Telenet digital cable TV subscribers up 218,000 in 2012

36,900 net new subscribers for digital TV in Q4

MECHELEN — Telenet Group Holding NV (“Telenet” or the “Company”) (Euronext Brussels: TNET) announces its unaudited consolidated results under International Financial Reporting Standards as adopted by the European Union (“EU IFRS”) for the year ended December 31, 2012.

Digital & Premium Television

At the end of 2012, approximately 74% of our basic cable TV subscribers had opted for our interactive digital TV platform, which offers a much richer viewing experience and access to a wide variety of thematic channel packs and digital pay TV services as well as an extensive video-on-demand (VOD) library. This represents a total of 1,573,500 digital TV subscribers, an increase of 16% as compared to the prior year. All of our digital TV subscribers are on our interactive bi-directional digital TV platform following the reclassification of our INDI subscribers* .

For the full year 2012, we added 217,700 net digital TV subscribers compared to 174,600 in 2011, as we succeeded in converting approximately 26% of our remaining analogue cable TV subscribers to our higher ARPU digital TV platform. This was ahead of our long-term expectations of converting approximately 20% of our remaining analogue cable TV subscribers per annum. In Q4 2012, we added 36,900 net digital TV subscribers, which was lower than the 50,100 net subscribers added in the prior year period. This lower uptake was, however, in line with our expectations as both Q2 and Q3 2012 enjoyed exceptionally strong customer demand for digital TV following the analogue channel reshuffle program which was implemented in Q2 2012.

In the course of Q1 2013, we will start deploying our next-generation digital TV platform ‘YeloTV’. This new TV experience will provide a significant enhancement to home entertainment as customers will benefit from a totally revamped user interface and a seamless media integration with their other digital devices, including their tablets and smartphones. More importantly, ‘YeloTV’ will be backwards compatible with the latest generation of our installed HD PVR boxes, covering more than 50% of our total digital TV customer base thereby avoiding incremental capital expenditures for set-top box replacements.

Cable TV subscriptions (as of and for the year ended)

             Dec 2012   Dec 2011  Change %
            ---------  ---------  --------
Total       2,122,700  2,198,500       -3%
Analogue      549,200    842,700      -35%
Digital     1,573,500  1,355,800       16%

* Reclassification of INDI subscribers: As of January 1, 2012, subscribers to Telenet’s INDI platform, which Telenet acquired in October 2008 as part of the Interkabel Acquisition, are no longer recognized as Digital Cable TV subscribers given the non-interactive status of the INDI platform and the fact that these subscribers generally do not generate incremental revenue. As of January 1, 2012, all INDI subscribers are accounted for as Analogue Cable TV subscribers. For comparative reasons, Telenet has retroactively applied the change to the prior year periods. This reclassification does not affect the total number of basic cable TV subscribers Telenet reports, nor the segmented cable television revenue Telenet reports.