France Telecom adds 301,000 TV subscribers in 4Q09

PARIS — France Telecom (Paris & NYSE: FTE) has released its fourth quarter and full year 2009 results.

ADSL broadband services continued to grow, reaching 13.5 million customers at 31 December 2009, a year-on-year increase of 4.1%. Broadband usage rose sharply. At 31 December 2009, there were:

• 3.2 million digital TV (IPTV and satellite) subscribers, a 53% increase in one year;
• 7.6 million Voice over IP subscribers, a year-on-year increase of 17%; and
• 8.8 million Livebox subscribers, a 12% increase in one year.

Home Communication Services

HCS France

The number of digital TV customers (ADSL and satellite TV) grew 45% year on year to 2.761 million at 31 December 2009. The Orange sport and Orange cinema series channels had a total of 663,000 subscribers at 31 December 2009, compared with 130,000 a year earlier. There were 8.5 million Video on Demand (VoD) purchases in 2009 (+67% year on year).

HCS Spain

Revenues from Home Communication Services, at 671 million euros, were down 4.9%, reflecting the downturn in business services, carrier services and, to a lesser extent, consumer ADSL services.

HCS Poland

The number of broadband customers grew 3.7% year on year to 2.272 million. In addition, the number of digital TV customers (ADSL and satellite) more than tripled in one year to 372,000 customers at 31 December 2009, compared with 113,000 customers at 31 December 2008.

France Télécom operational KPIs:

(in thousands)                    1Q08   2Q08   3Q08   4Q08   1Q09   2Q09   3Q09   4Q09
                                 -----  -----  -----  -----  -----  -----  -----  -----
France
  IPTV and satellite customers   1,282  1,389  1,603  1,909  2,166  2,339  2,547  2,761
    Pay TV subscriptions           644    638    759    898  1,138  1,188  1,415  1,514
Spain
  IPTV customers                    75     92     86     87     99     92     86     84
Poland
  IPTV and satellite customers      49     54     57    113    198    239    283    372
TOTAL
  IPTV and satellite customers   1,407  1,535  1,746  2,109  2,463  2,670  2,916  3,217

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