J:COM adds 93k digital cable subscribers in 2Q09

Jupiter Telecommunications (JASDAQ: 4817) has announced results for the first half of the fiscal year ending December 31, 2009.

The total number of subscribing households (the number of households that subscribe to one or more services) of consolidated managed system operators as of June 30, 2009 rose to 3,219,200 households, an increase of 459,600 households (17%) from June 30, 2008.

By type of service, cable television subscribers grew by 329,100 households (15%) from June 30, 2008 to 2,574,600 households as of June 30, 2009. Of this total, the number of J:COM TV Digital subscribers rose by 538,100 households (33%) to 2,178,400 households as of June 30, 2009, accounting for 85% of all cable television subscribers.

As a part of its efforts to improve ARPU, the J:COM Group continues to promote and enhance value-added TV services. The J:COM Group strengthened and expanded its high-definition (HD) channels provided through the J:COM TV Digital service while reinforcing and augmenting its Video-on-Demand (VOD) and other service capabilities.

Complementing its existing lineup of HD channels, the J:COM Group added one premium channel in April 2009 and an additional four channels in movies and dramas from 1st of July. The J:COM Group also plans to add an additional five channels, for an aggregate total of 10, by the end of 2009, bringing the ratio of HD channels to total J:COM TV Digital service channels including terrestrial and BS broadcasting to approximately 40%.

Turning to the J:COM Group’s VOD services, J:COM worked diligently to increase usage by enhancing the attractiveness and usability to subscribers so as to increase utilization. As one example, the Company included in its lineup of VOD services the latest dramas broadcasted by FOX channel from July 2009. In this manner, J:COM is providing a platform for viewers to catch up on programs that they were unable to watch when initially broadcast. Looking ahead, the J:COM Group will promote a host of initiatives aimed at bolstering customer viewing of its VOD services.

Consolidated Quarterly Operational Data:

                              Mar 31     Jun 30     Sep 30     Dec 31
                                2008       2008       2008       2008
                           ---------  ---------  ---------  ---------
CATV                       2,224,300  2,245,500  2,346,800  2,557,000
of which digital service   1,563,500  1,640,300  1,767,600  1,997,000

                              Mar 31     Jun 30
                                2009       2009
                           ---------  ---------
CATV                       2,554,700  2,574,600
of which digital service   2,085,300  2,178,400

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