Premiere Releases Q3 Subscriber FiguresThursday, October 2nd, 2008
Full year 2008 EBITDA loss expected; Q3 subscriber figures released using new classification; Alexander Teschner, CFO, to depart
MUNICH — Premiere AG (PRE.XE) today discloses EBITDA guidance for 2008, releases Q3 2008 subscriber and an average revenue per user (ARPU) numbers using a new classification and announces the departure of its CFO.
Premiere AG today releases guidance that its EBITDA result for full year 2008 is expected to be a loss in the range of EUR 40m to EUR 70m. This expected result excludes a possible one-time gain from further sales of broadcast rights to the 2010 World Cup.
As a result of the EBITDA outlook, Premiere has commenced discussions with its banks regarding a restructuring of debt facilities and is confident to reach an agreement.
Mark Williams, CEO of Premiere AG, said: “We are conducting a thorough review of operations and are confident that this will result in a new strategic direction supported by a financially sound business plan for the future growth and profitability of Premiere.”
Premiere has adopted a classification of subscribers in line with that used by other successful pay TV companies. Using this classification at the end of September 30, 2008, Premiere had a total of 2,411k direct customers, comprising 2,293k monthly subscribers to at least one of Premiere’s channel packages and 118k customers who purchased pay-per-view and other ad hoc-services on a prepaid basis via the Premiere Flex range of products. The 2,293k monthly subscribers include residential, sportsbars and hotel rooms.
The 2,411k direct customers had an average program revenue per user (ARPU) per month of approximately EUR 24 during Q3 2008.
In addition to the 2,411k direct customers, Premiere had 704k wholesale subscribers at the end of Q3, comprising 493k via Unitymedia and the balance via UPC Austria, LIWEST, Teleclub and T-Home.
A number of 940k which would have been included using the previous subscriber classification has been excluded. Of these 606k have been excluded because they relate only to agreements with business partners and have not yet resulted in subscriber activations. A further 334k subscribers still holding a Premiere smartcard have been excluded because their subscription agreement has been terminated and they are not currently paying for services.
Alexander Teschner, CFO of Premiere, has asked the Supervisory Board for release from his office. The Supervisory Board has accepted his resignation with immediate effect. Mark Williams, CEO of Premiere, will take over the CFO responsibilities whilst a search for a replacement is conducted.
On November 13, 2008 Premiere will announce its results for the third quarter 2008 and give further information.
The restatement of Premiere’s customer base at the end of each quarter using the new classification is as follows: