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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 27, 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 July 27, 1999 MediaOne Group, Inc. released its second 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 July 27, 1999 concerning the earnings
results of MediaOne Group, Inc. for the quarter ended June 30,
1999.
99.1 Proportionate Results Highlights of MediaOne Group, Inc. for
the three months ended June 30, 1998 and 1999 and the six months
ended June 30, 1998 and 1999, filed in connection with the Press
Release dated July 27, 1999.
99.2 Pro Forma Consolidated Domestic Cable Highlights of MediaOne
Group, Inc. for the three months ended June 30, 1998 and 1999
and the six months ended June 30, 1998 and 1999, filed in
connection with the Press Release dated July 27, 1999.
99.3 Pro Forma Key Operating Statistics - Domestic Cable - of
MediaOne Group, Inc. for the quarters ended June 30, 1999,
March 31, 1999 and June 30, 1998, as filed in connection with
the Press Release dated July 27, 1999.
99.4 Pro Forma Key Operating Statistics - International - of MediaOne
Group, Inc. for the quarters ended June 30, 1999, March 31,
1999 and June 30, 1998, filed in connection with the Press
Release dated July 27, 1999.
99.5 Consolidated Statement of Operations of MediaOne Group, Inc. for
the three months ended June 30, 1998 and 1999 and the six months
ended June 30, 1998 and 1999, filed in connection with the Press
Release dated July 27, 1999.
99.6 Earnings Per Share Highlights of MediaOne Group, Inc. for the
three months ended June 30, 1998 and 1999 and the six months
ended June 30, 1998 and 1999, as filed in connection with the
Press Release dated July 27, 1999.
99.7 Consolidated Revenues and Operating Cash Flow Highlights - As
Reported - of MediaOne Group, Inc. for the three months ended
June 30, 1998 and 1999 and the six months ended June 30, 1998
and 1999, as filed in connection with the Press Release dated
July 27, 1999.
99.8 Condensed Consolidated Balance Sheets - As Reported, for
MediaOne Group, Inc. as of ended June 30, 1999 and
December 31, 1998, as filed in connection with the Press Release
dated July 27, 1999.
99.9 Supplemental Consolidated Domestic Cable Highlights -
As Reported, of MediaOne Group, Inc. for the three months ended
March 31, 1998, June 30, 1998, September 30, 1998, December 31,
1998, March 31, 1999 and June 30, 1999, and for the twelve months
ended December 31, 1998, as filed in connection with the Press
Release dated July 27, 1999.
99.10 Supplemental Consolidated Domestic Cable Highlights - Pro Forma,
of MediaOne Group, Inc. for the three months ended March 31,
1998, June 30, 1998, September 30, 1998, December 31, 1998,
March 31, 1999 and June 30, 1999, and for the twelve months
ended December 31, 1998, as filed in connection with the Press
Release dated July 27, 1999.
</TABLE>
-2-
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: July 27, 1999
-3-
Contents
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Page
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
Supplemental Domestic Cable
Supplementary Quarterly Data -
As Reported 13
Supplementary Quarterly Data -
Pro Forma 14
</TABLE>
-4-
July 27, 1999
Cathy Fowler, 303-858-3405
Steve Lang, 303-858-3406
MediaOne Group Operating Cash Flow Up 15 Percent
-- Company Rolls Out Digital Video in Three New Markets;
Continues Aggressive Deployment of Telephone Service --
-- Operating Performance Solid
as Company Prepares for Merger into AT&T --
ENGLEWOOD, Colo. -- MediaOne Group (NYSE: UMG) today reported second quarter
1999 proportionate operating cash flow of $720 million, up 15 percent on a
pro-forma basis over the same quarter a year ago. Proportionate revenue
increased 12 percent on a pro-forma basis, to $1.9 billion.*
MediaOne continued to upgrade its network, which passes about 8.5 million U.S.
homes, and is on target to end the year with about 70 percent of the network
fully upgraded to 750 MHz, two-way. Those upgrades are making it possible for
the company to offer popular new services such as digital video, telephone and
high-speed data services to more customers.
MediaOne International continued its impressive growth, increasing the number of
subscriptions by 49 percent and providing 9.9 million video, telephone and
Internet-access subscriptions to customers in Europe and Asia.
"Since the end of the first quarter, we agreed to merge with AT&T, having
determined that its offer was superior to the earlier offer from Comcast. Our
focus now is on keeping our business operating at peak performance while we work
through the merger process, including regulatory filings and transfers of cable
licenses," said Chuck Lillis, chairman and chief executive officer of MediaOne
Group. "That focus is paying off. MediaOne continued to deliver steady growth in
revenues and new products while consolidating call centers and implementing a
new billing system. And MediaOne International continued to
- more -
deliver dazzling growth in subscriptions, revenue and operating cash flow, even
as the company begins to exit the International businesses in preparation for
the AT&T merger."
MediaOne -- the U.S. broadband business
Revenue for MediaOne was $665 million, up 10 percent on a pro-forma basis for
the quarter. Operating cash flow was $248 million, up 5 percent pro-forma. Basic
video subscriber growth increased 1.2 percent on a pro-forma basis for the
quarter.
In addition, the company introduced digital video services in Atlanta, Cleveland
and Richmond, Virginia. Digital video service was launched in Detroit last year.
In April, Detroit became the latest market to offer digital telephone services,
bringing to seven the number of markets in which MediaOne's telephone services
are available. MediaOne is adding telephone customers at an impressive rate, and
now serves nearly 36,000 telephone lines used by 26,000 customers. That's a 64
percent increase in telephone lines since the end of the first quarter. MediaOne
reported 140,000 MediaOne Road Runner high-speed data customers, a 23 percent
increase since the end of the first quarter.
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 $781 million, up 10 percent on a pro-forma basis over second quarter
1998. MediaOne Group's share of TWE's reported earnings before interest, taxes,
depreciation, amortization and other associated costs for the quarter was $393
million, up 9 percent pro-forma over the same period last year.
MediaOne International -- the international broadband and wireless joint
ventures
MediaOne International's pro-forma proportionate operating cash flow increased
63 percent on a pro-forma basis during second quarter compared to the same
period last year, to $98 million. Proportionate revenue was up 23 percent on a
pro-forma basis, to $456 million.
International operations now provide 9.9 million video, telephone, wireless and
Internet-access subscriptions to customers in Europe and Asia, an increase of 49
percent year over year. Broadband video customers grew by 11 percent year over
year; telephone line growth was 20 percent, and Internet-access customers more
than doubled. Wireless customers grew by 87 percent over the same time period.
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.
- more -
*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.]
###
MediaOne Group, Inc.
Proportionate Results Highlights (1)
(UNAUDITED)
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Three Six
Months Ended Pro Months Ended Pro
Dollars in June 30, Forma(2) June 30, Forma(2)
millions
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1999 1998 % % 1999 1998 % %
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Proportionate Revenue
MediaOne $ 665 $ 607 9.6% 10.1% $1,319 $1,226 7.6% 10.7%
Multimedia
Ventures (3) 781 728 7.3 9.7 1,529 1,470 4.0 8.2
International 456 341 33.7 22.6 896 659 36.0 24.8
Corporate
& other 3 26 (88.5)(183.3) 7 42 (83.3) (136.4)
----- ------ ------ ------ ----- ----- ------ ------
$1,905 $1,702 11.9% 12.0% $3,751 $3,397 10.4% 12.2%
===== ====== ====== ====== ====== ====== ====== ======
Proportionate Operating Cash Flow(4)
MediaOne $ 248 $ 239 3.8% 5.1% $ 489 $ 479 2.1% 2.7%
Multimedia
Ventures (3) 393 206 90.8 8.7 636 394 61.4 7.2
International 98 51 92.2 63.3 199 68 192.6 136.9
Corporate
& other (19) (17)(11.8) (9.1) (38) (30)(26.7) (2.9)
------- ------ ----- ----- ------- ------ ----- -----
$ 720 $ 479 50.3% 14.9% $1,286 $ 911 41.2% 17.3%
====== ====== ===== ===== ====== ====== ====== =====
</TABLE>
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(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 $1,897 and $1,694 for the three months ended
June 30, 1999 and 1998, respectively, and $3,740 and $3,333 for
the respective six month periods. Total pro forma operating
cash flow would be $525 and $457 for the three months ended
June 30, 1999 and 1998, respectively, and $1,038 and $885 for
the respective six month periods.
(3) Includes 25.51% of Time Warner Entertainment's reported results.
(4) Operating cash flow represents earnings before interest, taxes,
depreciation and amortization.
- ---------------------------------------------------------------------
-5-
MediaOne Group, Inc.
Consolidated Domestic Cable Highlights-Pro Forma (1)
MediaOne
(UNAUDITED)
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Three Six
Months Ended Months Ended
Dollars in June 30, June 30,
millions
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1999 1998 Percent 1999 1998 Percent
- -----------------------------------------------------------------------------
Video Revenues
Basic cable $ 446 $ 420 6.2% $ 885 $ 833 6.2%
Premium 82 80 2.5 164 159 3.1
Pay-per-view 15 12 25.0 37 25 48.0
Advertising 51 40 27.5 93 71 31.0
Equip. & instal. 46 44 4.5 92 84 9.5
Other 1 - - 2 1 100.0
------------ -------------
Total Video
Revenues 641 596 7.6 1,273 1,173 8.5
Telephone and
High Speed Data 24 8 200.0 46 18 155.6
------------ -------------
Total Broadband
Revenue $ 665 $ 604 10.1% $1,319 $1,191 10.7%
============ ==============
Operating Cash Flow(2)
Video
(excluding Y2K costs) $ 264 $ 252 4.8% $ 531 $ 502 5.8%
Telephone and
High Speed Data (11) (15) 26.7 (30) (25) (20.0)
Year 2000 costs (5) (1) (400.0) (12) (1) (1,100.0)
------------ --------------
Total Operating
Cash Flow $ 248 $ 236 5.1% $ 489 $ 476 2.7%
============ ==============
</TABLE>
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(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.)
- ---------------------------------------------------------------------
-6-
MediaOne Group, Inc.
Key Operating Statistics- Pro Forma (1)
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For the Quarter Ended
In thousands, except June 30, Mar. 31, June 30,
dollar amounts 1999 1999 1998
- ---------------------------------------------------------------------
OPERATING STATISTICS- DOMESTIC CABLE
- ----------------------------------------
MediaOne Domestic Cable
Statistics
- --------------
Homes Passed 8,540 8,527 8,435
Basic Video Customers 4,994 4,966 4,935
Basic Video Customer
Growth (Y/Y) 1.2% 1.1% 1.5%
Basic Video Penetration 58.5% 58.2% 58.5%
High Speed Data Customers 140 114 39
Telephone Customers 26 17 1
Telephone Lines 36 22 2
Results Per Customer:
- ----------------------
Video Monthly
Revenue per Customer $ 42.85 $ 42.45 $ 40.31
Total Monthly Broadband
Revenue per Customer $ 44.46 $ 43.93 $ 40.84
Video EBITDA Margin
(with Year 2000 costs) 40.4% 41.1% 42.1%
Total EBITDA Margin 37.3% 36.9% 39.1%
- ---------------------------------------------------------------------
Time Warner Entertainment (2)
Homes Passed 18,168 17,938 15,780
Basic Video Customers 11,208 11,153 9,874
High Speed Data
Customers 186 148 50
</TABLE>
- ---------------------------------------------------------------------
(1) Results reflect pro forma adjustments for acquisitions,
dispositions and other asset transactions.
(2) MediaOne Group has 50% management control of TWE
domestic broadband business and a 25.51% equity ownership.
TWE numbers are as reported versus pro forma numbers.
- ---------------------------------------------------------------------
-7-
MediaOne Group, Inc.
Key Operating Statistics- Pro Forma (1)
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For the Quarter Ended
June 30, Mar. 31, June 30,
In thousands 1999 1999 1998
- ---------------------------------------------------------------------
OPERATING STATISTICS (Venture Level)-
INTERNATIONAL BROADBAND
- -------------------------------------
U.K. and European Cable/Telephone (2)
Homes Passed 5,421 5,419 5,288
Video Customers 1,943 1,926 1,803
Telephone Lines 1,740 1,679 1,455
Internet Access Customers 58 45 25
Asian Cable/Telephone (3)
Homes Passed 1,836 1,787 1,521
Video Customers 306 283 222
Telephone Lines 9 7 2
Internet Access Customers 5 2 -
- ---------------------------------------------------------------------
OPERATING STATISTICS (Venture Level)-
INTERNATIONAL WIRELESS
- -------------------------------------
One 2 One
POPs 58,000 58,000 58,000
Customers 2,650 2,250 1,358
Customer Growth (Y/Y) 95.1% 87.8% 93.7%
Central European Wireless
POPs 63,900 63,900 63,900
Customers 3,012 2,520 1,625
Customer Growth (Y/Y) 85.4% 74.5% 79.6%
Asian and Other Wireless
POPs 76,900 76,900 76,900
Customers 170 155 132
- ---------------------------------------------------------------------
OPERATING STATISTICS (Venture Level)-
TOTAL INTERNATIONAL SUBSCRIPTIONS
- -------------------------------------
Video Customers 2,249 2,209 2,025
Wireless Customers 5,832 4,925 3,115
Telephone Lines 1,749 1,686 1,457
Internet Access Customers 63 47 25
--------- --------- ---------
Total International
Subscriptions 9,893 8,867 6,622
Growth (Y/Y) 49.4% 43.6% 39.5%
</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 29.8% in first quarter 1999.
(3) MediaOne International increased its ownership in TITUS to
50% on 6/30/99.
- ---------------------------------------------------------------------
-8-
MediaOne Group, Inc.
Consolidated Operations Highlights- As Reported (1)
(UNAUDITED)
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Three Months Ended Six Months Ended
June 30, June 30,
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Dollars in millions 1999 1998 1999 1998
- ----------------------------------------------------------------------------
REVENUES $ 662 $ 641 $ 1,327 $ 1,613
Cost of sales 265 241 534 558
Selling, general and admin. 179 195 364 502
-------- -------- --------- ---------
OPERATING CASH FLOW (2) 218 205 429 553
Depreciation & amortization (328) (258) (578) (606)
Interest expense, minority
guarantee, other (172) (163) (317) (335)
Equity losses in
unconsolidated ventures (87) (69) (202) (205)
Gains on sales of
investments (3) 2,512 3,891 2,706 3,908
Merger related costs (4) (1,507) - (1,522) -
Other income (expense) 31 110 3 73
Income tax benefit (expense) (843) (1,542) (806) (1,436)
-------- --------- -------- ---------
EARNINGS (LOSS) FROM
CONTINUING OPERATIONS (176) 2,174 (287) 1,952
Discontinued operations
income, net of tax (5) - 24,774 - 25,208
Extraordinary item,
net of tax 17 (333) 17 (333)
-------- --------- -------- ---------
NET INCOME (LOSS) (159) 26,615 (270) 26,827
Loss on redemption of
preferred securities - (53) - (53)
Preferred dividends
and accretion (14) (13) (28) (26)
-------- --------- -------- ---------
EARNINGS (LOSS) AVAILABLE
FOR COMMON STOCK $ (173) $ 26,549 $ (298) $ 26,748
======== ========= ======== ==========
</TABLE>
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(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 three and six months ended June 30, 1999. Includes a $3,869
gain on sale of domestic wireless operations for the three and
six months ended June 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 $242 for
the three months and $589 for the six months ended June 30, 1998.
- ---------------------------------------------------------------------
-9-
MediaOne Group, Inc.
Earnings Per Share Highlights
(UNAUDITED)
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Three Months Ended Six Months Ended
June 30, June 30,
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1999 1998 1999 1998
- -----------------------------------------------------------------------------
Earnings Per Share -
As Reported
Average Shares
Outstanding (millions)
Basic 605.7 609.1 604.8 608.7
Diluted 605.7 653.6 604.8 652.6
Basic Earnings (Loss)
per Common Share
Earnings (loss)
from Continuing Ops $ (0.31) $ 3.46 $ (0.52) $ 3.08
Total earnings (loss)$ (0.29) $ 43.19 $ (0.49) $ 42.98
Diluted Earnings (Loss)
per Common Share
Earnings (loss)
from Continuing Ops $ (0.31) $ 3.24 $ (0.52) $ 2.91
Total earnings (loss)$ (0.29) $ 40.27 $ (0.49) $ 40.12
- -----------------------------------------------------------------------------
Common Shares (millions)
Actual Shares Outstanding 606.2 608.9 606.2 608.9
- -----------------------------------------------------------------------------
Normalized Earnings Per Share
Basic EPS - Continuing Ops $ (0.31) $ 3.46 $ (0.52) $ 3.08
Adjustment for One Time
Unusual Transactions
Domestic Wireless
Operations and
Gain on Sale - (3.72) - (3.75)
Loss on Redemption
of Preferred
Securities - 0.09 - 0.09
Gain on Sale of
Investments (0.02) (0.02) (0.22) (0.04)
Primestar Loss - - 0.07 -
Vodafone Gain (2.52) - (2.52) -
Merger Costs 2.47 - 2.50 -
Other Gains (Losses) 0.02 (0.06) 0.02 -
-------- -------- -------- --------
Normalized Basic EPS -
Continuing Operations $ (0.36) $ (0.25) $ (0.67) $ (0.62)
======== ======== ======== ========
</TABLE>
- -----------------------------------------------------------------------------
-10-
MediaOne Group, Inc.
Consolidated Revenues and Operating Cash Flow Highlights- As Reported
(Unaudited)
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Three Six
Months Ended Months Ended
June 30, June 30,
</TABLE>
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Dollars in millions 1999 1998 Percent 1999 1998 Percent
- -----------------------------------------------------------------------------
Consolidated Revenues
MediaOne $ 665 $ 607 9.6% $ 1,319 $ 1,226 7.6%
International - 6 (100.0) 7 11 (36.4)
Corporate & other (3) 8 (137.5) 1 15 (93.3)
--------------- ------------------
Current Operations 662 621 6.6% 1,327 1,252 6.0%
Domestic wireless - 20 N/M - 361 N/M
--------------- ------------------
Total $ 662 $ 641 N/M $ 1,327 $ 1,613 N/M
=============== ==================
Consolidated Operating
Cash Flow (1)
MediaOne $ 248 $ 239 3.8% $ 489 $ 479 2.1%
International - (1) 100.0 - (3) 100.0
Corporate & other (30) (43) 30.2 (60) (71) 15.5
---------------- ------------------
Current Operations 218 195 11.8% 429 405 5.9%
Domestic wireless - 10 N/M - 148 N/M
--------------- ------------------
Total $ 218 $ 205 N/M $ 429 $ 553 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.
- ------------------------------------------------------------------------------
-11-
MediaOne Group, Inc.
Condensed Consolidated Balance Sheets- As Reported
(UNAUDITED)
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June 30, December 31,
Dollars in millions 1999 1998
- --------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,032 $ 415
Accounts and notes receivable, and other 1,099 785
-------------------------
2,131 1,200
-------------------------
Property and equipment - net 4,501 4,069
Investments:
Time Warner Entertainment 2,479 2,442
Vodafone Group/AirTouch Communications 7,310 5,919
International ventures 643 1,344
--------------------------
10,432 9,705
--------------------------
Intangible and other assets - net 13,447 13,218
--------------------------
Total $ 30,511 $ 28,192
==========================
- ----------------------------------------------------------------------------
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 1,718 $ 569
Other current liabilities 1,185 1,045
--------------------------
2,903 1,614
--------------------------
Long-term debt:
Exchangeable Notes (PIES) 2,525 1,702
Other 3,720 3,151
--------------------------
6,245 4,853
--------------------------
Deferred income taxes, credits and other 7,096 6,676
Minority interest in Centaur Funding 1,107 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) 100 100
Shareholders' equity:
Preferred shares (Series D) 929 927
Common shares 10,409 10,324
Retained earnings 371 669
Accumulated other comprehensive income 291 869
--------------------------
12,000 12,789
--------------------------
Total $ 30,511 $ 28,192
=========================
</TABLE>
- ----------------------------------------------------------------------------
-12-
MediaOne Group, Inc.
Supplementary Consolidated Domestic Cable Highlights -
As Reported (1)
(Dollars in millions)
Unaudited
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1999 1998
</TABLE>
<TABLE>
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<S> <C> <C> <C> <C> <C> <C> <C>
Q2 Q1 YTD Q4 Q3 Q2 Q1
- ------------------------------------------------------------------------------
Video Revenues
Basic cable $ 446 $ 439 $ 1,673 $ 420 $ 421 $ 420 $ 412
Premium 82 82 322 82 81 80 79
Pay-per-view 15 22 52 12 16 11 13
Advertising 51 42 157 49 37 40 31
Equipment & instal. 46 46 176 46 46 44 40
Other 1 1 3 2 - 1 -
----- ----- ------- ----- ----- ----- -----
Total Video Revenues 641 632 2,383 611 601 596 575
Primestar - - 34 - - - 34
Telephone and
High Speed Data 24 22 50 16 13 11 10
----- ----- ------- ----- ----- ----- -----
Total Broadband Revenue$ 665 $ 654 $ 2,467 $ 627 $ 614 $ 607 $ 619
===== ===== ======= ===== ===== ===== =====
Operating Cash Flow (2)
Video (excluding
Y2K costs) $ 264 $ 267 $ 1,008 $ 260 $ 248 $ 254 $ 246
Primestar - - 4 - - - 4
New Products (11) (19) (58) (19) (15) (14) (10)
Year 2000 costs (5) (7) (13) (6) (6) (1) -
----- ----- ------- ----- ----- ----- -----
Total Operating
Cash Flow $ 248 $ 241 $ 941 $ 235 $ 227 $ 239 $ 240
===== ===== ======= ===== ===== ===== =====
Capital Expenditures $ 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.)
- ------------------------------------------------------------------------------
-13-
MediaOne Group, Inc.
Supplementary Consolidated Domestic Cable Highlights - Pro Forma (1)
(Dollars in millions)
Unaudited
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1999 1998
</TABLE>
<TABLE>
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<S> <C> <C> <C> <C> <C> <C> <C>
Q2 Q1 YTD Q4 Q3 Q2 Q1
- ------------------------------------------------------------------------------
Video Revenues
Basic cable $ 446 $ 439 $ 1,675 $ 420 $ 422 $ 420 $ 413
Premium 82 82 323 82 82 80 79
Pay-per-view 15 22 52 12 15 12 13
Advertising 51 42 157 49 37 40 31
Equipment & instal. 46 46 177 47 46 44 40
Other 1 1 2 1 - - 1
----- ----- ------- ----- ----- ----- -----
Total Video Revenues 641 632 2,386 611 602 596 577
Telephone and
High Speed Data 24 22 39 12 9 8 10
----- ----- ------- ----- ----- ----- -----
Total Broadband Revenue$ 665 $ 654 $ 2,425 $ 623 $ 611 $ 604 $ 587
===== ===== ======= ===== ===== ===== =====
Operating Cash Flow (2)
Video (excluding
Y2K costs) $ 264 $ 267 $ 1,010 $ 260 $ 248 $ 252 $ 250
New Products (11) (19) (61) (20) (16) (15) (10)
Year 2000 costs (5) (7) (13) (6) (6) (1) -
----- ----- ------- ----- ----- ----- -----
Total Operating
Cash Flow $ 248 $ 241 $ 936 $ 234 $ 226 $ 236 $ 240
===== ===== ======= ===== ===== ===== =====
</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.)
- ------------------------------------------------------------------------------
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000732718
<NAME> MediaOne Group, Inc.
<S> <C> <C>
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<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1999
<PERIOD-START> APR-01-1999 JAN-01-1999
<PERIOD-END> JUN-30-1999 JUN-30-1999
<CASH> 1,032 1,032
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<PP&E> 5,897 5,897
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<CURRENT-LIABILITIES> 2,903 2,903
<BONDS> 6,245 6,245
1,160 1,160
929 929
<COMMON> 10,409 10,409
<OTHER-SE> 662 662
<TOTAL-LIABILITY-AND-EQUITY> 30,511 30,511
<SALES> 662 1,327
<TOTAL-REVENUES> 662 1,327
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 772 772
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<INTEREST-EXPENSE> 103 199
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<INCOME-TAX> (843) (806)
<INCOME-CONTINUING> (176) (287)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 17 17
<CHANGES> 0 0
<NET-INCOME> (173) (298)
<EPS-BASIC> (0.29) (0.49)
<EPS-DILUTED> (0.29) (0.49)
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