Sky Deutschland adds 47,900 customers in 2Q 2013

Total customers: up 47,900 to 3,453,000
• Sky premium HD customers: up 83,600 to 1,697,000
• Sky+ customers: up 105,800 to 1,170,600
• Second smartcard customers: up 18,400 to 393,000
• Sky Go customer sessions: 16.7m

UNTERFÖHRING — Sky Deutschland AG continued to deliver strong operational results in the second quarter 2013. Net customer growth was 47,900 (Q2 2012: 47,100), bringing the total number of customers to 3,453,000 (Q2 2012: 3,132,000). Gross additions for the second quarter amounted to 131,400 (Q2 2012: 124,000). Quarterly annualized churn improved to 9.7% (Q2 2012: 9.9%) and the 12-month rolling churn rate came in at 12.0% (Q2 2012: 11.5%).

Sky premium HD continued its success as the number of customers rose by 83,600 in the quarter to 1,697,000 (Q2 2012: 1,171,800), meaning that almost half of Sky subscribers (49.1%) now take Sky premium HD (Q2 2012: 37.4%).

Sky+ also experienced strong demand, with the number of customers growing by 105,800 in the quarter to 1,170,600 (Q2 2012: 584,000). One in three Sky subscribers (33.9%; Q2 2012: 18.6%) now enjoys the freedom and convenience the device offers, including Sky Anytime, Sky’s free video-on-demand service. Since May 2013, Sky+ has also been available to all cable households served by Unitymedia – and thus to virtually all customers in Germany and Austria. This also includes the 2-Terabyte version of Sky+ which offers unrivaled entertainment by substantially increasing both personal recording capacity and on-demand choice from Sky Anytime.

Sky Go, Germany and Austria’s largest over-the-top pay-TV platform, continued to resonate strongly with customers who benefit from the flexibility of being able to access a wide selection of Sky’s content on various platforms. In Q2 2013, Sky Go recorded almost 16.7 million customer logins (Q2 2012: 6.9 million).

Sky Zweitkarte (second smartcard) customers have increased by 18,400 to 393,000 (Q2 2012: 248,300), as more and more families are looking to enjoy Sky’s great channels in different rooms at the same time.

Sky’s offering now on IPTV and mobile

Since July 2013, Deutsche Telekom’s IPTV and mobile customers have had access to the full depth and breadth of Sky packages and leading premium HD offering, as well as the flexibility of Sky Go. In addition, starting in August – just in time for the new Bundesliga season – Vodafone’s IPTV and mobile customers will be able to subscribe to a great range of Sky packages. The offering starts with a wide selection of Sky’s top quality, exclusive channels, including those from Sky’s market-leading HD line-up, and will be extended to the full Sky offering in the near future. These agreements mark the completion of marketing and distribution partnerships with all major cable and IPTV network providers.

Subscriber development (‘000):

                                   Q2 13  Q1 13  Q4 12  Q3 12  Q2 12  Q1 12  Q4 11
                                   -----  -----  -----  -----  -----  -----  -----
Direct subscribers at beginning    3,405  3,363  3,212  3,132  3,085  3,012  2,857
Gross additions*                     131    137    260    188    124    155    246
Churn                                -84    -95   -109   -108    -77    -82    -91
Net growth                            48     42    151     80     47     73    155
Direct subscribers at end          3,453  3,405  3,363  3,212  3,132  3,085  3,012

Premium HD subscribers
 at end of period                  1,697  1,613  1,514  1,337  1,172  1,071    974
 penetration rate (in %)            49.1   47.4   45.0   41.6   37.4   34.7   32.3

Sky+
 subscribers at end of period      1,171  1,065    929    730    584    508    411
 penetration rate (in %)            33.9   31.3   27.6   22.7   18.6   16.5   13.6

* Q4 2012 gross additions include the technical migration of 5k UPC wholesale customers