By Kristin Jones
Liberty Global Inc.'s (LBTYA, LBTYB) fourth-quarter loss
narrowed as the international cable operator was helped by its
expansion in Europe.
Liberty Global, led by media mogul John Malone, has forged ahead
lately on an aggressive global expansion plan, with a focus on
Europe. The company said its best-performing operations were in
Germany and Belgium in the latest quarter.
The U.S. company agreed earlier this month to buy U.K.
cable-television and Internet provider Virgin Media Inc. (VMED) for
$16 billion, in a deal that may create a stronger rival to market
leader British Sky Broadcasting Group PLC (BSY.LN, BSYBY).
The proposed deal came less than a month after Liberty Global
boosted its stake in Belgian cable company Telenet Group Holding NV
(TLGHY, TNET.BT) to about 58.4% after failing to take full
ownership in a tender offer it made to Telenet shareholders.
Still, the company has reported mixed revenue in recent quarters
despite more customers switching to digital services or subscribing
to packages that bundle services, while its bottom-line results
frequently have been impacted by changes in the value of
derivatives and currency.
The latest quarter included losses on derivatives of $455
million, compared with year-ago derivative gains of $43.6
million.
Foreign currency transactions resulted in gains of $281.5
million in the latest period, compared with losses of $374.7
million a year earlier.
Overall, Liberty Global reported a loss of $331.3 million, or
$1.27 a share, compared with a year-earlier loss of $435 million,
or $1.58 a share. Revenue rose 14% to $2.73 billion, helped by
acquisitions and organic growth.
Analysts polled by Thomson Reuters projected a per-share profit
of 17 cents on revenue of $2.66 billion.
Operating margin widened to 18.3% from 17%, reflecting revenue
growth. Operating costs and expenses grew 12% to $2.23 billion.
Liberty Global's Class A shares rose 1.1% to $67.79 after hours
Wednesday. Through the close, the stock was up 20% in the past six
months.
Write to Kristin Jones at kristin.jones@dowjones.com
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