===============================================================================
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): November 2, 1999
MediaOne Group, Inc.
(Exact name of registrant as specified in its charter)
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A Delaware Corporation Commission File Number IRS Employer Identification No.
(State of incorporation) 1-8611 84-0926774
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188 Inverness Drive West
Englewood, Colorado 80112
(Address of principal executive offices)
(303) 858-3000
(Registrant's telephone number, including area code)
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Item 5. Other Events
On November 2, 1999 MediaOne Group, Inc. released its third quarter 1999
earnings results. The releases and financial statements are attached hereto as
Exhibits.
Item 7. Exhibits
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Exhibit Description
27 Financial Data Schedule
99 Press Release issued November 2, 1999 concerning the earnings
results of MediaOne Group, Inc. for the quarter ended September
30, 1999.
99.1 Proportionate Results Highlights of MediaOne Group, Inc. for the
three months ended September 30, 1998 and 1999 and the nine
months ended September 30, 1998 and 1999, filed in connection
with the Press Release dated November 2, 1999.
99.2 Pro Forma Consolidated Domestic Cable Highlights of MediaOne
Group, Inc. for the three months ended September 30, 1998 and
1999 and the nine months ended September 30, 1998 and 1999,
filed in connection with the Press Release dated November 2,
1999.
99.3 Pro Forma Key Operating Statistics - Domestic Cable - of
MediaOne Group, Inc. for the quarters ended September 30, 1999,
June 30, 1999 and September 30, 1998, as filed in
connection with the Press Release dated November 2, 1999.
99.4 Pro Forma Key Operating Statistics - International - of MediaOne
Group, Inc. for the quarters ended September 30, 1999, June 30,
1999 and September 30, 1998, filed in connection with the Press
Release dated November 2, 1999.
99.5 Consolidated Statement of Operations of MediaOne Group, Inc.for
the three months ended September 30, 1998 and 1999 and the nine
months ended September 30, 1998 and 1999, as filed in
connection with the Press Release dated November 2, 1999.
99.6 Earnings per Share Highlights of MediaOne Group, Inc. for the
three months ended September 30, 1998 and 1999 and the nine
months ended September 30, 1998 and 1999, as filed in
connection with the Press Release dated November 2, 1999.
99.7 Consolidated Revenues and Operating Cash Flow Highlights - As
Reported - of MediaOne Group, Inc. for the three months ended
September 30, 1998 and 1999 and the nine months ended
September 30, 1998 and 1999, as filed in connection with the
Press Release dated November 2, 1999.
99.8 Condensed Consolidated Balance Sheets - As Reported, for
MediaOne Group, Inc as of September 30, 1999 and December 31,
1998, as filed in connection with the Press Release dated
November 2, 1999.
-2-
99.9 Supplementary Consolidated Domestic Cable Highlights - As
Reported, of MediaOne Group, Inc. for the three quarters of 1999
and the four quarters and year-to-date of 1998, as filed in
connection with the Press Release dated November 2, 1999.
99.10 Supplementary Consolidated Domestic Cable Highlights - Pro Forma,
of MediaOne Group, Inc. for the three quarters of 1999 and the
four quarters and year-to-date of 1998, as filed in connection
with the Press Release dated November 2, 1999.
</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:___________________________________
Stephen E. Brilz
Assistant Secretary
Dated: November 3, 1999
-3-
Contents Page
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Proportionate
Proportionate Results 5
Domestic Cable
Consolidated Pro Forma
Domestic Cable Results 6
Statistics
Pro Forma Key Operating Statistics 7-8
Consolidated
Consolidated Operations 9
Earnings Per Share 10
Consolidated Revenues and Operating
Cash Flow 11
Condensed Consolidated Balance Sheets 12
</TABLE>
-4-
November 2, 1999
Cathy Fowler, 303-858-3405
Steve Lang, 303-858-3406
MediaOne(R) Group Growth Continues Across All Businesses;
Shareholders Overwhelmingly Approve Merger into AT&T
- Number of U.S. Telephone Subscribers Increases
62 Percent, to 42,000 -
- U.S. High-Speed Data Customer Number Increases
24 Percent, to 173,000 -
- MediaOne International Announces or Closes About
$11 Billion in Asset Sales from the International
Portfolio -
ENGLEWOOD, Colo. -- MediaOne Group (NYSE: UMG) today reported continued strong
growth in video, telephone and high-speed data services. The company added
73,000 new video, telephone and high-speed data subscribers in the U.S. in the
third quarter; 241,000 new subscriptions since the end of the same quarter last
year.
The company ended third quarter 1999 with proportionate operating cash flow of
$542 million, up nine percent on a pro-forma basis over the same quarter a year
ago. Proportionate revenue increased 15 percent on a pro-forma basis, to $2.1
billion.* MediaOne Group reported consolidated operating cash flow for the
quarter of $220 million, an increase of 14 percent over third quarter 1998.
More customers than ever before are signing up for broadband services, including
digital video, telephone and high-speed data services, thereby boosting
broadband revenue per customer. Aggressive network upgrades are making it
possible for the company to offer these advanced services to more and more of
its five million U.S. customers.
In preparation for the merger with AT&T, MediaOne International has either sold
or announced agreements to sell its interests in 11 of its international
properties for about $11 billion. The company had invested less than $2 billion
in those same properties as of the end of last year, providing a powerful return
on investment.
- more -
-5-
"I'm quite pleased with both our operational results and preparations for the
merger with AT&T. Since the end of the second quarter, 99 percent of the voting
shareholders approved the merger, and the FCC announced ownership rules for
cable companies that will allow the merger to close. Also, more than half of the
local franchises already meet all requirements to be transferred," said Chuck
Lillis, chairman and chief executive officer of MediaOne Group.
"Internationally, we've received phenomenal value for the investments we've
sold, and the sales process is continuing at a fast pace."
MediaOne -- the U.S. broadband business
Revenue for MediaOne was $674 million, up 11 percent on a pro-forma basis for
the quarter. Operating cash flow was $242 million, up 8 percent pro-forma. Basic
video customer growth increased 1.7 percent on a pro-forma basis for the quarter
over the same period last year.
The company experienced strong premium and pay-per-view results, which were
driven in part by further deployment of advanced analog and digital services
through upgraded broadband networks. Those upgraded networks also helped the
company add 73,000 new video, telephone and high-speed data subscribers since
the end of the second quarter.
Digital video services are now available in five markets: Detroit; Atlanta;
Richmond, Virginia; Cleveland, Ohio; and Pompano, Florida.
MediaOne added 16,000 telephone subscribers in the third quarter, a 62 percent
increase over the second quarter of this year. The company now has 42,000
telephone subscribers, and continues to expand its service offerings in seven
major markets: Atlanta; Los Angeles; Detroit; Boston; Richmond, Virginia; and
Jacksonville and Pompano, Florida.
MediaOne(Registered Trademark) Road Runner(Trademark) added 33,000 high-speed
data customers in the third quarter, a 24 percent increase over the second
quarter, for a total of 173,000 customers across the U.S. MediaOne continues to
lead the industry in the deployment of high-speed data services. More and more
people have access to this popular service; in fact, the company has added the
capability to more than 400,000 additional homes since the end of the second
quarter, bringing the total to 4.8 million. Cable modems and MediaOne Road
Runner services are now being sold through Circuit City tores in Atlanta,
Richmond and the Northeast. In Jacksonville, cable modem service is available at
Radio Shack stores.
MediaOne Multimedia Ventures -- MediaOne Group's 25.51 percent stake in Time
Warner Entertainment
For the quarter, MediaOne Group's share of Time Warner Entertainment's reported
revenue was $886 million, up 9 percent on a pro-forma basis over third quarter
1998. MediaOne Group's share of TWE's reported earnings before interest, taxes,
depreciation, amortization and other associated costs for the quarter was $232
million, up 10 percent pro-forma over the same period last year.
- more -
-6-
MediaOne International -- the international broadband and wireless joint
ventures
MediaOne International will receive about $11 billion from sales of its
interests in 11 companies in its international portfolio. In October, MediaOne
International closed on its deal with Deutsche Telekom to buy MediaOne
International's stake in UK wireless operator One 2 One for $5.7 billion. In
another deal with Deutsche Telekom announced in October, MediaOne International
has agreed to sell most of its Central European and Russian wireless interests
for another $2 billion. Also, Microsoft has agreed to pay about $3 billion in
stock for MediaOne International's stake in UK broadband operator Telewest.
During the quarter, the international businesses continued their outstanding
growth, increasing the number of subscriptions by 58 percent and providing 10.5
million video, telephone, Internet access and wireless subscriptions to
customers in Europe and Asia.
MediaOne Group (NYSE: UMG) is one of the world's largest broadband
communications companies, bringing the power of broadband and the Internet to
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. For 1998, the businesses that comprise MediaOne Group produced $7.1 billion
in proportionate revenue. On May 6, 1999, the company entered into an agreement
to merge with AT&T.
*NOTE: 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.
Pro-forma numbers are used to provide direct "apples to apples" comparisons of
operations quarter over quarter, as the company has streamlined the business
significantly during the past year.
Operating cash flow, which represents earnings before interest, taxes,
depreciation and amortization, is a key indicator of the company's operating
performance.
[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.]
###
-7-
MediaOne Group, Inc.
Proportionate Results Highlights (1)
(UNAUDITED)
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Three Nine
Months Ended Pro Months Ended Pro
Sept 30, Forma(2) Sept 30, Forma(2)
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Dollars in
millions 1999 1998 % % 1999 1998 % %
- -------------------------------------------------------------------------------
Proportionate Revenue
MediaOne $ 674 $ 614 9.8% 10.5% $1,993 $1,840 8.3% 10.7%
Multimedia
Venture(3) 886 822 7.8 9.0 2,415 2,292 5.4 8.5
Int'l 528 363 45.5 33.7 1,424 1,022 39.3 27.9
Corporate
& other - 15 (100.0) (100.0) 7 57 (87.7)(125.0)
--------------- ----------------
$2,088 $1,814 15.1% 14.5% $5,839 $5,211 12.1% 13.0%
=============== ================
Proportionate Operating Cash Flow(4)
MediaOne $ 242 $ 227 6.6% 7.6% $ 731 $ 706 3.5% 4.3%
Multimedia
Venture(3) 232 210 10.5 10.0 868 604 43.7 8.4
Int'l 81 79 2.5 (3.6) 280 147 90.5 66.7
Corporate
& other (13) (22) 40.9 38.1 (51) (52) 1.9 12.5
--------------- ----------------
$ 542 $ 494 9.7% 8.6% $1,828 $1,405 30.1% 14.3%
=============== ================
</TABLE>
- -------------------------------------------------------------------------------
(1) Excludes results for the domestic wireless operations which were
sold in April, 1998.
(2) Results reflect pro forma adjustments for acquisitions,
dispositions and other asset transactions. Total pro forma
revenue would be $2,088 and $1,823 for the three months ended
September 30, 1999 and 1998, respectively, and $5,828 and $5,156
for the respective nine month periods. Total pro forma operating
cash flow would be $530 and $488 for the three months ended
September 30, 1999 and 1998, respectively and $1,569 and $1,373
for the respective nine month periods.
(3) Includes 25.51% of Time Warner Entertainment's (TWE) reported
results less a $79 deferred gain in 1999 related to a cable
system swap between MediaOne and TWE.
(4) Operating cash flow represents earnings before interest, taxes,
depreciation and amortization.
- -------------------------------------------------------------------------------
-8-
MediaOne Group, Inc.
Consolidated Domestic Cable Highlights-Pro Forma (1)
MediaOne
(UNAUDITED)
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Three Nine
Months Ended Months Ended
Sept 30, Sept 30,
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Dollars in
millions 1999 1998 Percent 1999 1998 Percent
- -------------------------------------------------------------------------------
Video Revenues
Basic cable $ 442 $ 420 5.2% $1,327 $1,253 5.9%
Premium 82 81 1.2 246 240 2.5
Pay-per-view 19 15 26.7 56 40 40.0
Advertising 50 37 35.1 143 108 32.4
Equip. & instal. 49 47 4.3 141 131 7.6
Other 3 1 200.0 5 2 150.0
--------------- ---------------
Total Video
Revenues 645 601 7.3 1,918 1,774 8.1
Telephone and
High Speed Data 29 9 222.2 75 27 177.8
--------------- ---------------
Total Broadband
Revenue $ 674 $ 610 10.5% $1,993 $1,801 10.7%
=============== ===============
Operating Cash Flow(2)
Video
(exclude Y2K costs) $ 257 $ 247 4.0% $ 788 $ 749 5.2%
Telephone and
High Speed Data (11) (16) 31.3 (41) (41) -
Year 2000 costs (4) (6) 33.3 (16) (7) (128.6)
--------------- ---------------
Total Operating
Cash Flow $ 242 $ 225 7.6% $ 731 $ 701 4.3%
=============== ===============
</TABLE>
- -------------------------------------------------------------------------------
(1) Results reflect pro forma adjustments for acquisitions and
dispositions.
(2) Operating cash flow represents earnings before interest, taxes,
depreciation and amortization. Includes spending initiatives
(e.g. systems improvements, call center consolidations, etc.)
- -------------------------------------------------------------------------------
-9-
MediaOne Group, Inc.
Key Operating Statistics- Pro Forma (1)
For the Quarter Ended
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In thousands, except Sept 30, June 30, Sept 30,
dollar amounts 1999 1999 1998
- -------------------------------------------------------------------------------
OPERATING STATISTICS- DOMESTIC CABLE
- ----------------------------------------
MediaOne Domestic Cable
Statistics
- --------------
Homes Passed 8,496 8,454 8,367
Basic Video Customers 4,983 4,959 4,900
Basic Video Customer
Growth (Y/Y) 1.7% 1.2% 1.3%
Basic Video Penetration 58.7% 58.7% 58.6%
High Speed Data Customers 173 140 53
Two-Way Market Ready
Penetration 4.4% 4.0% 2.4%
Telephone Customers 42 26 4
Telephone Lines 56 36 5
Results Per Customer
- ----------------------
Video Monthly
Revenue per Customer $ 43.26 $ 42.85 $ 40.84
Total Monthly Broadband
Revenue per Customer $ 45.22 $ 44.46 $ 41.47
Video EBITDA Margin
(with Year 2000 costs) 39.2% 40.4% 40.1%
Total EBITDA Margin 35.9% 37.3% 36.9%
</TABLE>
- -------------------------------------------------------------------------------
(1) Results reflect pro forma adjustments for acquisitions,
dispositions and other asset transactions.
- -------------------------------------------------------------------------------
-10-
MediaOne Group, Inc.
Key Operating Statistics- Pro Forma (1)
For the Quarter Ended
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Sept 30, June 30, Sept 30,
In thousands 1999 1999 1998
- -------------------------------------------------------------------------------
OPERATING STATISTICS (Venture Level)-
INTERNATIONAL BROADBAND
- -------------------------------------
U.K. and European Cable/Telephone (2)
Homes Passed 4,885 4,841 4,746
Video Customers 1,433 1,411 1,314
Telephone Lines 1,763 1,710 1,509
Internet Access Customers 61 44 25
Asian Cable/Telephone (3)
Homes Passed 1,893 1,836 1,579
Video Customers 322 306 239
Telephone Lines 10 9 3
Internet Access Customers 9 5 -
- -------------------------------------------------------------------------------
OPERATING STATISTICS (Venture Level)-
INTERNATIONAL WIRELESS
- -------------------------------------
One 2 One
POPs 58,000 58,000 58,000
Customers 3,254 2,650 1,482
Customer Growth (Y/Y) 119.6% 95.1% 83.4%
Central European Wireless
POPs 63,900 63,900 63,900
Customers 3,433 3,012 1,913
Customer Growth (Y/Y) 79.5% 85.4% 78.5%
Asian and Other Wireless
POPs 76,900 76,900 76,900
Customers 183 170 138
- -------------------------------------------------------------------------------
OPERATING STATISTICS (Venture Level)-
TOTAL INTERNATIONAL SUBSCRIPTIONS
- -------------------------------------
Video Customers 1,755 1,717 1,553
Wireless Customers 6,870 5,832 3,533
Telephone Lines 1,773 1,719 1,512
Internet Access Customers 70 49 25
--------- --------- ---------
Total International
Subscriptions 10,468 9,317 6,623
Growth (Y/Y) 58.1% 53.0% 41.7%
</TABLE>
- -------------------------------------------------------------------------------
(1) Results reflect pro forma adjustments for acquisitions,
dispositions and other asset transactions.
(2) MediaOne International changed its ownership in Telewest from
26.8% in second quarter 1998 to 21.6% in third quarter 1998,
29.9% in fourth quarter 1998, and 29.7% in third quarter 1999.
(3) MediaOne International increased its ownership in TITUS to
56.0% in third quarter 1999.
- -------------------------------------------------------------------------------
-11-
MediaOne Group, Inc.
Consolidated Operations Highlights- As Reported (1)
(UNAUDITED)
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Three Mos Ended Nine Mos Ended
Sept 30, Sept 30,
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Dollars in millions 1999 1998 1999 1998
- -------------------------------------------------------------------------------
REVENUES $ 675 $ 626 $ 2,002 $ 2,239
Cost of sales 270 225 804 783
Selling, general and admin. 185 208 549 710
------ ------ -------- --------
OPERATING CASH FLOW (2) 220 193 649 746
Depreciation & amortization (306) (288) (884) (894)
Interest expense, minority
guarantee, other (164) (97) (481) (432)
Equity losses in
unconsolidated ventures (89) (68) (291) (273)
Gains on sales of
investments (3) 581 3 3,287 3,911
Merger related costs (4) (15) - (1,537) -
Other income (expense) 48 13 51 86
Income tax benefit (expense) (127) 60 (933) (1,376)
------ ------ --------- --------
EARNINGS (LOSS) FROM
CONTINUING OPERATIONS 148 (184) (139) 1,768
Discontinued operations income,
net of tax (5) - - - 25,208
Extraordinary item, net of tax - - 17 (333)
------ ------ --------- --------
NET INCOME (LOSS) 148 (184) (122) 26,643
Loss on redemption of
preferred securities (28) - (28) (53)
Preferred dividends and accretion (14) (13) (42) (39)
------ ------ --------- --------
EARNINGS (LOSS) AVAILABLE
FOR COMMON STOCK $ 106 $ (197) $ (192) $ 26,551
============================ ========
</TABLE>
- -------------------------------------------------------------------------------
(1) Domestic wireless operations were sold in April, 1998.
(2) Operating cash flow represents earnings before interest, taxes,
depreciation and amortization.
(3) Includes a $2,482 gain on the exchange and modification of the
AirTouch shares due to the AirTouch Vodafone merger and a $43
one time charge for the wind down of international operations for
the nine months ended September 30, 1999. Includes a $3,869
gain on sale of domestic wireless operations for the nine months
ended September 30, 1998.
(4) Includes $1,500 paid to Comcast as a result of the termination of
the merger between Comcast and MediaOne Group in May, 1999.
(5) Includes gain on separation from U S WEST Communications (USWC).
This also includes income attributable to USW stock of zero for
the three months and $589 for the nine months ended September 30,
1998.
- -------------------------------------------------------------------------------
-12-
MediaOne Group, Inc.
Earnings Per Share Highlights
(UNAUDITED)
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Three Mos Ended Nine Mos Ended
Sept 30, Sept 30,
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1999 1998 1999 1998
- -------------------------------------------------------------------------------
Earnings Per Share -
As Reported
Average Shares
Outstanding (millions)
Basic 606.7 608.8 605.4 608.7
Diluted 654.5 608.8 605.4 653.8
Basic Earnings (Loss)
per Common Share
Earnings (loss) from
Continuing Operations $ 0.18 $(0.32) $(0.34) $ 2.75
Total earnings (loss) $ 0.18 $(0.32) $(0.32) $42.65
Diluted Earnings (Loss)
per Common Share
Earnings (loss) from
Continuing Operations $ 0.18 $(0.32) $(0.34) $ 2.62
Total earnings (loss) $ 0.18 $(0.32) $(0.32) $39.77
- -------------------------------------------------------------------------------
Common Shares (millions)
Actual Shares Outstanding 606.9 606.8 606.9 606.8
- -------------------------------------------------------------------------------
Normalized Earnings Per Share
Basic EPS - Continuing Ops $ 0.18 $(0.32) $(0.34) $ 2.75
Adjustment for One Time
Unusual Transactions
Domestic Wireless
Operations and Gain
on Sale - - - (3.75)
Loss on Redemption of
Pref Securities 0.04 - 0.04 0.09
Gain on Sale of
Investments (0.59) - (0.81) (0.04)
Primestar Loss - - 0.07 -
Vodafone Gain - - (2.52) -
Merger Costs 0.01 - 2.51 -
Other Gains (Losses) - - 0.02 0.01
-------- -------- -------- -------
Normalized Basic EPS -
Continuing Operations $(0.36) $(0.32) $(1.03) $(0.94)
======== ======== ======== =======
</TABLE>
- -------------------------------------------------------------------------------
-13-
MediaOne Group, Inc.
Consolidated Revenues and Operating Cash Flow Highlights- As Reported
(Unaudited)
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Three Nine
Months Ended Months Ended
Sept 30, Sept 30,
</TABLE>
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Dollars in millions 1999 1998 Percent 1999 1998 Percent
- ----------------------------------------------------------------------------------
Consolidated Revenues
MediaOne $ 674 $ 614 9.8% $ 1,993 $ 1,840 8.3%
International - 6 (100.0) 7 17 (58.8)
Corporate & other 1 6 (83.3) 2 21 (90.5)
----------------- -----------------
Current Operations 675 626 7.8% 2,002 1,878 6.6%
Domestic wireless - - N/M - 361 N/M
----------------- -----------------
Total $ 675 $ 626 N/M $ 2,002 $ 2,239 N/M
================= =================
Consolidated Operating
Cash Flow (1)
MediaOne $ 242 $ 227 6.6 $ 731 $ 706 3.5%
International - (1) 100.0 - (4) 100.0
Corporate & other (22) (33) 33.3 (82) (104) 21.2
------------------ ------------------
Current Operations 220 193 14.0% 649 598 8.5%
Domestic wireless - - N/M - 148 N/M
----------------- ------------------
Total $ 220 $ 193 N/M $ 649 $ 746 N/M
================= ==================
</TABLE>
- -------------------------------------------------------------------------------
(1) Operating cash flow represents earnings before interest, taxes,
depreciation and amortization.
N/M-Not meaningful due to the sale of the domestic wireless
businesses.
- -------------------------------------------------------------------------------
-14-
MediaOne Group, Inc.
Condensed Consolidated Balance Sheets- As Reported
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<S> <C> <C>
(UNAUDITED) Sept 30, December 31,
Dollars in millions 1999 1998
- -------------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,122 $ 415
Accounts and notes receivable, and other 1,251 785
----------------------------
2,373 1,200
----------------------------
Property, Plant and equipment - net 4,790 4,069
Investments:
Time Warner Entertainment 2,517 2,442
Vodafone Group/AirTouch Communications 8,490 5,919
International ventures 465 1,344
----------------------------
11,472 9,705
----------------------------
Intangible and other assets - net 13,789 13,218
----------------------------
Total $ 32,424 $ 28,192
============================
</TABLE>
- -------------------------------------------------------------------------------
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<S> <C> <C>
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 1,529 $ 569
Other current liabilities 1,236 1,045
----------------------------
2,765 1,614
----------------------------
Long-term debt:
Exchangeable Notes (PIES) 3,004 1,702
Other 4,437 3,151
----------------------------
7,441 4,853
----------------------------
Deferred income taxes, credits and other 7,455 6,676
Minority interest in Centaur Funding 1,110 1,099
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust
holding solely Company-guaranteed debentures 1,060 1,061
Preferred stock subject to
mandatory redemption (Series C and E) 50 100
Shareholders' equity:
Preferred shares (Series D) 930 927
Common shares 10,465 10,324
Retained earnings 478 669
Accumulated other comprehensive income 670 869
----------------------------
12,543 12,789
----------------------------
Total $ 32,424 $ 28,192
============================
</TABLE>
- -------------------------------------------------------------------------------
-15-
MediaOne Group, Inc.
Supplementary Consolidated Domestic Cable Highlights-As Reported (1)
(Dollars in millions)
Unaudited
- -------------------------------------------------------------------------------
<TABLE>
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<S> <C> <C>
1999 1998
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Q3 Q2 Q1 YTD Q4 Q3 Q2 Q1
- -------------------------------------------------------------------------------
Video Revenues
Basic cable $ 442 $ 446 $ 439 $ 1,673 $ 420 $ 421 $ 420 $ 412
Premium 82 82 82 322 82 81 80 79
Pay-per-view 19 15 22 52 12 16 11 13
Advertising 50 51 42 157 49 37 40 31
Equip & instal 49 46 46 176 46 46 44 40
Other 3 1 1 3 2 - 1 -
----- ----- ----- ------ ----- ----- ----- -----
Total Video Revenues 645 641 632 2,383 611 601 596 575
Primestar - - - 34 - - - 34
Telephone and 29 24 22 50 16 13 11 10
High Speed Data
----- ----- ----- ------ ----- ----- ----- -----
Total Broadband
Revenue $ 674 $ 665 $ 654 $ 2,467 $ 627 $ 614 $ 607 $ 619
===== ===== ===== ====== ===== ===== ===== =====
Operating Cash Flow (2)
Video (excluding
Y2K costs) $ 257 $ 264 $ 267 $ 1,008 $ 260 $ 248 $ 254 $ 246
Primestar - - - 4 - - - 4
New Products (11) (11) (19) (58) (19) (15) (14) (10)
Year 2000 costs (4) (5) (7) (13) (6) (6) (1) -
----- ----- ----- ------- ----- ----- ----- -----
Total Operating Cash
Flow $ 242 $ 248 $ 241 $ 941 $ 235 $ 227 $ 239 $ 240
===== ===== ===== ======= ===== ===== ===== =====
Capital Expenditure $ 527 $ 494 $ 394 $ 1,618 $ 554 $ 426 $ 367 $ 271
</TABLE>
- -------------------------------------------------------------------------------
(1)Previously reported numbers have been reclassified for new
reporting format.
(2)Operating cash flow represents earnings before interest, taxes,
depreciation and amortization. Includes spending initiatives
(e.g. systems improvements, call center consolidations, etc.)
- -------------------------------------------------------------------------------
-16-
MediaOne Group, Inc.
Supplementary Consolidated Domestic Cable Highlights-Pro Forma (1)
(Dollars in millions)
Unaudited
- -------------------------------------------------------------------------------
1999 1998
Q3 Q2 Q1 YTD Q4 Q3 Q2 Q1
- -------------------------------------------------------------------------------
Video Revenues
Basic cable $ 442 $ 446 $ 439 $ 1,672 $ 419 $ 420 $ 420 $ 413
Premium 82 82 82 321 81 81 80 79
Pay-per-view 19 15 22 53 13 15 12 13
Advertising 50 51 42 156 48 37 40 31
Equip & instal 49 46 46 178 47 47 44 40
Other 3 1 1 3 1 1 - 1
----- ----- ----- ------ ----- ----- ----- -----
Total Video Revenues 645 641 632 2,383 609 601 596 577
Telephone and
High Speed Data 29 24 22 39 12 9 8 10
----- ----- ----- ------ ----- ----- ----- -----
Total Broadband
Revenue $ 674 $ 665 $ 654 $ 2,422 $ 621 $ 610 $ 604 $ 587
===== ===== ===== ====== ===== ===== ===== =====
Operating Cash Flow (2)
Video (excluding
Y2K costs) $ 257 $ 264 $ 267 $ 1,007 $ 258 $ 247 $ 252 $ 250
New Products (11) (11) (19) (61) (20) (16) (15) (10)
Year 2000 costs (4) (5) (7) (13) (6) (6) (1) -
----- ----- ----- ----- ----- ----- ----- -----
Total Operating Cash
Flow $ 242 $ 248 $ 241 $ 933 $ 232 $ 225 $ 236 $ 240
===== ===== ===== ===== ===== ===== ===== =====
- -------------------------------------------------------------------------------
(1)Results reflect pro forma adjustments for acquisitions and
dispositions.
(2)Operating cash flow represents earnings before interest, taxes,
depreciation and amortization. Includes spending initiatives
(e.g. systems improvements, call center consolidations, etc.)
- -------------------------------------------------------------------------------
-17-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Financial Data Schedule
</LEGEND>
<CIK> 0000732718
<NAME> MediaOne Group, Inc.
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1999
<PERIOD-START> JUL-01-1999 JAN-01-1999
<PERIOD-END> SEP-30-1999 SEP-30-1999
<CASH> 1,122 1,122
<SECURITIES> 60 60
<RECEIVABLES> 411 411
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 2,373 2,373
<PP&E> 6,281 6,281
<DEPRECIATION> 1,491 1,491
<TOTAL-ASSETS> 32,424 32,424
<CURRENT-LIABILITIES> 2,765 2,765
<BONDS> 7,441 7,441
1,110 1,110
930 930
<COMMON> 10,465 10,465
<OTHER-SE> 1,148 1,148
<TOTAL-LIABILITY-AND-EQUITY> 32,424 32,424
<SALES> 675 2,002
<TOTAL-REVENUES> 675 2,002
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 761 2,237
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 114 (313)
<INCOME-PRETAX> 275 794
<INCOME-TAX> (127) (933)
<INCOME-CONTINUING> 148 (139)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 17
<CHANGES> 0 0
<NET-INCOME> 106 (192)
<EPS-BASIC> (0.18) (0.32)
<EPS-DILUTED> (0.18) (0.32)
</TABLE>
