Cable & Wireless Preliminary Q2 2016/17 Results

MIAMI, FL--(Marketwired - Nov 4, 2016) - Cable & Wireless Communications Limited ("CWC") is the leading telecommunications operator in substantially all of its consumer markets, which are predominantly located in the Caribbean and Latin America, providing entertainment, information and communication services to 3.5 million mobile, 0.4 million television, 0.6 million internet and 0.8 million telephony subscribers. In addition, CWC delivers B2B services and provides wholesale services over its sub-sea and terrestrial networks that connect over 30 markets across the region.

Liberty Global's Acquisition of CWC
On May 16, 2016, a subsidiary of Liberty Global plc ("Liberty Global") acquired CWC (the "Liberty Global Transaction"). Revenue, Adjusted Segment EBITDA and subscriber statistics have been presented herein using Liberty Global's definitions for all periods presented unless otherwise noted. Further adjustments to these metrics are possible as the integration process continues. The results for the six months ended September 30, 2016 ("Q2 2016/17") have also been aligned to Liberty Global's EU-IFRS accounting policies and estimates. Significant policy adjustments have been considered in our calculation of rebased growth rates for revenue and Adjusted Segment EBITDA.

Operating and financial highlights*:

• Delivered 9,000 organic RGU additions in Q2 2016/17
• Mobile revenue 2% lower than the prior year in Q2 2016/17, as compared to Q2 2015/16 on a rebased basis, due primarily to a decrease in the Bahamas
• Establishing Flow as a leading sports broadcaster in the Caribbean
  • Successful Olympics campaign with over 4.6 million viewers tuning into Flow channels
  • 85% increase in Flow Sports viewership in August versus May through July average
  • Exclusive rights to broadcast Premier League commenced during the quarter
• Strengthened customer proposition in Panama through launch of MAST3R fixed bundles in September
  • Providing HD, play from start, live pause and rewind functionality
  • 300 Mbps broadband product now available to 135,000 homes
• YTD revenue of $1,141 million, 2% lower YoY, on a rebased basis
  • 10% rebased top-line growth in Jamaica more than offset by declines in other major geographies primarily due to competitive and macroeconomic factors and lower managed services revenue
• Net losses of $18 million and $124 million in Q2 2016/17 and YTD, respectively
• YTD Adjusted Segment EBITDA of $411 million, up 1.5% YoY, on a rebased basis
  • $9 million (4%) sequential EBITDA improvement from Q1 2016/17 to Q2 2016/17, reflecting margin improvement of 200 basis points
• Property, equipment and intangible asset additions declined to 17% of revenue in Q2 2016/17 from 25% in Q2 2015/16
• BTC in the Bahamas suffered significant infrastructure damage and business interruption as a result of Hurricane Matthew during early October 2016
  • Anticipate Q3 2016/17 adverse Adjusted Segment EBITDA impact of $8 million to $12 million
  • Total infrastructure repair costs estimated at $35 million to $45 million
  • We expect that our third-party insurance will cover a significant portion of the hurricane-related losses

Synergies from combination with LiLAC