EXHIBIT 99B
U S WEST Media Group
7800 East Orchard Road
Englewood, Colorado 80111
[U S WEST Media Group logo and registered mark]
News Release
Release Date: April 29, 1997
Contacts: Blair Johnson Steve Lang
(303) 793-6296 (303) 793-6290
U S WEST MEDIA GROUP REACHES CABLE CUSTOMER MILESTONE,
REPORTS SIXTH CONSECUTIVE QUARTER OF DOUBLE-DIGIT GROWTH
ENGLEWOOD, Colo. - U S WEST Media Group (NYSE: UMG) today reported its sixth
straight quarter of double-digit growth in revenue and operating cash flow and
said it now serves five million domestic cable customers.
For the first quarter 1997, Media Group reported -- on a proportionate basis:
- - - A 16 PERCENT INCREASE IN OPERATING CASH FLOW, to $620 million. Media
Group's operating cash flow for first quarter 1996 was $533 million on a
comparable basis. (All 1996 numbers have been adjusted to include Continental
Cablevision's results -- even though it didn't merge with Media Group until
Nov. 15.)
Operating cash flow, which represents earnings before interest, taxes,
depreciation and amortization (EBITDA), is an important indicator of the
company's operating performance.
- - - A 12 PERCENT INCREASE IN REVENUE, to $2.1 billion. Media Group's revenue for
first quarter 1996 was $1.9 billion.
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.
These strong results come on the heels of last week's announcement that Media
Group intends to merge its domestic wireless operations with those of AirTouch
Communications.
"The AirTouch transaction is a big strategic step for Media Group, one that's
good for everyone involved," said Richard McCormick, U S WEST chairman and
chief executive officer. "This gives Media Group shareowners AirTouch stock
in a tax-efficient manner, letting them realize the full value of their
wireless investments. It also reduces our leverage and helps Media Group
focus on its core cable business."
Chuck Lillis, Media Group president and chief executive officer, said, "The
kind of growth we're seeing puts us on track for another great year. Our
domestic cellular cash flow growth is extraordinary. Our directory publishing
business continues to be an industry leader in revenue growth. And we reached
an important cable milestone: our five millionth customer."
First quarter 1997 proportionate operating highlights -- by line of business
- - -- include:
- - - CABLE AND BROADBAND COMMUNICATIONS: Media Group's wholly owned cable
operations in the U.S. ended the first quarter with more than 5 million
subscribers, up 3 percent from first quarter 1996. The subscriber base
includes 3,500 high-speed Internet
access customers. Overall, revenue from Media Group's domestic cable
operations, including its investment in Time Warner Entertainment, increased 5
percent, to $1.2 billion, while operating cash flow was up 8 percent, to $390
million. This growth stems from strong operating results and one-time gains in
Media Group's Time Warner Entertainment partnership.
In addition, for the first time, Media Group's overall international
cable operations generated positive operating cash flow.
- WIRELESS: Media Group's domestic cellular operations continued to lead
the industry in two growth measurements. Its subscriber base increased 38
percent, to almost two million proportionate customers, and its operating cash
flow increased 64 percent, to $123 million. In addition, its operating cash
flow margins increased by 10 percentage points.
Internationally, Media Group's wireless businesses continued to grow
rapidly, led by One 2 One, the company's revitalized joint venture in the
United Kingdom. With expanded coverage and aggressive marketing, One 2 One
increased its first quarter 1997 subscriber base by 50 percent from the same
period last year. Media Group's overall international wireless subscriber
base increased 83 percent.
- - - DIRECTORIES: Media Group's directory publishing business, now called U S
WEST Dex, produced strong first quarter revenue growth of 7 percent, helping
the company maintain its industry-leading position.
"This was a solid quarter -- right in line with our expectations," Lillis
said. "Our cash flow from operations show how quickly our business is
growing, while our net loss reflects the accounting requirements for our
Continental merger."
Media Group's first quarter 1997 cash flow from operations was $249 million,
while its net loss was $109 million.
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,
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 FINANCIAL STATEMENTS WILL BE AVAILABLE ON THE
INTERNET AFTER 8 A.M. (MDT) BY ACCESSING U S WEST'S INTERNET SITE:
WWW.USWEST.COM
U S WEST MEDIA GROUP - SELECTED OPERATING HIGHLIGHTS
All Amounts Shown are Proportionate Unless Otherwise Stated
in millions
CABLE AND TELEPHONY
DOMESTIC
1Q97 GROWTH*
------ --------
Total
Revenue $1,215 5.4%
EBITDA $ 390 8.0%
Consolidated Cable (excluding
cost of new services)
Homes Passed (000's) 8,308 1.7%
Multichannel Video Subscribers
(000's) 5,025 3.1%
Revenue $ 549 6.1%
EBITDA $ 239 6.2%
Other Key Statistics
High Speed Data Customers
(000's) 3.5 -
INTERNATIONAL
1Q97 GROWTH*
------ --------
TOTAL
Customers (000's) 1,166 14.0%
Revenue $ 108 31.7%
EBITDA $ 9 up $11
WIRELESS
DOMESTIC
1Q97 GROWTH
------- ---------
CELLULAR
POPs (millions) 20.3 1.5%
Subscribers (000's) 1,984 38.1%
Service Revenue $ 274 26.3%
Operating Cash Flow $ 123 64.0%
OCF as a % of service revenue 44.9% 10 pp
Average revenue per customer $47.77 -8.7%
PRIMECO PERSONAL
COMMUNICATIONS
POPs (millions) 14.7 7.3%
Subscribers (000's) 27 -
INTERNATIONAL
1Q97 GROWTH
------- ---------
TOTAL
Customers (000's) 612 83.2%
Revenue $ 144 63.6%
Operating Cash Flow ($10) down $11
ONE 2 ONE
Subscribers (000's) 310 50.0%
Market Share 8.8% up 1pp
Coverage 80+% -
DIRECTORY AND INFORMATION SERVICES
DOMESTIC
1Q97 GROWTH*
------- ------------
DIRECTORY PUBLISHING
Local Advertisers (000's) 482 -
Revenue $ 284 7.2%
Operating Cash Flow $ 146 9.8%
Operating Cash Flow Margin 51.4% 1.2pp
Revenue per Advertiser $2,224 7.4%
INTERNATIONAL
1Q97 GROWTH*<F1>
------- ------------
TOTAL
Revenue $ 29 -9.4%
Operating Cash Flow ($6) -50.0%
<FN>
<F1>
* Growth rates are pro forma as if the Continental merger occurred January 1,
1996.
</FN>