J:COM Releases Consolidated Quarterly Financial Results

Wednesday, April 30th, 2008 
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In response to stagnant growth in the multiple pay channel television market, Jupiter Telecommunications Co., Ltd.’s consolidated group (the J:COM Group or the Company) has marked 2008 as a year for reshaping its growth strategy in cable television services. Accordingly, the J:COM Group (JASDAQ: 4817) has pushed forward with its content strategy and its Volume plus Value growth strategy in the quarter ended March 31, 2008.

In pursuit of its content strategy, the J:COM Group launched the newly established Channel Ginga in April. To strengthen the channel line-up, the J:COM Group also introduced new channels on its J:COM TV Digital service including the suspense and mystery drama channel FOX CRIME in March and NBC Universal’s SCI FI Channel in April.

To diversify its sales channels, the J:COM Group continues to focus on the development of its multi-tier marketing channels. It increased the number of J:COM Shops by 13 to a total of 29 for the first three months ended March 31, 2008. These small shops are in locations in high foot traffic areas, such as train stations and supermarkets, and give potential customers the opportunity to familiarize themselves with the J:COM services first-hand. These shops not only promote new subscribers, but also serve as a contact point for existing subscribers.

In addition to the measures described above, the J:COM Group is also expanding the geographic availability of its 160Mbps super high-speed Internet access services, which is intended to compete with fiber-to-the-home services and increase customer satisfaction with its existing customers.

The J:COM Group continues to seek acquisitions and equity alliances with other cable television companies, as evidenced by the acquisition of a controlling interest in Kyoto Cable Communications Co., Ltd., which became a consolidated subsidiary at the end of January 2008. Additionally, at the end of February, its consolidated subsidiary Cablenet Kobe Ashiya Co., Ltd., acquired the cable television business of the Kobe City Development & Management Foundation. These measures further expanded J:COM’s coverage area, specifically in the Kansai region.

As a result of the measures outlined above, the total number of subscribing households (the number of households that subscribe to one or more services) of consolidated managed system operators as of March 31, 2008 rose to 2,714,700 households, an increase of 182,100 households (7%) from March 31, 2007. By type of service, cable television subscribers grew by 110,600 households (5%) from March 31, 2007 to 2,224,300 households as of March 31, 2008. Of this total, the number of J:COM TV Digital subscribers rose by 397,800 households (34%) to 1,563,500 households as of March 31, 2008, accounting for 70% of all cable television subscribers. The number of high-speed Internet access and telephony services subscribers increased by 119,800 households (11%) and 193,100 households (17%), respectively as compared to March 31, 2007, rising to 1,242,200 households and 1,356,000 households, respectively as of March 31, 2008. The number of services offered per subscribing household (bundle ratio) improved to 1.78 as of March 31, 2008 as compared to 1.74 at March 31, 2007.

The average monthly revenue per subscribing household (ARPU) increased from ¥7,638 for the three months ended March 31, 2007 to ¥7,733 for the three months ended March 31, 2008.

More: Earnings Release; Highlights