Unitymedia delivers strong financial performance from continuing growth in Triple Play

Thursday, August 21st, 2008
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COLOGNE — Unitymedia, Germany’s second largest cable-based media and communications services provider, and its subsidiary arena, today announced results for the quarter ended June 30, 2008.

Unitymedia Cable once again delivered a quarter of strong financial performance, generating a 47% EBITDA margin that reflected the continued take-up of higher value triple play services, higher carriage fees as well as disciplined fixed cost management to fund increases in customer acquisition costs. The strong growth in new services subscriptions experienced in previous quarters continued into the second quarter of 2008 with Digital TV Pay, Internet and Telephony RGUs growing to a total of 1.2 million new services RGUs at June 30, 2008 or 79% growth on prior year. In June, Unitymedia crossed the threshold of 1 million digital access customers, with digitisation of the cable base now at 22%, or 26% with Premiere, at the end of the second quarter.

Unitymedia Cable Business Review (in ‘000s unless otherwise stated)

                                  Quarter ended June 30,
                                  ----------------------        YoY
                                            2008    2007     Change
                                           -----   -----     ------
Basic Cable Subscribers (BCS)
- Analogue                                 3,681   4,345     -15.3%
- Digital                                  1,031     519      98.5%
    Total Basic Cable Subscribers          4,712   4,864      -3.1%
Penetration
- BCS in % of Homes Passed                   54%     57%     -2.1pp
- Digital in % of BCS                        22%     11%     11.2pp
- Digital (w/Premiere) in % of BCS (2)       26%     N/A        N/A
New Service RGUs (1)
- Digital TV Pay (3)                         516     403      27.9%

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. Includes cable based Premiere customers in NRW/Hesse not subscribing to a separate Unitymedia digital package
3. Customers subscribing to Digital TV Pay packages, excluding BCS customers who take Digital TV Basic only

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