China Digital TV Announces Unaudited Second Quarter 2008 Results

Wednesday, August 6th, 2008
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  • China Digital TV sold approximately 2.69 million smart cards during the second quarter, an increase of 75.8% from the corresponding period in 2007 and an increase of 16.8% from the first quarter of 2008.
  • During the second quarter, according to market data collected by the Company, China Digital TV entered into 10 new contracts to install CA systems out of a total of 16 contracts entered into in China during the quarter.

BEIJING — China Digital TV Holding, Co. Ltd. (NYSE: STV) (“China Digital TV” or the “Company”), the leading provider of conditional access (CA) systems to China’s rapidly growing digital television market, today announced its unaudited financial results for the second quarter ended June 30, 2008.

Second Quarter 2008 Results

In the second quarter, of 180 existing operator customers, a total of 142 bought smart cards from the Company, compared with 135 in the first quarter.

Recent Developments

— China Digital TV entered into two agreements to form joint ventures in Guangzhou and Dongguan, both in Guangdong province in southern China. These joint ventures plan to focus on developing value-added services for digital TV platforms. The two cities currently have over two million digital TV subscribers in total.

— China Digital TV was chosen as the conditional access (CA) system provider for two provincial cable TV network operators, Hebei Media Information Network Holdings Co. Ltd. and Hubei Chutian Digital TV Technology Co. Ltd., which together serve more than eight million households. The ten operators signed in the second quarter serve over ten million households in total.

— China Digital TV was designated as a mobile TV solution developer by the State Administration of Radio, Film and Television (SARFT), China’s regulatory authority on broadcasting. Under the agreement signed with Zhongguang Satellite Mobile Broadcasting Corporation, a company affiliated with SARFT, China Digital TV will develop Electronic Service Guides (ESGs) based on the China Mobile Multimedia Broadcasting (CMMB) standard, a home-grown broadcasting platform designed for mobile devices.

— China Digital TV launched STV-RT10UP, a chip used in digital PC-TV receiving card, which enables PCs to support digital video recorder (DVR) and HDTV functions on three channels simultaneously. The Company plans to start marketing this innovative digital TV solution later this year. The product initially targets viewers who watch analog TV programs on their PCs, currently estimated at over 10 million people in China.

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