Sky Deutschland strong results

In the second quarter of 2011 Sky Deutschland has reported improving trends across all key areas of the business. The customer base grew by 33,000 to a total of 2,759,000. Subscriber net

growth over the first half of 2011 was 106,000, an increase of 100,000 compared to H1 2010. Gross

additions for the quarter amounted to 98,000 (Q2 2010: 107,000). Quarterly annualized churn decreased to 9.4 percent (Q2 2010:16.3 percent) and the 12-month rolling churn rate to 12.4 percent (Q2 2010: 20.1 percent).

The number of customers for the High Definition service passed the 1.2 million mark. The number of customers with Premium Sky HD packages almost doubled year-on-year to 714,000 (Q2 2010: 370,000). The Premium Sky HD penetration rate increased to 25.9 percent (Q2 2010: 14.9 percent).

Brian Sullivan, CEO said: “We are pleased with our progress in the second quarter

which is in line with our expectations. After four quarters of continued improvement, and having

already grown by over 100,000 customers in the first half of this year, these solid results reinforce my

confidence in our ability to build a successful pay-TV business. Our strategy to deliver for customers

by focusing on the best programme quality, exciting innovations and great service, is beginning to pay

off.”

Improved financial performance in Q2 2011

There has been a steady improvement in the company’s financial performance. In Q2 2011, revenues grew by 17.2 percent to €276.7 million (Q22010: €236.1 million) and total costs excluding depreciation increased by less than half that rate at just 5.9 percent to €300.1 million (Q2 2010: €283.5 million). In combination, these developments drove a 50.1 percent improvement in EBITDA to negative €23.4 million (Q2 2010: negative €47.4 million). Net income also improved to negative €53.6 million (Q2 2010: negative €81.9 million).

There was an increase in ARPU to €30.69 (Q2 2010: €28.62).

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