Premiere AG - H1 2005 presentation - Sky Deutschland AG

1st Half Year 2005 

Premiere. Fernsehen erster Klasse. 1

H1 2005: Positive net income for the 

first time 

Net income jumps to € 3.3 m from net loss of € 61.2 m: 

An improvement of € 64.6 m 

EBITDA more than doubled from € 20.7 m to € 49.3 m 

EBITDA of € 58.3 m before one time costs for the IPO 

Total revenues up 6% to € 506.1 m 

Core business strong: Revenues from core business 

(Programming subscription, PPV, Advertising) up 12% to 

€ 478.8 m 

Subscriber numbers up 14.5% to 3,313,140 

Operating costs stable at € 456.8 m 


Net subscriber additions of 66,000 

in H1 2005 

Net subscriber additions 

(End of H1 in ‘000) 000) 

(14) 

66 

H1 2004 H1 2005 

Net subscriber additions 

(End of Q2 in ‘000) 000) 

(62) 

14 

Q2 2004 Q2 2005 


3.313 million subscribers at 30 June 

2005, healthy package mix 

Subscribers 

(At 30 June in ‘000) 000) 

2,894 

+15% 

3,313 


Package structure 

(At 30 June in %) 

100% 100% 

15% 

74% 

11% 

PREMIERE 

KOMPLETT 

Other 

Premium- 

Packages 61% 

PREMIERE 

START 

27% 

12% 



Churn rate down, 

Full year outlook: 13 – 14 % 

Q2 2005: 12 month rolling churn rate down to 11.5% 

FY 2005: 12 month rolling churn rate of 13% - 14% 

expected 

12.9% 

16.0% 16.0% 

13.6% 

13.8% 

11.5% 

Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 


ARPU up 3% from Q1 to Q2 

ARPU from core business 

(Annualized in €) 

295 292 

9 

14 

272 

PPV 

Advertising 

Program 

Subscription 

10 

10 

272 


ARPU from core business 


287 

10 

7 

271 

+ 3% 

PPV 

Advertising 

Program 

Subscription 

295 

9 

13 

272 

Q1 2005 Q2 2005 


Total revenues up 6%, 

Revenues from core business up 12% 

Total revenues 

(€m) m) 

478 

+ 6% 

506 


Revenues from core business – 

Program subscription, pay-per pay per- 

view, advertising 

(€m) m) 

428 

+12% 

479 



Operating costs remain stable, more 

efficiencies in subscriber acquisition 

Total Costs (excl. depreciation) 

(€m) m) 

457 0% 457 


Subscriber Acquisition Costs 

(€m) m) 

64 

(9%) 

58 



Decrease in costs per subscriber 

SAC per Subscriber 

(€) 

293 

(17%) 

243 


Current Costs per Subscriber w/o 

receiver costs and depreciation 


294 

(11%) 

261 



EBITDA more than doubled, 

Net Income up by € 64.6 million 

EBITDA 

(End of half year in €m) m) 

21 

>100% 

58 

9 

49 


IPO- 

Costs 

Net income 

(End of half year in €m) m) 

(61) 

>100% 


3 


Launching a new innovation cycle 

1. Programming: More exclusivity, more choice 

Fresh presentation: Premiere Sports Portal 

More sport, new theme channels, new series 

More interactivity: PREMIERE WIN 

2. New package structure 

PREMIERE FOOTBALL LIVE as a new add-on 

subscription for €14.90 per month 

Standard packages redefined: PREMIERE 

THEMA and PREMIERE SPORT (€ 19.90 

each), PREMIERE FILM (€ 24.90) 

3. Technology 

Video on demand: PREMIERE DIREKT+ via 

Premiere Digital Recorder 

High Definition TV: PREMIERE HD 


PREMIERE WIN: The new brand for 

betting and gaming 

Interactive channel with betting on live horse-racing, 

gaming and sports news in co-operation with 

Magna Entertainment and Betandwin 

Range of programming and betting options will be 

gradually extended, in the lead up to the FIFA World 

Cup in 2006 

New triple-play betting: TV, internet, betting agencies 

Premiere well positioned to enter betting business with 

customer base of 3.3 million subscribers and nearly 

5,000 hours of live sports 

Forecast 2008: Over € 1 billion in betting receipts. 

Revenues for Premiere between 5% and 15%. 


Full year 2005 outlook 

Net subscriber additions: 300,000 – 350,000 

> 3.4 million subscribers as of 30 September 2005 

3.55 – 3.60 million subscribers as of 31 December 2005 

Churn between 13% and 14% 

Double digit percentage revenue growth: 

Revenues > € 1.1 billion 

EBITDA € 120 – 150 million 


Reiterating mid- and long-term 

targets 

Mid Term (End 2007/H1 2008): 

> 4 million subscribers 

ARPU > € 350 

EBITDA margin > 20% 

Long Term (2011 -> 2014) 

> 7 million subscribers 

ARPU > € 400 

EBITDA margin > 25% 


Disclaimer 

This presentation contains forward forward-looking looking statements based on the currently held beliefs and assum assumptions ptions 

of the management of Premiere AG, which are expressed in good fa faith ith and, in their opinion, reasonable. 

Forward Forward-looking looking statements involve known and unknown risks, uncertaintie uncertainties s and other factors, which may 

cause the actual results, financial condition, performance, or aachievements 

chievements of Premiere AG, or media 

industry results, to differ materially from the results, financi financial al condition, performance or achievements 

expressed or implied by such forward forward-looking looking statements. Given these risks, uncertainties and other ffactors, 

actors, 

recipients of this document are cautioned not to place undue rel reliance iance on these forward forward-looking looking statements. 

Premiere AG disclaims any obligation to update these forward forward-looking looking statements to reflect future events or 

developments. 

Whilst all reasonable care has been taken to ensure that the inf information ormation and facts stated herein are 

accurate and that the opinions and expectations contained herein are fair and reasonable, no representation 

or warranty, express or implied, is made by Premiere AG with res respect pect to the fairness, completeness, 

correctness, reasonableness or accuracy of any information and oopinions 

pinions contained herein. It is pointed out 

that the existing presentation may be incomplete or condensed, aand 

nd it may not contain all material 

information concerning Premiere AG or the Premiere group. 

Premiere AG reserves the right to change and complete the inform information ation in this presentation without notice. 


1st Half Year 2005 

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Premiere AG - H1 2005 presentation - Sky Deutschland AG

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