2007 Unitymedia Annual Results

Strategy delivering outstanding growth and profitability – Unitymedia takes lead in Triple Play Services

COLOGNE — Unitymedia, Germany’s second largest cable-based media and communications services provider, and its subsidiary arena, today announced results for the full year and quarter ended December 31, 2007.

Unitymedia Cable Business Review

(in '000s unless otherwise stated)   2007   2006  YoY Change
                                    -----  -----  ----------
Homes Passed                        8,643  8,584        0.7%
Homes Upgraded                        66%    43%      22.8pp

RGUs (1)
  Basic Cable (2)                   4,762  4,930       -3.4%
  New Services                        942    568       65.9%
                                    -----  -----
  Total RGUs                        5,704  5,498

Basic Cable Subscribers (BCS)
  Analogue                          3,973  4,487      -11.5%
  Digital                             789    443       78.1%
                                    -----  -----
  Total Basic Cable Subscribers     4,762  4,930

Penetration
  BCS in % of Homes Passed          55.1%  57.4%      -2.3pp
  Digital in % of BCS               16.6%   9.0%       7.6pp

New Service RGUs
  Digital TV Pay (3)                  456    385       18.4%
  Retail Broadband Internet           199     80      148.5%
  Wholesale MMA Internet (4)          112     45      148.9%
  Telephony                           175     58      202.4%
                                    -----  -----
  Total New Service RGUs              942    568       65.9%

(1) Revenue generating units, or “RGUs”, relate to sources of revenue, which may not always be the same as subscriber numbers. For example, one person may subscribe to two different services, thereby accounting for only one subscriber but for two RGUs
(2) Basic cable subscribers (“BCS”) includes one-time 160k subscriber adjustment for consolidation of Unitymedia Services subscribers
(3) Customers subscribing to Digital TV Pay packages, excluding BCS customers who take Digital TV Basic only
(4) Multimedia Anschluss (MMA) wholesale Internet product for landlords, excluding units which upgrade to retail broadband Internet

New Services RGUs, comprised of the Internet, Telephony and Digital TV Pay offerings, increased by 66% year over year. Unitymedia’s cable segment clearly established itself as the second operator in its upgraded regions of NRW and Hesse in terms of broadband additions behind Deutsche Telekom. The subscriber growth reflects the unique value of the triple play services offering and increasing strength of the Unitymedia brand demonstrated by customers willingness to trust more of their media and communication needs to Unitymedia.

Alongside growth in Triple Play services, Unitymedia Cable converted nearly 170,000 subscribers as of December 31, 2007, from analogue television to the Digital TV Basic product since the start of the “Jetzt Digital” campaign during last autumn. The trend has continued through the first quarter, particularly as digital pricing for single user homes is now lower than analogue pricing as of January 1 this year. Digitalisation of the basic cable subscriber increased from 9% to 17% as of year end 2007, positioning Unitymedia Cable to further penetrate its digital subscriber base with Digital TV Pay content.

More: Subscriber Update