Information  X 
Enter a valid email address

Telewest Comms PLC (203)

  Print   

Thursday 18 May, 2000

Telewest Comms PLC

1st Quarter Rslts 2000 - Pt.2

Telewest Communications PLC
18 May 2000

Part Two

Telewest Communications plc                                       
UK GAAP
SUMMARISED UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNTS
FOR THE THREE MONTHS ENDED 31 MARCH
------------------------------------------------------------------------------
                                          3 months      3 months         Year
                                             ended         ended        ended
                                          31 March      31 March  31 December
                                              2000          1999         1999
                                                £m            £m           £m 
                                                                      Audited
------------------------------------------------------------------------------
Turnover                                                   
Residential Services                                       
   Cable television                           73.5          64.4        258.3
   Telephony                                 105.9          78.9        333.7
------------------------------------------------------------------------------
                                             179.4         143.3        592.0
Business Services                             56.3          39.7        183.5
Other (Internet, ad sales etc)                 3.1           4.5         17.0
------------------------------------------------------------------------------
Total                                        238.8         187.5        792.5
Operating expenses before charging                                 
depreciation and amortisation               (181.2)       (137.1)      (570.7)
------------------------------------------------------------------------------
EBITDA                                        57.6          50.4        221.8
Depreciation and amortisation               (100.3)        (83.3)      (402.9)
------------------------------------------------------------------------------
Group operating loss                         (42.7)        (32.9)      (181.1)
Share of operating profit/(loss) of              -          (0.4)         0.7
associated undertakings
Other interest receivable and similar income   1.2           9.0         11.1
(includes the group share of interest receivable in associated undertakings of
£Nil and £6.8m for 2000 and 1999 respectively)
Interest payable and similar charges         (95.7)       (110.8)      (360.6)
------------------------------------------------------------------------------
Loss on ordinary activities before tax      (137.2)       (135.1)      (529.9)
Tax on loss on ordinary activities               -           0.1            -
------------------------------------------------------------------------------
Loss on ordinary activities after tax       (137.2)       (135.0)      (529.9)
Minority interests                            (0.1)            -         (0.1)
------------------------------------------------------------------------------
Loss for the period                         (137.3)       (135.0)      (530.0)
Basic and diluted loss per equity share       (6.0)         (6.2)*      (24.1)
(pence)
------------------------------------------------------------------------------
* restated for compliance with FRS 14                      

The  consolidated financial statements as set out on pages 10  to  13,
which are unaudited, have been prepared on the basis of the accounting
policies  set  out in Telewest's 1999 Annual Report other  than  where
changes  are  necessary  to  implement new accounting  standards.  The
balance sheet, profit and loss account and cash flow information at 31
December  1999 is derived from the statutory accounts for  1999  which
will  be  delivered  to  the  Registrar  of  Companies  following  the 
Company's  annual  general  meeting  in  June  2000. 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.

Telewest Communications plc                                     
UK GAAP
NOTES TO THE SUMMARISED UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNTS
FOR THE THREE MONTHS ENDED 31 MARCH
------------------------------------------------------------------------------
                                          3 months      3 months         Year
                                             ended         ended        ended
                                          31 March      31 March  31 December
                                              2000          1999         1999
                                                £m            £m           £m 
                                                                      Audited
------------------------------------------------------------------------------
1 Operating costs                                                
                                                                 
   Operating expenses before charging 
    depreciation and amortisation:
   Programming expenses                       36.6          35.8        131.9
   Telephony expenses                         52.7          32.0        158.0
   Selling, general, and                   
    administrative expenses                   91.9          69.3        280.8
------------------------------------------------------------------------------
                                             181.2         137.1        570.7
   Depreciation and amortisation:
   Depreciation of tangible fixed assets      83.2          71.6        354.3
   Amortisation of goodwill                   17.1          11.7         48.6
------------------------------------------------------------------------------
                                             100.3          83.3        402.9

------------------------------------------------------------------------------
Total operating costs                        281.5         220.4        973.6
------------------------------------------------------------------------------

2 Interest payable and similar charges
                            
  Share of interest of associated undertakings   -           1.7          6.9
  On bank loans                                                  
      Wholly repayable within 5 years            -           0.5         25.9
      Wholly or partly repayable in         
       more than 5 years                      22.2          29.4         55.9
  Finance costs of Senior Discount 
   Debentures, 2007                           25.2          23.5         93.6
  Finance costs of Senior                    
   Debentures, 2006                            5.7           5.7         21.9
  Finance costs of Senior Notes, 2008          6.3           6.2         24.9
  Finance costs of Senior 
   Convertible Notes, 2007                     4.4           2.0         15.1
  Finance costs of Senior Discount  
   Notes, 2009                                10.5             -         28.8
  Finance costs of Senior Notes and                              
   Senior Discount Notes, 2010                10.8             -            -
  Finance charges payable in respect of                          
   finance leases and hire purchase contracts  2.0           4.1          9.4
  Exchange loss on foreign currency                           
   translation, net                            7.1          27.6         44.0
  Sale and leaseback termination                 -           7.1          8.9
  Extinguishment of debt                         -             -         15.7
  Other                                        1.5           3.0          9.6
------------------------------------------------------------------------------
Total interest payable and
similar charges                               95.7         110.8        360.6
------------------------------------------------------------------------------

Telewest Communications plc
UK GAAP
SUMMARISED UNAUDITED CONSOLIDATED BALANCE SHEETS
AS AT 31 MARCH
                                                                
------------------------------------------------------------------------------
                                          31 March      31 March  31 December
                                              2000          1999         1999
                                                £m            £m           £m 
                                                                      Audited
------------------------------------------------------------------------------
                                                               
Fixed assets
  Intangible assets                        1,287.4         907.1      1,304.4
  Tangible assets                          2,847.1       2,467.6      2,775.1
  Investment in associated undertakings        4.6          29.5          4.0
  Other investments                            4.3           2.4          2.1
------------------------------------------------------------------------------
                                           4,143.4       3,406.6      4,085.6
------------------------------------------------------------------------------

Current assets
  Stocks                                       0.1           0.2          0.2
  Debtors                                    191.6         184.4        158.2
  Secured cash deposit restricted for     
  more than one year                          12.0             -         12.0
  Cash at bank and in hand                    76.9          60.2         65.2
------------------------------------------------------------------------------
                                             280.6         244.8        235.6
Creditors: amounts falling due
within one year                             (406.4)       (363.6)      (505.8)
------------------------------------------------------------------------------
Net current (liabilities)                   (125.8)       (118.8)      (270.2)
------------------------------------------------------------------------------
                                                                
Total assets less current liabilities      4,017.6       3,287.8      3,815.4
                                                               
Creditors: amounts falling due after  
more than one year                        (3,399.9)     (2,558.6)    (3,061.0)
Minority interests                            (0.6)         (0.4)        (0.5)
------------------------------------------------------------------------------
Capital and reserves                         617.1         728.8        753.9
------------------------------------------------------------------------------

Telewest Communications plc
UK GAAP
SUMMARISED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED 31 MARCH


------------------------------------------------------------------------------
                                          31 March      31 March  31 December
                                              2000          1999         1999
                                                £m            £m           £m 
                                                                      Audited
------------------------------------------------------------------------------
Net cash inflow from operating activities     48.4          42.9        197.6
Returns on investments and servicing of                              
 finance
   Interest received                           1.0           4.5          7.5
   Interest paid                             (17.9)         (8.0)      (123.8)
   Interest element of finance lease payments (1.8)         (4.1)       (12.9)
------------------------------------------------------------------------------
Net cash outflow from returns on investments
and servicing of finance                     (18.7)         (7.6)      (129.2)
------------------------------------------------------------------------------
Capital expenditure and financial investment                         
   Purchase of tangible fixed assets        (147.2)        (76.6)      (468.1)
   Sale of tangible fixed assets               0.1           0.3          4.7
------------------------------------------------------------------------------
Net cash outflow from capital expenditure  
and financial investment                    (147.1)        (76.3)      (463.4)
------------------------------------------------------------------------------
Acquisitions and disposals                                           
   Purchase of subsidiary undertakings           -             -       (395.3)
   Cash acquired with subsidiaries               -             -          2.2
   Investment in associated undertakings and                         
    other participating interests             (2.3)         (0.6)        (2.4)
------------------------------------------------------------------------------
Net cash outflow from acquisitions and 
disposals                                     (2.3)         (0.6)      (395.5)
------------------------------------------------------------------------------
Management of liquid resources                                       
   Decrease / (increase) in fixed deposits
    (net)                                     27.2         (16.5)       (33.6)
------------------------------------------------------------------------------
Financing                                                            
   Cash paid for credit facility 
    arrangement costs                            -             -        (16.3)
   Net (repayment of)/proceeds from          
    borrowings under old credit facility         -        (187.0)      (538.5)
   Repayment of borrowings under old facilities  -             -       (597.0)
   Net proceeds from borrowings under new 
    facilities                                   -             -        951.0
   Net repayments under existing facilities (275.0)            -            -
   Release of restricted cash deposits           -         187.4        175.4
   Cash received from exercise of share 
    options                                    0.3           5.8         12.5
   Cash received from rights issue               -             -        415.5
   Share issue costs                             -             -         (2.5)
   Repayment of Cable London facility       (126.0)            -            -
   Proceeds from issue of Senior Discount          
    Notes                                        -             -        399.2
   Proceeds from issue of Senior Convertible    
    Notes                                        -         300.0        300.0
   Proceeds from issue of Senior Discount   
    Notes and Senior Notes                   543.5             -            -
   Issue costs of Notes                       (9.1)         (7.5)       (17.8)
   Proceeds from / (repayment of) borrowings   3.9          (0.7)       (45.1)
   Capital element of finance lease payments  (6.2)       (237.1)      (221.8)
------------------------------------------------------------------------------
Net cash inflow from financing               131.4          60.9        814.6
------------------------------------------------------------------------------

Increase / (decrease) in cash                 38.9           2.8         (9.5)
------------------------------------------------------------------------------


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 March      31 March     31 March
                                              2000          2000         1999
                                                $m            £m           £m 
------------------------------------------------------------------------------
                                                                   
Revenue                                                            

   Cable television                          117.0          73.5         64.4
   Residential telephony                     168.6         105.9         78.9
   Business services                          84.7          53.2         39.7
   Other                                       4.9           3.1          4.5
------------------------------------------------------------------------------
Total                                        375.2         235.7        187.5
------------------------------------------------------------------------------
Operating loss                              (121.3)        (76.2)       (49.6)
Interest income                                1.7           1.1          8.8
Interest expense                            (139.6)        (87.7)       (80.6)
Foreign exchange gain/(loss), net            (40.5)        (25.4)       (30.4)
Share of losses of affiliates                    -             -         (2.2)
Minority interest in losses / (profits) of 
consolidated subsidiaries, net                (0.2)         (0.1)           -
Other, net                                     0.2           0.1          0.2
------------------------------------------------------------------------------
Loss before income taxes                    (299.7)       (188.2)      (153.8)
Income tax (expense) / benefit                   -             -            -
------------------------------------------------------------------------------
Net loss                                    (299.7)       (188.2)      (153.8)
------------------------------------------------------------------------------
Basic and diluted loss per ordinary share   $(0.13)       £(0.08)     £(0.07)*
* restated for the dilutive effect of the 1999 rights issue
------------------------------------------------------------------------------
                                                                   
                                                                   
1 Earnings/(loss) before interest, taxes, depreciation and amortisation 
  ('EBITDA')
                                                                   
Operating loss                              (121.3)        (76.2)      (49.6)
Add: depreciation and amortisation of 
 goodwill                                    174.8         109.8        86.5
------------------------------------------------------------------------------
EBITDA (after non-cash share-based
 compensation costs)                          53.5          33.6        36.9
Add back:  non-cash share-based                                    
compensation costs                            33.3          20.9        13.5
------------------------------------------------------------------------------
EBITDA (before non-cash share-                                     
based compensation costs)                     86.8          54.5        50.4
------------------------------------------------------------------------------

2 Operating costs and expenses                                      
                                                                   
Programming                                  (58.2)        (36.6)      (35.8)
Telephony                                    (83.9)        (52.7)      (32.0)
Selling, general and administration         (179.6)       (112.8)      (82.8)
Depreciation                                (142.3)        (89.4)      (71.6)
Amortisation of goodwill                     (32.5)        (20.4)      (14.9)
------------------------------------------------------------------------------
Total                                       (496.5)       (311.9)     (237.1)
------------------------------------------------------------------------------

The  consolidated financial statements as set out on pages 14  to  16,
which are unaudited, have been prepared on the basis of the accounting
policies set out in Telewest's 1999 Annual Report.

The economic environment in which the Company operates is the United
Kingdom ('UK') and hence its reporting currency is Pounds Sterling 
('£'). Merely for convenience, the financial statements contain
translations of certain Pounds Sterling amounts into US Dollars at
$1.5922 per £1.00, the Noon Buying Rate of the Federal Reserve Bank of
New York on 31 March 2000. 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 31 MARCH                                                    
------------------------------------------------------------------------------
                                          31 March      31 March  31 December
                                              2000          2000         1999
                                                $m            £m           £m 
                                                                      Audited
------------------------------------------------------------------------------
                                                                 
Assets
   Cash and cash equivalents                 122.4          76.9         65.2
   Secured cash deposit restricted   
    for more than one year                    19.1          12.0         12.0
   Receivables and prepaid expenses          306.0         192.2        151.7
   Investments                                10.7           6.7          4.0
   Property and equipment                  4,591.7       2,883.9      2,818.1
   Goodwill                                2,315.1       1,454.0      1,474.4
   Other assets                               72.9          45.8         42.1
------------------------------------------------------------------------------
Total assets                               7,437.9       4,671.5      4,567.5
------------------------------------------------------------------------------
Liabilities
   Debt                                    5,330.7       3,348.0      3,130.6
   Other liabilities                         855.2         537.1        483.6
------------------------------------------------------------------------------
Total liabilities                          6,185.9       3,885.1      3,614.2
------------------------------------------------------------------------------
Minority interests                             0.9           0.6          0.5
                                                                  
Shareholders' equity                       1,251.1         785.8        952.8
------------------------------------------------------------------------------
Total liabilities and shareholders' equity 7,437.9       4,671.5      4,567.5
------------------------------------------------------------------------------
                                                                  
Telewest Communications plc
US GAAP
SUMMARISED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED 31 MARCH
                     
------------------------------------------------------------------------------
                                          3 months      3 months     3 months
                                             ended         ended        ended
                                          31 March      31 March     31 March
                                              2000          2000         1999
                                                $m            £m           £m 
------------------------------------------------------------------------------

Cash flows from operating activities                     
Net loss                                    (299.7)       (188.2)      (153.8)
Adjustments to reconcile net loss to net 
cash provided by operating activities:                     
    Depreciation                             142.3          89.4         71.6
    Amortisation of goodwill                  32.5          20.4         14.9
    Amortisation of deferred financing 
     costs and issue discount on senior 
     discount debentures                      67.0          42.1         24.7
    Unrealised loss on foreign currency 
     translation                              40.8          25.6         31.3
    Non cash accrued share based 
     compensation cost                        33.3          20.9         13.5
    Termination of sale and leaseback            -             -          7.1
    Share of net losses of affiliates            -             -          2.2
    Loss/(gain) on disposals of assets           -             -         (0.2)
    Changes in operating assets and 
     liabilities, net of effect of 
     acquisition of subsidiaries:                     
        Change in receivables                (62.2)        (39.1)       (14.8)
        Change in prepaid expenses            (2.4)         (1.5)        (4.7)
        Change in accounts payable            54.5          34.2          1.8
        Change in other liabilities           41.2          25.9         41.7
------------------------------------------------------------------------------
Net cash provided by operating activities     47.3          29.7         35.3
Net cash used in investing activities       (237.9)       (149.4)       (76.9)
                     
Net cash provided by financing activities    209.2         131.4         60.9
------------------------------------------------------------------------------
Net increase in cash and cash equivalents     18.6          11.7         19.3
Cash and cash equivalents at beginning of 
 period                                      103.8          65.2         40.9
------------------------------------------------------------------------------
Cash and cash equivalents at end of period   122.4          76.9         60.2
------------------------------------------------------------------------------
 
Flextech plc                            
UK GAAP
SUMMARISED UNAUDITED FINANCIAL INFORMATION 
FOR THE THREE MONTHS ENDED 31 MARCH
------------------------------------------------------------------------------
                                                      3 months       3 months
                                                         ended          ended 
                                                 31 March 2000  31 March 1999
                                                            £m             £m
------------------------------------------------------------------------------
Turnover                     
Group and share of joint ventures                         40.9           39.4
Less: share of joint ventures                            (11.9)          (8.3)
------------------------------------------------------------------------------
Group Turnover                                            29.0           31.1
                     
Operating expenses before charging depreciation 
 and amortisation                                        (30.5)         (34.3)
EBITDA                                                    (1.5)          (3.2)
Depreciation and amortisation                             (1.1)          (1.2)
------------------------------------------------------------------------------
Operating loss                                            (2.6)          (4.4)
------------------------------------------------------------------------------
                     



a d v e r t i s e m e n t