Annual report (20-F) - Ono

The following table sets forth certain information with respect to our Internet services and the
percentage change from period to period for each of the periods indicated.
As of and for the Year Ended
December 31,
Percentage Change
2002 2003 2004 2002/2003 2003/2004
Residential Internet:
Customers
narrowband 24,317 12,619 3,134 (48.1)% (75.2)%
broadband 117,305 186,447 268,355 58.9% 43.9%
Total 141,622 199,066 271,489 40.6% 36.4%
Penetration
narrowband 1.7% 0.7% 0.2% — —
broadband 8.0% 10.7% 13.3% — —
Total 9.7% 11.4% 13.4% — —
ARPU (in euro)(1)
all Internet services 30.2 32.7 32.2 8.3% (1.5)%
narrowband 19.4 25.5 24.0 31.4% (5.9)%
broadband 33.0 33.3 32.3 0.9% (3.0)%
Revenue (euro in millions) 39.1 62.3 89.6 59.3% 43.8%
(1) ARPU is the monthly ARPU for the fourth quarter in each of the periods presented in the table.
For a definition of ARPU see “Certain Operational Definitions.”
The increase in revenues during the periods under review principally reflects the increase in our
customer base, higher total Internet penetration and the increasing proportion of broadband Internet
customers. Our total Internet penetration increased to 13.4% in 2004 from 11.4% and 9.7% in 2003 and
2002, respectively. The increase in penetration primarily reflects the acquisition of new broadband
Internet customers. As of December 31, 2004, approximately 98.8% of our total Internet access customers
subscribed to broadband Internet services as compared with approximately 93.7% as of December 31,
2003 and 82.8% as of December 31, 2002. We believe that broadband Internet services are an
increasingly popular service for our customers and expect our penetration for this service to increase.
ARPU for broadband Internet services during the fourth quarter of 2004 was slightly lower than ARPU
for broadband Internet services for the same period of the previous year. While we continue to provide
narrowband Internet service to our existing customers, we do not actively market this service to new
customers. We are currently offering to migrate existing narrowband Internet customers to our broadband
Internet service free of charge. Accordingly, we expect the number of our narrowband Internet customers
to decrease and the proportion of customers using broadband Internet services to continue to increase in
future periods.
Cable Television. Our cable television revenues are derived mainly from fixed fees, such as
monthly subscription fees for basic and premium services, set top box rental charges and variable fees for
pay-per-view services.
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