93,000 HD ZON Boxes installed in Portugal in Q1

Wednesday, May 6th, 2009

LISBON — ZON Multimedia Serviços de Telecomunicações e Multimédia, SGPS, S.A. (Lisbon:ZON) has released its results for the first quarter of 2009.

Television is a key differentiating factor for ZON. Operating over a hybrid fibre coaxial cable / EuroDOCSIS 3.0 network, ZON is able to provide almost unlimited multi-room and HD viewing capacity and these features are reinforced in all of ZON’s campaigns. On the content front, during the first months of 2009, ZON further reinforced its HD channel offering with AXN HD, a series and movie channel that ranks #2 in terms of Pay TV audience excluding FTA channels, and Brava HDTV, a premium channel dedicated to European culture in areas such as classical music, ballet and opera, amongst others. With these two HD launches, ZON now has 8 HD channels in its global content offer, being the leading operator in terms of HD channel alternatives.

ZON’s video-on-demand service, “ZON Videoclube”, was launched in January, initially only for the Lisbon and Oporto headends, and has already recorded interesting results amongst customers that have installed the ZON Box.

The enthusiasm around the new features and offers remains high and during 1Q09, a further 93 thousand customers installed a new HD ZON Box, half of which including a personal video recorder leading to a total base of HD / HDR Boxes installed of 184 thousand – 12% of the total customer base.

Uptake of ZON’s enhanced digital offer “Funtastic” was also very strong with net adds in 1Q09 of 43.7 thousand and the percentage of customers that now subscribe to this tariff plan now represents 33.8%, compared with 25.6% in 1Q08.

ZON repositioned its DTH offers with the launch, on 1 March, of a new set of packages ranging from an entry product with 25 channels up to higher-end 81 channel offers including premium movie channels.

Business Indicators:

                              1Q08     1Q09  1Q09/1Q08
                           -------  -------  ---------
Basic Subscribers          1,560.5  1,595.4       2.2%
  of which
  Digital Extended Basic     399.8    539.6      35.0%

Net Additions
  Basic Subscribers           13.4   (18.2)       n.a.
  Digital Extended Basic      17.7     43.7     146.5%

Zon Boxes installed (thousands):

  3Q08  4Q08  1Q09
  ----  ----  ----
    53    91   184

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