SiOL TV reaches 105k subscribers in Slovenia at end-3Q09

Unaudited business report for the Telekom Slovenia Group and Telekom Slovenije, d.d., for the 3Q of 2009

LJUBLJANA — Despite the global economic crisis and tougher conditions on the market of electronic communications, Telekom Slovenia Group (Ljubljana:TLSG) managed to keep the operating revenues in the first nine months of the year at the last year’s level. The group generated EUR 637M in operating revenues in this period, while the net profit was 55% lower than in the same period last year, amounting to EUR 34.1M.

Telekom Slovenije d.d.

The proportion of broadband connections including IP TV (SiOL TV) reached a very high 50%. The number of television service subscribers was up 59% on a year earlier to pass 105,000 by the end of the third quarter of 2009.

          30 Sep   30 Sep  Index
            2008     2009  09/08
          ------  -------  -----
IP TV     65,929  105,108    159
CATV       4,236    8,044    190

In terms of penetration of IPTV connections per household, Slovenia is among the top countries in Europe. APEK reports indicate that Telekom Slovenije d.d. is generating the main growth in the IPTV market in Slovenia and is contributing significantly to the development of the market. One of the reasons quoted by analysts as a possible element of success for IPTV services is that IPTV offers entertainment at home and in this way an entirely new experience in enjoyment. Many key players in the IPTV market in Europe have found that users want to have choice (for instance video on demand, a variety of content), they want comfort and they want control (time delays, video on demand), in other words they want to have information and content everywhere. A consequence of their desires and changed lifestyle is the growth in mobile broadband access and increasing competition in the area of offering mobile services.

Ipko d.o.o. – Kosovo

In mid-March Ipko launched digital cable TV, and by the end of the third quarter had attracted more than 38,000 connections, along with just over 17,000 analogue cable TV connections.

In September, Ipko officially launches its DUO package (digital cable TV and internet) at the bargain price of EUR 19.95, available to users in Pristina and other towns in Kosovo.

             30 Sep   30 Sep  Index
               2008     2009  09/08
             ------  -------  -----
TV services  11,633   55,614    478

Strategic investments

A new addition to the Telekom Slovenije Group in early September was Digi Plus Multimedija, which was established by Telekom Slovenije in Macedonia to market digital TV (DVB-T) services.