ONO cable TV customers down 2.5% in 2Q09

MADRID — Grupo Corporativo ONO, S.A. (“ONO”), the leading alternative provider of telecommunications, broadband Internet and pay television services in Spain, announced today the consolidated unaudited results for the second quarter ended 30 June 2009.

Total cable customers decreased during the second quarter by approximately 10,000 customers or 0.6% to 1,835,000 follows the decisions to reduce sales volume and to introduce activation fees, credit scoring and other barriers to entry to ensure that new customers are profitable. The decrease in the customer base in the last twelve months has been 2.9%.

Television

Cable television customers decreased by 25,000 or 2.5% in the quarter, reaching 991,000 as of 30 June 2009.

Cable television customers as a proportion of total customers decreased by 1.1 pp in the last quarter to 54.0% as of 30 June 2009 and the penetration of cable television services over homes released to marketing decreased in the quarter by 0.4 pp to 14.2%.

During the last twelve months, the decrease in cable television customers is mainly due to the discontinued offer of this product on a standalone basis and increased focus on acquiring customers with a telephony and broadband bundles, which enjoy lower churn rates.

Operating highlights – Customers (Data in thousand, except if otherwise stated):

                   30-Jun-09  31-Mar-09  % change  30-Jun-08  % change
                   ---------  ---------  --------  ---------  --------
Cable                  1,835      1,845    (0.6%)      1,889    (2.9%)
Television RGUs          991      1,016    (2.5%)      1,052    (5.8%)

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