Broadband          14,822,300     14,611,800     13,881,600     1.4  %      6.8  % Internet RGUs Total Telephony          12,424,900     12,298,100     11,772,100     1.0  %      5.5  % RGUs Liberty Global             48,905,400     48,637,300     47,531,600     0.6  %      2.9  % Consolidated                                                                                   Total Customers European Operations         22,970,500     23,018,600     23,019,000     (0.2 %)     (0.2 %) Division VTR                1,224,700      1,210,300      1,182,900      1.2  %      3.5  % Puerto Rico        275,700        275,300        272,100        0.1  %      1.3  % Liberty Global             24,470,900     24,504,200     24,474,000     (0.1 %)     — Consolidated                                                                                   Total Single-Play        10,291,200     10,468,700     10,954,400     (1.7 %)     (6.1 %) Customers Total Double-Play        3,925,000      3,937,900      3,981,600      (0.3 %)     (1.4 %) Customers Total Triple-Play        10,254,700     10,097,600     9,538,000      1.6  %      7.5  % Customers                                                                                   % Double-Play Customers European Operations         15.7       %   15.7       %   15.9       %   —           (1.3 %) Division VTR                21.1       %   21.2       %   20.9       %   (0.5 %)     1.0  % Liberty Global             16.0       %   16.1       %   16.3       %   (0.6 %)     (1.8 %) Consolidated                                                                                   % Triple-Play Customers European Operations         41.6       %   40.9       %   38.7       %   1.7  %      7.5  % Division VTR                47.1       %   46.7       %   46.5       %   0.9  %      1.3  % Liberty Global             41.9       %   41.2       %   39.0       %   1.7  %      7.4  % Consolidated                                                                                   RGUs per Customer Relationship European Operations         1.99           1.98           1.93           0.5  %      3.1  % Division VTR                2.15           2.15           2.14           —           0.5  % Liberty Global             2.00           1.98           1.94           1.0  %      3.1  % Consolidated                                                                                                                               Consolidated Operating Data — June 30, 2014                                                                                         Video                                                                                                                                   Homes            Two-way          Customer              Total            Analog Cable        Digital Cable       DTH                 MMDS                Total            Internet            Telephony                        Passed^(1)       Homes            Relationships^(3)     RGUs^(4)         Subscribers^(5)   Subscribers^(6)   Subscribers^(7)   Subscribers^(8)   Video            Subscribers^(9)     Subscribers^(10)                                         Passed^(2) European Operations                                                                                                  Division: U.K.                   12,539,700       12,539,700       4,912,900             12,294,300       —                   3,733,700           —                   —                   3,733,700        4,415,500           4,145,100 Germany                12,658,700       12,321,600       7,098,800             11,949,200       4,327,400           2,257,500           —                   —                   6,584,900        2,742,900           2,621,400 Belgium                2,905,000        2,905,000        2,076,600             4,676,800        548,300             1,528,300           —                   —                   2,076,600        1,492,900           1,107,300 The                    2,843,700        2,830,700        1,605,700             3,697,500        483,600             1,119,900           —                   —                   1,603,500        1,098,400           995,600 Netherlands^(11) Switzerland^(11)       2,155,800        2,154,000        1,454,600             2,581,800        732,200             683,100             —                   —                   1,415,300        700,500             466,000 Austria                1,340,200        1,340,200        648,500               1,330,000        168,100             355,000             —                   —                   523,100          447,000             359,900 Ireland                856,200         751,700         523,900              1,091,600       44,500             336,700            —                  33,600             414,800         352,300            324,500 Total Western          35,299,300      34,842,900      18,321,000           37,621,200      6,304,100          10,014,200         —                  33,600             16,351,900      11,249,500         10,019,800 Europe Poland                 2,734,300        2,643,000        1,436,600             2,706,300        326,400             886,800             —                   —                   1,213,200        958,100             535,000 Hungary                1,545,300        1,529,800        1,059,700             1,911,200        240,300             395,700             269,200             —                   905,200          535,300             470,700 Romania                2,301,800        2,136,000        1,158,100             1,862,300        329,300             514,800             306,600             —                   1,150,700        406,700             304,900 Czech Republic         1,364,500        1,262,800        713,500               1,176,700        85,600              372,300             104,400             —                   562,300          440,400             174,000 Slovakia               503,400         480,700         281,600              428,000         48,700             137,000            65,300             600                251,600         111,900            64,500 Total CEE              8,449,300       8,052,300       4,649,500            8,084,500       1,030,300          2,306,600          745,500            600                4,083,000       2,452,400          1,549,100 Total Europe           43,748,600       42,895,200       22,970,500            45,705,700       7,334,400           12,320,800          745,500             34,200              20,434,900       13,701,900          11,568,900                                                                                                                                                                                                                       Chile                  2,948,200        2,427,700        1,224,700             2,637,800        122,200             885,700             —                   —                   1,007,900        921,000             708,900 Puerto Rico            704,800         704,800         275,700              561,900         —                  215,400            —                  —                  215,400         199,400            147,100                                                                                                                                                                                                                       Grand Total            47,401,600      46,027,700      24,470,900           48,905,400      7,456,600          13,421,900         745,500            34,200             21,658,200      14,822,300         12,424,900                                                                                                                                                                                                                        <td class="bwpadl0 bwnowrap bwpadr0 bwv*Story too large*                                            Subscriber Variance Table - June 30, 2014 vs. March 31, 2014                                                                                  Video                                                                                                                                Homes          Two-way        Customer              Total         Analog Cable        Digital Cable       DTH                 MMDS                Total         Internet            Telephony                        Passed^(1)     Homes          Relationships^(3)     RGUs^(4)      Subscribers^(5)   Subscribers^(6)   Subscribers^(7)   Subscribers^(8)   Video         Subscribers^(9)     Subscribers^(10)                                       Passed^(2) European Operations Division: U.K.                   (32,300  )     (32,300  )     (16,800     )         (17,000 )     —                   (14,900    )        —                   —                   (14,900 )     (300       )        (1,800      ) Germany                18,800         10,400         18,000                123,900       (10,300     )       10,400              —                   —                   100           81,700              42,100 Belgium                5,600          5,600          (5,800      )         25,100        (25,000     )       19,200              —                   —                   (5,800  )    12,000              18,900 The                    2,900          3,300          (11,900     )         7,300         (17,800     )       5,900               —                   —                   (11,900 )     13,400              5,800 Netherlands^(11) Switzerland^(11)       2,600          269,800        (4,800      )         21,700        (15,300     )       8,900               —                   —                   (6,400  )     25,100              3,000 Austria                3,300          3,300          (2,100      )         9,200         (15,700     )       13,100              —                   —                   (2,600  )     6,600               5,200 Ireland                (1,700   )     1,100         (6,700      )         7,600        (3,300      )       (2,300     )        —                  (2,300     )        (7,900  )     4,000              11,500       Total Western          (800     )     261,200       (30,100     )         177,800      (87,400     )       40,300             —                  (2,300     )        (49,400 )     142,500            84,700       Europe Poland                 9,300          13,000         5,600                 24,300        (26,900     )       18,600              —                   —                   (8,300  )     24,600              8,000 Hungary                3,300          3,200          4,700                 22,000        (6,000      )       7,700               2,400               —                   4,100         7,100               10,800 Romania                20,600         39,100         (21,400     )         100           (21,100     )       21,700              (22,600    )        —                   (22,000 )     11,700              10,400 Czech Republic         3,600          3,600          (4,500      )         (5,200  )     1,900               (3,900     )        1,400               —                   (600    )     (600       )        (4,000      ) Slovakia               600           700           (2,400      )         (1,000  )     (5,900      )       3,100              (500       )        —                  (3,300  )     1,200              1,100        Total CEE              37,400        59,600        (18,000     )         40,200       (58,000     )       47,200             (19,300    )        —                  (30,100 )     44,000             26,300       Total Europe           36,600         320,800        (48,100     )         218,000       (145,400    )       87,500              (19,300    )        (2,300     )        (79,500 )     186,500             111,000                                                                                                                                                                                                                         Chile                  15,000         15,400         14,400                41,200        (5,700  [TRUNCATED]  
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