France Telecom 2008 annual results

PARIS — The Board of Directors of France Telecom SA (Paris & NYSE: FTE) met on 3 March 2009 and examined the Group’s financial statements.

Home Communication Services (HCS)

The number of Livebox sets was up 28%, with 7.8 million units sold in Europe at 31 December 2008 compared with 6.1 million units at 31 December 2007. The number of Voice over IP customers grew 36% to 6.5 million at 31 December 2008 compared with 4.8 million at 31 December 2007. Digital and satellite TV subscribers rose to 2.1 million in Europe at 31 December 2008 (mainly in France), compared with 1.2 million a year earlier, an increase of 66%.

HCS France

There were a total of 8.3 million consumer broadband ADSL subscribers at 31 December 2008, for year-on-year growth of 14.1% (1.0 million new ADSL subscribers for the year). ADSL Multiservices also saw
rapid growth. At 31 December 2008, there were:

• 6.5 million Livebox rentals, an increase of 26% in one year, with Liveboxes representing 79% of ADSL subscribers at 31 December 2008, up from 71% a year earlier;
• 1.9 million Digital TV subscribers (satellite and ADSL television), a 66% increase year on year. In this regard, at 31 December 2008, there were a total of 201,000 subscribers to the Orange satellite TV offer marketed since 3 July.

Video on Demand (VOD) downloads more than doubled, with 12.1 million downloads in 2008 compared with 5.1 million in 2007.

Digital TV (ADSL and Satellite) customers (thousands):

                                                  2007                                    2008
                --------------------------------------  --------------------------------------
                31 March   30 June  30 Sept.   30 Dec.  31 March   30 June  30 Sept.   31 Dec.
                --------  --------  --------  --------  --------  --------  --------  --------
Total                768       872     1,017     1,243     1,407     1,535     1,746     2,065
 France              745       837       975     1,149     1,282     1,389     1,603     1,909
 Poland                9        19        23        40        49        54        57        69
 Other (Spain)        14        16        18        54        75        92        86        87

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