Europe’s largest cable TV operator United Pan-Europe Communications has released its full year 2001 financials, which show a net loss of E4.4 billion, more than double the previous year’s figure of E2.0 billion. UPC, which is majority-owned by Liberty Media, delayed the release of its 2001 net income figure twice due to questions arising from the valuation of derivative contracts.
UPC put the huge loss down to a one-time, non-cash E1.5 billion impairment charge relating to a revaluation of UPC’s intangible fixed assets, a E0.2 billion restructuring charge, and E1.1 billion in non-cash depreciation and amortization charges.
To add to its woes, UPC may be forced to sell its 22% stake in UPC Germany due to its subsidiary’s other owners defaulting on bonds. Despite these problems UPC has denied it is in difficulty and claims that it is on track and in constructive discussions with UPC stakeholders regarding the recapitalisation of its balance sheet.