France Telecom adds 246k digital TV customers in 3Q09

PARIS — France Telecom (Paris & NYSE: FTE) has released its third quarter 2009 results.

Growth in ADSL broadband services continued to be strong with 13.4 million customers at 30 September 2009, an increase of 6.0% year on year. Broadband usage was also up sharply (at 30 September 2009) with:

• 2.9 million digital TV subscribers (IPTV and satellite), a 67% increase year on year;
• 7.3 million Voice over IP subscribers, an increase of 22% year on year; and
• 8.5 million Livebox subscribers, an increase of 14% year on year.

Home Communication Services

HCS France

The number of digital TV customers (broadband and satellite TV) rose 59% year on year to 2.547 million at 30 September 2009. The Orange sport and Orange cinema series channels had a total of 596,000 subscribers at 30 September 2009, compared with 130,000 at 31 December 2008. There were 5.8 million downloads from paid video on demand (VoD) services over the first nine months of 2009, an increase of 68%.

HCS Spain

Home Communication Services saw a 7.1% year-on-year decline in the number of ADSL customers in Spain.

HCS Poland

The number of broadband subscribers increased 5.5% year on year to 2.278 million. In addition, customer migration to higher speed services and an increase in usage generated ARPU growth. In particular, the number of digital TV customers (ADSL and satellite) more than doubled in nine months to 283,000 at 30 September 2009, compared with 113,000 at 31 December 2008.

France Télécom operational KPIs:

(in thousands)                    1Q08   2Q08   3Q08   4Q08   1Q09   2Q09   3Q09
                                 -----  -----  -----  -----  -----  -----  -----
France
  IPTV and satellite customers   1,282  1,389  1,603  1,909  2,166  2,339  2,547
    Pay TV subscriptions           644    638    759    898  1,138  1,188  1,415
Spain
  IPTV customers                    75     92     86     87     99     92     86
Poland
  IPTV and satellite customers      49     54     57    113    198    239    283
TOTAL
  IPTV and satellite customers   1,407  1,535  1,746  2,109  2,463  2,670  2,916

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