Liberty Global : Virgin Media Condensed Consolidated Financial Statements – March 31, 2021

Condensed Combined Financial Statements

March 31, 2021

THE VIRGIN MEDIA GROUP

1550 Wewatta Street, Suite 1000

Denver, Colorado 80202

United States

THE VIRGIN MEDIA GROUP
TABLE OF CONTENTS
	Page
	Number
FINANCIAL STATEMENTS
Condensed Combined Balance Sheets as of March 31, 2021 and December 31, 2020 (unaudited).............................	1
Condensed Combined Statements of Operations for the Three Months Ended March 31, 2021 and 2020
(unaudited)..................................................................................................................................................................	3
Condensed Combined Statements of Comprehensive Earnings for the Three Months Ended March 31, 2021 and
2020 (unaudited).........................................................................................................................................................	4
Condensed Combined Statements of Equity for the Three Months Ended March 31, 2021 and 2020 (unaudited)......	5
Condensed Combined Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020
(unaudited)..................................................................................................................................................................	7
Notes to Condensed Combined Financial Statements (unaudited)................................................................................	9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS...............................................................................................................................................................	40

THE VIRGIN MEDIA GROUP

CONDENSED COMBINED BALANCE SHEETS

(unaudited)

		March 31,		December 31,
		2021			2020
		in millions
ASSETS
Current assets:
Cash and cash equivalents .......................................................................................................	£	6.3	£	22.0
Trade receivables, net...............................................................................................................		469.9			488.7
Related-partyreceivables (note 10)..........................................................................................		1,137.2			694.5
Prepaid expenses.......................................................................................................................		102.3			61.2
Other current assets (notes 3, 4, 5 and 10) ...............................................................................		195.6			217.0
Total current assets.................................................................................................................		1,911.3			1,483.4
Property and equipment, net (notes 6 and 8)...............................................................................		5,817.8			5,944.8
Goodwill (note 6)........................................................................................................................		5,955.9			6,017.7
Deferred income taxes (note 9)...................................................................................................		1,705.0			1,743.2
Related-partynotes receivable (note 10).....................................................................................		5,447.7			4,807.8
Other assets, net (notes 3, 4, 5, 6 and 8)......................................................................................		832.2			723.3
Total assets...........................................................................................................................	£	21,669.9	£	20,720.2

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

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THE VIRGIN MEDIA GROUP

CONDENSED COMBINED BALANCE SHEETS - (Continued)

(unaudited)

		March 31,		December 31,
		2021			2020
		in millions
LIABILITIES AND COMBINED EQUITY
Current liabilities:
Accounts payable (note 10)......................................................................................................	£	324.1	£	370.2
Deferred revenue (notes 3 and 10)...........................................................................................		340.6			340.8
Current portion of debt and finance lease obligations (notes 7, 8 and 10)...............................		2,178.6			2,040.3
Other current liabilities (notes 3, 4, 5, 8 and 10)......................................................................		939.8			1,160.3
Total current liabilities.........................................................................................................		3,783.1			3,911.6
Long-term debt and finance lease obligations (notes 7, 8 and 10)..............................................		10,305.8			9,887.6
Other long-termliabilities (notes 3, 4, 5, 8 and 10)....................................................................		776.8			818.2
Total liabilities.....................................................................................................................		14,865.7			14,617.4
Commitments and contingencies (notes 4, 5, 7, 8 and 11)
Combined equity:
Parent entities:
Common stock........................................................................................................................		10.7			-
Additional paid-incapital.......................................................................................................		8,312.8			7,727.6
Accumulated deficit................................................................................................................		(1,602.5)			(1,679.0)
Accumulated other comprehensive earnings, net of taxes......................................................		70.0			64.5
Total combined equity attributable to parent entities...........................................................		6,791.0			6,113.1
Noncontrolling interest.............................................................................................................		13.2			(10.3)
Total combined equity.......................................................................................................		6,804.2			6,102.8
Total liabilities and combined equity..............................................................................	£	21,669.9	£	20,720.2

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

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THE VIRGIN MEDIA GROUP

CONDENSED COMBINED STATEMENTS OF OPERATIONS

(unaudited)

		Three months ended
		March 31,
		2021			2020
		in millions
Revenue (notes 3 and 12)....................................................................................................................	£	1,268.8	£	1,266.3
Operating costs and expenses (exclusive of depreciation and amortization, shown separately
below):
Programming and other direct costs of services (note 10)................................................................		400.5			403.6
Other operating (note 10)..................................................................................................................		192.1			188.8
Selling, general and administrative (SG&A) (note 10)....................................................................		177.8			170.8
Related-partyfees and allocations, net (note 10)..............................................................................		78.9			74.2
Depreciation and amortization..........................................................................................................		320.9			339.3
Impairment, restructuring and other operating items, net ................................................................		-			4.8
		1,170.2			1,181.5
Operating income............................................................................................................................		98.6			84.8
Non-operating income (expense):
Interest expense (note 10).................................................................................................................		(132.5)			(149.1)
Interest income - related party (note 10)........................................................................................		71.6			64.3
Foreign currency transaction gains (losses), net...............................................................................		114.1			(375.7)
Realized and unrealized gains on derivative instruments, net (notes 4, 5 and 10)...........................		44.0			484.8
Realized and unrealized losses due to changes in fair values of certain debt, net (notes 5 and 7)...		-			(1.4)
Other income, net..............................................................................................................................		1.3			1.1
		98.5			24.0
Earnings before income taxes.........................................................................................................		197.1			108.8
Income tax expense (note 9)................................................................................................................		(30.6)			(25.7)
Net earnings..................................................................................................................................		166.5			83.1
Net earnings attributable to noncontrolling interest............................................................................		(2.4)			(1.4)
Net earnings attributable to parent entities...................................................................................	£	164.1	£	81.7

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

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