Liberty Global : Virgin Media Condensed Consolidated Financial Statements – June 30, 2019

Condensed Consolidated Financial Statements

June 30, 2019

VIRGIN MEDIA INC.

1550 Wewatta Street, Suite 1000

Denver, Colorado 80202

United States

VIRGIN MEDIA INC.
TABLE OF CONTENTS
	Page
	Number
FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 (unaudited)............................	1
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2019 and 2018
(unaudited) .................................................................................................................................................................	3
Condensed Consolidated Statements of Comprehensive Earnings (Loss) for the Three and Six Months Ended June
30, 2019 and 2018 (unaudited)...................................................................................................................................	4
Condensed Consolidated Statements of Owners' Equity for the Three and Six Months Ended June 30, 2019 and
2018 (unaudited) ........................................................................................................................................................	5
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018
(unaudited) .................................................................................................................................................................	7
Notes to Condensed Consolidated Financial Statements (unaudited) ...........................................................................	9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS ...............................................................................................................................................................	42

VIRGIN MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

		June 30,		December 31,
		2019			2018
		in millions
ASSETS
Current assets:
Cash and cash equivalents ........................................................................................................	£	32.9	£	16.8
Trade receivables, net ...............................................................................................................		621.6			604.7
Related-party receivables (note 10)..........................................................................................		49.2			47.1
Derivative instruments (notes 4 and 10)...................................................................................		173.0			143.1
Prepaid expenses.......................................................................................................................		95.9			64.3
Other current assets (note 3).....................................................................................................		132.3			138.9
Total current assets .................................................................................................................		1,104.9			1,014.9
Property and equipment, net (notes 6 and 8) ..............................................................................		6,144.6			6,272.2
Goodwill (note 6) ........................................................................................................................		6,017.5			6,018.4
Deferred income taxes (note 9)...................................................................................................		1,490.4			1,453.5
Related-party notes receivable (note 10).....................................................................................		4,866.4			4,863.6
Other assets, net (notes 3, 4, 6 and 8) .........................................................................................		1,570.1			1,532.0
Total assets ...........................................................................................................................	£	21,193.9	£	21,154.6

The accompanying notes are an integral part of these condensed consolidated financial statements.

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VIRGIN MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS - (Continued)

(unaudited)

		June 30,		December 31,
		2019			2018
		in millions
LIABILITIES AND OWNERS' EQUITY
Current liabilities:
Accounts payable (note 10) ......................................................................................................	£	342.5	£	410.6
Deferred revenue (note 3).........................................................................................................		374.1			369.4
Current portion of debt and finance lease obligations (notes 7 and 8) .....................................		1,884.8			1,931.2
Accrued interest........................................................................................................................		167.4			197.8
Accrued capital expenditures (note 10) ....................................................................................		135.2			146.8
Other current liabilities (notes 4, 8 and 10) ..............................................................................		688.8			577.7
Total current liabilities.........................................................................................................		3,592.8			3,633.5
Long-term debt and finance lease obligations (notes 7, 8 and 10)..............................................		10,621.2			10,609.2
Other long-term liabilities (notes 3, 4 and 8) ..............................................................................		596.9			370.8
Total liabilities .....................................................................................................................		14,810.9			14,613.5
Commitments and contingencies (notes 4, 7, 9 and 11)
Owners' equity:
Parent's equity:
Additional paid-in capital.......................................................................................................		7,845.8			7,818.9
Accumulated deficit ...............................................................................................................		(1,534.0)			(1,367.0)
Accumulated other comprehensive earnings, net of taxes .....................................................		91.7			89.2
Total parent's equity ..........................................................................................................		6,403.5			6,541.1
Noncontrolling interest ...............................................................................................................		(20.5)			-
Total owners' equity........................................................................................................		6,383.0			6,541.1
Total liabilities and owners' equity...............................................................................	£	21,193.9	£	21,154.6

The accompanying notes are an integral part of these condensed consolidated financial statements.

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VIRGIN MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

		Three months ended			Six months ended
		June 30,				June 30,
		2019			2018			2019			2018
					in millions
Revenue (note 12)........................................................................................	£	1,279.3	£	1,275.0	£	2,554.8	£	2,552.7
Operating costs and expenses (exclusive of depreciation and
amortization, shown separately below):
Programming and other direct costs of services (note 10) ........................		392.2			377.3			791.6			774.7
Other operating (note 10) ..........................................................................		171.4			167.5			343.2			334.2
Selling, general and administrative (SG&A) (note 10).............................		183.6			175.4			355.7			345.6
Related-party fees and allocations, net (note 10) ......................................		55.5			29.8			103.2			62.7
Depreciation and amortization ..................................................................		439.5			442.4			887.6			891.0
Impairment, restructuring and other operating items, net .........................		7.8			8.9			41.2			11.5
		1,250.0			1,201.3			2,522.5			2,419.7
Operating income....................................................................................		29.3			73.7			32.3			133.0
Non-operating income (expense):
Interest expense (note 10)..........................................................................		(162.5)			(164.4)			(323.5)			(322.8)
Interest income - related party (note 10).................................................		72.6			83.3			141.9			162.1
Realized and unrealized gains on derivative instruments, net (notes 4
and 10) ...................................................................................................		182.8			346.3			60.8			172.6
Foreign currency transaction losses, net....................................................		(127.2)			(356.0)			(30.5)			(159.2)
Realized and unrealized gains (losses) due to changes in fair values of
certain debt, net (notes 5 and 7).............................................................		(8.2)			(5.4)			(17.5)			5.5
Losses on debt modification and extinguishment, net (note 7).................		(37.5)			-			(37.9)			-
Other income, net ......................................................................................		1.3			2.3			2.5			4.3
		(78.7)			(93.9)			(204.2)			(137.5)
Loss before income taxes........................................................................		(49.4)			(20.2)			(171.9)			(4.5)
Income tax benefit (expense) (note 9) .........................................................		(3.6)			11.4			6.9			12.6
Net earnings (loss) ................................................................................		(53.0)			(8.8)			(165.0)			8.1
Net earnings attributable to noncontrolling interest.....................................		(1.3)			-			(2.0)			-
Net earnings (loss) attributable to parent..............................................	£	(54.3)	£	(8.8)	£	(167.0)	£	8.1

The accompanying notes are an integral part of these condensed consolidated financial statements.

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