EXHIBIT 99
Telewest Communications plc Press Release issued on May 7, 1998 with respect to
results of operations for the three month period ended March 31, 1998 (including
unaudited consolidated financial statements prepared in accordance with UK
GAAP).
FOR IMMEDIATE RELEASE 7TH MAY 1998
TELEWEST COMMUNICATIONS PLC
1ST QUARTER RESULTS 1998
EBITDA (POUND) 25.8M +254%
REVENUE (POUND)110.4M +22.2%
CATV MARGIN 42.8% +3.7% POINTS
TELEPHONY MARGIN 77.1% +6.5% POINTS
HOUSEHOLD PENETRATION 34.5% +0.7% POINTS
Quarter ending Mar. 98 Mar. 97 Dec. 97
- -------------- ------- ------- -------
TELEVISION
Customers 617,877 541,728 (+14.1%) 605,988 (+2.0%)
Penetration 22.1% 22.2% (-0.1% points) 22.0% (+0.1% points)
Churn 34.8% 32.6% (+2.2% points) 34.0% (+0.8% points)
Av. Rev. per cust (pound)23.72 (pound)23.57 (+0.6%) (pound)23.40 (+1.4%)
RESIDENTIAL TELEPHONY
Customers 831,585 669,577 (+24.2%) 810,358 (+2.6%)
Penetration 30.1% 28.2% (+1.9% points) 29.7% (+0.4% points)
Churn 20.5% 19.5% (+1.0% point) 20.0% (+0.5% points)
Av. Rev. per line (pound)19.10 (pound)20.31 (-6.0%) (pound)19.19 (-0.5%)
BUSINESS TELEPHONY
Lines 110,015 74,540 (+47.6%) 100,989 (+8.9%)
Av. Lines per cust. 4.1 3.5 (+17.1%) 4.0 (+2.5%)
Av. Rev. per line (pound)42.81 (pound)43.68 (-2.0%) (pound)43.62 (-1.9%)
Av. Rev. per cust. (pound)173.40 (pound)145.73 (+19.0%) (pound)158.05 (+9.7%)
INTERNET
Dial-up customers 17,059 4,895 (+248.5%) 16,713 (+2.1%)
TELEWEST TODAY ANNOUNCED ITS 1ST QUARTER RESULTS.
COMMENTING ON THE RESULTS CHARLES BURDICK, GROUP FINANCE DIRECTOR, SAID:
"THE FINANCIAL RESULTS FOR THE FIRST QUARTER OF 1998 REFLECT SUBSTANTIAL
PROGRESS FOLLOWING THE RESTRUCTURING OF THE BUSINESS TOWARDS THE END OF LAST
YEAR AND UNDERSCORE THE STRATEGIC RATIONALE OF OUR PROPOSED MERGER WITH GENERAL
CABLE. TURNOVER HAS INCREASED BY 22.2% TO (POUND)110.4M WITH ALL REVENUE STREAMS
CONTRIBUTING TO THE GROWTH. EBITDA OF (POUND)25.8M HAS BEEN ACHIEVED THROUGH
GROWTH IN CUSTOMER NUMBERS, MARGIN IMPROVEMENTS AND CONTINUED EMPHASIS ON THE
CONTROL OF OPERATING COSTS EVIDENCED BY DECLINING SG&A IN THE FACE OF
SUBSTANTIAL GROWTH IN CUSTOMER VOLUMES AND REVENUES.
"TELEPHONY MARGINS INCREASED 6.5% TO 77.1% AS A RESULT OF THE INCREASED VOLUME
OF TRAFFIC CARRIED SOLELY ON OUR OWN NETWORKS AND CONTINUED FAVOURABLE TERMS IN
INTERCONNECT PROVISION. SECOND LINE PENETRATION IS 3.9% UP FROM 1.5% REFLECTING
GROWTH IN THE USE OF THE INTERNET. THE PROGRAMMING STRATEGY WE HAVE EMPLOYED
WITH OUR MILLENNIUM PACKAGES IS CREATING A MORE FAVOURABLE DISTRIBUTION OF
SERVICES AMONGST OUR CUSTOMER BASE. THE CHANGE IN PRODUCT DISTRIBUTION, COUPLED
WITH REVISED CONTRACT ARRANGEMENTS WITH PROGRAMME SUPPLIERS, CONTRIBUTED TO AN
INCREASE OF 3.7% IN CATV MARGINS TO 42.8%. THE RECENTLY ANNOUNCED ITC PROPOSAL
ON PROGRAMME `BUNDLING' IS DESIGNED TO PROMOTE CONSUMER CHOICE AND IS WELCOMED
BY THE COMPANY.
"THE COMPANY ENDED Q1, 1998 WITH (POUND)1.42 BILLION OF DEBT SPLIT BETWEEN
(POUND)0.55 BILLION OF SENIOR BANK DEBT AND (POUND)0.87 BILLION OF BOND DEBT.
THE COMPANY REMAINS FULLY FUNDED AND IS OPERATING COMFORTABLY WITHIN ITS
RECENTLY RESTRUCTURED BANK FACILITIES. WE ARE LOOKING AT FINANCING OPTIONS IN
REGARD TO THE EXERCISE OF OUR PRE-EMPTION RIGHTS RESULTING FROM THE COMCAST /
NTL MERGER AND THE POSSIBLE PURCHASE OF THE BIRMINGHAM CABLE AND CABLE LONDON
SHARES HELD BY COMCAST.
DAVID VAN VALKENBURG, INTERIM CHIEF EXECUTIVE OF TELEWEST, CONTINUED:
"1998 IS OFF TO A PROMISING START. WITH THE RESTRUCTURING OF THE BUSINESS NOW
BEHIND US WE HAVE BEEN ABLE TO CONCENTRATE ON OUR CORE PRODUCTS. WE NOW HAVE
1,106,169 CUSTOMERS SERVICED BY OUR OWNED AND OPERATED AND AFFILIATED
FRANCHISES.
"CABLE TELEVISION PENETRATION IS AT 22.1% UP 0.1% POINTS ON THE PREVIOUS QUARTER
WHILE RESIDENTIAL TELEPHONY PENETRATION REACHED 30.1%, UP 0.4% POINTS ON Q4
1997. AN INCREASE IN CHURN OVER THE PREVIOUS QUARTER FOR BOTH TELEVISION (UP
0.8% POINTS) AND TELEPHONE (UP 0.5% POINTS) WAS DUE IN PART TO SERVICE RELATED
ISSUES FLOWING FROM OUR RESTRUCTURING AND THE PRICE INCREASES OF NOVEMBER 1. WE
ARE FOCUSSING THE EFFORTS OF THE COMPANY TOWARDS REDUCING THIS NUMBER.
"SALES OF THE MILLENNIUM PACKAGES, LAUNCHED IN FEBRUARY, HAVE EXCEEDED
EXPECTATIONS. THE MAJORITY OF NEW SUBSCRIBERS ARE IN RE-MARKET AREAS WHICH
DEMONSTRATES THE NEW AUDIENCE CREATED FOR OUR SERVICE OFFERINGS. THIS IS
EVIDENCED BY TOTAL SALES RELATIVE TO THE NUMBER OF FRESH HOMES AVAILABLE TO
MARKET. DESPITE A REDUCTION IN THE NUMBER OF FRESH HOMES RELEASED TO MARKET,
GROSS SALES FOR THE QUARTER COMPARE FAVOURABLY TO THE CORRESPONDING PERIOD IN
1997.
2
"EXCELLENT RESULTS WERE ACHIEVED IN OUR BUSINESS SERVICES DIVISION. CUSTOMERS
INCREASED TO 26,532, A RISE OF 4.1% FOR THE QUARTER AND LINES INCREASED BY 8.9%
TO 110,015. OUR BUSINESS CUSTOMERS FOR THE QUARTER AVERAGED 8.5 LINES AND IN
TOTAL NOW AVERAGE 4.1 LINES EACH, A SLIGHT INCREASE ON THE PREVIOUS QUARTER AND
A CONTINUATION OF THE UPWARD TREND.
"ON 15TH APRIL 1998 WE ANNOUNCED THAT TELEWEST AND GENERAL CABLE HAD AGREED
TERMS OF A PROPOSED MERGER TO BE ACHIEVED BY WAY OF A RECOMMENDED OFFER BY
TELEWEST FOR GENERAL CABLE SHARES. DOCUMENTS ARE EXPECTED TO BE POSTED TO
SHAREHOLDERS IN JUNE / JULY 1998. WE HAVE ALREADY STARTED THE PLANNING PROCESS
FOR THE INTEGRATION OF OUR TWO COMPANIES AND EXPECT THIS TO PROGRESS SMOOTHLY.
"WITH THE STRONG RESULTS OF THE FIRST QUARTER AND THE INCLUSION OF GENERAL CABLE
INTO AN ENLARGED GROUP WE HAVE AN EXCELLENT PLATFORM FOR CONTINUED GROWTH AND
ARE POSITIONED TO ASSUME MARKET LEADERSHIP."
NOTE:
THE FOLLOWING IS INCLUDED IN CONNECTION WITH LEGISLATION IN THE UNITED STATES OF
AMERICA, THE SAFE HARBOUR 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 1997 ANNUAL REPORT.
Enquiries to: TELEWEST COMMUNICATIONS PLC
David Van Valkenburg, Interim Chief Executive
Tel: 01483 750 900
Charles Burdick, Group Finance Director
Tel: 01483 750 900
Ian Hood, Director of Corporate Communications & Investor
Relations
Tel: 01483 295 184
and at :
Dewe Rogerson
Anthony Carlisle
0171 638 9571
3
TELEWEST COMMUNICATIONS PLC
Operating Statistics - Owned and operated on an equity basis
- -----------------------------------------------------------------------------------------------------------------------
1st Quarter 1998 Net Additions
NET ADDITIONS NET ADDITIONS
Q1 1998 Q1 1997
CABLE TELEVISION
- ----------------
HOMES MARKETED 34,652 103,424
CATV CUSTOMERS 11,889 13,586
RESIDENTIAL TELEPHONY
- ---------------------
HOMES MARKETED 35,672 122,777
RESIDENTIAL TELEPHONY CUSTOMERS 21,227 49,200
RESIDENTIAL TELEPHONY LINES 28,157 52,886
BUSINESS TELEPHONY
- ------------------
BUSINESS TELEPHONY CUSTOMERS 1,057 623
BUSINESS TELEPHONY LINES 9,026 6,717
AS AT 31 MARCH AS AT 31 MARCH
1998 1997
CABLE TELEVISION
- ----------------
HOMES MARKETED 2,794,836 2,439,377
CATV CUSTOMERS 617,877 541,728
CATV PENETRATION 22.1% 22.2%
QUARTERLY CHURN RATE (ANNUALISED) 37.2% 34.3%
ROLLING 12 MONTH CHURN RATE 34.8% 32.6%
RESIDENTIAL TELEPHONY
- ---------------------
HOMES MARKETED 2,760,826 2,377,511
RESIDENTIAL TELEPHONY CUSTOMERS 831,585 669,577
RESIDENTIAL TELEPHONY PENETRATION 30.1% 28.2%
RESIDENTIAL TELEPHONY LINES 864,325 679,895
QUARTERLY CHURN RATE PER LINE (ANNUALISED) 21.7% 19.8%
ROLLING 12 MONTH CHURN RATE 20.5% 19.5%
BUSINESS TELEPHONY
- ------------------
BUSINESS TELEPHONY CUSTOMERS 26,532 21,505
BUSINESS TELEPHONY LINES 110,015 74,540
AVERAGE NUMBER OF LINES PER CUSTOMER 4.1 3.5
INTERNET
- --------
DIAL-UP CUSTOMERS 17,059 4,895
CABLE TELEVISION AND RESIDENTIAL TELEPHONY CUSTOMERS 490,875 397,738
CABLE TELEVISION ONLY CUSTOMERS 127,002 143,990
RESIDENTIAL TELEPHONY ONLY CUSTOMERS 340,710 271,839
INTERNET ONLY CUSTOMERS 1,769 2,228
- -----------------------------------------------------------------------------------------------------------------------
4
TELEWEST COMMUNICATIONS PLC
Operating Statistics - Owned and operated and affiliated franchises
* On an equity basis
- -----------------------------------------------------------------------------------------------------------------
1st Quarter 1998 Net Additions
NET ADDITIONS NET ADDITIONS
Q1 1998 Q1 1997
CABLE TELEVISION
- ----------------
HOMES MARKETED 35,686 118,268
CATV CUSTOMERS 13,247 17,409
RESIDENTIAL TELEPHONY
- ---------------------
HOMES MARKETED 36,350 137,681
RESIDENTIAL TELEPHONY CUSTOMERS 24,791 53,812
RESIDENTIAL TELEPHONY LINES 32,211 57,706
BUSINESS TELEPHONY
- ------------------
BUSINESS TELEPHONY CUSTOMERS 1,189 744
BUSINESS TELEPHONY LINES 10,133 7,547
AS AT 31 MARCH AS AT 31 MARCH
1998 1997
CABLE TELEVISION
- ----------------
HOMES MARKETED 3,132,268 2,745,103
CATV CUSTOMERS 700,599 617,007
RESIDENTIAL TELEPHONY
- ---------------------
HOMES MARKETED 3,098,677 2,680,722
RESIDENTIAL TELEPHONY CUSTOMERS 919,473 739,913
RESIDENTIAL TELEPHONY LINES 954,752 751,227
BUSINESS TELEPHONY
- ------------------
BUSINESS TELEPHONY CUSTOMERS 29,520 24,042
BUSINESS TELEPHONY LINES 126,806 86,116
AVERAGE NUMBER OF LINES PER CUSTOMER 4.3 3.6
- -----------------------------------------------------------------------------------------------------------------
Note:
* The affiliated franchises include Telewest's interests in Cable London plc
(50.0% interest), Birmingham Cable Corporation (27.5% interest) and The Cable
Corporation (16.5% interest).
5
TELEWEST COMMUNICATIONS PLC
Owned and Operated Franchises
As at 31 March 1998
London and Midlands and Scotland
South East South West and North East North West Total
---------- ---------- -------------- ---------- -----
CABLE TELEVISION
- ----------------
HOMES MARKETED 618,356 832,637 747,995 595,848 2,794,836
CATV CUSTOMERS 144,142 177,814 169,704 126,217 617,877
CATV PENETRATION 23.3% 21.4% 22.7% 21.2% 22.1%
RESIDENTIAL TELEPHONY
- ---------------------
HOMES MARKETED 612,226 832,757 720,818 595,025 2,760,826
RESIDENTIAL TELEPHONY CUSTOMERS 154,609 272,739 222,641 181,596 831,585
RESIDENTIAL TELEPHONY PENETRATION 25.3% 32.8% 30.9% 30.5% 30.1%
RESIDENTIAL TELEPHONY LINES 164,540 282,089 229,903 187,793 864,325
BUSINESS TELEPHONY
- ------------------
BUSINESS TELEPHONY CUSTOMERS 6,429 8,740 6,121 5,242 26,532
BUSINESS TELEPHONY LINES 30,617 39,863 19,227 20,308 110,015
AVERAGE NUMBER OF LINES PER
CUSTOMER 4.8 4.6 3.1 3.9 4.1
6
TELEWEST COMMUNICATIONS PLC
Owned and Operated Franchises
As at 31 March 1998
London South South West North East Scotland South East North West Midlands Total
------------ ---------- ---------- -------- ---------- ---------- -------- -----
CABLE TELEVISION
- ----------------
HOMES MARKETED 364,744 380,508 224,624 523,371 253,612 595,848 452,129 2,794,836
CATV CUSTOMERS 79,706 80,973 53,451 116,253 64,436 126,217 96,841 617,877
CATV PENETRATION 21.9% 21.3% 23.8% 22.2% 25.4% 21.2% 21.4% 22.1%
RESIDENTIAL TELEPHONY
- ---------------------
HOMES MARKETED 358,595 380,628 221,401 499,417 253,631 595,025 452,129 2,760,826
RESIDENTIAL TELEPHONY CUSTOMERS 73,833 117,656 74,548 148,093 80,776 181,596 155,083 831,585
RESIDENTIAL TELEPHONY PENETRATION 20.6% 30.9% 33.7% 29.7% 31.8% 30.5% 34.3% 30.1%
RESIDENTIAL TELEPHONY LINES 79,750 123,575 75,981 153,922 84,790 187,793 158,514 864,325
BUSINESS TELEPHONY
- ------------------
BUSINESS TELEPHONY CUSTOMERS 4,938 5,124 1,708 4,413 1,491 5,242 3,616 26,532
BUSINESS TELEPHONY LINES 24,829 21,734 4,655 14,572 5,788 20,308 18,129 110,015
AVERAGE NUMBER OF LINES PER
CUSTOMER 5.0 4.2 2.7 3.3 3.9 3.9 5.0 4.1
7
TELEWEST COMMUNICATIONS PLC
Affiliated Franchises
As at 31 March 1998
CABLE LONDON BIRMINGHAM CABLE THE CABLE CORPORATION TOTAL AFFILIATES
ACTUAL EQUITY ACTUAL EQUITY ACTUAL EQUITY ACTUAL EQUITY
------ ------ ------ ------ ------ ------ ------ ------
CABLE TELEVISION
HOMES MARKETED 354,004 177,002 414,744 114,055 281,065 46,376 1,049,813 337,433
CATV CUSTOMERS 85,726 42,863 117,653 32,355 45,482 7,505 248,861 82,723
CATV PENETRATION 24.2% 24.2% 28.4% 28.4% 16.2% 16.2% 23.7% 24.5%
RESIDENTIAL TELEPHONY
HOMES MARKETED 354,004 177,002 414,744 114,055 283,602 46,794 1,052,350 337,851
RESIDENTIAL TELEPHONY CUSTOMERS 85,006 42,503 126,559 34,804 64,130 10,581 275,695 87,888
RESIDENTIAL TELEPHONY PENETRATION 24.0% 24.0% 30.5% 30.5% 22.6% 22.6% 26.2% 26.0%
RESIDENTIAL TELEPHONY LINES 90,083 45,042 126,559 34,804 64,130 10,581 280,772 90,427
BUSINESS TELEPHONY
BUSINESS TELEPHONY CUSTOMERS 3,044 1,522 4,052 1,114 2,129 351 9,225 2,987
BUSINESS TELEPHONY LINES 15,313 7,657 18,130 4,986 25,143 4,149 58,586 16,792
AVERAGE NUMBER OF LINES PER
CUSTOMER 5.0 5.0 4.5 4.5 11.8 11.8 6.4 5.6
8
TELEWEST COMMUNICATIONS PLC
UK GAAP
UNAUDITED SUMMARISED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE THREE MONTHS
ENDED 31 MARCH 1998
NOTE 3 MONTHS 3 MONTHS YEAR
ENDED ENDED ENDED
31 MARCH 31 MARCH 31 DECEMBER
1998 1997 1997
(POUND)000 (POUND)000 (POUND)000
TURNOVER
CABLE TELEVISION 44,180 38,101 159,918
TELEPHONY - RESIDENTIAL 48,436 39,674 166,645
TELEPHONY - BUSINESS 13,502 9,287 43,882
OTHER (INTERNET, AD SALES ETC) 4,306 3,328 16,053
110,424 90,390 386,498
====================================================
OPERATING LOSS (20,965) (30,172) (127,764)
SHARE OF RESULTS OF ASSOCIATED UNDERTAKINGS (6,704) (4,978) (21,312)
OTHER INTEREST RECEIVABLE AND SIMILAR INCOME 1,637 2,483 9,097
INTEREST PAYABLE AND SIMILAR CHARGES 3 (44,213) (36,878) (169,930)
LOSS ON ORDINARY ACTIVITIES BEFORE TAX (70,245) (69,545) (309,909)
TAX ON LOSS ON ORDINARY ACTIVITIES 20 (64) (521)
LOSS ON ORDINARY ACTIVITIES AFTER TAX (70,225) (69,609) (310,430)
MINORITY INTERESTS (26) (117) (293)
LOSS FOR THE FINANCIAL PERIOD (70,251) (69,726) (310,723)
====================================================
LOSS PER EQUITY SHARE (4.9) (4.9) (21.8)
====================================================
1 EARNINGS/ (LOSS) BEFORE INTEREST, TAXES,
DEPRECIATION, AND AMORTISATION ("EBITDA")
OPERATING LOSS (20,965) (30,172) (127,764)
ADD: DEPRECIATION 46,724 37,456 177,341
EBITDA 25,759 7,284 49,577
=====================================================
2 OPERATING COSTS
PROGRAMMING EXPENSES 25,257 23,198 93,441
TELEPHONY EXPENSES 14,201 14,379 50,145
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES 45,207 45,529 193,335
DEPRECIATION 46,724 37,456 177,341
131,389 120,562 514,262
=====================================================
3 INTEREST PAYABLE AND SIMILAR CHARGES
ON BANK LOANS AND OVERDRAFTS AND OTHER LOANS
WHOLLY REPAYABLE WITHIN 5 YEARS 1,064 3,320 16,941
WHOLLY OR PARTLY REPAYABLE IN MORE THAN 5 YEARS 9,846 539 14,741
FINANCE COSTS OF SENIOR DISCOUNT DEBENTURES 19,854 16,815 71,661
FINANCE COSTS OF SENIOR DEBENTURES 5,686 5,657 22,657
FINANCE CHARGES PAYABLE IN RESPECT OF FINANCE
LEASE AND HIRE PURCHASE CONTRACTS 1,243 1,109 4,702
EXCHANGE LOSSES ON FOREIGN CURRENCY TRANSLATION, NET 1,316 7,517 30,954
OTHER 5,204 1,921 8,274
44,213 36,878 169,930
The consolidated financial statements as set out on pages 9 and 10 which are
unaudited, have been prepared on the basis of the accounting policies set out in
the Group's 1997 Annual Report. The balance sheet, profit and loss account and
cash flow statement at 31 December 1997 is derived from the statutory accounts
for 1997 which will be delivered to the Registrar of Companies following the
Company's annual general meeting. The auditors have reported on those accounts:
their report was unqualified and did not contain a statement under section
237(2) or (3) of the Companies Act 1985.
9
TELEWEST COMMUNICATIONS PLC
UK GAAP
UNAUDITED SUMMARISED CONSOLIDATED BALANCE SHEET AT 31 MARCH 1998
31 MARCH 31 MARCH 31 DECEMBER
1998 1997 1997
(POUND)000 (POUND)000 (POUND)000
FIXED ASSETS 1,785,383 1,657,750 1,809,213
CURRENT ASSETS
Stocks 96 62 32
Debtors 81,741 79,821 70,457
Cash at bank and in hand 43,875 106,802 29,582
125,712 186,685 100,071
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (228,100) (220,425) (334,756)
NET CURRENT LIABILITIES (102,388) (33,740) (234,685)
TOTAL ASSETS LESS CURRENT LIABILITIES 1,682,995 1,624,010 1,574,528
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR (1,484,400) (1,113,359) (1,305,708)
MINORITY INTERESTS (666) (464) (640)
------------------------------------------------------
CAPITAL AND RESERVES 197,929 510,187 268,180
10
TELEWEST COMMUNICATIONS PLC
UK GAAP
3 Months ended Year ended
March 31 31 Dec 97
1998 1997 1997
---- ---- ----
(pound)'000 (pound)'000 (pound)'000
NET CASH INFLOW FROM OPERATING ACTIVITIES 9,101 (18,706) 68,624
----------------------------------------------
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received 1,194 1,045 3,599
Interest paid (13,090) (3,421) (63,479)
Interest element of finance lease payments (1,243) (151) (4,702)
----------------------------------------------
NET CASH OUTFLOW FROM RETURNS ON INVESTMENTS AND SERVICING
OF FINANCE (13,139) (2,527) (64,582)
----------------------------------------------
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Purchase of tangible fixed assets (49,345) (92,619) (436,100)
Sale of tangible fixed assets 3,188 999 6,066
----------------------------------------------
NET CASH OUTFLOW FROM CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT (46,157) (91,620) (430,034)
----------------------------------------------
ACQUISITIONS AND DISPOSALS
Investment in associated undertakings and other
participating interests (2,202) (8,505) (9,633)
----------------------------------------------
NET CASH OUTFLOW FROM ACQUISITIONS AND DISPOSALS (2,202) (8,505) (9,633)
----------------------------------------------
MANAGEMENT OF LIQUID RESOURCES
(Increase) / Decrease in fixed deposits (net) (10,574) (16,052) 53,288
FINANCING
Cash paid for credit facility arrangement costs (5,900) 0 0
Proceeds from borrowings 75,000 150,000 392,500
Repayment of borrowings (10) 0 (2,375)
Capital element of finance lease payments (2,400) (1,020) (3,971)
----------------------------------------------
NET CASH INFLOW FROM FINANCING 66,690 148,980 386,154
----------------------------------------------
INCREASE IN CASH 3,719 11,570 3,817
11
TELEWEST COMMUNICATIONS PLC
US GAAP
UNAUDITED SUMMARISED CONSOLIDATED STATEMENTS OF OPERATIONS 3 MONTHS 3 MONTHS 3 MONTHS
ENDED ENDED ENDED
31 MARCH 31 MARCH 31 MARCH
1998 1998 1997
---- ---- ----
$000 (POUND)000 (POUND)000
REVENUE
Cable television 74,068 44,180 38,101
Telephony - residential 81,203 48,436 39,674
Telephony - business 22,636 13,502 9,287
Other 7,219 4,306 3,328
-------------------------------------------
185,126 110,424 90,390
===========================================
OPERATING LOSS (46,211) (27,564) (36,766)
Interest income 1,829 1,091 2.362
Interest expense (71,622) (42,721) (30,314)
Foreign exchange gain/(losses), net 11,115 6,630 (24,127)
Share of losses of affiliates (11,239) (6,704) (4,978)
Minority interest in profits of consolidated subsidiaries, net (44) (26) (117)
Other, net 916 546 121
-------------------------------------------
LOSS BEFORE INCOME TAXES (115,256) (68,748) (93,819)
Income tax expense 34 20 (64)
-------------------------------------------
NET LOSS (115,222) (68,728) (93,883)
===========================================
LOSS PER ORDINARY SHARE
(DOLLARS/POUNDS) $(0.12) (POUND)(0.07) (pound)(0.10)
===========================================
1 EARNINGS/(LOSS) BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTISATION ("EBITDA")
Operating loss (46,211) (27,564) (36,766)
Add: depreciation and amortisation of goodwill 89,396 53,323 44,050
-------------------------------------------
EBITDA 43,185 25,759 7,284
===========================================
2 OPERATING COSTS AND EXPENSES
Programming 42,343 25,257 23,198
Telephony 23,808 14,201 14,379
Selling, general and administration 75,790 45,207 45,529
Depreciation 78,333 46,724 37,456
Amortisation of goodwill 11,063 6,599 6,594
-------------------------------------------
231,337 137,988 127,156
The consolidated financial statements as set out on pages 12 and 13 which are
unaudited, have been prepared on the basis of the accounting policies set out in
the Group's 1997 Annual Report. The balance sheet, profit and loss account and
cash flow statement at 31 December 1997 is derived from the statutory accounts
for 1997 which will be delivered to the Registrar of Companies following the
Company's annual general meeting. The auditors have reported on those accounts:
their report was unqualified and did not contain a statement under section
237(2) or (3) of the Companies Act 1985.
The economic environment in which the Company operates is the United Kingdom
("UK") and hence its reporting currency is Pounds Sterling ("(pound)"). Merely
for convenience, the financial statements contain translations of certain Pounds
Sterling amounts into US Dollars at $1.6765 per (pound)1.00, the Noon Buying
Rate of the Federal Reserve Bank of New York on March 31, 1998. 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.
12
TELEWEST COMMUNICATIONS PLC
US GAAP
31 MARCH 31 MARCH 31 MARCH
1998 1998 1997
$000 (POUND)000 (POUND)000
ASSETS
Cash and cash equivalents 73,556 43,875 29,582
Receivables and prepaid expenses 134,824 80,420 70,459
Investments 130,755 77,993 85,373
Property and equipment 2,858,277 1,704,907 1,705,520
Goodwill 770,035 459,311 465,905
-------------------------------------------------------
Other assets 81,827 48,808 56,513
=======================================================
TOTAL ASSETS 4,049,274 2,415,314 2,413,352
=======================================================
LIABILITIES
Debt 2,428,947 1,448,820 1,373,054
Other liabilities 495,918 295,806 300,908
-------------------------------------------------------
TOTAL LIABILITIES 2,924,865 1,744,626 1,673,962
MINORITY INTERESTS 1,117 666 640
SHAREHOLDERS' EQUITY 1,123,292 670,022 738,750
-------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,049,274 2,415,314 2,413,352
-------------------------------------------------------
UNAUDITED SUMMARISED CONSOLIDATED STATEMENTS OF CASH FLOWS
3 months 3 months 3 months
ended ended ended
31 March 31 March 31 March
1998 1998 1997
$000 (pound)000 (pound)000
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss (115,222) (68,728) (93,883)
Adjustments to reconcile net loss to net cash used in
operating activities
Depreciation 78,333 46,724 37,456
Amortisation of goodwill 11,055 6,594 6,594
Amortisation of deferred financing costs and issue
discount on senior discount debentures 40,145 23,946 18,276
Unrealised (gains)/loss on foreign currency translation (11,107) (6,625) 23,794
Share of losses of affiliates 11,239 6,704 4,978
Gain on disposals of assets (857) (511) (121)
Minority interests in profits of consolidated 44 26 117
subsidiaries, net
Changes in operating assets and liabilities
Change in receivables (7,754) (4,625) (11,553)
Change in prepaid expenses (4,230) (2,523) 167
Change in accounts payable 9,710 5,792 (15,034)
Change in other liabilities (18,125) (10,811) 7,976
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NET CASH USED IN OPERATING ACTIVITIES (6,769) (4,037) (21,233)
NET CASH USED IN INVESTING ACTIVITIES (81,073) (48,359) (100,125)
NET CASH PROVIDED BY FINANCING ACTIVITIES 111,804 66,689 148,980
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NET DECREASE IN CASH AND CASH EQUIVALENTS 23,962 14,293 27,622
Effect of exchange rate changes on cash and cash equivalents 0 0 64
Cash and cash equivalents at beginning of period 49,594 29,582 79,116
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CASH AND CASH EQUIVALENTS AT END OF PERIOD 73,556 43,875 106,802
- ENDS -
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