Annual report (20-F) - Ono

Cableuropa, S.A.U. (the “Company” or “Cableuropa”) is a company organized under the laws of
Spain. References to the “2010 EUR Notes” are to the €113,702,000 14% Notes due 2010, references to
the “2011 USD Notes” are to the $58,920,000 14% Notes due 2011 and references to the “2011 EUR
Notes” are to the €8,038,000 14% Notes due 2011 (together with the 2011 USD Notes, the “2011 Notes”)
and references to the “2014 Notes” are to the €180,000,000 10.5% Notes and to the €100,000,000 Euribor
3m + 8.5% Notes due 2014, all issued by ONO Finance PLC, a financing company (“ONO Finance”).
The 2010 Notes, the 2011 Notes and the 2014 Notes are collectively referred to as the “Notes.”
References to the “ONO Group” include Cableuropa and its subsidiaries.
Unless otherwise indicated or otherwise required by the context, all references in this Form 20-F
to “EUR”, “euro” or “€” are to the euro, the lawful currency of Spain. References to “U.S. dollars,”
“dollars,” “USD” or “$” are to United States dollars, the lawful currency of the United States of America.
Amounts stated in U.S. dollars, unless otherwise indicated, have been translated from euro at an
assumed rate solely for your convenience, and should not be construed as representations that euro
amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate
indicated or at any other rate. Unless indicated otherwise U.S. dollar amounts have been translated from
the euro at the rate of €1.00 = $1.3621, the euro foreign exchange reference rate published by the
European Central Bank (“ECB”), on December 31, 2004.
Cableuropa maintains its accounting records and prepares its statutory accounts in accordance
with Spanish GAAP. The audited consolidated financial statements of Cableuropa as of December 31,
2003 and 2004 and for the years ended December 31, 2002, 2003 and 2004, and, unless otherwise
indicated, other financial information in this Form 20-F, have been prepared in accordance with Spanish
GAAP, which differs in certain significant respects from U.S. GAAP. For a discussion of the most
significant differences between Spanish GAAP and U.S. GAAP relevant to us and reconciliations of net
income and shareholders’ equity to U.S. GAAP, see note 27 of the notes to our consolidated financial
statements included elsewhere in this Form 20-F.
Certain Operational Definitions
In this Annual Report, the following defined terms have the meanings indicated below:
“ARPU” means monthly average revenue per user, and is calculated by dividing total revenues
generated from our telephony, Internet and cable television services provided to customers that are
directly connected to our network in any quarter by the average number of customers in that quarter, the
result of which is divided by three. The average number of customers for any period is calculated by
adding the number of customers at the beginning of the period to the number of customers at the end of
the period and dividing by two. In this Annual Report ARPU is the ARPU for the fourth quarter of the
relevant year only.
“Churn” means the percentage obtained by dividing the number of customers who cease to
receive any of our services (either voluntarily or involuntarily) in any quarter by the average total number
of customers during that quarter, multiplied by four. The average number of customers for any period is
calculated by adding the number of customers at the beginning of the period to the number of customers
at the end of the period and dividing by two. In this Annual Report, churn is the churn for the fourth
quarter of the relevant year, multiplied by four.
“Homes passed” means homes for which all of the relevant network equipment has been
activated. Homes passed can be released to marketing once the customer tap (an amplifier serving
between four and eight homes) and drop (the final connection to a home) have been installed.
“Homes released to marketing” means a home to which we can provide either telephony,
Internet or cable television service within four days.
“Penetration” is the percentage of customers over homes released to marketing in our franchise
areas, and with respect to any particular service, penetration is the percentage of RGUs of that service
over homes released to marketing in our franchise areas.
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