EXHIBIT 99B
U S WEST Media Group
7800 East Orchard Road
Englewood, Colorado 80111
303 793-6500
[U S WEST Media Group logo and registered mark]
News Release
Release Date: February 13, 1997
Contact: Blair Johnson Steve Lang
(303) 793-6296 (303) 793-6290
U S WEST MEDIA GROUP REPORTS 22 PERCENT INCREASE
IN OPERATING CASH FLOW IN 1996
ENGLEWOOD, Colo. - U S WEST Media Group (NYSE: UMG) today reported operating
cash flow growth of more than 20 percent for the fifth consecutive quarter,
results fueled by industry-leading growth in its cable TV, wireless and
directory operations.
For the fourth quarter, Media Group reported $415 million of proportionate
operating cash flow, a 29.5 percent normalized increase over the fourth
quarter of 1995.
Other highlights of 1996, Media Group's first full year, included:
- - - Merging with Continental Cablevision, which made Media Group the third
largest cable operator in the United States.
- - - Offering high-speed Internet access through cable modems and cable TV
lines in certain Boston suburbs, Jacksonville, Fla., and -- beginning this
week -- the Detroit area.
- - - Repurchasing $350 million worth, or 19 million shares, of Media Group
stock in a buyback started in 1996.
- - - Launching, with its PrimeCo Personal Communications partners, a new
generation of wireless telephone service, called PCS, in 16 U.S. cities.
In addition, strong market demand last month enabled U S WEST to sell $4.1
billion in bonds -- twice its initial offering -- in the largest
investment-grade debt transaction ever.
For the year ending December 31, 1996, Media Group reported -- on a
proportionate basis:
- A 22 PERCENT INCREASE IN OPERATING CASH FLOW, to $1.4 billion, not
including results from Continental Cablevision since the Nov. 15 merger.
Media Group's operating cash flow for 1995 was $1.15 billion. Including
Continental's results since Nov. 15, Media Group's 1996 operating cash flow
was $1.47 billion.
Operating cash flow, which represents earnings before interest, taxes,
depreciation and amortization (EBITDA), is an important indicator of the
company's operating performance.
- A 19 PERCENT INCREASE IN REVENUE, to $6.1 billion, not including
results from Continental. Media Group's revenue for 1995 was $5.1 billion.
Including Continental's results since Nov. 15, Media Group's 1996 revenue was
$6.4 billion.
- - - A 17 PERCENT INCREASE IN CUSTOMERS WORLDWIDE, not including those added in
the Continental merger. Including Continental's 4.9 million customers, Media
Group now serves 11.9 million customers on a proportionate basis.
Because Media Group participates in numerous joint ventures, the company uses
proportionate accounting to reflect its relative share of operating revenues
and expenses associated with these operations.
For 1996, Media Group reported a net loss of $71 million. Excluding
Continental, Media Group would have broken even.
"Media Group got off to a strong start in our first full year," said Richard
McCormick, U S WEST chairman and chief executive officer. "We produced
impressive cash flow growth. We set the stage for further growth by merging
with Continental and introducing PCS. And last month we got a strong vote of
confidence when investors bought $4.1 billion in U S WEST bonds."
Chuck Lillis, Media Group president and chief executive officer, said he was
particularly pleased that Media Group met -- and exceeded -- its aggressive
objectives for 1996.
"These results reflect our emphasis on superior operating performance," Lillis
said. "Our cable subscriber growth in Atlanta was twice the industry average.
Domestic cellular cash flow reached an all-time high. And directory revenue
growth led that industry for the sixth straight year."
In 1997, Lillis said Media Group will focus on two goals.
"We're committed to again delivering industry-leading growth and continuing to
upgrade our networks to offer new services," Lillis said.
Proportionate operating highlights for 1996 -- by line of business -- include:
- - - CABLE AND TELEPHONY: Subscriber growth of 4.5 percent for MediaOne, the
company's Atlanta cable operation, exceeded the industry average for the
eighth consecutive quarter. MediaOne ended 1996 with 512,000 customers. This
strong subscriber growth produced revenue of $236 million, a 9.8 percent
increase compared to 1995. Operating cash flow in 1996 was $109 million, a 9
percent increase.
For the six weeks since it merged with Media Group, Continental reported
domestic revenue of $263 million and operating cash flow of $87 million.
Continental ended the year with 4.5 million domestic subscribers.
Meanwhile, Media Group's investment in Time Warner Entertainment
generated operating cash flow of $590 million in 1996, a 15.7 percent increase
from 1995.
Media Group's international cable properties also produced strong
subscriber growth. At year-end, its share of subscribers in these joint
ventures was 1.2 million, a 15 percent (normalized) increase compared to 1995.
In the United Kingdom, the company's Telewest joint venture increased its
cable subscriber base by 32 percent over 1995. Media Group ended 1996 with
161,000 U.K. cable subscribers. In addition, Telewest provided 47 percent
more telephone lines in 1996, giving Media Group 207,000 lines. Nearly
three-fourths of Telewest's cable subscribers also take telephone service.
- WIRELESS: Media Group's domestic cellular operations continued to lead
the industry in two growth measurements. Its subscriber base increased 40
percent, to 1.9 million proportionate customers, and its operating cash flow
increased 50 percent, to $350 million. In addition, its operating cash flow
margins increased by more than 4 percentage points.
International wireless operations also grew rapidly. Media Group ended
1996 with 509,000 proportionate customers, up 65 percent from 1995. In the
U.K., the company's One 2 One joint venture increased its subscriber base by
45 percent in 1996. Media Group ended the year with 273,000 proportionate
customers. In Central Europe, Media Group's joint ventures in Hungary, the
Czech Republic, Slovakia and Poland added more than 87,000 proportionate
subscribers in 1996, largely due to the introduction of new digital wireless
phones.
- - - DIRECTORIES: Media Group's directory publishing business, now called U S
WEST Dex, was an industry leader in published revenue growth for the sixth
consecutive year. Boosted by a 5.7 percent increase in revenue per
advertiser, Media Group's domestic directories reported 1996 revenue of $1.1
billion, a 7.4 percent increase from 1995.
U S WEST Media Group, one of America's largest broadband communications
companies, is involved in domestic and international cable and telephony,
wireless communications, and directory and information services. For 1996, U S
WEST Media Group reported proportionate revenues of $6.4 billion.
Media Group is one of two major groups that make up U S WEST, a company in the
connections business helping customers share information, entertainment and
communications services in local markets worldwide. U S WEST's other major
group, U S WEST Communications, provides telecommunications services in 14
western and midwestern states.
# # #
Some of the information presented in or in connection with this announcement
constitutes "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Although the Company believes that
its expectations are based on reasonable assumptions within the bounds of its
knowledge of its business and operations, there can be no assurance that
actual results will not differ materially from its expectations. Factors that
could cause actual results to differ from expectations include: (i) a change
in economic conditions in the various markets served by the Company's
operations that could adversely affect the level of demand for cable,
wireless, directory or other services offered by the Company, (ii) greater
than anticipated competitive activity requiring new pricing for Company
services, (iii) higher than anticipated start-up costs associated with new
business opportunities, (iv) regulatory changes affecting the
telecommunications industry, (v) increases in fraudulent activity with respect
to wireless services, or (vi) delays in the development of anticipated
technologies, or the failure of such technologies to perform according to
expectations.
Note: This release and the accompanying financial information will be
available on the Internet after 8:00 a.m. MST, by accessing U S WEST's
Internet site: www.uswest.com
U S WEST MEDIA GROUP
U S WEST MEDIA GROUP SELECTED OPERATING HIGHLIGHTS BY LINE OF BUSINESS
(ALL CHANGES ARE IN COMPARISON TO YEAR-END 1995)
U S WEST MEDIA GROUP COMBINED PROPORTIONATE RESULTS
Revenue of $6.4 billion
Operating cash flow of $1.47 billion
CABLE AND TELEPHONY
CONTINENTAL CABLEVISION (11/15/96-12/31/96)
- - - A 3.8% cable subscriber increase on a comparable basis
- - - Revenue of $263 million
- - - Operating cash flow of $87 million
INTERNATIONAL
- - - 1.2 million subscribers, a 15% increase on a comparable basis
- - - Revenue of $251 million, an 80% increase on a comparable basis
- - - Operating cash flow loss of $50 million
MEDIAONE
- - - 512,000 customers, a 4.5% increase
- - - Revenue of $236 million, a 9.8% increase
- - - Operating cash flow of $109 million, a 9% increase
TIME WARNER ENTERTAINMENT (TWE)
- - - A 3.6% cable subscriber increase on a comparable basis
- - - Revenue of $2.8 billion, a 14% increase
- - - Operating cash flow of $590 million, a 15.7% increase
WIRELESS
DOMESTIC WIRELESS
- - - 1.9 million customers, a 40% increase
- - - Revenue of $1.1 billion, a 31% increase
- - - Operating cash flow of $350 million, a 50% increase
- - - Operating cash flow, as a percent of net operating revenue, of 37.5%
INTERNATIONAL
- - - 509,000 subscribers, a 65% increase
- - - Revenue of $436 million, a 48% increase
- - - Operating cash flow loss of $2 million, compared with a loss of $40 million
in 1995
DIRECTORY AND INFORMATION SERVICES
U S WEST DEX (DIRECTORIES)
- - - Revenue of $1.1 billion, a 7.4% increase
- - - Operating cash flow of $531 million, a 2.3% increase
INTERNATIONAL
- - - Revenue of $206 million, a 45% increase
- - - Operating cash flow of $20 million, compared to $3 million in 1995
U S WEST MEDIA GROUP COMBINED GAAP RESULTS
- - - Revenue of $2.96 billion
- - - Operating cash flow of $937 million
- - - Net loss of $71 million
- - - Loss per common share of 16 cents