UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 29, 1998
MediaOne Group, Inc.
(Exact name of registrant as specified in its charter)
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<S> <C> <C>
A Delaware Corporation Commission File IRS Employer Identification
(State of incorporation) Number 1-8611 No. 84-0926774
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188 Inverness Drive West
Englewood, CO 80112
(Address of principal executive offices)
Telephone Number (303) 858-3000
(Registrant's telephone number, including area code)
Item 5. Other Events
On July 29, 1998, MediaOne Group, Inc. released its second quarter earnings
results. The releases and financial statements are attached hereto as Exhibits.
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Item 7. Exhibits
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Exhibit Description
27 Financial Data Schedule.
99 Press Release dated July 29, 1998 concerning the earnings results of MediaOne Group,
Inc. for the second quarter of 1998.
99.1 Consolidated Statements of Operations of MediaOne Group, Inc. for the quarter ended June
30, 1998, filing in connection with the Press Release dated July 29, 1998.
99.2 Unaudited Consolidated Balance Sheets of MediaOne Group, Inc. for the quarter ended June
30, 1998, filed in connection with the Press Release dated July 29, 1998.
99.3 Unaudited Selected Financial Data of MediaOne Group for the quarter ended June 30, 1998,
filed in connection with the Press Release dated July 29, 1998.
99.4 Unaudited Selected Financial and Operating Highlights - Domestic Cable and Broadbad of
MediaOne Group, Inc. for the quarter ended June 30, 1998, filed in connection with the
Press Release dated July 29, 1998.
99.5 Unaudited Selected Proportionate Financial Data of MediaOne Group, Inc. for the quarter
ended June 30, 1998, filing in connection with the press Release dated July 29, 1998.
</TABLE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
MediaOne Group, Inc.
/s/ STEPHEN E. BRILZ
By:
-----------------------------------------
Dated July 30, 1998 Stephen E. Brilz
Assistant Secretary
July 29, 1998
Cathy Fowler, 303-858-3405
Steve Lang, 303-858-3406
MediaOne Group Operating Cash Flow Increases 24 Percent
-- MediaOne Group Completes Major Strategic Moves, Becomes a Standalone
Company, Transfers Directory Business, Sells Domestic Wireless Interests
and Refinances Debt - All in the Second Quarter --
-- Company continues to roll out new services over cable networks in the U.S.
and abroad; International wireless continues strong growth --
ENGLEWOOD, Colo. -- MediaOne Group (NYSE: UMG) today reported its eleventh
straight quarter of double-digit growth in proportionate operating cash flow.
During the quarter, the company completed several major strategic moves,
including the split of U S WEST, the transfer of its directory business to the
new U S WEST, the sale of its domestic wireless interests and the refinancing of
debt. In the midst of these significant changes, operating results remained
solid.
For the second quarter, MediaOne Group reported - on a proportionate basis:
A 24 percent increase in operating cash flow from continuing operations, to $479
million. The company's operating cash flow for the same operations in 1997 was
$386 million. (Numbers are normalized to exclude domestic directory and wireless
operations that are no longer part of MediaOne Group. Numbers also reflect
normalization for acquisitions and dispositions.)
A 12 percent increase in revenue from continuing operations, to $1.7 billion.
MediaOne Group's equivalent revenue for 1997 was $1.5 billion. (Numbers are
normalized to exclude domestic directory and wireless operations that are no
longer part of MediaOne Group. Numbers also reflect normalization for
acquisitions and dispositions.)
Because MediaOne Group operates numerous joint ventures, the company uses
proportionate accounting to reflect its share of operating revenues and expenses
associated with these operations.
"This quarter we completed our most significant strategic moves to date. Our
vision is coming to life. We are an independent company focused squarely on two
lines of business: domestic and international broadband, and international
wireless," Chairman and CEO Chuck Lillis said. "We've completed our financing
and achieved our goal of investment grade credit with all three major credit
rating agencies," Lillis said. "All this as we continue to roll out broadband
services to customers around the world and add international wireless customers
at a phenomenal rate." Since the end of the first quarter, the company completed
the following strategic moves:
MediaOne Group and U S WEST Communications Group completed the separation into
two separate companies June 12. The split included the $4.75 billion transfer of
U S WEST Dex to U S WEST. The transfer included $3.9 billion in debt reduction
for MediaOne Group, and $850 million in a tax-free distribution of new U S WEST
stock to MediaOne shareholders, adding $1.38 of value to each MediaOne Group
share upon the separation. The split resulted in a one-time, $24.5-billion gain,
which was offset by the distribution of shares in the new U S WEST to holders of
USW and UMG at fair market value.
MediaOne Group completed the merger of its domestic wireless business into
AirTouch Communications April 6. MediaOne Group received more than 59 million
shares of AirTouch common stock, about $1.6 billion of AirTouch dividend-bearing
preferred stock, and about $1.4 billion in debt reduction in exchange for its
domestic wireless interests. The deal was valued at $5.9 billion at closing, but
was worth more than $6.6 billion, as of July 28.
The company finalized its high-speed data joint venture with Time Warner and
Advance/Newhouse, including an investment by Microsoft and Compaq totaling $425
million. MediaOne owns a nearly 35 percent interest in the venture through
direct ownership and its ownership in Time Warner Entertainment.
MediaOne Group also completed its $6 billion financing efforts and achieved the
goal of investment-grade credit with all three major credit rating agencies. On
July 13, the company announced its plan to monetize up to $1.5 billion of
AirTouch common stock through convertible notes. Proceeds will be used to pay
down short-term debt and for other general corporate purposes.
All this while achieving solid operating performance in the U.S. and abroad:
MediaOne
In the U.S., total broadband cable revenue was up 9 percent for the quarter and
nearly 10 percent for the year. MediaOne, the company's domestic broadband
business, now has nearly 5 million customers while passing more than 8.4 million
homes. The company continues to deploy advanced video services across the
country.
In May, MediaOne announced the rollout of digital cable in Detroit. Some 52,000
homes have access to 23 new multiplex premium channels and 40 digital Music
Choice channels for an additional $9.95 a month. This means customers who add
digital service to their existing cable service have access to more than 170
channels.
MediaOne launched telephone service over broadband hybrid-fiber coax (HFC)
networks in Los Angeles, following an introduction earlier this year in Atlanta.
The company has plans to introduce the service in the Northeast later this year.
The number of high-speed data customers grew from 31,000 last quarter to nearly
41,000 in the second quarter.
MediaOne Multimedia Ventures
For the quarter, Time Warner Entertainment's normalized earnings before
interest, taxes, depreciation and amortization increased almost 13 percent to
$811 million. MediaOne Group's proportionate share of that was $207 million.
TWE's total revenue increased nearly 8 percent to nearly $2.9 billion. MediaOne
Group's proportionate share of the revenue was $728 million.
Time Warner Entertainment's cable operations, which are equally managed by
MediaOne Group and Time Warner, reported core cable revenue of more than $1
billion for the quarter, an increase of nearly 8 percent on a normalized basis.
That's consistent with the strong performance of MediaOne's core cable revenue
which grew by 8 percent.
High-speed data customers at TWE totaled 50,000. Combined with MediaOne's nearly
41,000 customers, the nation's largest high-speed Internet service, Roadrunner,
ended the second quarter with more than 90,000 customers.
MediaOne International
(numbers are normalized for 1997 dispositions)
MediaOne International grew proportionate operating cash flow by $44 million to
$56 million, a 367 percent increase over last year's $12 million. Proportionate
revenues totaled $361 million, a 36 percent increase over the second quarter of
last year. At the venture level, our international businesses serve nearly 5.4
million customers. Those customers have signed up for more than 6 million
services, including
nearly 2 million cable accounts, more than 1 million phone lines, and more than
3 million wireless accounts. This is an increase of more than 43 percent
compared to the same quarter last year.
At a venture level, the Central European wireless ventures increased customer
counts by 79 percent from 905,000 at the end of second quarter 1997 to 1.62
million at the end of June 1998. Revenue was up more than 29 percent over the
same quarter last year, to $106 million for the quarter. And in July, the
company's wireless venture in Poland, Era GSM, reached the half-million customer
mark less than two years after the company's launch, making it the largest
wireless company in Central Europe.
One 2 One continues to be one of the fastest growing wireless companies in the
United Kingdom, nearly doubling the number of subscribers since second quarter
1997. The company, which was operating cash flow positive in the second quarter,
now has 1.36 million customers at the venture level. Revenue was $139 million,
up almost 60 percent over second quarter 1997.
International cable operations are also producing solid results. Those
operations are now providing cable TV services to nearly two million customers
in Europe and Asia.
Telewest in the UK serves about a million telephone customers over its networks.
And, through its joint ventures in The Netherlands, Belgium, Japan and Czech
Republic, MediaOne International is providing broadband HFC-based telephone
service to nearly 20,000 customers.
NOTE: "Continuing operations" include those businesses (other than U S WEST Dex)
historically aligned with UMG stock, including domestic cable and broadband,
international wireless and consolidated international cable and broadband. Also
included in continuing operations is a $3.9 billion pre-tax gain from completion
of the AirTouch merger. Discontinued operations include results from the former
U S WEST Communications and U S WEST Dex until the June 12 separation, and the
gain of $24.5 billion recognized on the separation transaction.
MediaOne Group (NYSE: UMG) is one of the world's largest broadband
communications companies, bringing the power of broadband and the Internet to
more than seven million customers in the United States, Europe and Asia. The
company also has interests in some of the fastest-growing wireless
communications businesses outside the U.S., serving more than three million
customers. For 1997, the businesses now part of MediaOne Group produced $6.6
billion in proportionate revenue.
[Safe Harbor statement: This document contains statements about expected future
events and financial results that are forward-looking and subject to risk and
uncertainties. For those statements, we claim the protection of the safe harbor
for forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995. Discussion of factors that may affect future results is
contained in our recent filings with the Securities and Exchange Commission.]
- -------------------------------------------------------------------------------
NOTE: This release and the financial statements will be available on our website
after 7:30 a.m. (MDT): www.mediaonegroup.com
- -------------------------------------------------------------------------------
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CONSOLIDATED STATEMENTS OF OPERATIONS MediaOne Group, Inc. (1)
(UNAUDITED)
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Quarter Ended Six Months Ended
June 30, % June 30, %
Dollars in millions 1998 1997 Change 1998 1997 Change
- --------------------- ------- -------------- ------- --------------
SALES AND OTHER REVENUES
Cable & broadband $ 613 $ 589 4.1 $ 1,237 $ 1,145 8.0
Wireless comm. 20 363 (94.5) 361 698 (48.3)
Other 8 29 (72.4) 15 58 (74.1)
-------- -------- -------- --------
Total sales &
other revenues $ 641 $ 981 (34.7)$ 1,613 $ 1,901 (15.1)
OPERATING EXPENSES
Costs of sales &
other revenues 241 326 (26.1) 558 631 (11.6)
Selling, general &
administrative 195 313 (37.7) 502 590 (14.9)
Depreciation 127 158 (19.6) 331 318 4.1
Amortization 131 132 (0.8) 275 266 3.4
-------- -------- -------- --------
Total oper. expenses 694 929 (25.3) 1,666 1,805 (7.7)
-------- -------- -------- --------
Inc.(loss) from oper. (53) 52 - (53) 96 -
Interest expense (143) (166) (13.9) (293) (340) (13.8)
Equity losses in
unconsol. ventures (69) (153) (54.9) (205) (318) (35.5)
Gains on sale of
investments 22 44 (50.0) 39 95 (58.9)
Gain on sale of invest.
in domestic wireless 3,869 - - 3,869 - -
Guaranteed minority
interest expense (20) (22) (9.1) (42) (44) (4.5)
Other income(expense) 110 (7) - 73 (11) -
-------- -------- -------- --------
Inc.(loss) from cont.
oper. before inc. tax
benefit (exp.) 3,716 (252) - 3,388 (522) -
Inc. tax benefit(exp.) (1,542) 71 - (1,436) 151 -
-------- -------- -------- --------
INCOME(LOSS) FROM
CONTINUING OPERATIONS 2,174 (181) - 1,952 (371) -
Income from discont.
oper.-net of tax:
Results of oper.(2) 313 416 (24.8) 747 836 (10.6)
Gain on separation(3)# 24,461 - - 24,461 - -
-------- -------- -------- --------
Income before
extraordinary item 26,948 235 - 27,160 465 -
Extraord. item-net
of tax (333) 3 - (333) 3 -
-------- -------- -------- --------
NET INCOME 26,615 238 - 26,827 468 -
Preferred dividends (13) (12) 8.3 (26) (25) 4.0
Loss on redemption of
preferred securities (53) - - (53) - -
-------- -------- -------- --------
EARNINGS AVAILABLE
FOR COMMON STOCK $ 26,549 $ 226 - $ 26,748 $ 443 -
======== ======== ======== ========
</TABLE>
# Offset by dividend of New U S WEST at fair market value.
See footnotes on page ___.
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Quarter Ended Six Months Ended
In millions, except June 30, % June 30, %
per share amounts 1998 1997 Change 1998 1997 Change
- --------------------- ------- -------------- ------- --------------
MediaOne Group Stock:
Basic Earnings per Common Share:
Basic average common
shares outstanding 609.1 606.4 0.4 608.7 606.5 0.4
======== ======== ======== ========
Basic earnings (loss)
from continuing
operations * $ 3.46 $ (0.31) - $ 3.08 $ (0.65) -
Income from discontinued
operations 0.12 0.14 (14.3) 0.26 0.27 (3.7)
Gain on separation 40.16 - - 40.19 - -
Extraordinary item-
early extinguishment
of debt (0.55) - - (0.55) - -
-------- -------- -------- --------
Basic earnings (loss)
per common share $ 43.19 $ (0.17) - $ 42.98 $ (0.38) -
======== ======== ======== ========
Diluted Earnings per Common Share:
Diluted average common
shares outstanding 653.6 606.4 7.8 652.6 606.5 7.6
======== ======== ======== ========
Diluted earnings (loss)
from continuing
operations $ 3.24 $ (0.31) - $ 2.91 $ (0.65) -
Income from discontinued
operations 0.11 0.14 (21.4) 0.24 0.27 (11.1)
Gain on separation 37.42 - - 37.48 - -
Extraordinary item-
early extinguishment
of debt (0.51) - - (0.51) - -
-------- -------- -------- --------
Diluted earnings (loss)
per common share # $ 40.27 $(0.17) - $ 40.12 $(0.38) -
======== ======== ======== ========
</TABLE>
* Pro forma basic and diluted loss per share adjusted to eliminate
the impact of the operations of domestic wireless, the gain from
disposition of the domestic wireless businesses and the second
quarter 1998 redemption of preferred securities, would be ($0.17)
and ($0.36) for the second quarter 1998 and 1997, respectively.
The pro forma loss per share would be ($0.58) and ($0.74) for
the six months ended June 30, 1998 and 1997, respectively.
# Quarter ended June 30, 1998 amount does not foot due to rounding
of the individual components.
See footnotes on page ___.
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CONSOLIDATED BALANCE SHEETS MediaOne Group, Inc. (1)
(UNAUDITED) June 30, December 31,
Dollars in millions 1998 1997
- --------------------------------------- ------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 384 $ 184
Accounts and notes receivable 376 604
Net investment in assets of
discontinued operations (2) - 4,367
Other assets 120 179
------------ ------------
Total current assets 880 5,334
------------ ------------
Property, plant and equipment - net 3,379 4,272
Investment in Time Warner Entertainment 2,491 2,486
Investment in AirTouch Communications 5,015 -
Net investment in international ventures 728 742
Net investment in assets held for sale 445 419
Intangible assets - net 11,886 12,597
Other assets 565 933
------------ ------------
Total assets $ 25,389 $ 26,783
============ ============
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 2,075 $ 735
Accounts payable 125 395
Deferred revenue and customer deposits 79 108
Other payables 805 950
------------ ------------
Total current liabilities 3,084 2,188
------------ ------------
Long-term debt 3,040 8,228
Deferred income taxes 4,996 3,276
Deferred credits and other 604 587
Company-obligated mandatorily redeemable
preferred securities of subsidiary
trust holding solely Company-guaranteed
debentures 561 1,080
Preferred stock subject to
mandatory redemption 100 100
Shareowners' equity:
Preferred shares 924 923
Common shares 10,515 10,876
Retained earnings (deficit) 1,218 (359)
LESOP guarantee - (46)
Accumulated other comprehensive
income (loss) 347 (70)
------------ ------------
Total equity 13,004 11,324
------------ ------------
Total liabilities and equity $ 25,389 $ 26,783
============ ============
</TABLE>
See footnotes on page ___.
<TABLE>
SELECTED FINANCIAL DATA MediaOne Group, Inc. (1)
(UNAUDITED)
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Quarter Ended Six Months Ended Normalized
June 30, June 30, % Change(5)
Dollars in millions 1998 1997 1998 1997 Qtr Ytd
- ------------------------------------------------------------- ------
Consolidated Revenues -
Continuing Operations
Cable & broadband
Domestic $ 607 $ 585 $ 1,226 $ 1,137 9.0 9.9
International 6 4 11 8 50.0 37.5
Corporate 7 6 14 13 16.7 7.7
Other 1 23 1 45 - -
--------------------------------
Current oper. 621 618 1,252 1,203 9.5 10.2
Domestic wireless 20 363 361 698 - -
--------------------------------
Total $ 641 $ 981 $ 1,613 $ 1,901 9.5 10.2
================================
Consolidated Operating
Cash Flow - Continuing
Operations (4)
Cable & broadband
Domestic $ 239 $ 238 $ 479 $ 463 1.7 3.7
International 1 (1) 1 (3) - -
Int'l wireless (2) (6) (4) (8) (66.7) (50.0)
Corporate (40) (31) (65) (44) 29.0 47.7
Other (3) (3) (6) (10) (40.0) (25.0)
--------------------------------
Current oper. 195 197 405 398 1.0 1.3
Domestic wireless 10 145 148 282 - -
--------------------------------
Total $ 205 $ 342 $ 553 $ 680 1.0 1.3
================================
</TABLE>
The actual percent change for revenues from current operations of
0.5% and 4.1% for the quarter and six months ended June 30, 1998
include the one time effects of acquisitions and dispositions.
The actual percent change for operating cash flow from current
operations of (1.0)% and 1.8% for the quarter and six months ended
June 30, 1998 include the one time effects of acquisitions and
dispositions.
See footnotes on page ___.
<TABLE>
SELECTED FINANCIAL AND DOMESTIC CABLE AND BROADBAND
OPERATING HIGHLIGHTS
(UNAUDITED)
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Quarter Ended
June 30, % % Chg
Dollars in millions 1998 1997 Change Norm
- ---------------------- -------- ------------------------
Domestic Cable &
Broadband Results
Revenues
Basic cable $ 428 $ 382 12.0
Premium 80 81 (1.2)
Pay-per-view 11 19 (42.1)
Advertising 40 33 21.2
Equip. & Install. 44 38 15.8
Other (7) 1 -
-------------------
Total core cable (5) 596 554 7.6 8.0
New products 11 5 -
Primestar - 26 -
-------------------
Total Revenue (5) $ 607 $ 585 3.8 9.0
-------------------
Operating Cash Flow (4)
Core cable (5) $ 276 $ 256 7.8 6.3
Primestar - 4 -
Other (37) (22) 68.2
-------------------
Total Oper. Cash Flow (5) $ 239 $ 238 0.4 1.7
-------------------
Operating Cash Flow Margins
Core cable 46.3% 46.2%
Total 39.4% 40.7%
Operating & Financial
Highlights
Homes passed
(thousands) (5) 8,430 8,395 0.4 2.1
Subscribers
(thousands):
Basic cable (5) 4,933 4,937 (0.1) 1.5
Primestar - 158 -
Basic pen. 58.5% 58.8%
Premium units
(thousands) 4,034 3,887 3.8
Premium/Basic 81.8% 78.7%
High speed data
cust. (actual) 40,600 6,400 -
Core cbl. mnly.
rev./avg. sub (actual) (5) $ 40.28 $ 38.20 5.4 8.0
</TABLE>
See footnotes on page ___.
<TABLE>
SELECTED FINANCIAL AND DOMESTIC CABLE AND BROADBAND
OPERATING HIGHLIGHTS
(UNAUDITED)
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Six Months Ended
June 30, % % Chg
Dollars in millions 1998 1997 Change Norm
- ---------------------- -------- ------------------------
Domestic Cable &
Broadband Results
Revenues
Basic cable $ 847 $ 752 12.6
Premium 159 163 (2.5)
Pay-per-view 24 30 (20.0)
Advertising 71 58 22.4
Equip. & Install. 84 73 15.1
Other (14) 2 -
-------------------
Total core cable (5) 1,171 1,078 8.6 8.9
New products 21 10 -
Primestar 34 49 (30.6)
-------------------
Total Revenue (5) $ 1,226 $ 1,137 7.8 9.9
-------------------
Operating Cash Flow (4)
Core cable (5) $ 537 $ 492 9.1 8.3
Primestar 4 8 (50.0)
Other (62) (37) 67.6
-------------------
Total Oper. Cash Flow (5) $ 479 $ 463 3.5 3.7
-------------------
Operating Cash Flow Margins
Core cable 45.9% 45.6%
Total 39.1% 40.7%
Operating & Financial
Highlights
Homes passed
(thousands) (5) 8,430 8,395 0.4 2.1
Subscribers
(thousands):
Basic cable (5) 4,933 4,937 (0.1) 1.5
Primestar - 158 -
Basic pen. 58.5% 58.8%
Premium units
(thousands) 4,034 3,887 3.8
Premium/Basic 81.8% 78.7%
High speed data
cust. (actual) 40,600 6,400 -
Core cbl. mnly.
rev./avg. sub (actual) (5) $ 39.73 $ 37.34 6.4 8.9
</TABLE>
See footnotes on page ___.
<TABLE>
SELECTED PROPORTIONATE MediaOne Group, Inc. (1)
FINANCIAL DATA
(UNAUDITED)
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<S> <C> <C> <C> <C> <C> <C>
Quarter Ended Six Months Ended Normalized
June 30, June 30, % Change(5)
Dollars in millions 1998 1997 1998 1997 Qtr Ytd
- ------------------------------------------------------------- ------
Proportionate Revenues -
Continuing Operations
Cable & broadband
Domestic $ 1,335 $ 1,281 $ 2,696 $ 2,496 6.5 9.0
International 78 118 150 226 25.8 25.0
Int'l wireless 263 180 509 324 46.1 57.1
Corporate 5 2 10 7 - 42.9
Other 21 48 32 77 (16.0) -
--------------------------------
Current oper. 1,702 1,629 3,397 3,130 11.8 14.9
Domestic wireless 19 343 354 652 - -
--------------------------------
Total $ 1,721 $ 1,972 $ 3,751 $ 3,782 11.8 14.9
================================
Proportionate Operating
Cash Flow - Continuing
Operations (4)
Cable & broadband
Domestic $ 445 $ 402 $ 873 $ 792 11.3 10.3
International - 11 3 20 - -
Int'l wireless 51 7 65 (3) - -
Corporate (20) (18) (30) (22) 11.1 36.4
Other 3 - - (9) - -
--------------------------------
Current oper. 479 402 911 778 24.1 20.8
Domestic wireless 6 111 114 212 - -
--------------------------------
Total $ 485 $ 513 $ 1,025 $ 990 24.1 20.8
================================
</TABLE>
The actual percent change for revenues from current operations of
4.5% and 8.5% for the quarter and six months ended June 30, 1998
include the one time effects of acquisitions and dispositions.
The actual percent change for operating cash flow from current
operations of 19.2% and 17.1% for the quarter and six months ended
June 30, 1998 include the one time effects of acquisitions and
dispositions.
See footnotes on page ___.
MediaOne Group, Inc. (1)
NOTES
- -----
(1) Prior to June 12, 1998, MediaOne Group, Inc. was known as
U S WEST, Inc. ("Old USW"), and conducted its businesses through
two groups: the U S WEST Media Group and the U S WEST
Communications Group. On June 12, 1998, Old USW separated its
businesses into two independent companies. It contributed the
businesses of U S WEST Communications Group and the domestic
directories business of U S West Media Group to a wholly owned
subsidiary and distributed the stock to its shareholders. Old
USW was renamed "MediaOne Group, Inc." and continues to operate
the businesses previously attributed to U S WEST Media Group,
other than the domestic directories business.
(2) Represents the operations previously attributed to U S WEST
Communications Group and the domestic directories business of
U S West Media Group.
(3) Represents the difference between the fair market value and
book value of New U S WEST, net of separation costs. The
distribution of the New U S WEST shares was recorded as a
dividend at fair market value on June 12, 1998.
(4) Operating cash flow represents earnings before interest,
taxes, depreciation and amortization.
(5) Normalized percent change excludes the one time effects
of acquisitions and dispositions.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
MediaOne Group, Inc.
Financial Data Schedule
</LEGEND>
<CIK> 0000732718
<NAME> MediaOne Group, Inc.
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1998
<PERIOD-START> JAN-01-1998 JAN-01-1998
<PERIOD-END> MAR-31-1998 JUN-30-1998
<CASH> 384 384
<SECURITIES> 0 0
<RECEIVABLES> 376 376
<ALLOWANCES> 0 0
<INVENTORY> 8 8
<CURRENT-ASSETS> 880 880
<PP&E> 4,161 4,161
<DEPRECIATION> 782 782
<TOTAL-ASSETS> 25,389 25,389
<CURRENT-LIABILITIES> 3,084 3,084
<BONDS> 3,040 3,040
661 661
924 924
<COMMON> 10,515 10,515
<OTHER-SE> 1,565 1,565
<TOTAL-LIABILITY-AND-EQUITY> 25,389 25,389
<SALES> 641 1,613
<TOTAL-REVENUES> 641 1,613
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 694 694
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 143 143
<INCOME-PRETAX> 3,716 3,388
<INCOME-TAX> 1,542 1,436
<INCOME-CONTINUING> 2,174 1,952
<DISCONTINUED> 24,774 25,208
<EXTRAORDINARY> (333) (333)
<CHANGES> 0 0
<NET-INCOME> 26,615 26,827
<EPS-PRIMARY> 43.19 42.98
<EPS-DILUTED> 40.27 40.12
</TABLE>
