Sogecable Consolidated results as of December 31st 2007Tuesday, February 5th, 2008
“¢ Sogecable recorded revenues of over 1,800 million euros and increased its EBITDA by 54.8% to 323.9 million euros.
“¢ DIGITAL+ increased its EBIT by 60.0%. Sogecable’s pay-television activities generated net operating profits amounting to 176.0 million euros in 2007, compared to 110.0 million euros in 2006.
“¢ Cuatro recorded a profit in its second year in operation. In 2007, Cuatro’s turnover amounted to 287.5 million euros, a year-on-year increase of 55.1%, enabling it to record EBITDA of 4.0 million euros as of December 31st 2007, which was 102.8 million euros higher than the EBITDA recorded in 2006.
“¢ Sogecable’s cumulative net profit in 2007 amounted to 62.1 million euros, in comparison to 38.2 million euros incurred in 2006.
“¢ In 2007, Sogecable reduced its net bank debt by 128.1 million euros, which at the end of the year amounts to 876.5 million euros.
“¢ DIGITAL+ closed the year 2007 with 2,065,000 subscribers after resuming growth in its customer base in the fourth quarter, in which 19,000 new customers were added to its services.
“¢ Cuatro closed the year with an average audience of 7.8% in December and an average of 7.7% for the full year, compared to 6.4% in 2006.
Sogecable has closed the year 2007 with a profit of 62.1 million euros, compared to losses of 38.2 million the previous year, reflecting the best economic result since its founding in 1989.
The highlights of the commercial evolution of DIGITAL+ in the fourth quarter of 2007 were as follows:
- DIGITAL+’s subscriber base stood at 2,065,000 subscribers as of December 31st 2007 In the quarter, DIGITAL+ had renewed growth in its subscriber base with an additional 19,000 new net customers.
- In all of 2007, DIGITAL+ added 21,000 new net subscribers, despite the commercial difficulties resulting from the actions of third parties in relation to football broadcasting rights.
- In the quarter, the average revenue per customer reached 45.5 euros. As of December 31st 2007, the cancellation rate stood at 11.9%.
- In the quarter DIGITAL+ launched i+, the latest generation PVR decoder, available for the first time in Spain and exclusively on DIGITAL+.
- Additionally, on December 1st 2007, DIGITAL+ launched TRIO+, as the result of an agreement between Telefónica and Sogecable.
- DIGITAL+ has continued its expansion into other mediums. An agreement entered into with Orange has expanded the distribution of DIGITAL+ Móvil and will allow for the joint marketing of DIGITAL+, ADSL services and Orange calls.
- DIGITAL+ has started high-definition broadcastings. CANAL+ HD is available since January 31st 2008 and is to provide high-definition showings of football Eurocup for the first time in Spain.
As of December 31st 2007, the subscriber base of DIGITAL+, Sogecable’s paytelevision services, stood at 2,065,000 customers. At the end of the previous quarter, as of September 30th 2007, DIGITAL+ had 2,046,000 customers. DIGITAL+’s customer base increased by 19,000 subscribers in the fourth quarter of 2007.
The commercial activity of DIGITAL+, which is aimed at the attraction of new subscribers, has progressively recovered from the complications faced in relation to the exploitation of Spanish football broadcasting rights in the three first months of the current season.
Following the favourable court rulings in October, normal customer recruitment rates were resumed in November and December, and the number of new subscribers even exceeded the figures recorded in the previous year.
In all of 2007, Sogecable continued to increase its subscriber base, adding 21,000 new net subscribers to its customer base in the past twelve months. As of December 31st 2006, Sogecable had 2,044,000 subscribers.
As of December 31st 2007, the cancellation rate stabilized at 11.9%, which was slightly higher than the cancellation rate of 11.8% recorded in the third quarter of 2007. As of December 31st 2007, the cancellation rate stood at 11.5%.
New PVR iPLUS
On September 25 2007, Sogecable has started offering iPLUS, the latest generation PVR decoder, which is available for the first time in Spain and exclusively to DIGITAL+ subscribers.
iPLUS allows up to eighty hours of programming storage, is fully integrated with DIGITAL+’s improved programming guide (EPG), provides access to Digital Terrestrial Television (TDT) and features high-definition broadcasting.
On January 31st 2008, Sogecable launched the new channel Canal+ HD, first channel in Spain to broadcast in high definition nationwide.