ZON Multimédia Consolidated Results First Nine Months 2008Sunday, November 9th, 2008
51 thousand new ZON Boxes installed since launch in May 2008, allowing customers to benefit from enhanced content and functionalities such as up to 200 hours personal video recording in HD, an exciting new electronic programming guide and an increasingly broader range of HD content such as sports and movies
LISBON, Portugal — Today ZON Multimédia (Lisbon:ZON) announces unaudited results for the First Nine Months of 2008.
Pay TV (TV Cabo)
ZON is committed to being the best choice for customers in terms of content and viewing experience. With a broad and ever increasing range of key quality content in sports, entertainment, news, movies, documentaries and culture, customers have a multitude of choice for the whole family. Throughout 9M08, ZON further reinforced its content offer with a number of exciting new channels, some of which are exclusive to ZON subscribers.
High Definition content is core to our strategy. ZON’s state-of-the-art cable network enables it to provide the most appealing selection of HD channels in the market and, with the introduction in May of the HD enabled ZON Box, available to both cable and satellite subscribers, ZON has launched a number of exclusive HD channels such as Sport TV1 HD, TVCine 4 HD and Mov HD. In addition, take-up of premium movie channels has increased significantly, led by the appeal of being able to record blockbuster movies in High Definition, thus enabling customers to create their own personal movie library.
The number of customers that subscribed to premium channels increased by 32 thousand over the previous year to 835 thousand, 13 thousand of which to movie channels. A seasonal trend is visible in premium channel subscription as churn tends to increase prior to and during the summer holiday period, with renewed take-up which usually takes place in the build-up to Christmas.
The Pay TV competitive environment increased significantly with the launch of a competing IPTV and DTH triple play offer from the incumbent telecom operator. The negative impact on ZON’s Pay TV customer base was felt almost exclusively in areas where ZON does not have a cable footprint, namely less populated and lower GDP per capita regions of Portugal. In these areas ZON currently offers only single play Pay TV solutions through DTH.
During 9M08, the Pay TV customer base reduced by 8.0 thousand to 1,539 thousand, a result of the combination of a net reduction in DTH subscribers and growth in cable subscribers, however a marked decline in the pace of Pay TV customer loss was felt in September and October.
Operational Highlights – Pay TV:
3Q07 3Q08 3Q08/ 9M07 9M08 9M08/ 3Q07 9M07 ------- ------- -------- ------- ------- -------- Homes Passed 2,726.0 2,821.2 3.5% 2,726.0 2,821.2 3.5% Basic Subscribers 1,521.0 1,539.1 1.2% 1,521.0 1,539.1 1.2% of which Digital Extended Basic 356.0 445.9 25.2% 356.0 445.9 25.2% Premium Pay TV 803.0 834.8 4.0% 803.0 834.8 4.0% Net Additions Basic Subscribers 25.7 (17.9) (169.7%) 40.7 (8.0) (119.7%) Digital Extended Basic 28.5 29.0 1.7% 85.9 63.8 (25.7%) Premium Pay TV 26.8 13.9 (48.2%) 22.7 (5.8) (125.5%)
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