EXHIBIT 99.1
1 MAY 2003
TELEWEST COMMUNICATIONS PLC
1ST QUARTER RESULTS 2003
FINANCIAL SUMMARY
- -------------------------------------------------------------- ---------------------- ----------------------- ----------------------
THREE MONTHS THREE MONTHS
ENDED ENDED
31 MARCH 2003 31 MARCH 2002 % CHANGE
(POUND)M (POUND)M
TOTAL TURNOVER * 335 334 -
EBITDA ** 105 91 UP 15%
EBITDA MARGIN ** 31% 27% UP 4% PTS
NET LOSS (187) (166) UP 13%
CAPEX 65 124 DOWN 48%
NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING 7 (113) UP(POUND)120M
- -------------------------------------------------------------- ---------------------- ----------------------- ----------------------
* includes Telewest's proportionate share of UKTV.
** includes Telewest's proportionate share of UKTV and in 2003 is before
exceptional items of (pound)3m.
HIGHLIGHTS
- - BROADBAND LEADERSHIP; 310,000 BROADBAND SUBSCRIBERS
- - RECORD EBITDA OF(POUND)105M; UP 15% ON Q1-02
- - CAPEX DOWN BY 48% YEAR-ON-YEAR
- - GENERATED POSITIVE CASHFLOW
- - CUSTOMER PROFILE IMPROVING DESPITE SUBSCRIBER LOSSES
- - FINANCIAL RESTRUCTURING DISCUSSIONS CONTINUE
COMMENTING ON THE RESULTS, CHARLES BURDICK, MANAGING DIRECTOR OF TELEWEST
COMMUNICATIONS, SAID:
"Our efforts to accelerate cash generation, profitability and provide a platform
for future growth resulted in a cashflow positive quarter. We also achieved
record EBITDA and EBITDA margin and sharply reduced capital expenditure.
We continue to provide broadband leadership. With 310,000 broadband subscribers
in our addressable areas, we are the clear market leader with aproximately 80%
market share. Broadband customers typically take the triple play bundle and
churn less, and a large proportion are new to Telewest. Our 1Mb broadband
service is also proving popular with 10% of our broadband base, and we will
launch 2Mb and wireless self-installation broadband later in the year.
The focus on broadband, cash generation and profitable customers meant that, as
expected, we experienced customer losses during the quarter. Nevertheless,
household churn has fallen and with the reinvigoration of our marketing,
especially around TV, we plan to see a return to customer growth in the second
half of the year."
ENQUIRIES TO TELEWEST COMMUNICATIONS PLC
Charles Burdick managing director 020 7299 5000
Jane Hardman director of corporate communications 020 7299 5888
Richard Williams head of investor relations 020 7299 5479
And at
BRUNSWICK
John Sunnucks 020 7404 5959
Sarah Tovey 020 7404 5959
FINANCIAL REVIEW
Except where stated otherwise, all profit and loss items are stated before
exceptional items, and all comparatives compare the first quarter of 2003 to the
first quarter of 2002. The Group has incurred (pound)3 million of exceptional
legal and professional costs in respect of the Financial Restructuring during
the quarter.
Total turnover (including our share of UKTV, our joint venture with the BBC) for
the quarter is (pound)335 million, flat compared to the first quarter of 2002.
Business Division and Content Division revenues grew by 8% and 2% respectively.
Despite a 63% growth in Internet and other revenues, Consumer Division revenues
fell 2%, with lower CATV and residential telephony revenue and the closure of
Cable Guide, our TV listings magazine.
Gross margin rose from 67% to 69% for the quarter on the back of improvements in
telephony margins and the growing number of high margin broadband subscribers.
Telephony margins improved from 71% to 73% as a result of selected price
increases, growth in the number of flat rate customers, improved routing of
telephony traffic and a reduction in termination rates for certain calls.
Our focus on cost control continues with selling, general and administrative
expenses ("SG&A") for the quarter of (pound)118 million, down 7%. Headcount fell
by a further 100 heads and now stands at 9,080 compared to 10,668 a year ago.
Resulting redundancy costs were (pound)3 million.
As a result of the continuing improvements in gross margin and cost control, the
Group's (pound)105 million EBITDA grew 15% from the first quarter of 2002. This
includes our (pound)5 million share of UKTV's EBITDA. EBITDA margin grew from
27% in the first quarter of 2002 to a record 31%. Excluding UKTV, EBITDA for the
quarter was (pound)100 million, up 16%. EBITDA margin for the Cable Division in
the quarter was 33%.
Net loss (after interest and taxation) for the quarter was (pound)184 million
primarily as a result of (pound)36 million bank interest, (pound)81 million
accrued bond interest and (pound)48 million of foreign exchange losses on dollar
denominated debt. It should be noted that under the proposed terms of the
Financial Restructuring the accrued bond interest and the foreign exchange
losses would not be realised. Excluding these items, net loss would have been
only (pound)55 million. The (pound)166 million net loss in the first quarter of
2002 included a net (pound)11 million foreign exchange gain.
Capital expenditure was reduced by 48% to (pound)65 million, 20% of revenue. The
Group continues its focus on cash and cost control. Capital expenditure is
expected to rise later in the year as we upgrade IP capacity and enhance our IT
infrastructure. Full year capital expenditure for 2003 will be substantially
lower than the (pound)477 million incurred in 2002.
In this quarter, EBITDA (excluding UKTV) exceeded capital expenditure by
(pound)35 million. This compares to a shortfall of (pound)38 million in the
first quarter of 2002 and a shortfall of (pound)49 million in the fourth quarter
of 2002.
The Group has generated positive cash inflow of (pound)7 million. This is due to
EBITDA growth, significantly reduced capital expenditure, a positive working
capital movement and the non-payment of bond interest in advance of our proposed
balance sheet restructuring. Phasing of capital expenditure payments and working
capital may impact short term cashflow generation.
As at 31 March 2003, net debt was (pound)5,317 million. This comprises
(pound)3,492 million of notes and debentures (which is expected to be exchanged
for equity as part of the Financial Restructuring), (pound)207 million of lease
and vendor financing, (pound)8 million of other loans and (pound)2,000 million
drawn down on our bank facility, offset by cash balances and short term deposits
of (pound)390 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 has confidence
in the successful conclusion of the Financial Restructuring (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. 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.
3
FINANCIAL RESTRUCTURING
As previously stated, on 30 September 2002, we announced that we had reached a
preliminary agreement relating to a financial restructuring to cancel
approximately (pound)3.5 billion of debt in exchange for equity representing 97%
of the enlarged issued share capital.
Productive negotiations are continuing with bondholders, senior lenders and
certain other major stakeholders and we will make an announcement about the
progress of the Financial Restructuring when appropriate.
BUSINESS REVIEW
CONSUMER DIVISION
Consumer Division revenues fell 2% to (pound)222 million. The 7% declines in
CATV and telephony revenues were largely offset by a 63% growth in internet and
other revenues. Revenues were also impacted by the closure of Cable Guide, our
TV listings magazine.
Household ARPU grew by 1% year-on-year to (pound)41.83 and was marginally up on
the 2002 ARPU of (pound)41.80. Household ARPU remains the highest of any
European cable company.
During the first quarter, household penetration declined marginally to 37.2% as
the number of household customers fell by 15,000. Customer growth continues to
be impacted by price rises and the tightening of our credit control policy as we
focus on more cash generative customers. We introduced a (pound)50 upfront
payment (offset against any installation fee or subscription payment) for all
new customers and we did not actively sell our entry TV package to new
subscribers. We believe these initiatives contribute to profitability, cash
generation and churn reductions. We plan a return to customer growth in the
second half of 2003 as we reduce churn and continue to market and enhance our
digital TV and triple play product offering.
The focus on more cash generative customers has improved the profile of our
customer base as;
- - Triple play customers grew by 24,000 in the first quarter
- - Triple play now accounts for 12% of our customer base compared to just 5% a
year ago.
- - 24% of our telephony base now take higher ARPU flat rate telephony products
- - 70% of our TV base now take higher ARPU digital TV
- - Rolling 12 month household churn in the first quarter was 17.6% down from
18.2% in the fourth quarter.
We continue to improve customer service and the benefits of "virtualising" some
of our contact centres resulted in improved call answer rates and customer
satisfaction. On 31 March 2003, we opened a dedicated National Movers Centre to
improve the customer service experience for those Telewest subscribers who move
house within our addressable areas and to increase the take-up of movers into
pre-wired homes.
(I) BROADBAND
Internet and other revenues increased by 63% to (pound)26 million due to growth
in broadband subscribers.
Net broadband additions in the first quarter were 37,000. At the quarter end, we
had 299,000 broadband subscribers, a growth of 14% since the end of last year.
At 30 April, we had 310,000 broadband subscribers, of which 31,000 or 10% took
the 1Mb service. This reflects our continued success in broadband - Telewest
remains the clear market leader within our addressable areas. At least 69% of
broadband customers subscribe to the full triple play and 93% to another
product.
Broadband ARPU fell to (pound)22.50 in the first quarter from (pound)29.93 as
installation fees in the first quarter of 2003 were discounted and as these fees
were spread over a much greater installed subscriber base. Broadband remains the
product with the lowest churn level at 12.8%.
We are currently trialling a faster 2Mb service to 1,500 customers and plan to
launch later in the year, demonstrating again our commitment to broadband
leadership.
Together with our dial-up internet services, we have 571,000 internet
subscribers. Dial-up is led by SurfUnlimited, which introduces our subscribers
to a reliable fixed-fee unmetered service. In the first quarter, 19% of our
broadband installations were for subscribers who had migrated from
SurfUnlimited.
4
(II) RESIDENTIAL TELEPHONY
The number of telephony subscribers fell by 13,000 in the first quarter in line
with our overall customer reductions and increased competitive pressure. ARPU
per line for the year was (pound)22.49 compared to (pound)23.23 in the first
quarter of 2002, reflecting reductions in telephone usage, partially offset by
the higher line rentals and flat rate charges of Talk customers. Incoming call
revenues were also impacted by the transfer of dial-up minutes of a large ISP's
subscribers to a flat rate access regime provided by our Carrier Services unit.
Subscriber ARPU was down at (pound)23.88 from (pound)25.27 also due to the
migration of dial-up internet subscribers to broadband, which reduces second
line penetration.
Telephony churn was 16.9%, down from 17.3% in the fourth quarter.
Subscribers to our flat rate Talk services, continued to increase with 21,000
net additions in the quarter. At 31 March 2003, we had 382,000 Talk subscribers
being 24% of our residential telephony base. Our Talk products are highly
competitive with BT's recently announced price changes and packages.
(III) CATV
At 31 March 2003, Telewest had 1,274,000 TV subscribers of whom 70% were digital
subscribers.
Of our consumer products, CATV carries the highest initial investment and lowest
margins. Our focus on cash and on profitable customers has therefore impacted
the CATV customer base more than our other products, and net disconnections in
the quarter were 20,000 as we move towards acquiring profitable customers rather
than pursuing overall subscriber growth. As part of this focus, we did not
actively sell our entry TV package to new subscribers and any customer who
wishes to subscribe to TV as a stand-alone product must take our top-tier basic
package, Supreme. During the quarter, we also put through a significant price
rise to some of our analogue customers.
CATV monthly ARPU was marginally down from the first quarter of 2002 at
(pound)20.50. The pay-to-basic ratio has fallen to 71% from 72%. In the first
quarter, the percentage of subscribers taking our entry package fell for the
second quarter in a row to 17%, as we focused on improving our customer mix.
We are addressing the reductions in TV subscribers by now providing more choice
and value with the addition of Sky Multiplex (nine extra movie channels) and ten
new basic entertainment channels.
BUSINESS DIVISION
The first quarter of 2003 has seen a good start to the year for Telewest
Business, with significant contracts signed by both new and existing customers.
The Business Division's revenues grew 8% to (pound)69 million. The division is
benefiting from its new strategic direction of maximising return from developed
infrastructure, cross-selling to existing customer accounts and delivering first
class, accessible account management.
The division's focus remains on the corporate sector, medium-to-large
enterprises and the public sector. Within the public sector, Telewest Business
currently connects over 10,000 sites across the UK and 71 out of 122 local
authorities in franchise have service with us. Significant contracts continue to
be signed with organisations such as Walsall Housing in the Midlands, to which
Telewest is deploying major voice and data services.
A significant deal has also been signed for Telewest to provide the
infrastructure underlying the Highways Agency's new Traffic Control Centre in
Birmingham. Telewest is providing its "Enterprise Connect" managed data solution
which links a number of police traffic control centres. The solution offers an
extremely high level of resilience.
Carrier Services revenues within the Business Division were (pound)12 million,
compared to (pound)10 million a year ago after reductions in the previous two
years. Carrier Services offers our national network to other carriers and
operators (such as T-Mobile) for voice and data communications.
5
CONTENT DIVISION
Content Division revenues totalled (pound)44 million in the first quarter,
including (pound)17 million from our 50% share of UKTV revenue. Revenues were up
(pound)1 million on 2002 as strong growth in advertising revenues offset the
disposal of non-core businesses and the closure of ITV Digital.
Advertising revenues of (pound)20 million (including our 50% share of UKTV) for
the quarter were up 16% in a flat market. The Content Division grew its market
share with a 4.0% share of the TV advertising market in the UK, up from 3.6% in
the first quarter of 2002.
Subscription revenues of (pound)17 million (including our 50% share of UKTV) in
the first quarter were down 2% with the growth in BSkyB subscribers being offset
by the closure of ITV Digital.
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.
6
TELEWEST COMMUNICATIONS PLC
OPERATING STATISTICS - UNAUDITED
- ------------------------------------------------------------------------------------------------------------------------
CONSUMER DIVISION
NET ADDITIONS Net additions
Q1 2003 Q1 2002
- ------------------------------------------------------------------------------------------------------------------------
Household customers (14,903) 17,870
Blueyonder broadband internet subscribers 37,002 40,778
Telephony subscribers (12,718) 19,706
Telephone lines (20,708) 9,954
Cable television subscribers (20,266) 16,416
- ------------------------------------------------------------------------------------------------------------------------
AS AT 31 MARCH As at 31 March
2003 2002
- ------------------------------------------------------------------------------------------------------------------------
Homes passed 4,893,525 4,914,731
Homes passed and marketed 4,690,343 4,706,854
Dual or triple service subscribers (1) 1,223,700 1,246,332
Cable television only subscribers 111,078 133,614
Residential telephony only subscribers 387,937 394,221
Internet only subscribers 21,007 9,322
Total residential subscribers 1,743,722 1,783,489
Household penetration 37.2% 37.9%
Percentage of triple service subscribers (1) 11.9% 5.0%
Percentage of dual or triple service subscribers (1) 70.2% 69.9%
Average household churn (2) 17.6% N/A
Average monthly revenue per subscriber (3) (POUND)41.83 (pound)41.48
- ------------------------------------------------------------------------------------------------------------------------
BLUEYONDER INTERNET SUBSCRIBERS
Blueyonder broadband 299,221 125,900
Blueyonder SurfUnlimited 199,774 206,081
Blueyonder pay-as-you-go 72,481 119,026
Total internet subscribers 571,476 451,007
- ------------------------------------------------------------------------------------------------------------------------
BLUEYONDER BROADBAND
Average subscriber churn rate (4) 12.8% 7.8%
Average monthly revenue per subscriber (5) (POUND)22.50 (pound)29.93
- ------------------------------------------------------------------------------------------------------------------------
RESIDENTIAL TELEPHONY
Residential telephony subscribers 1,601,606 1,635,515
Talk Unlimited subscribers 381,620 252,501
Residential telephony penetration (6) 34.2% 34.8%
Residential telephone lines 1,696,483 1,772,266
Second line penetration 5.9% 8.4%
Average subscriber churn rate (7) 16.9% 16.2%
Average monthly revenue per line (8) (POUND)22.49 (pound)23.23
Average monthly revenue per subscriber (9) (POUND)23.88 (pound)25.27
- ------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION
Cable television subscribers 1,273,545 1,358,200
Digital television subscribers 887,306 792,563
Penetration (10) 27.2% 28.9%
Average subscriber churn rate (11) 21.8% 19.1%
Average monthly revenue per subscriber (12) (POUND)20.50 (pound)20.80
- ------------------------------------------------------------------------------------------------------------------------
7
TELEWEST COMMUNICATIONS PLC
OPERATING STATISTICS - UNAUDITED (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------
AS AT 31 MARCH As at 31 March
2003 2002
- ------------------------------------------------------------------------------------------------------------------------------
BUSINESS DIVISION
Business customer accounts 72,662 73,618
Business telephony lines 463,484 452,122
Average business lines per customer account (13) 6.4 6.1
Average annualised monthly revenue per business line (14) (POUND)41.81 (pound)41.67
Annualised revenue per customer account (15) (POUND)3,134 (pound)3,102
- ------------------------------------------------------------------------------------------------------------------------------
CONTENT DIVISION
Pay multichannel subscribers 9,916,011 10,580,505
Flextech share of basic viewing (16) 18.7% 20.0%
Share of total TV advertising revenues (17) 4.0% 3.6%
- ------------------------------------------------------------------------------------------------------------------------------
(1) Dual or triple service subscribers are those subscribers who take at
least two or all three of our cable television, residential telephony
and broadband internet services.
(2) Average household churn rate for the period is calculated on a rolling
12-month basis and represents (i) the total number of residential
subscribers who disconnected or who were disconnected during such
period, divided by (ii) the average number of residential subscribers
in such period.
(3) Average monthly revenue per subscriber (often referred to as "ARPU" or
"Average Revenue per User") represents (i) the average monthly revenue
of residential subscribers for such period, divided by (ii) the
average number of residential 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) 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.
(6) 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.
(7) 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.
(8) 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.
(9) 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.
(10) Cable television penetration 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.
(11) 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.
(12) 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.
(13) 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.
(14) Average annualised monthly revenue per business line 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.
(15) Average annualised revenue per customer account 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.
(16) Basic viewing over 24 hours in pay-TV homes.
(17) Includes Flextech's wholly owned channels and UKTV's advertising
revenues.
8
TELEWEST COMMUNICATIONS PLC
UK GAAP
SUMMARISED UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNTS
FOR THE THREE MONTHS ENDED 31 MARCH
- ------------------------------------------------------------------------------------------------------------------------------------
31 MAR 31 MAR 31 MAR 31 MAR 31 DEC
2003 2003 2003 2002 2002
BEFORE EXCEPTIONAL TOTAL
EXCEPTIONAL ITEMS
ITEMS (NOTE 7) AUDITED
(POUND)M (POUND)M (POUND)M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
TURNOVER
Consumer Division:
Cable television 79 - 79 85 336
Telephony 117 - 117 126 495
Internet and other 26 - 26 16 63
- ------------------------------------------------------------------------------------------------------------------------------------
222 - 222 227 894
Business Division 69 - 69 64 267
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CABLE DIVISION 291 - 291 291 1,161
CONTENT DIVISION
Programming, transactional and interactive revenues 27 - 27 26 106
Share of joint ventures' turnover (UKTV) 17 - 17 17 64
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CONTENT DIVISION 44 - 44 43 170
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL TURNOVER 335 - 335 334 1,331
Less: share of joint ventures' turnover (17) - (17) (17) (64)
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP TURNOVER (note 1) 318 - 318 317 1,267
TOTAL OPERATING COSTS (note 2) (340) (3) (343) (378) (3,119)
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP OPERATING LOSS (note 1) (22) (3) (25) (61) (1,852)
- ------------------------------------------------------------------------------------------------------------------------------------
Group Turnover 318 - 318 317 1,267
Operating expenses before depreciation and amortisation (218) (3) (221) (231) (937)
------------------------------------------------------------------------
EBITDA (note 1) 100 (3) 97 86 330
Depreciation and amortisation (note 2) (122) - (122) (147) (2,182)
------------------------------------------------------------------------
Group operating loss (22) (3) (25) (61) (1,852)
- ------------------------------------------------------------------------------------------------------------------------------------
SHARE OF OPERATING PROFITS OF JOINT VENTURES 5 - 5 5 10
SHARE OF OPERATING LOSSES OF ASSOCIATED UNDERTAKINGS (1) - (1) (2) (1)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING LOSS (18) (3) (21) (58) (1,843)
GAIN ON DISPOSAL OF INVESTMENTS - - - - 36
INTEREST RECEIVABLE AND SIMILAR INCOME (note 3) 6 - 6 85 309
AMOUNTS WRITTEN OFF INVESTMENTS - - - - (117)
INTEREST PAYABLE AND SIMILAR CHARGES (note 4) (171) - (171) (194) (603)
- ------------------------------------------------------------------------------------------------------------------------------------
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (183) (3) (186) (167) (2,218)
TAX ON LOSS ON ORDINARY ACTIVITIES (1) - (1) 1 (1)
- ------------------------------------------------------------------------------------------------------------------------------------
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (184) (3) (187) (166) (2,219)
MINORITY INTERESTS - - - - 1
- ------------------------------------------------------------------------------------------------------------------------------------
LOSS FOR THE FINANCIAL PERIOD (184) (3) (187) (166) (2,218)
- ------------------------------------------------------------------------------------------------------------------------------------
LOSS PER ORDINARY SHARE (pence) (6.4) (0.1) (6.5) (5.8) (77.2)
- ------------------------------------------------------------------------------------------------------------------------------------
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 2002 but is derived from those accounts. Statutory accounts for 2002
will be delivered to the Registrar of Companies following the Company's Annual
General Meeting on 12 June 2003. 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.
9
TELEWEST COMMUNICATIONS PLC
UK GAAP
SUMMARISED UNAUDITED CONSOLIDATED BALANCE SHEETS
AS AT 31 MARCH
- ------------------------------------------------------------------------------------------------------------------------------------
31 MAR 31 MAR 31 DEC
2003 2002 2002
AUDITED
(POUND)M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED ASSETS
Intangible assets 155 1,718 157
Tangible assets 3,346 3,510 3,398
Investment in joint ventures:
Share of gross assets 67 30 45
Goodwill 237 325 241
Share of gross liabilities (166) (133) (146)
Loans to joint ventures 202 223 208
--------- --------- ---------
340 445 348
Investments in associated undertakings and
participating interests 7 102 8
Other investments - 2 -
--------- ---------
---------
347 549 356
- ------------------------------------------------------------------------------------------------------------------------------------
3,848 5,777 3,911
- ------------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Stocks 36 72 28
Debtors 219 249 210
Secured cash deposits restricted for more than one year 12 20 12
Cash at bank and in hand 390 91 390
- ------------------------------------------------------------------------------------------------------------------------------------
657 432 640
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (includes convertible (5,501) (697) (4,410)
debt of(pound)901m,(pound)nil and(pound)282m, Respectively)
- ------------------------------------------------------------------------------------------------------------------------------------
NET CURRENT LIABILITIES (4,844) (265) (3,770)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS LESS CURRENT LIABILITIES (996) 5,512 141
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR (includes convertible debt of(pound)nil,(pound)916m and(pound)608m,
respectively) (982) (5,250) (1,932)
MINORITY INTERESTS 1 - 1
- ------------------------------------------------------------------------------------------------------------------------------------
NET (LIABILITIES)/ASSETS (1,977) 262 (1,790)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY SHAREHOLDERS' (DEFICIT)/FUNDS (1,977) 262 (1,790)
- ------------------------------------------------------------------------------------------------------------------------------------
10
TELEWEST COMMUNICATIONS PLC
UK GAAP
SUMMARISED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED 31 MARCH
- -----------------------------------------------------------------------------------------------------------------------------------
31 MAR 31 MAR 31 DEC
2003 2002 2002
AUDITED
(POUND)M (POUND)M (POUND)M
- -----------------------------------------------------------------------------------------------------------------------------------
NET CASH INFLOW FROM OPERATING ACTIVITIES (note 5) 111 72 391
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS RECEIVED FROM ASSOCIATED UNDERTAKINGS - - 1
- -----------------------------------------------------------------------------------------------------------------------------------
RETURNS ON INVESTMENT AND SERVICING OF FINANCE
Interest received 3 - 7
Interest received from joint ventures 3 3 12
Interest paid (39) (73) (287)
Dividend paid to minority interests in subsidiary undertaking - - (1)
Interest element of finance lease payments (4) (4) (18)
- -----------------------------------------------------------------------------------------------------------------------------------
NET CASH OUTFLOW FROM RETURNS ON INVESTMENTS AND SERVICING OF FINANCE (37) (74) (287)
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL EXPENDITURE
Purchase of tangible fixed assets (67) (110) (448)
Sale of tangible fixed assets - - 1
- -----------------------------------------------------------------------------------------------------------------------------------
NET CASH OUTFLOW FOR CAPITAL EXPENDITURE (67) (110) (447)
- -----------------------------------------------------------------------------------------------------------------------------------
ACQUISITIONS AND DISPOSALS
Disposal of subsidiary undertakings - - 14
Disposal of associated undertakings - - 59
Investments in associated undertakings and other participating interests - (1) (2)
- -----------------------------------------------------------------------------------------------------------------------------------
NET CASH (OUTFLOW)/INFLOW FROM ACQUISITIONS AND DISPOSALS - (1) 71
- -----------------------------------------------------------------------------------------------------------------------------------
NET CASH INFLOW/(OUTFLOW) BEFORE USE OF LIQUID RESOURCES AND FINANCING 7 (113) (271)
MANAGEMENT OF LIQUID RESOURCES
Net decrease/(increase) in fixed and secured deposits 27 (74) (229)
- -----------------------------------------------------------------------------------------------------------------------------------
FINANCING
Net proceeds from borrowings under new credit facilities - 130 640
Net proceeds from maturity of forward contracts - 74 76
Repayments of loans made to joint ventures (net) 6 (4) 9
Repayment of SMG equity swap - - (33)
Repayment of other borrowings - (1) (2)
Capital element of finance lease payments (13) (9) (51)
- -----------------------------------------------------------------------------------------------------------------------------------
NET CASH (OUTFLOW)/INFLOW FROM FINANCING (7) 190 639
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE IN CASH IN THE PERIOD 27 3 139
- -----------------------------------------------------------------------------------------------------------------------------------
11
TELEWEST COMMUNICATIONS PLC
UK GAAP
NOTES TO THE SUMMARISED UNAUDITED CONSOLIDATED ACCOUNTS
FOR THE THREE MONTHS ENDED 31 MARCH
- ------------------------------------------------------------------------------------------------------------------------------------
CABLE CONTENT INTER- TOTAL CABLE CONTENT INTER- TOTAL
DIVISIONAL DIVISIONAL
2003 2003 2003 2003 2002 2002 2002 2002
(POUND)M (POUND)M (POUND)M (POUND)M (POUND)M (POUND)M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
1 SEGMENTAL ANALYSIS
Group Turnover 291 30 (3) 318 291 29 (3) 317
Operating expenses before(pound)3m
exceptional items in 2003,
depreciation and amortisation (195) (26) 3 (218) (207) (27) 3 (231)
- ------------------------------------------------------------------------------------------------------------------------------------
EBITDA before exceptional items 96 4 - 100 84 2 - 86
Exceptional items (3) - - (3) - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
EBITDA after exceptional items 93 4 - 97 84 2 - 86
Depreciation and amortisation (119) (3) - (122) (145) (2) - (147)
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP OPERATING LOSS (26) 1 - (25) (61) - - (61)
- ------------------------------------------------------------------------------------------------------------------------------------
31 MAR 31 MAR 31 DEC
2003 2002 2002
AUDITED
(POUND)M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
2 TOTAL OPERATING COSTS
COST OF SALES:
Consumer programming expenses 32 33 128
Business and consumer telephony expenses 51 55 218
Content Division cost of sales 17 16 70
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME COST OF SALES (COST OF SALES BEFORE DEPRECIATION) 100 104 416
Depreciation of tangible fixed assets (Includes exceptional write
down(pound)87m in 31 Dec 2002) 116 117 577
- ------------------------------------------------------------------------------------------------------------------------------------
216 221 993
- ------------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATION EXPENSES
Selling, general and administrative expenses (Includes exceptional
items(pound)3m in 31 Mar 2003 and(pound)22m in 31 Dec 2002) 121 127 521
Amortisation of goodwill and intangible assets (Includes exceptional
impairment charge(pound)1,486m in 31 Dec 2002) 6 30 1,605
- ------------------------------------------------------------------------------------------------------------------------------------
127 157 2,126
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING COSTS (Includes exceptional items(pound)3m in
2003 and(pound)1,595m in 31 Dec 2002) 343 378 3,119
- ------------------------------------------------------------------------------------------------------------------------------------
3 INTEREST RECEIVABLE AND SIMILAR INCOME
Interest receivable 6 3 19
Exchange gains on foreign currency translation - 82 290
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INTEREST RECEIVABLE AND SIMILAR INCOME 6 85 309
- ------------------------------------------------------------------------------------------------------------------------------------
4 INTEREST PAYABLE AND SIMILAR CHARGES
Share of interest of associated undertakings and joint ventures 1 4 9
On bank loans 36 29 135
Finance costs of Notes and Debentures 81 84 325
Finance charges payable in respect of finance leases and hire purchase contracts 4 3 17
Exchange losses on foreign currency translation 48 71 74
Other (Includes exceptional items(pound)31m in 31 Dec 2002) 1 3 43
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INTEREST PAYABLE AND SIMILAR CHARGES (Includes exceptional
items(pound)31m in 31 Dec 2002) 171 194 603
- ------------------------------------------------------------------------------------------------------------------------------------
12
TELEWEST COMMUNICATIONS PLC
UK GAAP
NOTES TO THE SUMMARISED UNAUDITED CONSOLIDATED ACCOUNTS (CONTINUED)
FOR THE THREE MONTHS ENDED 31 MARCH
- -----------------------------------------------------------------------------------------------------------------------------------
31 MAR 31 MAR 31 DEC
2003 2002 2002
AUDITED
(POUND)M (POUND)M (POUND)M
- -----------------------------------------------------------------------------------------------------------------------------------
5 RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW FROM OPERATING ACTIVITIES
Group operating loss (25) (61) (1,852)
Depreciation of tangible fixed assets 116 117 490
Exceptional impairment of tangible fixed assets - - 87
Amortisation of goodwill and intangible assets 6 30 119
Exceptional impairment of goodwill - - 1,486
(Increase)/decrease in stocks and programming inventory (8) (5) 7
(Increase)/decrease in debtors (10) (16) 24
Increase in creditors 32 7 30
- -----------------------------------------------------------------------------------------------------------------------------------
NET CASH INFLOW FROM OPERATING ACTIVITIES 111 72 391
- -----------------------------------------------------------------------------------------------------------------------------------
6 NET DEBT
Net debt, other than short-term creditors and accruals
- -----------------------------------------------------------------------------------------------------------------------------------
Convertible Notes 901 916 890
Other Notes and Debentures 2,591 2,678 2,529
Bank facility 2,000 1,455 2,000
Other loans 8 43 9
Vendor financing and obligations under finance leases and hire
purchase contracts 207 277 231
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DEBT 5,707 5,369 5,659
Less cash at bank and in hand (390) (91) (390)
- -----------------------------------------------------------------------------------------------------------------------------------
NET DEBT (before restricted cash deposits) 5,317 5,278 5,269
- -----------------------------------------------------------------------------------------------------------------------------------
7 EXCEPTIONAL ITEMS
During the three months ended 31 March 2003, the Group incurred (pound)3 million
of exceptional legal and professional costs in respect of its balance sheet
restructuring.
13
TELEWEST COMMUNICATIONS PLC
UK GAAP
SUMMARISED UNAUDITED QUARTERLY CONSOLIDATED PROFIT AND LOSS ACCOUNTS
FOR THE QUARTERS ENDED
- ------------------------------------------------------------------------------------------------------------------------------------
31 MAR 31 DEC 30 SEPT 30 JUN 31 MAR
2003 2002 2002 2002 2002
(POUND)M (POUND)M (POUND)M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
TURNOVER
Consumer Division:
Cable television 79 81 82 88 85
Telephony 117 122 122 125 126
Internet and other (31 Dec 2002 before exceptional item of(pound)16m) 26 23 22 18 16
- ------------------------------------------------------------------------------------------------------------------------------------
222 226 226 231 227
Business Division 69 68 68 67 64
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CABLE DIVISION 291 294 294 298 291
- ------------------------------------------------------------------------------------------------------------------------------------
Content Division
Programming, transactional and interactive 27 27 27 26 26
revenues
Share of joint ventures' turnover (UKTV) 17 16 15 16 17
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CONTENT DIVISION 44 43 42 42 43
TOTAL TURNOVER (SEE 1 BELOW) 335 337 336 340 334
Less: share of joint ventures' turnover (17) (16) (15) (16) (17)
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP TURNOVER 318 321 321 324 317
TOTAL OPERATING COSTS before exceptional items (340) (375) (382) (389) (378)
EXCEPTIONAL ITEMS (see 2 below) (3) (1,611) - - -
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP OPERATING LOSS (after exceptional items) (25) (1,665) (61) (65) (61)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Group Turnover (31 Dec 2002 before exceptional VAT adjustment) 318 321 321 324 317
Operating expenses before exceptional items, depreciation and
amortisation (218) (223) (227) (234) (231)
--------------------------------------------------------------
EBITDA (before exceptional items) 100 98 94 90 86
Exceptional items (3) (38) - - -
--------------------------------------------------------------
EBITDA (after exceptional items) 97 60 94 90 86
Depreciation and amortisation (122) (152) (155) (155) (147)
Exceptional item - impairment of tangible assets - (87) - - -
Exceptional item - impairment of goodwill - (1,486) - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Group operating loss (after exceptional items) (25) (1,665) (61) (65) (61)
- ------------------------------------------------------------------------------------------------------------------------------------
LOSS FOR THE FINANCIAL PERIOD (after exceptional items) (187) (1,821) (158) (73) (166)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
LOSS PER ORDINARY SHARE (pence) (6.5) (63.3) (5.6) (2.5) (5.8)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1 - Total turnover in 31 Dec 2002 is stated before an exceptional item of
(pound)16m.
2 - Exceptional items in 31 Mar 2003 is (pound)3m and in 31 Dec 2002 of
(pound)1,611m comprised (pound)1,595m charged to operating costs and (pound)16m
charged to turnover
14
TELEWEST COMMUNICATIONS PLC
UK GAAP
SUMMARISED UNAUDITED QUARTERLY CONSOLIDATED ACCOUNTS
FOR THE QUARTERS ENDED
- -----------------------------------------------------------------------------------------------------------------------------------
31 MAR 31 DEC 30 SEPT 30 JUNE 31 MAR
2003 2002 2002 2002 2002
(POUND)M (POUND)M (POUND)M (POUND)M (POUND)M
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING COSTS
COST OF SALES:
Consumer programming expenses 32 32 31 32 33
Business and consumer telephony expenses 51 53 52 58 55
Content Division cost of sales 17 22 17 15 16
- -----------------------------------------------------------------------------------------------------------------------------------
PRIME COST OF SALES (COST OF SALES BEFORE DEPRECIATION) 100 107 100 105 104
Depreciation of tangible fixed assets 116 123 125 125 117
Exceptional write down of tangible fixed assets - 87 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
216 317 225 230 221
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATION EXPENSES:
Selling, general and administrative expenses 118 116 127 129 127
Exceptional selling, general and administrative expenses 3 22 - - -
Amortisation of goodwill and intangible assets 6 29 30 30 30
Exceptional impairment of goodwill - 1,486 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
127 1,653 157 159 157
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING COSTS 343 1,970 382 389 378
- -----------------------------------------------------------------------------------------------------------------------------------
INTEREST RECEIVABLE AND SIMILAR INCOME
Interest receivable 6 6 5 5 3
Exchange gains on foreign currency translation - 46 58 104 82
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INTEREST RECEIVABLE AND SIMILAR INCOME 6 52 63 109 85
- -----------------------------------------------------------------------------------------------------------------------------------
INTEREST PAYABLE AND SIMILAR CHARGES
Share of interest of associated 1 2 1 2 4
undertakings and joint ventures
On bank loans 36 38 36 32 29
Finance costs of Notes and Debentures 81 72 84 85 84
Finance charges payable in respect of 4 4 4 6 3
finance leases and hire purchase contracts
Exchange losses on foreign currency translation 48 (13) (6) 22 71
Other (31 Dec 2002 includes exceptional items(pound)31m) 1 32 5 3 3
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INTEREST PAYABLE AND SIMILAR CHARGES 171 135 124 150 194
- -----------------------------------------------------------------------------------------------------------------------------------
NET DEBT
Net debt, other than short-term creditors and accruals
- -----------------------------------------------------------------------------------------------------------------------------------
Convertible Notes 901 890 893 897 916
Other Notes and Debentures 2,591 2,529 2,560 2,657 2,678
Bank facility 2,000 2,000 1,969 1,807 1,455
Other loans 8 9 35 42 43
Vendor financing and obligations under finance 207 231 221 246 277
leases and hire purchase contracts
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DEBT 5,707 5,659 5,678 5,649 5,369
Less cash at bank and in hand (390) (390) (351) (341) (91)
- -----------------------------------------------------------------------------------------------------------------------------------
NET DEBT 5,317 5,269 5,327 5,308 5,278
- -----------------------------------------------------------------------------------------------------------------------------------
15
TELEWEST COMMUNICATIONS PLC
US GAAP
SUMMARISED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED 31 MARCH
- ------------------------------------------------------------------------------------------------------------------------------------
3 MONTHS 3 MONTHS 3 MONTHS
ENDED ENDED ENDED
31 MAR 31 MAR 31 MAR
2003 2003 2002
$M (POUND)M (POUND)M
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUE
Cable television 125 79 85
Consumer telephony 185 117 126
Internet and other 41 26 16
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CONSUMER DIVISION 351 222 227
Business Services Division 110 70 66
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CABLE DIVISION 461 292 293
Content Division 43 27 26
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUE 504 319 319
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING COSTS AND EXPENSES
Consumer programming expenses (50) (32) (33)
Business and consumer telephony expenses (81) (51) (55)
Content expenses (27) (17) (16)
Depreciation (152) (96) (117)
- ------------------------------------------------------------------------------------------------------------------------------------
Cost of sales (310) (196) (221)
Selling, general and administrative expenses (191) (121) (129)
- ------------------------------------------------------------------------------------------------------------------------------------
(501) (317) (350)
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING PROFIT/(LOSS) 3 2 (31)
OTHER INCOME/(EXPENSE)
Interest income 9 6 -
Interest expense (197) (125) (121)
Foreign exchange (losses)/gains, net (75) (48) 21
Share of net profits of affiliates 3 2 4
Other, net (2) (1) -
- ------------------------------------------------------------------------------------------------------------------------------------
LOSS BEFORE INCOME TAXES (259) (164) (127)
Income tax benefit 2 1 2
- ------------------------------------------------------------------------------------------------------------------------------------
NET LOSS (257) (163) (125)
- ------------------------------------------------------------------------------------------------------------------------------------
Basic and diluted loss per ordinary share $(0.09) (pound)(0.06) (pound)(0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
Operating profit/(loss) 3 2 (31)
Add: depreciation 152 96 117
- ------------------------------------------------------------------------------------------------------------------------------------
EBITDA 155 98 86
- ------------------------------------------------------------------------------------------------------------------------------------
The consolidated financial information as set out on pages 16 to 18, which is
unaudited, has been prepared on the basis of the accounting policies set out in
Telewest's Annual Report, other than where changes are necessary to implement
new accounting standards. The economic environment in which the Company operates
is the United Kingdom and hence its reporting currency is Pounds Sterling
("(pound)"). Merely for convenience, the financial statements contain
translation of certain Pounds Sterling amounts into US Dollars ("$") at $1.5790
per (pound)1.00, the noon buying rate of the Federal Reserve Bank of New York on
31 March 2003. 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.
16
TELEWEST COMMUNICATIONS PLC
US GAAP
SUMMARISED UNAUDITED CONSOLIDATED BALANCE SHEETS
AS AT 31 MARCH
31 MAR 31 MAR 31 DEC
2003 2003 2002
$M (POUND)M (POUND)M
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and cash equivalents 616 390 390
Secured cash deposits restricted for more than one year 19 12 12
Receivables and prepaid expenses 353 224 215
- ------------------------------------------------------------------------------------------------------------------------------------
Total current assets 988 626 617
Investments 586 371 376
Property and equipment 4,052 2,566 2,598
Goodwill and other intangibles 706 447 447
Inventory 57 36 28
Other assets 58 37 40
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 6,447 4,083 4,106
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Debt 8,697 5,508 5,450
Other liabilities 1,753 1,110 1,030
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 10,450 6,618 6,480
MINORITY INTERESTS (2) (1) (1)
SHAREHOLDERS' DEFICIT (4,001) (2,534) (2,373)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT 6,447 4,083 4,106
- ------------------------------------------------------------------------------------------------------------------------------------
17
TELEWEST COMMUNICATIONS PLC
US GAAP
SUMMARISED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED 31 MARCH
31 MAR 31 MAR 31 MAR
2003 2003 2002
$M (POUND)M (POUND)M
- -----------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss (257) (163) (125)
Adjustments to reconcile net loss to net cash provided by/(used in) operating
activities:
Depreciation 152 96 117
Amortisation of deferred financing costs and issue discount on Senior Discount Debentures 41 26 26
Deferred tax credit (2) (1) (2)
Unrealised losses/(gains) on foreign currency translation 75 48 (21)
Share of net profits of affiliates (3) (2) (4)
Loss on disposal of assets 2 1 -
Changes in operating assets and liabilities, net of effect of acquisition of
subsidiaries:
Change in receivables 14 9 (4)
Change in prepaid expenses (30) (19) (11)
Change in other assets (13) (8) (4)
Change in accounts payable 62 39 56
Change in other liabilities 76 48 (30)
- -----------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES 117 74 (2)
NET CASH USED IN INVESTING ACTIVITIES (96) (61) (115)
NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES (21) (13) 194
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN CASH AND CASH EQUIVALENTS - - 77
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 616 390 14
- -----------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 616 390 91
- -----------------------------------------------------------------------------------------------------------------------------------
18