Annual report (20-F) - Ono

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Our Products and Services account available growth opportunities. We focus on growing our EBITDA at a faster rate than our use of additional debt, thereby reducing our total debt to EBITDA leverage ratio. We will not however simply rely on growing our EBITDA to improve our financial profile. We will also seek to carry out any financial transaction with the goal of reducing our cost of debt and extending our debt maturities, thereby improving our financial flexibility. We currently provide our residential and business customers with a broad array of competitive broadband products and services. Residential Services The table below sets out certain information with respect to our residential service customers: As of December 31, 2002 2003 2004 Telephony customers 448,926 544,271 622,275 Broadband Internet customers 117,305 186,447 268,355 Narrowband Internet customers 24,317 12,619 3,134 Cable television customers 296,956 339,378 369,496 Total residential customers(1) 480,296 581,345 676,858 Penetration: Residential telephony 30.6% 31.2% 30.5% Broadband Internet 8.0% 10.7% 13.3% Cable television 20.2% 19.4% 18.1% Total residential customers 32.7% 33.3% 33.2% (1) A customer may subscribe for residential telephony, residential Internet, cable television, or a combination of all three services. Bundled Services In order to maximize the revenue from each home passed, we actively encourage customers to subscribe to more than one service by offering price savings and the convenience of having a single supplier and a single point of contact for all communication, entertainment, and information needs. Customers who subscribe for more than one service currently pay on average between 10% and 21% less than the aggregate cost of subscribing for our relevant services on an individual basis. In addition, initial connection and installation charges are currently waived for all customers subscribing to any of our bundled services. 26
We offer the following bundled services all of which include a telephony line: Broadband Internet Television package Telephony Broadband Monthly charge(1) 150 Kbps bundle — X 150 kbps € 44.80 600 Kbps bundle — X 600 kbps € 47.85 1 Mbps bundle — X 1,024 kbps € 57.85 Digital Television(2) ONO 2000D ORO X — € 28.90 150 kbps € 55.80 600 kbps € 58.85 1,024 kbps € 68.85 ONO 4000D PLATINUM X — € 40.90 150 kbps € 67.80 300 kbps € 70.85 1,024 kbps € 80,85 (1) We charge an additional fee of €6.49 per month for a decoder, and there are other charges for cable modems, phone terminals and other equipment, as appropriate. (2) Since the launch of our digital television services in 2003, we have discontinued the marketing of our analog television services. We continue to provide bundled services with analog television programming to existing analog television customers. In addition to monthly charges, customers also pay variable charges related to telephony usage, pay-per-view television programs and other value-added services. Residential Telephony Our residential telephony service provides direct access connectivity to our customers in our franchise areas. We seek to maximize the use of our own network when routing calls in order to minimize interconnection costs and maximize control over quality of service. Currently our networks interconnect directly with the networks of among others, Telefónica, Amena, Vodafone, Auna and Cable & Wireless. Our initial one-time connection charge is €45.90, which we believe is attractively priced compared to Telefónica’s installation charges. We waive this connection fee for customers who subscribe to any of our bundled services. Customers who purchase our telephony service not bundled with other services pay a monthly line rental charge of €17.90 per month and in order to encourage recommendations by customers and loyalty, we offer free calls between our customers. We include in our basic telephony service a range of additional services including voicemail, call waiting, short-code dialing and call return at no additional cost. We are also offering additional valueadded services for free such as barring of incoming calls from numbers selected by the customer, alarm clock service and total or selective barring of outgoing calls. We also offer telephony handsets for sale or rental. We constantly monitor the tariffs and services offered by our competitors and adjust pricing and the type of services we offer on a regular basis to maintain our competitive position. Our tariffs are usually priced at a discount to Telefónica. Residential Internet We currently provide both broadband and narrowband Internet services to our residential customers. Our broadband Internet service connects our customers to our local networks via cable modem at speeds of up to 1 Mbps. However, our network and our cable modems are capable of higher speeds and we will increase the amount of bandwidth we offer customers in response to market demand. Our broadband Internet service is an “always on” service, removing the need for logging-on delays. In 27
Page 1 and 2: SECURITIES AND EXCHANGE COMMISSION
Page 3 and 4: “RGUs” are revenue generating u
Page 5 and 6: CONTENTS Clause Item 1. Identity of
Page 7 and 8: PART I Item 1. Identity of Director
Page 9 and 10: Reconciliation between EBITDA and n
Page 11 and 12: The table below shows the high and
Page 13 and 14: significant qualifications and exce
Page 15 and 16: • consolidate our brand in the ma
Page 17 and 18: operating and financial performance
Page 19 and 20: the products and services we offer
Page 21 and 22: • our ability to access the finan
Page 23 and 24: In March 2005, Cableuropa performed
Page 25: Our Strategy experience with cable
Page 29 and 30: Digital Television The introduction
Page 31 and 32: annual revenue of around €1 milli
Page 33 and 34: them are trained in our specific in
Page 35 and 36: • Andalucía Cluster. The Andaluc
Page 37 and 38: • Television line-up. Sogecable h
Page 39 and 40: In accordance with the General Law
Page 41 and 42: Telecommunications further requires
Page 43 and 44: Obligations According to the releva
Page 45 and 46: second telephony lines. The network
Page 47 and 48: Address Current Use Size (square me
Page 49 and 50: Address Current Use Size (square me
Page 51 and 52: The following are the key factors a
Page 53 and 54: The following table sets forth reve
Page 55 and 56: The following table sets forth cert
Page 57 and 58: total revenues to 28.6% for the yea
Page 59 and 60: Net Extraordinary Income/(Expense)
Page 61 and 62: needed before commercial launch of
Page 63 and 64: Net cash provided by financing acti
Page 65 and 66: A number of these contracts are sub
Page 67 and 68: All decisions regarding our busines
Page 69 and 70: Leopoldo Calvo-Sotelo became an ind
Page 71 and 72: Audit and Compliance Committee GCO
Page 73 and 74: E. Share Ownership Currently none o
Page 75 and 76: The shareholders’ agreement provi
Page 77 and 78:
Dividend and Liquidation Rights Pay
Page 79 and 80:
• the aggregate increases approve
Page 81 and 82:
As security for the senior bank fac
Page 83 and 84:
The Indentures also provide for eve
Page 85 and 86:
par value shares and subject to adj
Page 87 and 88:
Where interest has been paid under
Page 89 and 90:
the avoidance of double taxation. H
Page 91 and 92:
possible application of the passive
Page 93 and 94:
a sale, exchange, retirement or dis
Page 95 and 96:
The table below shows the variable
Page 97 and 98:
Item 16C. Principal Accountant Fees
Page 99 and 100:
No. 333-10976)). (Now superseded.)
Page 101 and 102:
Form F-4 (File No. 333-109976)). 4.
Page 103 and 104:
INDEX TO THE CONSOLIDATED FINANCIAL
Page 105 and 106:
CABLEUROPA, S.A.U. AND SUBSIDIARIES
Page 107 and 108:
CABLEUROPA, S.A.U. AND SUBSIDIARIES
Page 109 and 110:
Other subsidiaries: Company Name He
Page 111 and 112:
d) Foreign exchange rate options Fo
Page 113 and 114:
Had the life of this debt not been
Page 115 and 116:
6. Start-up costs Euro thousand Bal
Page 117 and 118:
) Finance leases Computer hardware
Page 119 and 120:
9. Financial assets Euro thousand B
Page 121 and 122:
The detail of short and long term d
Page 123 and 124:
Cancellation in 2003 of MBCF relate
Page 125 and 126:
(e) State Subsidies Starting in 200
Page 127 and 128:
Options granted under the Phantom P
Page 129 and 130:
(c) Reserves (accumulated losses) i
Page 131 and 132:
(c) The movement in deferred tax as
Page 133 and 134:
In 2004, 2003 and 2002, the Group
Page 135 and 136:
Transactions Services received Serv
Page 137 and 138:
Euro thousand 2004 2003 Audit servi
Page 139 and 140:
Euro thousand 2004 2003 2002 Change
Page 141 and 142:
Reconciliation of net profit / (los
Page 143 and 144:
Management of the Group considered
Page 145 and 146:
(n) Start-up costs. Under Spanish G
Page 147 and 148:
Amortization expense related to int
Page 149:
(h) Leases The group leases certain
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Annual report (20-F) - Ono

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