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: July 29, 1997
Contact: Blair Johnson Steve Lang
(303) 793-6296 (303) 793-6290
U S WEST MEDIA GROUP REPORTS SEVENTH CONSECUTIVE QUARTER
OF DOUBLE-DIGIT REVENUE AND CASH-FLOW GROWTH
ENGLEWOOD, Colo. - U S WEST Media Group (NYSE: UMG) today reported its seventh
straight quarter of double-digit growth in revenue and operating cash flow.
For the second quarter 1997, Media Group reported - on a proportionate basis:
- - -A 16 PERCENT INCREASE IN OPERATING CASH FLOW, to $657 million. Media Group's
operating cash flow for second quarter 1996 was $566 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, 1996.).
Operating cash flow, which represents earnings before interest, taxes,
depreciation and amortization (EBITDA), is a key indicator of the company's
operating performance.
- - -A 15 PERCENT INCREASE IN REVENUE, to $2.3 billion. Media Group's revenue for
second quarter 1996 was $2.0 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.
"This was another strong quarter - financially and operationally," said
Richard McCormick, U S WEST chairman and chief executive officer. "This marks
the first time our international operations -- including all three lines of
business -- were cash-flow positive. That's an encouraging development as
Media Group strives to reach its goal of 20 percent annual cash-flow growth."
Chuck Lillis, Media Group president and chief executive officer, said,
"Besides delivering strong cash flow, we renamed all our domestic cable
systems MediaOne -- a name that reflects how we're using a single network to
deliver new broadband services.
- - -more-
Page 2
"In the second quarter, we expanded one of those products -- our high-speed
data service, MediaOne Express -- into two new markets," Lillis said. "We
began the quarter with 3,500 data customers and ended it with more than 6,400.
And two weeks ago, we introduced MediaOne Express in a sixth market -
Atlanta."
MediaOne Express is also available in parts of greater Boston; Jacksonville,
Fla.; Detroit; Chicago; and southeast Florida. By the end of the year,
MediaOne expects to offer it in three more markets.
Lillis also said the company is making good progress toward its goal of
generating $1 billion by selling non-strategic assets. This year Media Group
has sold more than $625 million in non-strategic assets, including its
wireless interest in France, and a directory publishing company in the United
Kingdom. In addition, the company sold non-strategic programming and cable
interests, as well as shares in Teleport Communications Group and Time Warner
that Media Group acquired in its merger with Continental.
"Streamlining our business sharpens our focus in many ways, including
providing additional cash to fund our network upgrades," Lillis said. "These
upgrades are enabling us to go beyond cable TV to offer multichannel video,
high-speed data and telephone services."
Second quarter 1997 proportionate operating highlights - by line of business -
include:
- - -CABLE AND BROADBAND COMMUNICATIONS: MediaOne ended the second quarter with
almost 5.1 million subscribers, up 3.4 percent from the second quarter 1996.
Overall, revenue from Media Group's domestic cable operations, including its
investment in Time Warner Entertainment, increased 6.9 percent, to nearly $1.3
billion, while operating cash flow was up 5.8 percent, to $402 million.
-WIRELESS: Media Group's domestic cellular operations continued to
deliver strong results. Its subscriber base increased 33 percent, to 2.1
million proportionate customers, and its operating cash flow increased 54
percent, to $132 million. In addition, its operating cash flow margins
increased by 8.6 percentage points.
Internationally, Media Group's wireless business continued to grow
rapidly, more than doubling its subscriber base since the second quarter of
1996. Much of that growth came from One 2 One, the company's joint venture in
the United Kingdom. With aggressive marketing and expanded coverage now
reaching 85 percent of the U.K. population, One 2 One increased its second
quarter 1997 subscriber base by 59 percent from the same period last year.
One 2 One also improved its revenue per customer by more than 10 percent.
-more-
Page 3
- - -DIRECTORIES: Media Group's directory publishing business, now called U S
WEST Dex, produced strong second quarter revenue growth of 6.6 percent,
helping the company remain an industry leader. In addition, Dex increased its
revenue per customer by 7.4 percent in the second quarter. Media Group's
second quarter 1997 net loss was $94 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 had proportionate pro forma revenue of $8.1 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 8:00 A.M. (MDT) BY ACCESSING U S WEST'S INTERNET SITE:
WWW.USWEST.COM
U S WEST Media Group Page 4
U S WEST MEDIA GROUP - SELECTED OPERATING HIGHLIGHTS
ALL AMOUNTS SHOWN ARE PROPORTIONATE UNLESS OTHERWISE STATED
$ IN MILLIONS
CABLE AND BROADBAND COMMUNICATIONS
<BTB>
DOMESTIC
2Q97 GROWTH*
------ --------
TOTAL
Revenue $2,281 6.9%
EBITDA $402 5.8%
CONSOLIDATED CABLE (EXCLUDING NEW SERVICES)
<BTB>
Homes Passed (000's) 8,395 2.4%
Multichannel Video
Subscribers (000's) 5,095 3.4
Revenue $580 9.2%
EBITDA $258 8.4%
High Speed Data
Customers (000's) 6.4 -
<BTB>
INTERNATIONAL
2Q97 GROWTH*
------ --------
TOTAL
Customers (000's) 1,199 12.0%
Revenue $118 42.2%
EBITDA $11 up $14
<BTB>
WIRELESS
DOMESTIC
2Q97 GROWTH
------- -------
CELLULAR
POPs (millions) 20.3 1.5%
Subscribers (000's) 2,073 33.1%
Service Revenue $296 23.8%
Operating Cash Flow $132 53.5%
OCF as a percent of
service revenue 44.5% 8.6 pp
Average revenue per $48.98 -8.9%
customer
PRIMECO PERSONAL COMMUNICATIONS
<BTB>
POPs (millions) 14.7 7.3%
Subscribers (000's) 46 -
<BTB>
INTERNATIONAL
2Q97 GROWTH
----- -------
TOTAL
Customers (000's) 760 105.4%
Revenue $180 81.8%
Operating Cash Flow $7 up $8
<BTB>
ONE 2 ONE
Subscribers (000's) 351 59.0%
Market Share 9.5%
Coverage 85%
DIRECTORY AND INFORMATION SERVICES
<BTB>
DOMESTIC
2Q97 GROWTH
------- -------
DIRECTORY PUBLISHING
Local Advertisers (000's) 482 -
Revenue $291 6.6%
Operating Cash Flow $149 9.6%
Operating Cash Flow 51.2% 1.4 pp
Margin
Revenue per Advertiser $2,254 7.4%
<BTB>
INTERNATIONAL
2Q97 GROWTH
----- -------
TOTAL
Revenue $47 4.4%
Operating Cash Flow $8 100.0%
* Growth rates are pro forma as if the Continental merger occurred
January 1, 1996.