Canal Digital DTH loses 8,000 subscribers in 3Q09

FORNEBU — In the third quarter of 2009, Telenor’s (Oslo:TEL) reported revenues increased by 4 per cent compared to the third quarter of 2008, reaching NOK 24.3 billion. The operating profit increased by 14 per cent to NOK 4.5 billion. Telenor’s mobile operations added 4 million subscriptions during the quarter, reaching a total of 172 million.

BROADCAST

• 8k DTH net subscriber loss
• Improved margin and 13% revenue growth in Canal Digital Norway
• Continued pressure on Conax revenues from global recession

The number of DTH subscribers decreased by 8,000, and the number of Cable TV Internet access subscriptions increased by 14,000 during the quarter.

In Canal Digital Group, revenues increased mainly as a result of higher sale of additional services related to internet for cable in Norway and price increases for DTH. This was partly offset by reduced DTH and DTT subscriber volumes and lower revenues from resale of Norwegian football rights, which expired in 2008. The EBITDA increase was due to higher revenues and lower commission and logistics cost following lower new sale of DTH, partly offset by increased CRM cost and marketing cost mainly related to launch of new content in Denmark.

Revenues and EBITDA in Transmission & Encryption increased due to higher revenues from satellite transmission and terrestrial transmission in Norway, combined with positive currency effects, partly offset by lower sale of conditional access services. The reduction in operating profit was a result of increased depreciation related to investments in the digital terrestrial transmission network in Norway, and higher operating cost related to the launch of a new satellite expected to take place in the fourth quarter of 2009.

No. of subscribers (in thousands):

                                              2007                        2008                 2009
                        --------------------------  --------------------------  ------------------- 
                           Q1     Q2     Q3     Q4     Q1     Q2     Q3     Q4     Q1     Q2     Q3
                        -----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
DTH TV                  1,142  1,126  1,128  1,131  1,124  1,121  1,125  1,113  1,096  1,079  1,071
Cable TV                  700    697    701    705    710    734    741    746    739    732    733
- of which in Norway      423    424    427    431    442    466    474    476    473    471    474
- of which in Sweden      246    242    242    242    235    235    233    235    231    226    223
- of which in Denmark      31     31     32     32     33     33     34     35     35     35     35

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