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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): February 28, 2000
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 February 28, 2000 MediaOne Group, Inc. released its year-end 1999 earnings
results. The release and financial statements are attached hereto as Exhibits.
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Item 7. Exhibits
Exhibit Description
27 Financial Data Schedule
99 Press Release issued February 28, 2000 concerning the earnings results
of MediaOne Group, Inc. for the year ended December 31, 1999.
99.1 Proportionate Results Highlights of MediaOne Group, Inc. for the three
months and the years ended December 31, 1999 and 1998, filed in
connection with the Press Release dated February 28, 2000.
99.2 Pro Forma Consolidated Domestic Cable Highlights of MediaOne Group,
Inc. for the three months and the years ended December 31, 1999 and
1998, filed in connection with the Press Release dated February 28,
2000.
99.3 Pro Forma Key Operating Statistics - Domestic Cable - of MediaOne
Group, Inc. for the quarters ended December 31, 1999, September 30,
1999 and December 31, 1998, filed in connection with the Press
Release dated February 28, 2000.
99.4 Pro Forma Key Operating Statistics - International - of MediaOne
Group, Inc. for the quarters ended December 31, 1999, September 30,
1999 and December 31, 1998, filed in connection with the Press Release
dated February 28, 2000.
99.5 Consolidated Statements of Operations of MediaOne Group, Inc. for the
three months and the years ended December 31, 1999 and 1998, filed in
connection with the Press Release dated February 28, 2000.
99.6 Earnings per Share Highlights of MediaOne Group, Inc. for the three
months and the years ended December 31, 1999 and 1998, filed in
connection with the Press Release dated February 28, 2000.
99.7 Consolidated Revenues and Operating Cash Flow Highlights - As
Reported - of MediaOne Group, Inc. for the three months and the years
ended December 31, 1999 and 1998, filed in connection with the Press
Release dated February 28, 2000.
99.8 Condensed Consolidated Balance Sheets - As Reported, for MediaOne
Group, Inc. as of December 31, 1999 and 1998, filed in connection
with the Press Release dated February 28, 2000.
-2-
99.9 Supplementary Consolidated Domestic Cable Highlights - As Reported,
of MediaOne Group, Inc. for the four quarters and year-to-date of
1999 and 1998, filed in connection with the Press Release dated
February 28, 2000.
99.10 Supplementary Consolidated Domestic Cable Highlights - Pro Forma, of
MediaOne Group, Inc. for the four quarters and year-to-date of 1999
and 1998, filed in connection with the Press Release dated
February 28, 2000.
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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: February 29, 2000
-3-
February 28, 2000
Cathy Fowler, 303-858-3405
Steve Lang, 303-858-3406
MediaOne-TM- Group Completes Highly Successful Year;
Takes Fourth Quarter Lead in New Telephone Subscribers Over Broadband
- 76 Percent of MediaOne's Network Has Been Upgraded to 750 MHz Two-Way -
- Company Continues to Prepare for Merger into AT&T -
ENGLEWOOD, Colo.-- MediaOne Group (NYSE: UMG) today reported continued
strong growth across all three of its main product lines. The company added a
total of 81,000 new video, telephone and high-speed data (Internet) subscribers
in the U.S. in the fourth quarter; 274,000 new subscribers since the end of the
same quarter last year.
MediaOne Group reported $3.7 billion in consolidated net income for the
quarter, including gains realized from sales of international investments. The
company ended fourth quarter 1999 with proportionate operating cash flow of $783
million, up 18 percent on a pro-forma basis over the same quarter a year ago.
Proportionate operating cash flow as of the end of the year was $2.6 billion, a
pro-forma increase of 15 percent over year-end 1998. Proportionate revenue
increased 14 percent on a pro-forma basis, to $1.9 billion, over fourth quarter
1998.* Year-end proportionate revenue was $7.8 billion, up 13 percent pro-forma
over year-end 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
the 8.6 million households with access to MediaOne's networks.
During the last several months, in preparation for the merger with AT&T,
MediaOne International has either sold or announced agreements to sell its
interests in a significant portion of its international holdings for about $12
billion. The company had invested about $2 billion in those same properties as
of the end of last year, providing a powerful return on investment.
- more -
-4-
MediaOne Group Fourth Quarter Earnings, Page 2
"Employees throughout the company have done an amazing job of staying
focused on running the business - even as we prepare for the merger into AT&T.
Since the end of the third quarter, we've continued to work with our
counterparts at AT&T to decide on the structure and next steps for the new
company," said Chuck Lillis, chairman and chief executive officer of MediaOne
Group. "And, of course, internationally, we've received phenomenal value for the
holdings we've sold."
MediaOne -- the U.S. broadband business
MediaOne exceeded its full year projections for 1999, surpassing targets
established for revenue growth, video, telephone and high-speed data subscriber
growth. Revenue for MediaOne was $693 million, up 12 percent on a pro-forma
basis for the quarter. For the year, MediaOne's revenue was up 11 percent on a
pro-forma basis, to $2.7 billion. Operating cash flow was $249 million, up 7
percent pro-forma for the quarter. Year over year, operating cash flow was up 5
percent, to $980 million. Basic video customer growth increased 1.7 percent on a
pro-forma basis year over year.
1999 saw strong pay-per-view results, ending the year with a 38 percent
pro-forma increase over 1998. That growth was driven in part by further
deployment of advanced analog and digital services through upgraded broadband
networks and improved impulse pay-per-view capabilities. Those upgraded networks
also helped the company add 274,000 new video, telephone and high-speed data
subscribers during the year. Advertising revenues increased 31 percent pro-forma
year over year, to $204 million for 1999.
At the end of the year, MediaOne served 56,000 digital video subscribers.
The company added 32,000 new subscribers during the fourth quarter, more than
doubling the number of digital subscribers since the end of the third quarter.
The company added 24,000 telephone subscribers in the fourth quarter, a 57
percent increase over the third quarter of this year. As of the end of the year,
the company served 88,000 telephone lines used by 66,000 subscribers in seven
major markets. In the fourth quarter, MediaOne added more telephone subscribers
than any other broadband provider.
MediaOne-TM- Road Runner-TM- added 47,000 high-speed data subscribers in
the fourth quarter, a 27 percent increase since the end of the third quarter.
MediaOne - with one of the highest penetrations in the industry -- served
220,000 high-speed data subscribers across the U.S. as of the end of 1999.
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 $943 million, up 14 percent on a pro-forma basis over
fourth quarter 1998. For the year, MediaOne Group's share was $3.4 billion, up
10 percent pro-forma over year-end 1998. MediaOne Group's share of TWE's
reported earnings before interest, taxes, depreciation, amortization and other
associated costs for the fourth quarter was $474 million, up 17 percent
pro-forma over the same period last year; yearly figures were up 10 percent
pro-forma to $1.3 billion.
- more -
-5-
MediaOne Group Fourth Quarter Earnings, Page 3
MediaOne International -- the international broadband and wireless joint
ventures
MediaOne International is in the process of disposing of a
significant portion of its international assets and will receive about $12
billion from sales of those interests. Several major deals were closed in 1999,
including the sale of UK wireless operator One 2 One to Deutsche Telekom, and
the sale of MediaOne International's stake in Dutch broadband company A2000 and
Belgian broadband company Telenet to respective existing partners. Pending
sales, including the sale of some Central European and Russian wireless
interests and the sale of MediaOne International's stake in UK broadband
operator Telewest, are expected to close in the next few months.
MediaOne Group will discuss these results on a call with analysts at
11 a.m. EST on February 29. Those who wish to listen to a Webcast of the call
may do so by pointing their browsers to http://www.mediaonegroup.com. A
replay of the call will run until March 10 at 7 p.m. EST.
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 1999, MediaOne Group produced $7.8 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.]
###
-6-
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
</TABLE>
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MediaOne Group, Inc.
Proportionate Results Highlights (1)
(UNAUDITED)
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Three Year
Months Ended Pro Ended Pro
Dollars in Dec 31, Forma(2) Dec 31, Forma(2)
millions
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1999 1998 % % 1999 1998 % %
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Proportionate Revenue
MediaOne $ 693 $ 627 10.5% 11.6% $2,686 $2,467 8.9% 10.9%
Multimedia
Venture(3) 943 832 13.3 13.9 3,358 3,124 7.5 10.0
Int'l 291 434 (32.9) 20.7 1,715 1,456 17.8 26.7
Corporate
& other - 28 (100.0) (100.0) 7 85 (91.8) (119.0)
------------- ------------
$1,927 $1,921 0.3% 13.7% $7,766 $7,132 8.9% 13.2%
============= =============
</TABLE>
Proportionate Operating Cash Flow(4)
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MediaOne $ 249 $ 235 6.0% 7.3% $ 980 $ 941 4.1% 5.0%
Multimedia
Venture(3) 474 196 141.8 16.9 1,342 800 67.8 10.4
Int'l 72 58 24.1 53.2 352 205 71.7 63.7
Corporate
& other (12) (16) 25.0 40.0 (63) (68) 7.4 19.7
------------- -------------
$ 783 $ 473 65.5% 18.3% $2,611 $1,878 39.0% 15.2%
============= =============
</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 $1,927 and $1,695 for the three months ended
December 31, 1999 and 1998, respectively, and $7,755 and $6,850
for the respective twelve month periods. Total pro forma
operating cash flow would be $530 and $448 for the three months
ended December 31, 1999 and 1998, respectively, and $2,099 and
$1,822 for the respective twelve month periods.
(3) Includes 25.51% of Time Warner Entertainment's (TWE) reported
results less a $79 deferred gain in third quarter 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 Year
Months Ended Ended
Dollars in Dec 31, Dec 31,
millions
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1999 1998 Percent 1999 1998 Percent
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- -------------------------------------------------------------------------------
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Video Revenues
Basic cable $ 447 $ 419 6.7% $1,774 $1,672 6.1%
Premium 82 81 1.2 328 321 2.2
Pay-per-view 17 13 30.8 73 53 37.7
Advertising 61 48 27.1 204 156 30.8
Equip. & instal. 49 47 4.3 190 178 6.7
Other (2) 1 (300.0) 3 3 -
--------------- ---------------
Total Video
Revenues 654 609 7.4 2,572 2,383 7.9
Telephone and
High Speed Data 39 12 225.0 114 39 192.3
--------------- ---------------
Total Broadband
Revenue $ 693 $ 621 11.6% $2,686 $2,422 10.9%
=============== ===============
Operating Cash Flow(2)
Video
(excluding Y2K costs) $ 264 $ 258 2.3% $1,052 $1,007 4.5%
Telephone and
High Speed Data (13) (20) 35.0 (54) (61) 11.5
Year 2000 costs (2) (6) 66.7 (18) (13) (38.5)
--------------- ---------------
Total Operating
Cash Flow $ 249 $ 232 7.3% $ 980 $ 933 5.0%
=============== ===============
</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 Dec 31, Sept 30, Dec 31,
dollar amounts 1999 1999 1998
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OPERATING STATISTICS- DOMESTIC CABLE
- -------------------------------------------------------------------------------
MediaOne Domestic Cable
Statistics
- -----------------------
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Homes Passed 8,560 8,496 8,399
Basic Video Customers 4,993 4,983 4,911
Basic Video Customer
Growth (Y/Y) 1.7% 1.8% 1.1%
Basic Video Penetration 58.3% 58.7% 58.5%
Digital Video Customers 56 24 5
High Speed Data Customers 220 173 84
Two-Way Market Ready
Penetration 4.8% 4.4% 3.1%
Telephone Customers 66 42 10
Telephone Lines 88 56 13
Network Upgraded to 750 MHz.
Two-Way 76% 68% 49%
Results Per Customer
- ----------------------
Video Monthly
Revenue per Customer $ 43.71 $ 43.26 $ 41.44
Total Monthly Broadband
Revenue per Customer $ 46.29 $ 45.22 $ 42.28
Video EBITDA Margin
(with Year 2000 costs) 40.1% 39.2% 41.4%
Total EBITDA Margin 35.9% 35.9% 37.4%
</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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Dec 31, Sept 30, Dec 31,
In thousands 1999 1999 1998
</TABLE>
- -------------------------------------------------------------------------------
OPERATING STATISTICS (Venture Level)-
INTERNATIONAL BROADBAND
- -------------------------------------
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U.K. Cable/Telephone (2)
Homes Passed 4,666 4,665 4,613
Video Customers 1,156 1,124 1,046
Telephone Lines 1,892 1,812 1,626
Internet Access Customers 60 46 24
Asian Cable/Telephone (3)
Homes Passed 2,004 1,893 1,756
Video Customers 354 322 265
Telephone Lines 13 10 5
Internet Access Customers 19 9 2
</TABLE>
- -------------------------------------------------------------------------------
OPERATING STATISTICS (Venture Level)-
INTERNATIONAL WIRELESS
- -------------------------------------
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Central European Wireless
POPs 63,900 63,900 63,900
Customers 4,028 3,433 2,205
Customer Growth (Y/Y) 82.7% 79.5% 87.2%
</TABLE>
- -------------------------------------------------------------------------------
OPERATING STATISTICS (Venture Level)-
TOTAL INTERNATIONAL SUBSCRIPTIONS
- -------------------------------------
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Video Customers 1,510 1,446 1,311
Wireless Customers 4,028 3,433 2,205
Telephone Lines 1,905 1,822 1,631
Internet Access Customers 79 55 26
--------- --------- ---------
Total International
Subscriptions 7,522 6,756 5,173
Growth (Y/Y) 45.4% 43.0% 40.7%
</TABLE>
- -------------------------------------------------------------------------------
(1) Results reflect pro forma adjustments for acquisitions,
dispositions and other asset transactions including investments
in European broadband companies, A2000, Cable Plus, and Telenet,
and U.K. wireless company One 2 One.
(2) MediaOne International changed its ownership in Telewest from
21.6% in third quarter 1998 to 29.9% in fourth quarter 1998,
29.7% in third quarter 1999, and 27.2% in fourth quarter 1999.
(3) MediaOne International increased its ownership in TITUS to
60.0% in fourth quarter 1999.
- -------------------------------------------------------------------------------
-11-
MediaOne Group, Inc.
Consolidated Operations Highlights- As Reported (1)
(UNAUDITED)
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Three Months Ended Year Ended
Dec 31, Dec 31,
</TABLE>
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Dollars in millions 1999 1998 1999 1998
</TABLE>
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<TABLE>
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REVENUES $ 693 $ 643 $ 2,695 $ 2,882
Cost of sales 265 230 1,069 1,013
Selling, general and admin. 200 216 749 926
------- ------- -------- -------
OPERATING CASH FLOW (2) 228 197 877 943
Depreciation & amortization (364) (288) (1,248) (1,182)
Interest expense, minority
guarantee, other (185) (137) (666) (569)
Equity gains (losses) in
unconsolidated ventures 35 (144) (256) (417)
Gains on sales of
investments (3) 6,287 28 9,574 3,939
Merger related costs (4) (273) - (1,810) -
Other income (expense) 209 (162) 260 (76)
Income tax benefit (expense) (2,284) 168 (3,217) (1,208)
------- ------- -------- -------
EARNINGS (LOSS) FROM
CONTINUING OPERATIONS 3,653 (338) 3,514 1,430
Discontinued operations income,
net of tax (5) - - - 25,208
Extraordinary item, net of tax - - 17 (333)
------- ------- -------- -------
NET INCOME (LOSS) 3,653 (338) 3,531 26,305
Loss on redemption of
preferred securities - - (28) (53)
Preferred dividends and accretion (7) (16) (49) (55)
------- ------- -------- -------
EARNINGS (LOSS) AVAILABLE
FOR COMMON STOCK $ 3,646 $ (354) $ 3,454 $26,197
======= ======= ======== =======
</TABLE>
- -------------------------------------------------------------------------------
(1) Domestic wireless operations were sold in April, 1998.
(2) Operating cash flow represents earnings before interest, taxes,
depreciation and amortization.
(3) Includes gains of $6,287 and $6,582 on the sale of various
international investments for the three and twelve months ended
December 31, 1999. Also 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 twelve months ended
December 31, 1999. Includes a $3,869 gain on sale of domestic
wireless operations for the twelve months ended December 31,
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 twelve months
ended December 31, 1998.
- -------------------------------------------------------------------------------
-12-
MediaOne Group, Inc.
Earnings Per Share Highlights
(UNAUDITED)
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Three Mos Ended Year Ended
Dec 31, Dec 31,
</TABLE>
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1999 1998 1999 1998
</TABLE>
- -------------------------------------------------------------------------------
Earnings Per Share -
As Reported
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Average Shares
Outstanding (millions)
Basic 630.1 604.4 611.6 607.6
Diluted 658.0 604.4 654.9 653.0
Basic Earnings (Loss)
per Common Share
Earnings (loss) from
Continuing Operations $ 5.79 $(0.58) $ 5.62 $ 2.18
Total earnings (loss) $ 5.79 $(0.58) $ 5.65 $42.14
Diluted Earnings (Loss)
per Common Share
Earnings (loss) from
Continuing Operations $ 5.55 $(0.58) $ 5.32 $ 2.10
Total earnings (loss) $ 5.55 $(0.58) $ 5.34 $39.29
</TABLE>
- -------------------------------------------------------------------------------
Common Shares (millions)
Actual Shares Outstanding (1) 647.4 603.5 647.4 603.5
- -------------------------------------------------------------------------------
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Normalized Earnings Per Share
Basic EPS - Continuing Ops $ 5.79 $(0.58) $ 5.62 $ 2.18
Adjustment for One Time
Unusual Transactions
Domestic Wireless
Operations and Gain
on Sale - - - (3.75)
Loss on Redemption of
Preferred Securities - - 0.04 0.09
Gain on Sale of
Investments (6.20) (0.03) (7.19) (0.08)
Primestar Loss (0.02) 0.16 0.05 0.16
Vodafone Gain - - (2.50) -
Merger Costs 0.26 - 2.76 -
Other Gains (Losses) - - 0.02 -
------- ------- ------ -------
Normalized Basic EPS -
Continuing Operations (2) $ (0.17) $ (0.46) $(1.20) $(1.40)
======= ======= ====== =======
</TABLE>
- -------------------------------------------------------------------------------
(1) Includes 39.6 million shares related to the conversion of
Series D stock in November, 1999.
(2) Amounts may not foot due to rounding.
- -------------------------------------------------------------------------------
-13-
MediaOne Group, Inc.
Consolidated Revenues and Operating Cash Flow Highlights- As Reported
(Unaudited)
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<S> <C> <C>
Three Year
Months Ended Ended
Dec 31, Dec 31,
</TABLE>
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<S> <C> <C> <C> <C> <C> <C>
Dollars in millions 1999 1998 Percent 1999 1998 Percent
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
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<S> <C> <C> <C> <C> <C> <C>
Consolidated Revenues
MediaOne $ 693 $ 627 10.5% $ 2,686 $ 2,467 8.9%
International (1) - 7 - 7 24 (70.8)
Corporate & other (2) - 9 - 2 30 (93.3)
-------------- ----------------
Current Operations 693 643 7.8% 2,695 2,521 6.9%
Domestic wireless - - N/M - 361 N/M
-------------- ----------------
Total $ 693 $ 643 N/M $ 2,695 $ 2,882 N/M
============== ================
Consolidated Operating
Cash Flow (3)
MediaOne $ 249 $ 235 6.0% $ 980 $ 941 4.1%
International (1) - (2) - - (6) -
Corporate & other (21) (36) 41.7 (103) (140) 26.4
-------------- ----------------
Current Operations 228 197 15.7% 877 795 10.3%
Domestic wireless - - N/M - 148 N/M
-------------- ----------------
Total $ 228 $ 197 N/M $ 877 $ 943 N/M
============== ================
</TABLE>
- -------------------------------------------------------------------------------
(1) Results reflect effects of deconsolidation of investments in
Cable Plus and RTDC due to decision to exit international
activities.
(2) Results reflect divestiture of corporate assets.
(3) 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
(UNAUDITED)
<TABLE>
<S> <C> <C>
December 31, December 31,
1999 1998
</TABLE>
Dollars in millions
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 7,471 $ 415
Accounts and notes receivable, and other 649 785
------------------------------
8,120 1,200
------------------------------
Property, Plant and equipment - net 5,090 4,069
Investments:
Time Warner Entertainment 2,597 2,442
Vodafone Group/AirTouch Communications 8,718 5,919
International ventures 938 1,344
------------------------------
12,253 9,705
------------------------------
Intangible and other assets - net 14,323 13,218
------------------------------
Total $ 39,786 $ 28,192
==============================
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 1,506 $ 569
Other current liabilities 2,739 1,045
------------------------------
4,245 1,614
------------------------------
Long-term debt:
Exchangeable Notes (PIES) 4,248 1,702
Other 4,425 3,151
------------------------------
8,673 4,853
------------------------------
Deferred income taxes, credits and other 7,879 6,676
Minority interest in Centaur Funding 1,113 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) (1) 50 100
Shareholders' equity:
Preferred shares (Series D) (1) - 927
Common shares 11,448 10,324
Retained earnings 4,123 669
Accumulated other comprehensive income 1,195 869
------------------------------
16,766 12,789
------------------------------
Total $ 39,786 $ 28,192
==============================
</TABLE>
- -------------------------------------------------------------------------------
(1) During 1999, Series C converted into FSA stock and Series D
converted to 39.6 million UMG common shares.
- -------------------------------------------------------------------------------
-15-
MediaOne Group, Inc.
Supplementary Consolidated Domestic Cable Highlights-As Reported (1)
(Dollars in millions)
Unaudited
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
1999 1998
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
YTD Q4 Q3 Q2 Q1 YTD Q4 Q3 Q2 Q1
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Video Revenues
Basic
cable $ 1,774 $ 447 $ 442 $ 446 $ 439 $ 1,673 $ 420 $ 421 $ 420 $ 412
Premium 328 82 82 82 82 322 82 81 80 79
PPV 73 17 19 15 22 52 12 16 11 13
Advert 204 61 50 51 42 157 49 37 40 31
Equip
&instal 190 49 49 46 46 176 46 46 44 40
Other 3 (2) 3 1 1 3 2 - 1 -
----- ----- ----- ----- ----- ------ ----- ---- ----- -----
Total
Video
Rev 2,572 654 645 641 632 2,383 611 601 596 575
Primestar - - - - - 34 - - - 34
Telephone&
High Speed
Data 114 39 29 24 22 50 16 13 11 10
----- ----- ----- ----- ----- ------ ----- ----- ----- -----
Total
Broadband
Rev $ 2,686 $ 693 $ 674 $ 665 $ 654 $ 2,467 $ 627 $ 614 $ 607 $ 619
====== ===== ===== ===== ===== ====== ===== ===== ===== =====
Operating Cash Flow (2)
Video
(excluding
Y2K) $ 1,052 $ 264 $ 257 $ 264 $ 267 $ 1,008 $ 260 $ 248 $ 254 $ 246
Primestar - - - - - 4 - - - 4
New
Products (54) (13) (11) (11) (19) (58) (19) (15) (14) (10)
Year 2000
costs (18) (2) (4) (5) (7) (13) (6) (6) (1) -
------ ----- ----- ----- ----- ------ ----- ----- ----- -----
Total
Operating
Cash
Flow $ 980 $ 249 $ 242 $ 248 $ 241 $ 941 $ 235 $ 227 $ 239 $ 240
====== ===== ===== ===== ===== ====== ===== ===== ===== =====
Capital
Exp $ 1,960 $ 545 $ 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
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
1999 1998
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
YTD Q4 Q3 Q2 Q1 YTD Q4 Q3 Q2 Q1
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Video Revenues
Basic
cable $ 1,774 $ 447 $ 442 $ 446 $ 439 $ 1,672 $ 419 $ 420 $ 420 $ 413
Premium 328 82 82 82 82 321 81 81 80 79
PPV 73 17 19 15 22 53 13 15 12 13
Advert 204 61 50 51 42 156 48 37 40 31
Equip
&instal 190 49 49 46 46 178 47 47 44 40
Other 3 (2) 3 1 1 3 1 1 - 1
----- ----- ----- ----- ----- ------ ----- ----- ----- -----
Total
Video
Rev 2,572 654 645 641 632 2,383 609 601 596 577
Telephone&
High Speed
Data 114 39 29 24 22 39 12 9 8 10
------ ----- ----- ----- ----- ------ ----- ----- ----- -----
Total
Broadband
Rev $ 2,686 $ 693 $ 674 $ 665 $ 654 $ 2,422 $ 621 $ 610 $ 604 $ 587
====== ===== ===== ===== ===== ======= ===== ===== ===== =====
Operating Cash Flow (2)
Video
(excluding
Y2K) $ 1,052 $ 264 $ 257 $ 264 $ 267 $ 1,007 $ 258 $ 247 $ 252 $ 250
New
Products (54) (13) (11) (11) (19) (61) (20) (16) (15) (10)
Year 2000
costs (18) (2) (4) (5) (7) (13) (6) (6) (1) -
------ ----- ----- ----- ----- ------- ----- ----- ----- -----
Total
Operating
Cash
Flow $ 980 $ 249 $ 242 $ 248 $ 241 $ 933 $ 232 $ 225 $ 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.)
- -------------------------------------------------------------------------------
-17-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Financial Data Schedule
</LEGEND>
<CIK> 0000732718
<NAME> MediaOne Group, Inc.
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1999
<PERIOD-START> OCT-01-1999 JAN-01-1999
<PERIOD-END> DEC-31-1999 DEC-31-1999
<CASH> 7,471 7,471
<SECURITIES> 62 62
<RECEIVABLES> 489 489
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 8,120 8,120
<PP&E> 6,686 6,686
<DEPRECIATION> 1,596 1,596
<TOTAL-ASSETS> 39,786 39,786
<CURRENT-LIABILITIES> 4,245 4,245
<BONDS> 8,673 8,673
1,113 1,113
0 0
<COMMON> 11,448 11,448
<OTHER-SE> 5,318 5,318
<TOTAL-LIABILITY-AND-EQUITY> 39,786 39,786
<SALES> 693 2,695
<TOTAL-REVENUES> 693 2,695
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 829 3,066
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 136 449
<INCOME-PRETAX> 5,937 6,731
<INCOME-TAX> 2,284 3,217
<INCOME-CONTINUING> 3,653 3,514
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 17
<CHANGES> 0 0
<NET-INCOME> 3,646 3,454
<EPS-BASIC> 5.79 5.62
<EPS-DILUTED> 5.55 5.32
</TABLE>
