Telefónica O2 Czech Republic - 2008 Nine Months Financial Results

Telefónica O2 Czech Republic, a.s. is pleased to announce its unaudited financial results for the first nine months of 2008.

CZ Fixed Segment Overview

With the aim to further enhance its ADSL service and to improve market share on fixed broadband, the company significantly improved its ADSL offer in 3Q. Telefónica O2 increased the speed of its O2 Internet ADSL service by up to four times, with no changes in price. The basic speed has been upgraded to 8 Mb/s with a premium speed of 16 Mb/s.

Revenues from Internet & broadband increased in total by 6.8% yoy to CZK 3.1 billion in 9M 2008 (+4.0% in 3Q alone) as a result of 11.5% growth in revenues from broadband based services (ADSL, IPTV and content) confirming the company’s strategy to focus on ADSL and IPTV based services and premium content. Revenues from broadband services amounted to CZK 3.0 billion in 9M 2008, of which CZK 2.8 billion represented revenues from retail broadband (up 14.8% yoy) and CZK 253 million from wholesale ADSL services (down 15.5% yoy).

The total number of ADSL accesses (retail and wholesale) reached 608 thousand at 30 September 2008, compared to 545 thousand a year ago (up 11.6% yoy). Retail ADSL accesses went up 14.3% yoy to 552 thousand in this period. The total number of O2 TV’s customers increased to 108 thousand at the end of 3Q 2008.

IPTV subscribers (thousands):

3Q07    3Q08
----    ----
  53     108

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