Unitymedia KabelBW adds 9,300 digital video subscribers in 3Q 2013

Launched next-generation “Horizon TV” platform in our Unitymedia footprint and added over 25,000 subscribers through the end of October

COLOGNE, Germany — Unitymedia KabelBW GmbH (“Unitymedia KabelBW”), the leading cable operator in Germany and the federal states of North Rhine-Westphalia, Hesse (collectively, the “Unitymedia” footprint) and Baden-Württemberg (the “KabelBW” footprint), today provides selected, preliminary unaudited financial and operating information for the three and nine months ended September 30, 2013.

Our Q3 video performance modestly improved as we lost 21,700 RGUs during Q3 2013, as compared to losses of 25,900 RGUs in the prior year period. Our upsell strategy to lift basic video customers into premium TV and HD continued. As part of this strategy, we launched our next generation “Horizon TV” platform in our Unitymedia footprint in September, offering an enhanced interactive TV experience for consumers. It is an all-in-one set-top box with an integrated EuroDocsis 3.0 modem and a WiFi connection, providing an intuitive advanced user interface, access to premium TV and video on demand. We began taking orders on September 4, 2013, and installations began in late September. Through October 31, our Horizon TV subscriber base had increased to over 25,000.

In addition, we launched our market-leading Horizon online TV application which provides up to 96 linear channels via browser, tablet or smartphone for video cable customers with a Unitymedia broadband connection.

Unitymedia KabelBW Operating Statistics Summary

                         As of and for the three
                      months ended September 30,
                      --------------------------
                              2013          2012
                      ------------  ------------

Subscribers (RGUs)
 Analog Cable(1)         4,413,500     4,564,900
 Digital Cable(2)        2,214,300     2,148,800
  Total Video            6,627,800     6,713,700

Q3 organic RGU net additions (losses)
 Analog Cable             (31,000)      (50,200)
 Digital Cable               9,300        24,300
  Total Video             (21,700)      (25,900)

Penetration
 Digital Cable
  as % of Total
  Video Subs(3)              33.4%         32.0%

1. Analog Cable Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our analog cable service over our broadband network. The Analog Cable Subscriber count also includes subscribers who may use a purchased set-top box or other means to receive our basic digital cable channels without subscribing to any services that would require the payment of recurring monthly fees in addition to the basic analog service fee (“Basic Digital Cable Subscriber“). Our Basic Digital Cable Subscribers are attributable to the fact that our basic digital cable channels are unencrypted in our KabelBW footprint and, effective January 1, 2013, our basic digital cable channels are also unencrypted in our Unitymedia footprint.
2. Digital Cable Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our digital cable service over our broadband network. We count a subscriber with one or more digital converter boxes that receives our digital cable service in one premises as just one subscriber. A Digital Cable Subscriber is not counted as an Analog Cable Subscriber. As we migrate customers from analog to digital cable services, we report a decrease in our Analog Cable Subscribers equal to the increase in our Digital Cable Subscribers. As discussed in further detail in note 4 above, Basic Digital Cable Subscribers are not included in our Digital Cable Subscriber count.
3. Digital cable penetration is calculated by dividing the number of digital cable RGUs by the total number of digital and analog cable RGUs.