SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
November 7, 2002
Telewest Communications plc
---------------------------
(Translation of Registrant's Name into English)
Genesis Business Park, Albert Drive, Woking, Surrey, United Kingdom, GU21 5RW
-----------------------------------------------------------------------------
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
------- -------
Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
YES NO X
------- -------
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- _____.
EXHIBIT INDEX
Exhibit Description
------- -----------
99.1 Press release, dated November 7, 2002, announcing 3rd Quarter
Results 2002
SIGNATURE
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TELEWEST COMMUNICATIONS PLC
Dated: November 7, 2002 By: /s/ Clive Burns
---------------------------
Name: Clive Burns
Title: Company Secretary
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
7 NOVEMBER 2002
TELEWEST COMMUNICATIONS PLC
3RD QUARTER RESULTS 2002
FINANCIAL SUMMARY
- ------------------------------------------------------------ --------------------------- ---------------------
NINE MONTHS NINE MONTHS
ENDED ENDED
30 SEPT 2002 30 SEPT 2001 % CHANGE
(POUND)M (POUND)M
1,010 973 + 4%
TOTAL TURNOVER*
(187) (251) - 25%
OPERATING LOSS
EBITDA (INCLUDING SHARE OF UKTV)* 281 225 + 25%
(397) (597) - 34%
NET LOSS
330 474 - 30%
CAPEX
NET DEBT 5,327 4,909 + 9%
- ------------------------------------------------------------ --------------------------- ----------------------
* includes Telewest's proportionate share of UKTV
OPERATIONAL HIGHLIGHTS
- - Continued broadband leadership
- - 235,000 broadband subscribers as of today
- - Over 80% franchise market share
- - EBITDA up 25% to(pound)281m year-on-year
- - Capex down by 30% year-on-year
- - Quarterly EBITDA exceeds capex for first time
- - Financial restructuring on track
Commenting on the results, Charles Burdick, managing director of Telewest
Communications, said:
"THERE ARE THREE PRINCIPAL MEASURES BY WHICH WE JUDGE OURSELVES: BROADBAND
LEADERSHIP, CUSTOMER SERVICE AND COST CONTROL. WE CONTINUE TO MOVE FORWARD IN
ALL THESE AREAS.
TELEWEST IS CONTINUING TO PROVIDE BROADBAND LEADERSHIP AS DEMONSTRATED BY OUR
STRONG HIGH-SPEED INTERNET GROWTH. WITH 235,000 HIGH-SPEED INTERNET SUBSCRIBERS
AS OF TODAY, WE BELIEVE WE HAVE OVER 80% OF THE BROADBAND MARKET IN OUR
ADDRESSABLE AREAS. THIS GROWTH IS PARTICULARLY PLEASING GIVEN THE INCREASING
COMPETITION IN THE MARKET PLACE AND AGAINST THE BACKDROP OF OUR BALANCE SHEET
RESTRUCTURING, WHICH IS PROGRESSING WELL.
In a quarter, where we have continued to focus on cash, cost controls and
reducing headcount, we have experienced some subscriber losses. Despite these
subscriber losses and significant redundancy costs, EBITDA continues its
year-on-year growth and capex continues to fall. With a new management team in
place, we continue our efforts to work smarter, focus on essentials and leverage
our significant network assets.
Customer service improvements continue with selected investments. We have
launched single billing and e-billing across our franchises, customer self
diagnostic tools are in place for our blueyonder broadband service and we have
provided software upgrades to our call centres.
Our managers and staff have had to operate in very difficult circumstances in
recent months. It is a tribute to them, and the resilience of the business, that
we have been able to produce yet another improved set of results. All of us now
look forward to a resolution of our balance sheet problems so that we can
realise, without distraction, our belief in the potential of our business. With
our focused customer acquisition strategy and strong cost controls, we want to
be the leading cable telephony company measured by free cash flow, customer
service and broadband deployment and applications."
ENQUIRIES TO TELEWEST COMMUNICATIONS PLC
Charles Burdick group managing director 020 7299 5000
Mark Luiz group finance director 020 7299 5000
Jane Hardman director of corporate communications 020 7299 5571
Richard Williams head of investor relations 020 7299 5479
Vani Gupta investor relations manager 020 7299 5353
And at
BRUNSWICK
John Sunnucks 020 7404 5959
Sarah Tovey 020 7404 5959
FOR AN AUDIO VISUAL INTERVIEW WITH TELEWEST MANAGING DIRECTOR, CHARLES BURDICK,
PLEASE VISIT WWW.CANTOS.COM OR WWW.TELEWEST.CO.UK
FINANCIAL REVIEW
Total turnover for the nine months ended 30 September 2002 increased 4% to
(pound)1,010 million compared to the first nine months of 2001. This was driven
mainly by growth in the Consumer Division, which grew by 8% to (pound)684
million. Content Division revenues, including UKTV, fell by (pound)12 million
due to the closure or sale of non-core businesses and the closure of ITV
Digital. The Business Division also saw a (pound)4 million reduction due to
weakness in the Carrier market.
Gross margin has improved to 68% for the nine months ended 30 September 2002,
compared to 63% in the first nine months of 2001 driven by strong improvements
in CATV margins, rising telephony margins and the growing number of high margin
broadband internet subscribers. Gross margin is stated after having taken into
account cost of sales, before depreciation.
Selling, general and administrative expenses ("SG&A") for the nine months were
(pound)383 million, up 4% on the first nine months of 2001. Redundancy costs
were (pound)11 million in the third quarter and are (pound)20 million for the
year-to-date. Excluding this year's redundancy costs, SG&A has fallen by 1%
compared to the first nine months of 2001, as we focus on cost control.
As a result of the continuing improvements in revenue and gross margin, EBITDA
in the first nine months was (pound)281 million, up 25% on the corresponding
nine months last year. This includes our (pound)11 million share of UKTV's
EBITDA. EBITDA for the quarter of (pound)97 million, including our (pound)3
million share of UKTV, was up (pound)4 million or 4% on the second quarter.
EBITDA margin, excluding UKTV, for the first nine months of this year was 28%
compared to 22% in the first nine months of last year.
Net loss for the nine months ended 30 September 2002 was (pound)397 million,
down (pound)200 million or 34% on the first nine months of 2001. This reduction
was mainly due to improvements in EBITDA as explained above, foreign exchange
gains relating to dollar-denominated debt, and lower goodwill amortisation
costs.
Capital expenditure in the first nine months of this year was (pound)330
million, down (pound)144 million or 30% on the same period last year. Capital
expenditure in the third quarter was (pound)89 million, with EBITDA exceeding
capital expenditure in a quarter for the first time. Third quarter capital
expenditure was 24% lower than in the second quarter.
As at 30 September 2002, net debt stood at (pound)5,327 million, comprising
(pound)3,453 million of notes and debentures, (pound)221 million of lease and
vendor financing, (pound)35 million of other loans and (pound)1,969 million
drawn down on our bank facility, offset by cash balances of (pound)351 million.
GOING CONCERN
These financial statements have been prepared on a going concern basis and do
not include any adjustments that would arise as a result of the going concern
basis of preparation being inappropriate. The Board of Directors have confidence
in the successful conclusion of a restructuring of the Company's balance sheet
(and any required amendments to the Senior Secured Facility) and, together with
and on the basis of cash flow information that they have prepared, the directors
consider that the Group will continue to operate as a going concern for a period
of at least 12 months from the date of issue of these financial statements. For
additional information concerning the proposed restructuring of the Company's
balance sheet see Recent Developments. Any restructuring will require the
approval of our bankers and various stakeholders. Inherently, there can be no
certainty in relation to any of these matters.
The Group is also currently re-assessing the long-term future cash flows in its
business plan. Although, this assessment is ongoing and has not been concluded,
it is expected to result in a significant impairment of the carrying value of
the Group's tangible and intangible fixed assets. The Group expects to conclude
this assessment in the fourth quarter and will reflect non-cash impairment
charges in that quarter.
RECENT DEVELOPMENTS
On 30 September 2002 we announced that we had reached a non-binding preliminary
agreement relating to a restructuring with a committee representing a
significant proportion of our bonds ("the Bondholder Committee".) The agreement
provides for the cancellation of all outstanding notes and debentures issued by
the Company and Telewest Finance (Jersey) Limited (the Notes) and certain other
unsecured foreign exchange hedge contracts in exchange for new ordinary shares
representing 97 per cent of the issued share capital of the Company immediately
after the restructuring. Existing shareholders will retain a 3 per cent interest
in the Company post-restructuring.
Discussions with our senior lenders are continuing and we are close to reaching
an agreement with a steering committee of senior lenders and the Bondholder
Committee with respect to amended and restated bank facilities (the
"Facilities"). The agreement includes total committed amount of the Facilities;
maturity; margins; and financial covenants. It is expected that the Facilities
will provide the Company with liquidity which the Company believes will be
sufficient to meet its funding needs going forward. The provision of the
Facilities is conditional on various matters including the completion of the
restructuring on terms satisfactory to the Company's senior lenders.
Negotiations are continuing with other major stakeholders with a view to them
agreeing to vote in favour of the restructuring and the Company expects to be
able to make a further announcement on the progress of these negotiations by the
end of November.
We also announced on 30 September 2002 that we were deferring payment of
interest under certain of our Notes and the settlement of certain foreign
exchange hedge contracts. In view of the continuing progress in the
restructuring process, the Company has determined to continue to defer the
payment of interest under certain of its Notes (including a payment that was due
on 1 November 2002) and the settlement of foreign exchange hedge contracts. As
anticipated, the decision to defer such payments has resulted in defaults under
the Group's bank facilities and a number of other financing arrangements. Such
defaults will result in the re-classification of debts in default to amounts
payable within one year. Based on one such default, a creditor has filed a
petition for the winding up of the Company as a result of non-payment of amounts
due ((pound)10.5 million). The Company intends to deal with this claim as part
of the overall restructuring of its unsecured debt obligations and does not
believe that the legal action will delay or significantly impede the
restructuring process. The Company will of course continue to meet its
obligations to its suppliers and trade creditors and this legal action will have
no impact on customer service.
BUSINESS REVIEW
CONSUMER DIVISION
Consumer Division revenues for the nine months ended 30 September 2002, totalled
(pound)684 million, an increase of 8% on the corresponding nine months in 2001.
This increase has resulted mainly from ARPU gains coming from the growth of our
successful broadband products, increased multi-service penetration and selected
price rises.
At the end of the quarter, our 155,000 "triple play" customers subscribing to
broadband, telephone and CATV accounted for 9% of our customer base. This triple
play customer base has grown by 20% since the second quarter. Together with
price rises, this contributed to average monthly revenue per household growing
by 5% to (pound)41.59 for the nine months ended 30 September 2002, compared to
the same period for last year.
Compared to the second quarter, average monthly revenue per household for the
third quarter fell by (pound)0.65 to (pound)41.30 due mainly to falls in average
CATV revenue per subscriber, which was impacted by lower interactive revenues
and a lower value subscriber mix.
During the third quarter, net customer disconnections were 12,000. This was due
to the continued effect of price rises introduced earlier in the year and the
more rigorous enforcement of both our installation fee and disconnection
policies in line with our objective of focusing on more cash generative
customers. The forthcoming fourth quarter should see improvement in net
household additions. However, we will be focusing less on overall subscriber
growth and more on churn reduction and focused customer acquisition, such as
triple play customers.
Customer service remains a focus. We have improved our billing procedures - a
single bill is now available for all customers throughout the country and
e-billing has also been introduced. We have also recently enhanced the Liberate
middleware within our digital set top boxes. As a result of these and other
improvements, we are experiencing fewer calls into our customer contact centres
and our digital fault rates have continued to fall.
INTERNET
Net broadband internet additions in the third quarter of this year were 39,000,
representing 22% growth to 216,000 as at 30 September 2002. 21,000 of these
subscribers take our 1Mb blueyonder broadband internet service, launched in June
2002, with the remainder subscribing to our 512Kb service. All of our broadband
internet subscribers receive connection speeds in excess of 500 Kb/s.
Internal market research suggests that Telewest's broadband internet market
share is in excess of 80% within our addressable areas, demonstrating that
Telewest continues to provide broadband leadership. In addition, our 1Mb service
was recently voted the Best New Telecommunications product for 2002 at the
recent Computing Industry Awards. This latest award is the sixth award
blueyonder has collected in 2002. Industry experts and readers of the internet
press have voted us Best Broadband ISP and Most Satisfying British ISP amongst
others.
The success of our 1Mb service has contributed to a broadband average monthly
revenue rise to (pound)25.02 in the third quarter of this year compared to
(pound)24.28 in the previous quarter. (The price of the 1Mb service is
(pound)39.99 for those customers who only take this service and (pound)35 for
those who take at least one other additional product.) Broadband churn has risen
in the past quarter to 11.7% from 9.5% as our subscriber base grows and also due
to the churn of some customers who were attracted by promotions earlier in the
year offering free trials and discounted installation fees.
Together with our dial-up internet services, we now have over 500,000 internet
subscribers in total. Dial-up is led by our (pound)12 flat rate service, Surf
Unlimited, which introduces our subscribers to a reliable fixed-fee unmetered
service and many upgrade to broadband.
RESIDENTIAL TELEPHONY
Subscribers to Talk Unlimited, our 24-hour 7 day-a-week flat rate unmetered
residential voice service available for local and national calls in the UK,
continued to increase with 46,000 net additions in the quarter. We now have
346,000 Talk Unlimited subscribers representing 21% of our residential telephony
base.
Average monthly revenue per subscriber decreased slightly by (pound)0.13 in the
quarter to (pound)24.76. Residential telephony revenues continues to be impacted
by the effect of subscribers substituting mobile calls for fixed line telephone
calls and also the migration of dial-up internet subscribers to broadband.
Net residential telephony disconnections in the third quarter were just under
11,000 as churn rose slightly to 17.2%.
CATV
Our focus on cash and cost control has impacted the CATV base more than our
other products. For example, the migration of analogue customers to digital
continues to slow with digital net additions of 10,000 in the quarter. Our
829,000 digital subscribers now represent 64% of our total CATV subscriber base.
Net CATV disconnections in the quarter were 28,000 as churn rose slightly to
21.4%.
Average monthly CATV revenue for the quarter was (pound)20.02, down from
(pound)21.47 in the second quarter. The second quarter average revenue had
benefited from approximately (pound)2 million in "walled garden" termination
fees from content suppliers who withdrew from our interactive service. A
slightly changed subscriber mix has also negatively impacted the average
revenue. Following the price rises earlier in the year, fewer customers are
subscribing to our top basic package.
We are taking steps to increase value for our customers and have recently
enhanced our channel line-up with the introduction of Sky One, the Hallmark
Channel, UK Gold+1 and Living+1 to our digital Essential package. We have also
introduced Sky Sports News and UK History to our digital Starter pack.
BUSINESS DIVISION
Excluding Carrier Services, the Business Division's revenues to 30 September
2002 have grown 6% compared to the first nine months of 2001 and have also grown
for each of the last three quarters. The Division has continued to benefit from
the strategic focus on growth in the provision of data services, which have
provided improving revenues and margins. Carrier Services revenues were
(pound)30 million, down from (pound)43 million in the first nine months of 2001.
These revenues, although weaker than in 2001 have remained relatively stable for
the last three quarters.
Corporate and public sector customers have featured prominently in Telewest
Business's customer portfolio this quarter. Financial organisation Bristol &
West is being provided with an IPVPN (Internet Protocol Virtual Private Network)
Wide Area Network from Telewest Business, connecting 137 branches throughout the
UK in a deal worth (pound)4.6 million over five years. Bristol & West, part of
the Bank of Ireland Group, will use the IPVPN service to deliver its
mission-critical, voice, data and Internet communication across Telewest's
secure network. Telewest Business fully manages the service, which is monitored
24 hours a day, 7 days a week.
CONTENT DIVISION - FLEXTECH
Content Division revenues totalled (pound)127 million in the first nine months
of this year, including our 50% share of UKTV revenue. Content Division revenues
are down (pound)12 million compared to the first nine months of 2001 mainly due
to the closure or sale of non-core businesses and also the closure of ITV
Digital which negatively affected UKTV's revenues. Nevertheless, UKTV still
contributed (pound)11 million of EBITDA towards the Division's total EBITDA of
(pound)20 million.
Advertising revenues of (pound)53 million (including our 50% share of UKTV
revenue) for the first nine months of 2002 were up 9% in a market that saw only
a 2% overall rise.
Flextech and UKTV have announced that they will provide general entertainment
channels as part of the line-up for Freeview, the new digital terrestrial
television service. Flextech and UKTV will jointly fill one of the 24 hour
general entertainment slots on the new Freeview platform. It will consist of two
separate channels with distinct 12 hour offerings. Flextech's new channel called
"f tn" will broadcast daily between 6pm and 6am and UKTV's new channel, UK Homes
will ultimately broadcast between 6am and 6pm.
Flextech and UKTV have also recently extended their brands by launching two new
time-shifted versions of their most popular channels, UK Gold +1 and Living +1.
UKTV has also launched a completely new channel, UK History which will be
available on all multichannel platforms.
OTHER CORPORATE DEVELOPMENTS
On 6 November, 2002, Telewest placed its entire 16.9% shareholding in SMG plc
with institutional investors. The placing will realise proceeds of (pound)45.1
million.
On 6 November, 2002, Telewest announced an agreement to dispose of the entire
issued share capital of Maidstone Studios Limited to Dovedale Associates
Limited. The consideration due to Telewest will be (pound)4.25 million, to be
paid in cash.
NOTES:
1. Non-statutory information provided in this document is defined as follows:
o EBITDA, which we consider is a standard measure commonly reported and
widely used by analysts, investors and other interested parties in the
cable television and telecommunications industry, represents group
operating profit before deducting depreciation of fixed assets and
amortisation of goodwill.
o Gross margin is defined as Group turnover less cost of sales before
deducting depreciation.
All commentary in this document is based on the Group's UK GAAP financial
results unless otherwise specified.
2. The following is included in connection with legislation in the United
States, the Safe Harbor Statement under the US Private Securities Litigation
Reform Act of 1995: the foregoing includes certain forward looking statements
that involve various risks and uncertainties which could lead to actual results
significantly different than those anticipated by Telewest. For a discussion of
certain of these risks and uncertainties, see the Company's Annual Report on
Form 20-F filed with the US Securities and Exchange Commission on 1 July 2002.
TELEWEST COMMUNICATIONS PLC
OPERATING STATISTICS - UNAUDITED
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DIVISION
NET ADDITIONS Net additions
Q3 2002 Q3 2001
- ------------------------------------------------------------------------------------------------------------------------------------
Household customers (12,203) 9,916
Blueyonder broadband internet subscribers 38,779 21,992
Telephony subscribers (10,815) 13,840
Telephone lines (19,921) 5,838
Cable television subscribers (28,248) 5,439
- ------------------------------------------------------------------------------------------------------------------------------------
AS AT 30 SEPT As at 30 Sept
2002 2001
- ------------------------------------------------------------------------------------------------------------------------------------
Homes passed 4,913,954 4,910,160
Homes passed and marketed 4,697,861 4,711,903
Dual or triple service subscribers (1) 1,223,136 1,182,335
Cable television only subscribers 121,014 144,598
Residential telephony only subscribers 399,729 411,582
Internet only subscribers 14,355 6,097
Total residential subscribers 1,758,234 1,744,612
Household penetration 37.4% 37.0%
Percentage of dual or triple service subscribers (1) 69.6% 67.8%
Average monthly revenue per subscriber (2) (POUND)41.59 (pound)39.49
- ------------------------------------------------------------------------------------------------------------------------------------
BLUEYONDER INTERNET SUBSCRIBERS
Blueyonder broadband 216,173 53,134
Blueyonder SurfUnlimited 187,861 163,882
Blueyonder pay-as-you-go 96,309 127,162
Total Internet subscribers 500,343 344,178
- ------------------------------------------------------------------------------------------------------------------------------------
BLUEYONDER BROADBAND
Average monthly revenue per subscriber (3) (POUND)25.89 (pound)36.61
Average subscriber churn rate (4) 11.7% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
RESIDENTIAL TELEPHONY
Residential telephony subscribers 1,615,190 1,591,666
Talk Unlimited subscribers 346,285 76,150
Residential telephony penetration (5) 34.4% 33.8%
Residential telephone lines 1,725,904 1,744,427
Second line penetration 6.9% 9.6%
Average subscriber churn rate (6) 17.2% 16.7%
Average monthly revenue per line (7) (POUND)23.15 (pound)22.59
Average monthly revenue per subscriber (8) (POUND)24.98 (pound)24.93
- ------------------------------------------------------------------------ -----------------------------------------------------------
CABLE TELEVISION
Cable television subscribers 1,304,835 1,317,979
Active Digital subscribers 829,196 641,494
Penetration rate (9) 27.8% 28.0%
Average subscribers churn rate (10) 21.4% 18.7%
Average monthly revenue per subscriber (11) (POUND)20.79 (pound)20.61
- ------------------------------------------------------------------------------------------------------------------------------------
TELEWEST COMMUNICATIONS PLC
OPERATING STATISTICS - UNAUDITED (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
As at 30 Sept
AS AT 30 SEPT
2002 2001
- ------------------------------------------------------------------------------------------------------------------------------------
BUSINESS DIVISION
Business customer accounts 74,052 70,753
Business telephony lines 458,388 430,974
Average business lines per customer account (12) 6.2 6.1
Average annualised monthly revenue per business line (13) (POUND)42.33 (pound)44.86
Annualised revenue per customer account (14) (POUND)3,119 (pound)3,184
- ------------------------------------------------------------------------------------------------------------------------------------
CONTENT DIVISION
Multi channel subscribers 9,624,498 10,325,092
Flextech share of basic viewing (15) 19.8% 21.1%
Share of total TV advertising revenues (16) 3.4% 3.2%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Dual or triple service subscribers are those subscribers who
take any two or all of our cable television, residential
telephony and high-speed internet services.
(2) Average monthly revenue per subscriber (often referred to as
"ARPU" or "Average Revenue per User") represents (i) the
average monthly revenue of residential customers for such
period, divided by (ii) the average number of residential
customers in such period.
(3) Average monthly revenue per blueyonder broadband subscriber
for each period represents (i) the average monthly blueyonder
broadband revenue for such period, divided by (ii) the average
number of blueyonder broadband subscribers in such period.
(4) Average blueyonder broadband subscriber churn rate for the
period is calculated on a rolling 12-month basis and
represents (i) the total number of blueyonder broadband
subscribers who terminated their services or whose services
were terminated during such period, divided by (ii) the
average number of blueyonder broadband subscribers in such
period.
(5) Residential telephony penetration rate at a specified date
represents (i) the total number of residential cable telephony
subscribers at such date divided by (ii) the total number of
homes passed and marketed for residential cable telephony at
such date.
(6) Average residential telephony subscriber churn rate for the
period is calculated on a rolling 12-month basis and
represents (i) the total number of residential cable telephony
subscribers who terminated telephony services or whose
services were terminated during such period, divided by (ii)
the average number of residential cable telephony subscribers
in such period.
(7) Average monthly revenue per residential telephony line for
each period represents (i) the average monthly residential
cable telephony revenue for such period, divided by (ii) the
average number of residential cable telephony lines in such
period.
(8) Average monthly revenue per residential telephony subscriber
for each period represents (i) the average monthly residential
cable telephony revenue for such period, divided by (ii) the
average number of residential cable telephony subscribers in
such period.
(9) Cable television penetration rate at a specified date
represents (i) the total number of cable television
subscribers at such date, divided by (ii) the total number of
homes passed and marketed for cable television at such date.
(10) Average cable television subscriber churn rate for the period
is calculated on a rolling 12-month basis and represents (i)
the total number of cable television subscribers who
terminated basic services or whose services were terminated
during such period, divided by (ii) the average number of
cable television subscribers in such period.
(11) Average monthly revenue per cable television subscriber for
each period represents (i) the average monthly cable
television revenue for such period, divided by (ii) the
average number of cable television subscribers in such period.
(12) Average number of business lines per customer account at a
specified date represents (i) the number of business cable
telephony lines at such date, divided by (ii) the average
number of business cable telephony customer accounts at such
date.
(13) Average annualised monthly revenue per business line for each
period represents (i) the average monthly business services
revenue for the 12 months to date divided by (ii) the average
number of business lines in such period.
(14) Average annualised revenue per customer account for each
period represents (i) the average monthly business services
revenue for the 12 months to date divided by (ii) the average
number of business services customers in such period,
multiplied by 12 months.
(15) Basic viewing over 24 hours.
(16) Includes Flextech's wholly owned channels and UKTV's
advertising revenues
TELEWEST COMMUNICATIONS PLC
UK GAAP
SUMMARISED UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER
- ------------------------------------------------------------------------------------------- ----------------- --------------- ------
30 SEPT 31 DEC
30 SEPT
2002 2001 2001
AUDITED
(POUND)M (POUND)M (POUND)M
- ---------------------------------------------------------------------- --------------- --------------
TURNOVER
Consumer Division:
Cable television 254 243 329
Telephony 373 362 488
Internet and other 57 26 40
- -----------------------------------------------------------------------------------------------------
684 631 857
Business Division 199 203 274
- -----------------------------------------------------------------------------------------------------
883 834 1,131
TOTAL CABLE DIVISION
CONTENT DIVISION
Programming, transactional and interactive revenues 79 93 129
Share of joint ventures' turnover (UKTV) 48 46 63
- ----------------------------------------------------------------------------------------------------
127 139 192
TOTAL CONTENT DIVISION
- ----------------------------------------------------------------------------------------------------
1,010 973 1,323
TOTAL TURNOVER
Less: share of joint ventures' turnover (48) (46) (63)
- -----------------------------------------------------------------------------------------------------
GROUP TURNOVER (note 1) 962 927 1,260
TOTAL OPERATING COSTS (note 2) (1,149) (1,178) (2,572)
- -----------------------------------------------------------------------------------------------------
GROUP OPERATING LOSS (note 1) (187) (251) (1,312)
- -----------------------------------------------------------------------------------------------------
Group Turnover 962 927 1,260
Operating expenses before depreciation and amortisation (692) (714) (954)
----------------------------------------
EBITDA (note1) 270 213 306
Depreciation and amortisation (note 2) (457) (464) (1,618)
----------------------------------------
Group operating loss (187) (251) (1,312)
- -----------------------------------------------------------------------------------------------------
SHARE OF OPERATING PROFITS OF JOINT VENTURES 8 8 9
(4) (1) (7)
SHARE OF OPERATING LOSSES OF ASSOCIATED UNDERTAKINGS
GAIN ON DISPOSAL OF INVESTMENTS (note 4) 33 (4) (4)
INTEREST RECEIVABLE AND SIMILAR INCOME 13 12 15
AMOUNTS WRITTEN OFF INVESTMENTS (note 5) (36) - (138)
INTEREST PAYABLE AND SIMILAR CHARGES (note 3) (224) (357) (494)
- ------------------------------------------------------------------------------------------------------
(397) (593) (1,931)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
TAX ON LOSS ON ORDINARY ACTIVITIES - (4) (5)
- ------------------------------------------------------------------------------------------------------
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (397) (597) (1,936)
MINORITY INTERESTS - - 1
- -------------------------------------------------------------------------------------------------------
LOSS FOR THE FINANCIAL PERIOD (397) (597) (1,935)
- -------------------------------------------------------------------------------------------------------
BASIC AND DILUTED LOSS PER ORDINARY SHARE (pence) (13.9) (20.7) (67.2)
- -------------------------------------------------------------------------------------------------------
The financial information presented above reflects the continuing operations of
the business. The consolidated financial information set out on pages 9 to 13,
has been prepared on the basis of the accounting policies set out in Telewest's
Annual Report. The audited consolidated financial information set out pages 9 to
13, does not constitute the Company's statutory accounts for the year ended 31
December 2001 but is derived from those accounts. Statutory accounts for 2001
were delivered to the Registrar of Companies following the Company's Annual
General Meeting on 11 June 2002. The auditors have reported on those accounts;
their report was unqualified and did not contain statements under section 237(2)
or (3) of the Companies Act 1985.
TELEWEST COMMUNICATIONS PLC
UK GAAP
SUMMARISED UNAUDITED CONSOLIDATED BALANCE SHEETS
AS AT 30 SEPTEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
30 SEPT 30 SEPT 31 DEC
2002 2001 2001
AUDITED
(POUND)M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED ASSETS
Intangible assets 1,668 2,775 1,743
Tangible assets 3,472 3,440 3,498
Investments in associated undertakings and
Participating interests (note 15 177 107
5)
Investment in joint ventures:
Share of gross assets 38 33 30
Goodwill 316 412 330
Share of gross liabilities (140) (138) (138)
Loans to joint ventures 221 217 218
-------- --------- ---------
435 524 440
Other investments - 2 1
- ------------------------------------------------------------------------------------------------------------------------------------
5,590 6,918 5,789
- ------------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Investment (note 5) 48 - -
Stocks 68 81 67
Debtors 248 253 239
Secured cash deposits restricted for more than one year 12 20 20
Cash at bank and in hand 351 4 14
- ------------------------------------------------------------------------------------------------------------------------------------
727 358 340
(685) (681) (670)
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
- ------------------------------------------------------------------------------------------------------------------------------------
NET CURRENT ASSETS/(LIABILITIES) 42 (323) (330)
- ------------------------------------------------------------------------------------------------------------------------------------
5,632 6,595 5,459
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE (5,598) (4,828) (5,031)
YEAR (INCLUDING CONVERTIBLE DEBT)
MINORITY INTERESTS - (1) (1)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS 34 1,766 427
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY SHAREHOLDERS' FUNDS 34 1,766 427
- ------------------------------------------------------------------------------------------------------------------------------------
TELEWEST COMMUNICATIONS PLC
UK GAAP
SUMMARISED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER
- -----------------------------------------------------------------------------------------------------------------------
30 SEPT 31 DEC
30 SEPT
2002 2001 2001
AUDITED
(POUND)M (POUND)M (POUND)M
- -----------------------------------------------------------------------------------------------------------------------
NET CASH INFLOW FROM OPERATING ACTIVITIES (note 6) 246 247 348
- -----------------------------------------------------------------------------------------------------------------------
DIVIDENDS RECEIVED FROM ASSOCIATED UNDERTAKINGS - 2 3
- -----------------------------------------------------------------------------------------------------------------------
RETURNS ON INVESTMENT AND SERVICING OF FINANCE
Interest received 4 2 5
Interest paid (248) (224) (335)
Dividend paid to minority interests in subsidiary undertaking (1) - -
Interest element of finance lease payment (13) (12) (20)
Issue costs of Notes and credit facility arrangement costs - (38) (41)
- -----------------------------------------------------------------------------------------------------------------------
NET CASH OUTFLOW FROM RETURNS ON INVESTMENTS AND SERVICING OF FINANCE (258) (272) (391)
- -----------------------------------------------------------------------------------------------------------------------
CAPITAL EXPENDITURE
Purchase of tangible fixed assets (358) (377) (548)
Sale of tangible fixed assets - - 2
- -----------------------------------------------------------------------------------------------------------------------
(358) (377) (546)
NET CASH OUTFLOW FOR CAPITAL EXPENDITURE
- -----------------------------------------------------------------------------------------------------------------------
ACQUISITIONS AND DISPOSALS
Purchase of subsidiary undertakings - (6) (6)
Disposal of a subsidiary undertaking 10 10 10
Cash disposed of with a subsidiary undertaking - (2) (2)
Disposal of an associated undertaking 15 - -
Investments in associated undertakings and other participating interests (2) (24) (26)
- -----------------------------------------------------------------------------------------------------------------------
23 (22) (24)
NET CASH INFLOW/(OUTFLOW) FROM ACQUISITIONS AND DISPOSALS
- -----------------------------------------------------------------------------------------------------------------------
(347) (422) (610)
NET CASH OUTFLOW BEFORE USE OF LIQUID RESOURCES AND FINANCING
MANAGEMENT OF LIQUID RESOURCES
Net (increase)/decrease in fixed and secured deposits (280) 10 11
- -----------------------------------------------------------------------------------------------------------------------
FINANCING
Net repayment of borrowings under old credit facilities - (145) (824)
Net proceeds from borrowings under new credit facilities 640 494 1,393
Net proceeds from disposals of forward contracts 76 - -
Repayments of loans made to joint ventures (net) 7 23 21
Repayment of SMG equity swap (6) - -
Proceeds from issue of Accreting Convertible Notes, 2003 - 30 30
Repayment of other borrowings (3) - -
Proceeds from exercise of share options 1 5 6
Capital element of finance lease payments (39) (33) (54)
- --------------------------------------------------------------------------------------- ----------------------------------
676 374 572
NET CASH INFLOW FROM FINANCING
- --------------------------------------------------------------------------------------------------------------------------
INCREASE/(DECREASE) IN CASH IN THE PERIOD 49 (38) (27)
- --------------------------------------------------------------------------------------------------------------------------
TELEWEST COMMUNICATIONS PLC
UK GAAP
NOTES TO THE SUMMARISED UNAUDITED CONSOLIDATED ACCOUNTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
CABLE CONTENT INTER- TOTAL CABLE CONTENT INTER- TOTAL
DIVISIONAL DIVISIONAL
30 SEPT 30 SEPT 30 SEPT 30 SEPT 30 SEPT 30 SEPT 30 SEPT 30 SEPT
2002 2002 2002 2002 2001 2001 2001 2001
(POUND)M (POUND)M (POUND)M (POUND)M (POUND)M (POUND)M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
1 SEGMENTAL ANALYSIS
Group Turnover 883 90 (11) 962 834 101 (8) 927
Operating expenses before depreciation (622) (81) 11 (692) (618) (104) 8 (714)
and amortisation
- ------------------------------------------------------------------------------------------------------------------------------------
261 9 - 270 216 (3) - 213
EBITDA
Depreciation and amortisation (450) (7) - (457) (370) (94) - (464)
- ------------------------------------------------------------------------------------------------------------------------------------
(189) 2 - (187) (154) (97) - (251)
GROUP OPERATING (LOSS)/PROFIT
- ------------------------------------------------------------------------------------------------------------------------------------
30 SEPT 30 SEPT 31 DEC
2002 2001 2001
AUDITED
(POUND)M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
2 TOTAL OPERATING COSTS
COST OF SALES:
Consumer programming expenses 96 110 142
Business and consumer telephony expenses 165 179 238
Content Division cost of sales 48 57 83
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME COST OF SALES (COST OF SALES BEFORE DEPRECIATION) 309 346 463
Depreciation of tangible fixed assets 367 328 445
- ------------------------------------------------------------------------------------------------------------------------------------
676 674 908
- ------------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATION EXPENSES
Selling, general and administrative expenses 383 368 491
Amortisation of goodwill and intangible assets (31 Dec 2001 including 90 136 1,173
exceptional impairment(pound)992m)
- ------------------------------------------------------------------------------------------------------------------------------------
473 504 1,664
- ------------------------------------------------------------------------------------------------------------------------------------
1,149 1,178 2,572
TOTAL OPERATING COSTS
- ------------------------------------------------------------------------------------------------------------------------------------
3 INTEREST PAYABLE AND SIMILAR CHARGES
Share of interest of associated undertakings and joint ventures 7 8 11
On bank loans 97 72 105
Finance costs of Notes and Debentures 253 246 329
Finance charges payable in respect of finance leases and hire purchase contracts 13 11 19
Exchange (gains)/losses on foreign currency translation, net (157) 6 15
Other 11 14 15
- ------------------------------------------------------------------------------------------------------------------------------------
224 357 494
TOTAL INTEREST PAYABLE AND SIMILAR CHARGES
- ------------------------------------------------------------------------------------------------------------------------------------
TELEWEST COMMUNICATIONS PLC
UK GAAP
NOTES TO THE SUMMARISED UNAUDITED CONSOLIDATED ACCOUNTS (CONTINUED)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER
- --------------------------------------------------------------------------------
4 Gain on disposal of investments
During the nine months ended 30 September 2002 the Group sold its investment in
its subsidiary undertaking The Way Ahead Group Limited and in its associated
undertaking TV Travel Group Limited making an aggregate gain on the disposals of
(pound)33 million.
- --------------------------------------------------------------------------------
5 AMOUNTS WRITTEN OFF INVESTMENTS
At an Extraordinary General Meeting of the Company on 4 September 2002,
shareholder approval was received to dispose of the Company's shareholding in
SMG plc within 12 months of 4 September 2002. Consequently, the investment in
SMG has been re-classified from fixed assets to current assets and has been
valued at market value. This resulted in a (pound)36 million write off to the
carrying value of the investment.
- ------------------------------------------------------------------------------------------------------------------------------------
30 SEPT 30 SEPT 31 DEC
2002 2001 2001
AUDITED
(POUND)M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
6 RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW FROM OPERATING ACTIVITIES
Group operating loss (187) (251) (1,312)
Depreciation of tangible fixed assets 367 328 445
Amortisation of goodwill and intangible assets 90 136 181
Impairment of goodwill - - 992
(Increase)/decrease in stocks and programming inventory (2) (12) 2
(Increase)/decrease in debtors (16) (4) 23
(Decrease)/increase in creditors (6) 50 17
- ------------------------------------------------------------------------------------------------------------------------------------
NET CASH INFLOW FROM OPERATING ACTIVITIES 246 247 348
- ------------------------------------------------------------------------------------------------------------------------------------
7 NET DEBT
Net debt, other than short-term creditors and accruals
- ------------------------------------------------------------------------------------------------------------------------------------
Convertible Notes 893 896 904
Other Notes and Debentures 2,560 2,579 2,598
Bank facility 1,969 1,100 1,324
Other loans 35 52 45
Vendor financing and obligations under finance leases and hire
Purchase contracts 221 286 261
- ------------------------------------------------------------------------------------------------------------------------------------
5,678 4,913 5,132
TOTAL DEBT
Less cash at bank and in hand (351) (4) (14)
- ------------------------------------------------------------------------------------------------------------------------------------
5,327 4,909 5,118
NET DEBT
- ------------------------------------------------------------------------------------------------------------------------------------
TELEWEST COMMUNICATIONS PLC
UK GAAP
SUMMARISED UNAUDITED QUARTERLY CONSOLIDATED PROFIT AND LOSS ACCOUNTS
FOR THE QUARTERS ENDED
- ------------------------------------------------------------------------------------------------------------------------------------
30 SEPT 30 JUN 31 MAR 31 DEC 30 SEPT
2002 2002 2002 2001 2001
(POUND)M (POUND)M (POUND)M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
TURNOVER
Consumer Division:
Cable television 81 88 85 86 85
Telephony 122 125 126 126 120
Internet and Other 23 18 16 14 11
- ------------------------------------------------------------------------------------------------------------------------------------
226 231 227 226 216
Business Division 68 67 64 71 64
- ------------------------------------------------------------------------------------------------------------------------------------
294 298 291 297 280
TOTAL CABLE DIVISION
- ------------------------------------------------------------------------------------------------------------------------------------
Content Division
Programming, transactional and interactive 27 26 26 36 30
revenues
Share of joint ventures' turnover (UKTV) 15 16 17 17 15
- ------------------------------------------------------------------------------------------------------------------------------------
42 42 43 53 45
TOTAL CONTENT DIVISION
- ------------------------------------------------------------------------------------------------------------------------------------
336 340 334 350 325
TOTAL TURNOVER
Less: share of joint ventures' turnover (15) (16) (17) (17) (15)
- ------------------------------------------------------------------------------------------------------------------------------------
321 324 317 333 310
GROUP TURNOVER
TOTAL OPERATING COSTS (382) (389) (378) (1,394) (387)
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP OPERATING LOSS (61) (65) (61) (1,061) (77)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Group Turnover 321 324 317 333 310
Operating expenses before depreciation and amortisation (227) (234) (231) (240) (230)
----------------------------------------------------------------------
94 90 86 93 80
EBITDA
Depreciation and amortisation (155) (155) (147) (1,154) (157)
----------------------------------------------------------------------
Group operating loss (61) (65) (61) (1,061) (77)
- ------------------------------------------------------------------------------------------------------------------------------------
(158) (73) (166) (1,338) (181)
LOSS FOR THE FINANCIAL PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(5.6) (2.5) (5.8) (46.5) (6.3)
BASIC AND DILUTED LOSS PER ORDINARY SHARE (pence)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TELEWEST COMMUNICATIONS PLC
UK GAAP
SUMMARISED UNAUDITED QUARTERLY CONSOLIDATED ACCOUNTS
FOR THE QUARTERS ENDED
- ------------------------------------------------------------------------------------------------------------------------------------
30 SEPT 30 JUNE 31 MAR 31 DEC 30 SEPT
2002 2002 2002 2001 2001
(POUND)M (POUND)M (POUND)M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING COSTS
COST OF SALES:
Consumer programming expenses 31 32 33 33 34
Business and consumer telephony expenses 52 58 55 59 57
Content Division cost of sales 17 15 16 26 19
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME COST OF SALES (COST OF SALES BEFORE DEPRECIATION) 100 105 104 118 110
Depreciation of tangible fixed assets 125 125 117 117 111
- ------------------------------------------------------------------------------------------------------------------------------------
225 230 221 235 221
- ------------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATION EXPENSES:
Selling, general and administrative expenses 127 129 127 122 120
Amorisation of goodwill and tangible assets 30 30 30 45 46
Exceptional item - impairment of goodwill - - - 992 -
- ------------------------------------------------------------------------------------------------------------------------------------
157 159 157 1,159 166
- ------------------------------------------------------------------------------------------------------------------------------------
382 389 378 1,394 387
TOTAL OPERATING COSTS
- ------------------------------------------------------------------------------------------------------------------------------------
INTEREST PAYABLE AND SIMILAR CHARGES
Share of interest of associated 1 2 4 3 3
undertakings and joint ventures
On bank loans 36 32 29 33 27
Finance costs of Notes and Debentures 84 85 84 83 83
Finance charges payable in respect of 4 6 3 8 3
finance leases and hire purchase contracts
Exchange (gains)/losses on foreign currency (67) (79) (11) 9 (16)
translation, net
Other 5 3 3 1 5
- -----------------------------------------------------------------------------------------------------------------------------------
63 49 112 137 105
TOTAL INTEREST PAYABLE AND SIMILAR CHARGES
- ------------------------------------------------------------------------------------------------------------------------------------
NET DEBT
Net debt, other than short-term creditors and accruals
- ------------------------------------------------------------------------------------------------------------------------------------
Convertible Notes 893 897 916 904 896
Other Notes and Debentures 2,560 2,657 2,678 2,598 2,579
Bank facility 1,969 1,807 1,455 1,324 1,100
Other loans 35 42 43 45 52
Vendor financing and obligations under finance 221 246 277 261 286
leases and hire purchase contracts
- ------------------------------------------------------------------------------------------------------------------------------------
5,678 5,649 5,369 5,132 4,913
(351) (341) (91) (14) (4)
Less cash at bank and in hand
- ------------------------------------------------------------------------------------------------------------------------------------
5,327 5,308 5,278 5,118 4,909
NET DEBT
- ------------------------------------------------------------------------------------------------------------------------------------
TELEWEST COMMUNICATIONS PLC
US GAAP
SUMMARISED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED 30 SEPTEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
3 MONTHS 3 MONTHS 3 MONTHS 9 MONTHS 9 MONTHS 9 MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED
30 SEPT 30 SEPT 30 SEPT 30 SEPT 30 SEPT
30 SEPT
2002 2002 2001 2002 2002 2001
$M (POUND)M (POUND)M $M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUE
Cable television 127 81 85 399 254 243
Consumer telephony 192 122 120 586 373 362
Internet and other 36 23 11 89 57 26
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CONSUMER DIVISION 355 226 216 1,074 684 631
Business Services Division 110 70 66 334 213 202
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CABLE DIVISION 465 296 282 1,408 897 833
Content Division 42 27 30 124 79 92
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUE 507 323 312 1,532 976 925
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING COSTS AND EXPENSES
Consumer programming expenses (49) (31) (34) (151) (96) (109)
Business and consumer telephony expenses (81) (52) (57) (259) (165) (178)
Content expenses (27) (17) (19) (75) (48) (57)
Depreciation (198) (126) (117) (584) (372) (346)
- ------------------------------------------------------------------------------------------------------------------------------------
Cost of sales (355) (226) (227) (1,069) (681) (690)
Selling, general and administrative expenses (201) (128) (121) (606) (386) (374)
Amortisation of goodwill - - (46) - - (137)
- ------------------------------------------------------------------------------------------------------------------------------------
(556) (354) (394) (1,675) (1,067) (1,201)
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING LOSS (49) (31) (82) (143) (91) (276)
OTHER INCOME/(EXPENSE)
Interest income 9 6 4 21 13 12
Interest expense (227) (145) (124) (623) (397) (345)
Foreign exchange gain, net 108 69 16 240 153 7
Share of net losses of affiliates (6) (4) (7) (8) (5) (2)
Other, net (47) (30) (1) 6 4 (7)
- ------------------------------------------------------------------------------------------------------------------------------------
LOSS BEFORE INCOME TAXES (212) (135) (194) (507) (323) (611)
Income tax benefit 2 1 2 8 5 7
- ------------------------------------------------------------------------------------------------------------------------------------
NET LOSS BEFORE EXTRAORDINARY ITEM (210) (134) (192) (499) (318) (604)
Extinguishment of debt - - - - - (15)
- ------------------------------------------------------------------------------------------------------------------------------------
NET LOSS AFTER EXTRAORDINARY ITEM (210) (134) (192) (499) (318) (619)
- ------------------------------------------------------------------------------------------------------------------------------------
BASIC AND DILUTED LOSS PER ORDINARY SHARE
Before extraordinary loss $(0.08)(pound)(0.05)(pound)(0.07) $(0.17)(pound)(0.11)(pound)(0.21)
After extraordinary loss $(0.08)(pound)(0.05)(pound)(0.07) $(0.17)(pound)(0.11)(pound)(0.22)
- ------------------------------------------------------------------------------------------------------------------------------------
Operating loss (49) (31) (82) (143) (91) (276)
Add: depreciation and amortisation of goodwill 198 126 163 584 372 483
- ------------------------------------------------------------------------------------------------------------------------------------
EBITDA (AFTER NON-CASH SHARE-BASED COMPENSATION COST) 149 95 81 441 281 207
Add back: non-cash share-based compensation (credit)/cost - - - (2) (1) 1
- ------------------------------------------------------------------------------------------------------------------------------------
EBITDA (BEFORE NON-CASH SHARE-BASED COMPENSATION COST) 149 95 81 439 280 208
- ------------------------------------------------------------------------------------------------------------------------------------
The consolidated financial information as set out on pages 16 to 18, which is
unaudited, has been prepared on the basis of the accounting policies set out in
Telewest's Annual Report, other than where changes are necessary to implement
new accounting standards. The economic environment in which the Company operates
is the United Kingdom and hence its reporting currency is Pounds Sterling
("(pound)"). Merely for convenience, the financial statements contain
translation of certain Pounds Sterling amounts into US Dollars ("$") at $1.57
per (pound)1.00, the noon buying rate of the Federal Reserve Bank of New York on
Monday 30 September 2002. The presentation of the US Dollar amounts should not
be construed as a representation that the Pounds Sterling amounts could be so
converted into US Dollars at the rate indicated or at any other rate.
TELEWEST COMMUNICATIONS PLC
US GAAP
SUMMARISED UNAUDITED CONSOLIDATED BALANCE SHEETS
AS AT 30 SEPTEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
30 SEPT 30 SEPT 31 DEC
2002 2002 2001
AUDITED
$M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and cash equivalents 551 351 14
Secured cash deposits restricted for more than one year 19 12 20
Receivables and prepaid expenses 399 254 261
- ------------------------------------------------------------------------------------------------------------------------------------
Total current assets 969 617 295
Investments 738 470 547
Property and equipment 5,406 3,443 3,473
Goodwill and other intangibles 2,970 1,892 1,892
Inventory 107 68 67
Other assets 147 94 58
- ------------------------------------------------------------------------------------------------------------------------------------
10,337 6,584 6,332
TOTAL ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Debt 8,657 5,514 4,897
Other liabilities 1,545 984 984
- ------------------------------------------------------------------------------------------------------------------------------------
10,202 6,498 5,881
TOTAL LIABILITIES
MINORITY INTERESTS (2) (1) -
SHAREHOLDERS' EQUITY 137 87 451
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 10,337 6,584 6,332
- ------------------------------------------------------------------------------------------------------------------------------------
Note: The adoption of SFAS 142 "Goodwill and Other Intangible Assets" from 1
January 2002 means that Amortisation of goodwill is no longer charged to the
Statement of Operations.
TELEWEST COMMUNICATIONS PLC
US GAAP
SUMMARISED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
9 MONTHS 9 MONTHS 9 MONTHS
ENDED ENDED ENDED
30 SEPT 30 SEPT
30 SEPT
2002 2002 2001
$M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss (499) (318) (619)
Adjustments to reconcile net loss to net cash provided by/(used in) operating
activities:
Depreciation 584 372 346
Amortisation of goodwill - - 137
Loss on revaluation of investment 47 30 -
Amortisation of deferred financing costs and issue discount on Senior Discount Debentures 128 82 75
Deferred tax credit (8) (5) (7)
Unrealised gain on foreign currency translation (240) (153) (10)
Non-cash accrued share-based compensation (credit)/cost (2) (1) 1
Extinguishment of debt - - 15
Share of net losses of affiliates 8 5 2
Loss on disposal of investments (net) - - 4
Changes in operating assets and liabilities, net of effect of acquisition of
subsidiaries:
Change in receivables 5 3 (1)
Change in prepaid expenses 13 8 (8)
Change in other assets (5) (3) (52)
Change in accounts payable (31) (20) 30
Change in other liabilities (19) (12) 64
- ------------------------------------------------------------------------------------------------------------------------------------
NET CASH USED IN OPERATING ACTIVITIES (19) (12) (23)
NET CASH USED IN INVESTING ACTIVITIES (515) (328) (376)
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,063 677 343
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 529 337 (56)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 22 14 60
- ------------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 551 351 4
- ------------------------------------------------------------------------------------------------------------------------------------