Telenet announces First Quarter 2008 resultsMonday, May 5th, 2008
MECHELEN — Telenet Group Holding NV (“Telenet” or the “Company”) (Euronext Brussels: TNET) announces its consolidated results under International Financial Reporting Standards as adopted by the European Union (“EU GAAP”) for the three months ended March 31, 2008.
Operational highlights (000 serviced premises)
For the three months ended March 2008 March 2007 Change ---------- ---------- ------ Total Cable TV 1,672 1,732 -3% Analog Cable TV 1,234 1,456 -15% Digital Cable TV (iDTV) 438 276 59% Broadband internet 914 811 13% Triple play customers(1) 346 256 35% Services per customer relationship(1)(2) 1.63 1.51 8% ARPU per customer relation (€/month)(1)(3) 32.1 28.1 14%
(1) On Telenet Network only, excluding Partner Network.
(2) Customer relationships are equal to the analog and digital basic cable TV subscribers on our owned network (Telenet Network).
(3) Average monthly revenue (ARPU) per customer relationship is calculated as follows: average total monthly recurring revenue (including revenue earned from carriage fees and excluding interconnection revenue, installation fees, mobile telephony revenue and set top box sales) for the indicated period, divided by the average of the opening and closing
customer relationships for the period.
Subscriber base. As of March 31, 2008, we reported a total of 438,000 subscribers to our digital television service (iDTV), representing a net increase of 47,000 subscribers for the first quarter of 2008. Compared to March 31, 2007, our iDTV base grew by 59%. The solid subscriber additions were particularly fueled by sales promotions in January and the increased marketing of set top box rental propositions. However, since the set top box rental offering has only been introduced as of March 2008, the majority of our first quarter subscriber additions were still generated through the sale of set top boxes. In addition to digital television, we have 27,000 subscribers to premium PayTV content received through an alternative platform. Of the 27,000 subscribers, 23,000 subscribers receive this premium content on the Partner Network.
ARPU and revenue trend. During the first quarter of 2008, we continued to see strong progress in our video-on-demand transactions, up by 85% compared to the corresponding prior year period, demonstrated by a further increase in the monthly transactions-per-user ratio to the highest ratio achieved so far. The combination of a positive trend in video-on-demand and stable package uptake rates resulted in a fairly stable digital TV ARPU, on top of the basic cable television ARPU. Total premium television revenue generated by both our digital TV and PayTV customers reached €17.8 million for the first quarter of 2008, up from €14.0 million for the same period in 2007, an increase of 27% year-on-year. This revenue is composed of additional services such as on-demand and premium and thematic channel packs, and comes on top of the basic TV subscription revenue as described below.
Basic cable TV
Subscriber base. Subscribers to both basic analog and digital television services reached a total of 1,672,000 at the end of March 2008, compared to 1,732,000 at the end of March 2007. Our basic cable television subscribers are comprised of 1,234,000 subscribers receiving an analog television service and 438,000 subscribers receiving a digital television service through our iDTV platform. As of March 31, 2008, 26% of our basic cable TV subscribers were digital.
We experienced a net organic decrease in our basic cable TV subscriber base of 12,000 subscribers during the first quarter of 2008, which is in line with our expectations amid competition from other digital television and satellite providers. We also observe that the Brussels area influenced the overall basic TV churn to some extent as this footprint contains a more volatile subscriber base compared to the Flanders area. The impact of this loss in subscribers was offset by the increase of the basic TV subscription fee effective as of August 2007. Total basic TV revenue reported for the first quarter of 2008 was unchanged at €54.9 million compared to the same period last year.
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