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1st
1st Quarter Report 2005
Aktiengesellschaft
1

EBITDA increases to EUR 22.7 million
Revenue climbs to EUR 247.4 million
Core business grows by 18 %
Subscriber numbers rise to 3.3 million
Net debt falls to EUR 83.6 million
Equity to total assets rises to 58 %
Premiere AG | 1st Quarter 2005
Overview
2

Key Figures
Subscribers
Explanatory notes on the key figures:
1) Rolling Churn rate: This reflects the total number of subscriptions cancelled within
the last 12 months, divided by the average number of subscribers
((Opening + Closing Subs)/2) for the same period. The annualized churn rate for
Q1 2005 stands at 12.2%.
2) ARPU: Annualized average revenue per user from Programming subscriptions,
Pay-per-View and Advertising (in EUR/Year)
Q1/05 Q1/04 Change Change
(absolute) (in %)
Subscribers as of 1/1 3,247,172 2,907,891 339,281 11.7
Net increase 51,508 47,368 4,140 8.7
Subscribers as of 3/31 3,298,680 2,955,259 343,421 11.6
Average number of subscribers 3,272,926 2,931,575 341,351 11.6
Churn rate 1) (in %) 13.8 12.9 1.0 7.6
ARPU 2) (in EUR) 287 271 16 5.9
Consolidated statement of operations
Employees
Premiere AG | 1st Quarter 2005
Key Figures
Q1/05 Q1/04 Change Change
(absolute) (in %)
Revenues (in EUR million) 247.4 224.2 23.2 10.3
Core Business Revenues 235.1 198.9 36.2 18.2
Program subscriptions 221.4 187.3 34.1 18.2
Pay-per-view 8.3 5.4 2.9 52.8
Advertising 5.5 6.2 -0.7 -11.5
Hardware3) 10.3 17.9 -7.6 -42.4
Other revenues 2.0 7.4 -5.4 -73.3
Operating expenses4) (in EUR million) 224.7 226.0 -1.4 -0.6
EBITDA5) (in EUR million) 22.7 -1.8 24.6 >100
Depreciation (in EUR million) 7.0 8.2 -1.2 -14.5
EBITA6) (in EUR million) 15.8 -10.0 25.7 >100
Amortization of subscribers (in EUR million) 12.1 12.1 0.0 0.0
EBIT7) (in EUR million) 3.7 -22.0 25.8 >100
Taxes (in EUR million) 5.3 -0.2 5.5 >100
Net interest income/expense (in EUR million) -12.3 -19.1 6.8 35.5
Net loss (in EUR million) -3.4 -41.4 38.0 91.9
Earnings per share (in EUR) -0.05 -0.94 0.89 94.7
Consolidated balance sheet
3/31/05 12/31/04 Change Change
(absolute) (in %)
Total assets (in EUR million) 1,282.0 1,298.8 -16.8 -1.3
Stockholders equity (in EUR million) 745.5 418.9 326.6 78.0
Equity to total assets8) (in EUR million) 58.1 32.3 25.9 80.3
Net debt9) (in EUR million) 83.6 370.2 -286.5 -77.4
3/31/05 3/31/04 Change Change
(absolute) (in %)
Employees FTE as of 3/31 1,588 1,841 -253 -13,7
3) Revenue from the sale and rental of STBs
4) Excluding depreciation
5) Earnings before Tax, Interest and depreciation and amortization
6) Earnings before Tax, Interest and amortization
7) Earnings before Tax and Interest
8) Equity to total assets as %
9) Financial debt less cash
3

Contents
Management Report
Business Environment 6
Revenues and Earnings 8
Business Operations 11
Balance Sheet and Cash 14
Share 16
Research and Development 17
Organization and Employees 19
Outlook 21
Financial Statements
Consolidated Statement of Operations 23
Consolidated Balance Sheet 24
Statements of Changes in Equity 26
Statements of Cash Flow 27
Notes
General Information and Basis of Preparation 29
Significant Influences in the
consolidated interim Financial Statements 30
Other explanatory Comments 33
Financial Calendar 34
Contact 34
4

Management Report
5

Business Environment
• Subdued growth in German economy
• Below-average growth in TV advertising market
• Digitalization of TV continues to be dynamic
• Political restrictions on public service
broadcasting
The German economy made a slight improvement
at the start of 2005, continuing the upward trend
of the second half 2004. The principal economic
indicator, GDP, rose 0.5 per cent in the first quarter
of this year to compensate for the slight fall in
the fourth quarter 2004. (Source: Deutsche
Bundesbank).
For the year as a whole, however, the leading economic
institutes expect slower growth than last
year and have even halved their forecasts made in
the Fall report of 2004. In their joint report of April
2005, the German Council of Economic Experts
expect growth adjusted for working days of just 0.7
per cent, compared to 1.7 per cent in 2004.
Therefore Germany would once again lag well
behind the expected global growth rates, which are
put at a good 4 per cent – assuming an increase
in economic output (Source: Federal Ministry of
Economics and Labor). The engine driving
Germany's growth remains foreign demand. To
date there has been no impetus for growth from
the domestic economy.
Despite the overall slowdown in growth, a slight
increase is forecast for the year as a whole in the
most important sector for Premiere: After years of
stagnation and decline, spending on consumption
by private households is expected to rise slightly in
2005 by 0.7 per cent (Source: Federal Ministry of
Economics and Labor).
Expected decrease in free-to-air TV
advertising revenues
Premiere AG | 1st Quarter 2005
Management Report
Business Environment
The improvement in the overall economy was
reflected in Germany's gross advertising market.
As a whole, advertising investments in the traditional
media rose by 4 per cent to EUR 4.32 billion in
the first quarter of 2005 compared year-on-year.
The highest revenues among the various media
categories continue to be earned by TV with EUR
1.8 billion, but their growth of 2.6 per cent compared
to the first quarter of 2004 was once again
below the historic average for the sector as a
whole (Source: Nielsen S+P). The gross advertising
development has only limited meaning, as it for
example does not reflect possible discounts given
by broadcasters. On the basis of the expected
advertising revenues the two large free-to-air broadcasting
groups ProSiebenSat.1 and RTL anticipate
a shrinking TV advertising market in 2005.
Political restrictions on public service broadcasters
In the public service broadcasting sector the brakes
are going on after years of unfettered expansion.
ARD and ZDF, who originally applied for a rise
in the license fee at 1 January 2005 by more than
two euro per month and TV household, were given
the thumbs down. For the first time the government
even refused the fee increase of EUR 1.09
proposed by the Commission on the Funding
Requirements of Public Service Broadcasting (KEF).
After the German state parliaments approved the
move, broadcasting fees for 2005 rose on 1 April
by 88 cents. Public service broadcasting is also
meeting some opposition from Brussels. In a letter
to the federal government of 3 March 2005 the EU
Competition Commission had come to the conclusion
that the system of funding for public service
6

oadcasting in Germany was not consistent with
the common market. Targets of criticism include
the online commercial activities of ARD and ZDF,
the purchasing of sports rights, cross-subsidization
and lack of transparency of subsidiary production
companies. In addition, it demanded that the responsibilities
of public service broadcasters should
be more specifically defined. It is therefore likely
that the basic public service contract will be held
at today's level at the very least and no expansion
of today's public service program is to be anticipated.
Digital output of public service television companies
is also restricted. The coming into force of the
8th Amendment to the Inter-State Broadcasting
Agreement on 1 April 2005 puts an end to the
unlimited expansion of the existing public service
digital program choice and the arbitrary transformation
of today's special-interest information and culture
channels into sports channels for instance.
The adjustment of the regulatory framework necessary
for free and unfettered competition in the age
of digital TV has therefore taken another important
step forward.
Premiere's management hold the view that the
continued financial constraints among broadcasters
financed by advertising and the political
restrictions on public service broadcasting will have
a positive effect on the image of the Premiere TV
brand. The current market allows Premiere to differenciate
itself as the home of quality entertainment.
High level of TV viewing
Watching TV continues to be among Germany's
favorite leisure activities. Total consumption in fact
continued to increase last year. Every German citizen
spent an average of 210 minutes watching
television each day in 2004 – seven minutes more
than in 2003 (Source: Media Perspektiven).
Over seven million digital TV households
Premiere AG | 1st Quarter 2005
Management Report
Business Environment
The digitalization of TV continues its strong
momentum. The number of households with digital
reception is increasing rapidly: At the end of 2004
the number of digital households in Germany was
7.1 million, representing an 18.7 per cent share
(Source: SES Astra, Satellite Monitor, TNS
Infratest).
7

Revenues and Earnings
• Total revenues increase by 10.3 per cent to
EUR 247.4 million
• Core business: revenues grow by 18.2 per cent
to EUR 235.1 million
• Operating expenses stable
• EBITDA improves to EUR 22.7 million
• EBITDA before IPO costs at EUR 32 million
In the first quarter of 2005 Premiere achieved
strong growth in revenue and earnings. The Pay-TVoperator
was able to show revenue growth of 10.3
percent – from EUR 224.2 million in the first quarter
of 2004 to EUR 247.4 million in the first quarter
of 2005. The core business of program subscriptions,
Pay-per-view and advertising are increasingly
dominating Premiere’s revenue mix.
Revenues in the core business increased by 18.2
percent to EUR 235.1 million (EUR 198.9 million).
As a result, Premiere earned 95 percent of its total
revenue in its core business. In the same period in
prior year, the core business accounted for 89 percent,
and in the first quarter of 2003 for just 74
percent of total revenues. Revenues from program
subscriptions climbed by 18.2 percent to EUR
221.4 million (EUR 187.3 million). The Pay-per-view
business increased by 52.8 percent to EUR 8.3
million (EUR 5.4 million). Revenues from advertising
remained almost unchanged quarter on quarter
at EUR 5.5 million (EUR 6.2 million), although
revenues from print advertising disappeared altogether
with the discontinuation of Premiere’s own
TV guide in spring 2004. This sales shortfall was,
however, almost completely offset by increased
revenues from TV advertising and direct marketing.
The average annual revenue per user (ARPU) rose
to EUR 287 in the first quarter of 2005 in the core
business. This is EUR 16 (5.9 percent) more than
in the first quarter of the previous year (EUR 271).
Revenues from the hardware segment, which is
Premiere AG | 1st Quarter 2005
Management Report
Revenues and Earnings
not part of the core business, continued to decline
as planned. Income from rentals and sales of
receivers fell by 42.4 percent to EUR 10.3 million
(EUR 17.9 million).
The strategic withdrawal from the technology sector
was completed at the end of the 2004 with the
sale of the subsidiary DPC Digital Playout Center
GmbH. Other revenues fell accordingly to EUR 2.0
million (EUR 7.4 million).
Revenues mix at Premiere
(in EUR million)
250
200
150
100
50
0
Total
247.4
Q1 2005
2.0
10.3
5.5
8.3
221.4
Core Business
Program subscriptions
Pay-per-view
Advertising*
Total
224.2
Q1 2004
*incl. revenue from direct marketing
e.g. procuring subscribers for TV Digital
Other earnings
Hardware
7.4
17.9
6.2
5.4
187.3
8

Stable cost structure
Premiere’s cost structure remained stable overall
in the first quarter of 2005. The costs inluding
depreciation stood at EUR 231.6 million (EUR
234.2 million).
There was an increase in program expenditure of
about EUR 15 million from EUR 119.2 million to
EUR 135.7 million. This was a result in particular
of the new contracts signed with the soccer leagues
in Germany and Austria last year. On the
other hand, considerable cost reductions were
made with the discontinuation of Premiere’s own
TV guide magazine and through efficiency gains in
customer management. The costs fell to EUR 12.6
million (EUR 28.6 million). These made it possible
to offset the increase in programming costs.
Transmission costs and expenses on receivers
remained stable. While transmission costs increased
slightly by EUR 25.0 million (EUR 22.9 million),
the costs for receiver fell to EUR 20.7 million (EUR
21.8 million).
Marketing and sales expenses fell due to a change
in the mix of sales channels and marketing focus
by EUR 5.1 million to EUR 25.7 million (EUR 30.8
million). The subscriber acquisition cost (SAC) was
EUR 169 per subscriber, 8 per cent below the SAC
average for 2004 (EUR 184).
Due to the increased costs relating to the successful
IPO the organization costs rose to EUR 20.5
million (EUR 17.3 million).
Other income increased slightly to EUR 9.9 million
(EUR 8.4 million), other expenses fell to EUR 1.2
million (EUR 2.0 million).
The amortization of subscribers stood at EUR 12.1
million as in previous year. The brand name and
the goodwill are also intangible assets with an
indefinite lifespan and as such are not amortized.
There were no indications of the need to conduct
an impairment test at the end of the quarter.
Revenue/Costs* (in EUR million)
250
200
150
100
50
0
247.4
231.6
Q1 2005
Premiere AG | 1st Quarter 2005
Management Report
Revenues and Earnings
224.2 234.2
Q1 2004
*Basis: IFRS; operative costs incl. depreciation
9

Positive operating result
Total operating costs (excluding depreciation and
after netting other operating income) were unchanged
at EUR 224.7 million (EUR 226.0 million). The
positive operating results underpin Premiere's continuing
improvement. EBITDA (earnings before interest,
tax, depreciation and amortization) was up on
previous year by EUR 24.6 million from minus EUR
1.8 million to a positive EUR 22.7 million. Without
one-off costs of EUR 9 million for the IPO, EBITDA
stood at EUR 32 million for the first quarter 2005.
EBITDA* (in EUR million)
25
20
15
10
5
0
-5
22.7
Q1 2005
- 1.8
Q1 2004
*Earnings before interest, taxes, depreciation
and amortization
Financial result: Interest expense falls
Financial results improved considerably by 35.5
per cent from minus EUR 19.1 million to minus
EUR 12.3 million, clearly reflecting the new funding
structure of the company. At the time of the IPO in
March 2005 Premiere completely restructured its
financing and existing loans were repaid. Net financial
debt dropped to EUR 83.6 million. By reducing
the financial debt, it is expected that interest charges
will again be substantially reduced in the future.
Slight net loss
The profit and loss statement for first quarter
2005 shows earnings before tax of minus EUR 8.6
million (minus EUR 41.1 million). Premiere thus
boosted pre-tax profits by EUR 32.5 million.
Deferred tax income of EUR 5.3 million resulted in
a consolidated net loss of EUR 3.4 million (minus
EUR 41.4 million).
Earnings per share
Premiere AG | 1st Quarter 2005
Management Report
Revenues and Earnings
Earnings per share on the profit and loss statement
are minus EUR 0.05. This is an improvement
on first quarter previous year of 94.7 per cent
(minus EUR 0.94).
10

Business Operations
• Subscriber numbers increase to 3.3 million
• Programming: New theme channels launched,
series and sports expanded
• Sales and marketing:
Focus on subscriber retention
The number of subscribers rose in the first three
months of 2005 by 51,508 to 3,298,680. In a
year-on-year comparison (March 31), Premiere
increased its total subscribers by 343,421 – representing
an increase of 11.6 per cent.
Subscriber numbers (in thousands)
3500
3000
2500
2000
1500
1000
500
0
3,298.680
Q1 2005
2,955.259
Q1 2004
Programming strengthened
Premiere AG | 1st Quarter 2005
Management Report
Business Operations
Premiere expanded its exclusive and wide-ranging
program offer in the first quarter 2005 with new
licence agreements for feature films and sports.
The company also broke new ground with
PREMIERE PLUS: with the start of DISCOVERY
GESCHICHTE Premiere launched a new documentary
channel on 31 March 2005, which presents
history and contemporary history. The 24 hour
channel operated by Discovery Networks Europe
offers programming specially tailored to Germany,
including exclusive content from Spiegel TV.
Viewers can subscribe to the new channel
individually for three euros a month or as part of
PREMIERE PLUS.
Contracts with all the biggest producers in the USA
and the major European markets give Premiere
first broadcast rights for international movies and
hit series and access to productions in different
genres from the last 30 years. Added to this extensive
stock of rights, in March of first quarter 2005
an agreement was signed, which has a term of
several years, and comprises a significant number
of quality series and TV films covering drama,
comedy and romance, which will be screened on
PREMIERE SERIE from May.
In the area of sports, Premiere expanded its varied
and exclusive range in March with the acquisition
of a rights package to the Spanish Primera
División. Premiere has agreed a new contract with
the rights owner Media-Pro up to and including the
2005/2006 season and will show at least one
match a week from Spain's top soccer division live
and exclusive on German television.
Live reporting by Premiere of the Deutsche
Tourenwagen Masters (DTM - German Touring Cars)
11

series will comprise some 50 hours of viewing and
a similar agreement was signed in March with the
licensor “Internationale Tourenwagen-Rennen (ITR
e.V.)”. As in the past two years, once again in the
2005 season Premiere will bring viewers the
European Formula 3 Series, the Formula BMW
ADAC Championship, the Porsche Carrera Cup, the
Seat Cup and ADAC VW Polo Cup.
Success in business customer sales channel
In the business customer segment, too, the new
year started well. In March 2005 the one-thousandth
hotel signed up with Premiere. Under the
name PREMIERE HOTEL Premiere offers a free-toguest
product specially tailored to hotels and clinics.
Hotels and clinics can put together their own
preferred selection from a total of 17 channels.
With its second product line Hotel Pay TV hotel
operators can offer their guests first-class TV entertainment
on five channels in digital quality at very
moderate cost.
The sportsbar and restaurant trade continues to be
an important business market for Premiere. Over
11,000 Premiere sportsbars are regularly transformed
into “live arenas” for major sporting events.
The service for the sportsbar and restaurant trade
includes all the programs offered on PREMIERE
SPORT 1 and 2.
Pay-per-view: 1.6 million tickets sold
Along with the growing number of Premiere subscribers,
orders for pay-per-view programs on
PREMIERE DIREKT also increased. Almost 1.6 milli-
Premiere AG | 1st Quarter 2005
Management Report
Business Activity
on tickets were sold in the period under review,
making an increase of 13 per cent on previous
year (Q1 2004: 1.4 million). Ticket sales for BIG
BROTHER 24 STUNDEN LIVE! and the adult entertainment
BLUE MOVIE programs sold particularly
well. The BLUE MOVIE telemedia service has been
enhanced in February. Six titles are now offered
every day, with 20 new films to choose from each
month.
Decrease in advertising revenue from magazine
compensated
On the advertising side Premiere managed to compensate
for the loss of sales revenues in the period
under review resulting from quitting its publishing
activities in the 2nd quarter 2004. In April
2004 the program magazine “tv kofler” was discontinued,
followed by the Premiere magazine in
June 2004. Revenue losses were almost completely
offset by increased revenues from TV advertising
sales and direct marketing.
At the start of the year Premiere attracted a new
high profile TV advertising client in Volkswagen AG.
VW is the only company from the automobile sector
advertising in the second-half 2004/2005,
taking TV spots in all broadcasts of Bundesliga
first division football matches. In the first quarter
2005 Premiere also started selling exclusive advertising
space for the live broadcasts of the 2005
FIFA Confederations Cup and the 2006 FIFA World
Cup matches.
In January 2005 Premiere launched its own media
portal on the Internet at http://media.premiere.de.
The service provides comprehensive information
12

for potential media partners on the wide-ranging
options for advertising and partnership arrangements
with Premiere.
Sales, marketing and customer service
After the restructuring of this division that took
place in 2004, the first quarter was a period of
consolidation and development of its successful
sales strategy. With more than 15 different sales
outlets, Premiere is now accessible to everyone
throughout Germany and Austria.
Marketing activity in the first quarter 2005 consisted
chiefly of a broad-ranging campaign on the flotation
of Premiere AG. Under the slogan “Premiere
is Number One” the TV and print media campaign
covered the full spectrum from its varied and exclusive
programming to the growth prospects of the
subscription broadcaster in clear and convincing
style. Private investors and subscribers alike were
targeted with spots, mailings and flyers.
In January 2005 Premiere launched a bonus program
for subscribers called Premiere Stars. The
first customer loyalty scheme of its kind in the
European television industry, Premiere subscribers
can collect bonus points and redeem them for
attractive prizes. The more and the longer the subscriber
uses Premiere, the more points – Premiere
Stars -– are credited. Premiere Stars are issued
against sales on the respective subscription, for
PREMIERE DIREKT purchases or for recommending
Premiere to a friend. The bonus points can be
exchanged for attractive program offers and other
items, including exclusive prizes that no money
can buy, such as a Bundesliga VIP ticket, a visit
behind the scenes in Hollywood or a trip to the
Golden Globe awards.
Premiere AG | 1st Quarter 2005
Management Report
Business Activity
13

Assets and financial position
• Balance sheet substantially improved
• Equity to total assets rises to 58 percent
• Net debt reduced to EUR 83.6 million
Total assets decreased at the end of 2004 by 1.3
per cent to EUR 1,282.0 million (12/31/2004:
EUR 1,298.8 million). The IPO and the new financing
structure improved the equity to total asset
ratio significantly.
Equity rose by EUR 326.6 million to EUR 745.5
million (EUR 418.9 million). The significant strengthening
of the equity base was due to the capital
increase in connection with the flotation.
Subscribed capital increased due to the issue of
12 million new shares by EUR 12.0 million. The
cash increase from the issue of the new shares,
allowing for capital acquisition costs and deferred
tax factors, amounted to EUR 314.9 million.
The equity total assets ratio on balance sheet
at end of 1st quarter 2005 is 58.1 per cent
(32.3 per cent).
The IPO saw a complete refinancing exercise on
much more favorable terms. Existing loans – the
existing operating credit and bond – were fully
repaid using the proceeds of the issue and the
drawdown of the new loan facility of EUR 100.0
million. As a result of the new funding structure
and scheduled repayments of leasing obligations,
total financial debt fell by 72.0 per cent to EUR
120.9 million (EUR 431.2 million). Net financial
debt at quarter cut-off date amounts to EUR 83.6
million (EUR 370.2 million).
Trade accounts payable fell largely due to payments
for the purchase of receivers. Accruals and
deferred income also fell. The fall resulted from
the release of deferred payments for prepaid sub-
Premiere AG | 1st Quarter 2005
Management Report
Assets and financial position
scriptions, which are recorded as sales in equal
installments over the term of the subscription. The
marked fall in other liabilities was largely due to
time-value adjustments on derivatives contracts,
the fulfillment of obligations to employees and the
payment of sales tax liabilities. A counter effect
was the increase in deferred tax liabilities. In contrast
to the trade balance sheet the intangible
brand name and goodwill assets are systematically
amortized in the tax calculation.
Total assets (excluding cash items) rose slightly by
EUR 6.9 million to EUR 1,244.7 million (EUR
1,237.8 million). This trend was due mainly to the
sharp rise in advance payments for sports and film
rights and the marked increase in accruals and
deferred income. Interest charges were incurred on
the provision of new loans that were posted to
deferred charges. In addition, other tax loss carryforwards
were carried to assets, causing a sharp
rise in deferred tax assets. This was offset by the
reduction in stocks due to the depreciation as well
as of sales of receivers to dealers and to new subscribers,
the significant decline in the accounts
receivable for goods and services as a result of
the payment of receivables due, in particular by
dealers, and the planned wear and tear of the
intangible and tangible assets.
14

High inflow of funds from issue proceeds
The outflow of funds from current business activities
compared to the 1st quarter 2004 increased
by EUR 2.3 million to EUR 29.5 million (Q1 2004:
EUR 27.2 million).
The outflow of funds from investment activities
decreased by EUR 0.9 million to EUR 1.0 million.
The investments essentially concerned intangible
and tangible assets.
Cash flow from financing activities improved by
EUR 14.2 million to EUR 6.7 million. The issue proceeds
in the amount of EUR 332.1 million and the
inflow of funds due to the new credit were used to
repay existing financial debt including interest, and
primarily to completely repay the old loan facility
and bonds.
At quarter end, Premiere had at its disposal liquid
funds in the total amount of EUR 37.3 million.
Compared to 31 December 2004, liquid funds
dropped by an amount of EUR 23.7 million.
Premiere AG | 1st Quarter 2005
Management Report
Assets and financial position
15

Share
The initial public offering of Premiere AG on
9 March 2005 was a great success. During the
bookbuilding phase that lasted from 23 February
to 8 March 2005, investors subscribed for
525 million shares in the overall value of EUR
14.5 billion. The issue was more than 12.3 times
oversubscribed. At EUR 28.00, the issuing price
for Premiere stock was at the upper end of the
pricing range. 42.1 million stocks were placed.
24.6 million stocks plus a green shoe of
5.5 million came from the existing shareholders,
12 million stocks from a capital increase. The
issue volume was EUR 1.179 billion. Premiere
AG's initial public offering was the largest new
issue by a German media company to date. After
the initial public offering and capital increase,
Premiere AG has a total stock of 82 million
shares.
In assigning shares, Premiere treated private investors
preferentially. 30 per cent of all offered shares
(12.6 million) were allocated to private investors.
70 per cent of the offered shares went to
institutional investors. 39 per cent of the offered
shares were placed with domestic stockholders,
32 per cent to stockholders in Great Britain, 15
per cent in remaining Europe, and 14 per cent in
the US.
The first trading price for Premiere stock was EUR
30.50, 9 per cent above the issuing price of EUR
28.00. The positive and stable price development
of Premiere's shares resulted primarily from
purchases by institutional investors in the first
days of trading. In a relatively stable market environment,
Premiere's stock developed in line with
the DAX and MDAX, at an overall high level. On 31
March 2005, Premiere closed at a price of EUR
31.95, so that the market price exceeds the
issuing price by 14 per cent.
On the basis of the closing price on 31 March
2005 of EUR 31.95, market capitalization is EUR
2.6 billion, and the free-float market capitalization
is EUR 1.3 billion.
With its high free-float market capitalization and a
high average trading volume, Premiere AG satisfies
important criteria for being admitted into the MDAX
segment.
Shareholder structure
Of the total of 82 million shares, 51.3 per cent are
free float. The remaining shares are held by financial
investors (33.8 %) as well Premiere management
(14.9 %) with 6- and 12-month lock-up
Free float
51.3 %
periods respectively.
Management
14.9 %
Financial Investors
33.8 %
Premiere AG | 1st Quarter 2005
Management Report
Share
13.9 % Dr. Georg Kofler
0.5 % Michael Börnicke
0.5 % Hans Seger
23.7 %
1.5 %
4.3 %
4.3 %
16

Research and development
• Viewer research: Premiere audience share
in subscriber households increases to
24.3 per cent
• New programming sharpens profile
• Innovative technologies for a completely new
TV experience
With Premiere, the viewer always plays the leading
part. Therefore, the pay TV station itself conducts
comprehensive research regarding their viewers.
An in-house digital panel linked to more than 500
households delivers round-the-clock measurements
of the viewing habits in Premiere households,
resulting in key findings that are then used for
purchasing rights, programming and advertising
marketing. In addition, regular surveys provide
information about customer satisfaction and the
customers' willingness to cancel their subscription.
In combination with information about its customers,
Premiere receives a very comprehensive
data matrix as a basis for continuously optimizing
its range of products.
In the first quarter 2005 viewing figures for
Premiere programs in subscriber households rose
to 24.3 per cent, making it almost as high as the
combined share of RTL, SAT.1 and ProSieben,
which together accounted for 25.1 per cent.
Subscribers spent the most time viewing the
theme channels (52.4 %). The seven cinema channels,
PREMIERE 1 to PREMIERE 7 have a 26.6 per
cent audience share, PREMIERE SPORT 1 and 2
had an audience share of 20.9 per cent.
24.3
25
20
15
10
5
0
Launch of new theme channel
Premiere AG | 1st Quarter 2005
Management Report
Research and development
TV market share in Premiere households*
(in %)
%
10.8
8.6
8.1
7.7
PREMIERE RTL ARD SAT.1 ZDF Pro7 RTL2 VOX Kabel1
On 1 June, FOCUS GESUNDHEIT, the first Germanspeaking
health-TV channel, will begin airing with
Premiere. This television broadcasting station will
be exclusively devoted to the subjects of medicine,
research, fitness, well-being, nutrition and beauty.
The 24-hour program is produced and organized by
Focus TV Produktions GmbH, the television subsidiary
of the news magazine "Focus".
6.2
*Basis: Viewers aged 3+, Germany Q1 2005
Source: Modata GmbH/Premiere Panel
4.2
3.5
2.7
17

Everything at a glance with the new
PREMIERE SPORT Portal
Premiere has also redesigned its sports program:
As of the beginning of June, Premiere subscribers
can view the complete program on one gateway
page. With modern picture-in-picture presentation,
the new start page will offer the viewer a convenient
overview of all current sports transmissions
and services. Thanks to the multifeed technology
known from formula 1 racing and the Bundesliga
soccer broadcasts, the new Premiere Sport gateway
page provides easy and direct access to up to
15 sports transmissions in parallel. Thus the subscription
transmitter in future can present more
sports events at the same time than ever before
on German television.
Top sport live: from June on the new PREMIERE SPORT Portal
Video-on-demand with PREMIERE DIREKT+
Premiere AG | 1st Quarter 2005
Management Report
Research and development
On the basis of the technological innovation represented
by digital TV, Premiere is also developing
completely new program choices: In July,
PREMIERE DIREKT+ will commence which will be a
new video-on-demand service available using a normal
TV set. The service offers Premiere subscribers
a choice of up to 30 films, updated weekly.
The films are transferred to the machine's hard
disk and stored in several, easy to understand
categories. From this home-based video library, viewers
can for a fee directly order the film of their
choice and watch it immediately.
And in November 2005,
the start of the first set
of programs using the
high-resolving television
format HDTV is planned. Premiere viewers can then
watch films, documentaries and live sports on
three channels in unprecedented picture quality.
18

Organization and employees
• After outsourcing, employee numbers fall to
1,588 FTEs
• Premiere AG: new employer for 150 employees
• New subsidiary PI Systems for IT services
As at 31 March 2005 the Premiere group employed
1,588 full-time employees. That ist 253 less
than the end of the same prior year quarter
(1,841). The reduction is largely due to the sale of
DPC Digital Playout Center GmbH as well as the
restructuring of Premiere’s Austrian operations.
Employees
2000
1500
1000
500
0
1,588
Q1 2005
1,841
Q1 2004
Premiere AG: new employer for 150 employees
Premiere AG, in which all business activities of
Premiere Group are concentrated, operates as the
control center for strategic and financial functions
as well as in the service areas of human resources,
legal matters and communications for each of
the Group's associated companies. Therefore,
after the new Premiere AG was registered in the
Munich trade register in November 2004, 141
employees were transferred to the new holding
company, effective as of 1 January 2005. Since
then, Premiere AG increased its staff by 9 employees
and at the end of the first quarter 2005
employed a total of 150 full-time staff.
Employees as entrepreneurs
Premiere AG | 1st Quarter 2005
Management Report
Organization and employees
After the IPO in March 2005, Premiere's management
holds about 15 percent of Premiere stock.
This shows that with Premiere, entrepreneurial spirit
is not merely an empty concept. Also outside
the executive board, numerous Premiere employees
have become shareholders in “their company”.
Highly qualified and motivated employees who
think and act in an entrepreneurial manner are one
of the biggest assets a company can have. With
standardized organizational structures and clear
communication and management guidelines,
Premiere implemented the "Shape" project in the
course of the second half-year 2004, to enhance
the framework for promoting creativity, personal
responsibility and motivation. Already in the first
quarter in 2005, a number of focused human
resource development measures were implemented,
ranging from coaching and personal training to
team seminars.
19

Concentration on core activities:
New subsidiary PI Systems
In the course of its consistent concentration on
core activities, Premiere has transferred the operational
IT area to PI Systems (Premiere Information
Systems GmbH) at 15 March 2005. The new company
is a fully owned subsidiary of Premiere and
from now on operates as an IT service company for
the Premiere Group. Its managers are the Premiere
executive board members Dr. Friedrich-Carl Wachs
and Michael Börnicke as well as Günter Weinrauch,
who has been with Premiere from the beginning of
2005 and is responsible for IT activities.
Effective as of 1 May 2005, the operationally
active business segments System Management
and IT Solution Center with almost 100 employees
were transferred from Premiere Fernsehen GmbH &
Co. KG to PI Systems. Management of IT activities,
which entails coordinating requirements and projects
as well as ensuring quality management and
cost transparency, remains the responsibility of
Premiere Fernsehen GmbH & Co. KG.
Premiere AG | 1st Quarter 2005
Management Report
Organization and employees
20

Outlook
• Premiere continues on track for growth in 2005
• New sport portal starting in June
• Premiere digital recorder (PDR) with video-ondemand
service starting in July
• HDTV programming starting in November
• Marketing for premium subscriptions concentrated
in the second half of 2005
Premiere will continue its positive business performance
through 2005. Growth will pick up momentum
in the second half-year of 2005, especially in
the fourth quarter. With a series of innovations,
Premiere will further consolidate its unique position
in the German TV market.
Starting on June 4, Premiere will break new ground
in digital sports television: the PREMIERE SPORT
portal will give sports fans a one-of-a-kind TV experience.
Subscribers will be able to view all of
Premiere’s sports programs on a single gateway
page. The PREMIERE SPORT portal with its modern
picture-in-picture format will give viewers a clear
overview of all sporting events currently on-air.
Premiere will be able to broadcast up to 15 sports
events parallel, which has never been seen before
on German television.
In July, PREMIERE DIREKT+ will be launched, a new
video-on-demand service available using a normal
TV set in your living room. The service offers
Premiere subscribers a choice of up to 30 films,
from current blockbusters to adult entertainment,
updated weekly. The films are loaded onto the
hard drive of a Premiere digital recorder (PDR) overnight
and stored in several, easy to understand
categories. From this home-based Premiere video
library, viewers can for a fee directly order the film
of their choice and watch it immediately. Initially,
PREMIERE DIREKT+ and the new PDR will only be
available for subscribers with satellite reception.
Premiere AG | 1st Quarter 2005
Management Report
Outlook
The first program package to be broadcast in highresolution
HDTV format is scheduled to be launched
in November 2005. Premiere subscribers will
be able to watch films, documentaries and live
sporting events on three channels in unprecedented
picture quality. The programs will be digitally
broadcast via ASTRA satellite. Premiere also has
plans to transmit its HDTV programming by cable.
In 2005, Premiere will further enhance the USPs
that differentiate it against free-to-air broadcasters.
An innovation campaign will be launched that will
leave its mark in the second half of 2005. This will
generate additional interest in digital television and
in Premiere. All innovations will enhance
Premiere’s image as the leading TV brand for premium
entertainment. Premiere believes the most
convincing products are those can be understood
at first glance. The PREMIERE SPORT portal, PRE-
MIERE DIREKT+ and HDTV all fulfill this requirement.
Due to this innovation strategy, Premiere will
concentrate its marketing and sales activities in
the second half of 2005, where the marketing
focus will be on premium subscriptions.
21

Financial Statements
22

EUR 1/1/ - 3/31/05 1/1/ - 3/31/04
Revenues 247,397,239.11 224,203,036.63
Cost of sales (194,088,913.48) (192,497,169.08)
Film and programming costs (135,720,116.14) (119,154,411.28)
Transmission costs (25,039,584.96) (22,900,559.07)
Subscriber and other direct costs (12,600,490.15) (28,597,540.52)
Receiver costs (20,728,722.23) (21,844,658.21)
Gross profit 53,308,325.63 31,705,867.55
Selling expenses (25,700,813.12) (30,806,426.69)
General and administrative expenses (20,503,331.06) (17,272,391.99)
Other operating income 9,906,831.49 8,397,601.14
Other operating expenses (1,245,690.18) (1,998,477.86)
Amortization of subscribers (12,064,405.16) (12,064,406.16)
Result from operations 3,700,917.60 (22,038,234.01)
Result of associates 33,330.92 0.00
Interest and similar income 548,152.79 434,278.18
Interest and similar expenses (12,887,142.76) (19,505,691.40)
Loss before taxes (8,604,741.45) (41,109,647.23)
Income tax 5,254,404.18 (249,921.84)
Net loss for the period (3,350,337.27) (41,359,569.07)
Allocable to:
Stockholders (3,350,337.27) (41,359,569.07)
Earnings per share
basic and diluted (0.05) (0.94)
Premiere AG | 1st Quarter 2005
Financial Statements
Consolidated statement of operations
Consolidated statement of operations
23

Consolidated balance sheet
EUR 3/31/05 12/31/04
Assets
Current assets
Cash and cash equivalents 37,285,436.73 60,994,798.99
Trade receivables 46,987,060.35 60,429,274.00
Receivables due from associates 435,936.21 11,593.68
Film assets and advance payments for sport and film rights 61,993,342.76 47,937,829.19
Inventories 14,391,492.75 20,404,373.43
Other assets and prepaid expenses 15,416,970.43 11,715,540.19
Total current assets 176,510,239.23 201,493,409.48
Non-current assets
Deferred taxes 60,694,955.26 46,722,710.44
Film assets and advance payments for sport and film rights 8,366,442.07 2,891,311.17
Investments and long-term financial assets 117,906.00 117,038.00
Investments in associates 863,598.55 788,267.63
Receivers 5,213,866.45 7,244,430.61
Property, plant and equipment 7,231,910.00 7,890,370.00
Intangible assets 1,013,611,568.47 1,029,143,589.04
Other assets and prepaid expenses 9,383,032.73 2,518,676.09
Total non-current assets 1,105,483,279.53 1,097,316,392.98
Total assets 1,281,993,518.76 1,298,809,802.46
Premiere AG | 1st Quarter 2005
Financial Statements
Consolidated balance sheet - Assets
24

Consolidated balance sheet
Premiere AG | 1st Quarter 2005
Financial Statements
Consolidated balance sheet - Liabilities and stockholders' equity
EUR 3/31/05 12/31/04
Liabilities and stockholders' equity
Current liabilities
Borrowings 11,694,315.91 16,022,975.83
Trade payables 204,168,080.29 210,056,564.26
Other provisions 23,553,342.35 25,000,298.74
Deferred income 33,226,635.14 37,265,476.59
Other liabilities 34,941,996.52 50,956,561.70
Total current liabilities 307,584,370.21 339,301,877.12
Non-current liabilities
Borrowings 109,239,417.18 415,142,431.88
Trade payables 18,159,323.41 20,375,723.01
Provisions for pensions and similar obligations 6,209,981.00 6,070,531.00
Deferred income 5,246,243.12 5,972,925.47
Deferred taxes 67,232,995.08 62,140,627.31
Other liabilities 22,856,027.88 30,906,417.79
Total non-current liabilities 228,943,987.67 540,608,656.46
Total liabilities 536,528,357.88 879,910,533.58
Stockholders' equity
Capital stock 82,000,000.00 70,000,000.00
Additional paid-in capital 950,995,947.05 636,076,057.18
Retained earnings (824.60) (2,997,164.00)
Accumulated losses carried forward (284,179,624.30) (203,558,892.48)
Net loss for the period (3,350,337.27) (80,620,731.82)
Total stockholders' equity 745,465,160.88 418,899,268.88
Total liabilities and stockholders' equity 1,281,993,518.76 1,298,809,802.46
25

Statements of changes in equity
Premiere AG | 1st Quarter 2005
Financial Statements
Statements of changes in equity
KEUR Capital stock Additional Retained earnings Net loss Accumulated Total
paid-in capital Market valuation for the period deficit c/fwd
of financial
assets/
interest swap
Balance as of 1/1/04 25 41,776 (2) (203,558) (1) (161,759)
Reclassification of prior year earnings 0 0 0 203,558 (203,558) 0
Changes in fair value
of available for sale financial assets 0 0 2 0 0 2
Market valuation of interest swap 0 0 (2,821) 0 0 (2,821)
Total losses recognized directly in equity 0 0 (2,820) 0 0 (2,820)
Net loss for the period 0 0 0 (41,360) 0 (41,360)
Total losses 0 0 (2,820) (41,360) 0 (44,179)
Balance as of 3/31/04 25 41,776 (2,822) (41,360) (203,559) (205,939)
Balance as of 1/1/05 70,000 636,076 (2,997) (80,621) (203,559) 418,899
Reclassification of prior year earnings 0 0 0 80,621 (80,621) 0
Contribution of capital by stockholders 12,000 0 0 0 0 12,000
IPO premium less transaction costs
net of deferred taxation 0 314,920 0 0 0 314,920
Total transactions with stockholders 12,000 314,920 0 0 0 326,920
Changes in fair value
of available for sale financial assets 0 0 1 0 0 1
Release of fair value adjustments booked to
equity from ineffective hedging instruments
(after deferred taxation effects) 0 0 2,996 0 0 2,996
Total losses recognized directly in equity 0 0 2,996 0 0 2,996
Net loss for the period 0 0 0 (3,350) 0 (3,350)
Total gains / losses 0 0 2,996 (3,350) 0 (354)
Balance as of 3/31/05 82,000 950,996 (1) (3,350) (284,180) 745,465
26

Statements of cash flows
Premiere AG | 1st Quarter 2005
Financial Statements
Statements of cash flows
EUR 1/1/ - 3/31/05 1/1/ - 3/31/04
Net loss for the period before taxes (8,604,741.45) (41,109,647.23)
Net interest expense 12,338,989.97 19,071,413.22
Depreciation and amortization, net of reversal of impairment losses 6,970,063.20 8,148,365.01
Amortization of subscribers 12,064,405.16 12,064,406.16
Non-cash sale of d-boxes to subscribers in return for offset of deposits (1,092,706.38) (3,715,568.82)
Other non-cash income and expenses 9,741.09 67,365.92
Change in other provisions (1,716,967.79) 76,274.44
Gains / losses on sale of noncurrent assets 6,906.52 (8,256.82)
Changes in inventories, trade receivables and other assets (3,127,141.16) 6,609,235.26
Changes in trade payables and other liabilities (46,321,945.19) (28,360,406.71)
Net cash used in ordinary activities (29,473,396.03) (27,156,819.57)
Proceeds from sale of intangible assets, property,
plant and equipment and financial assets 12,348.48 8,770.71
Investments in financial assets (988,257.28) (1,850,657.90)
Net cash used by investing activities (975,908.80) (1,841,887.19)
Proceeds from capital increase by stockholders 332,063,901.43 0.00
Proceed from financial loan 100,000,000.00 7,250,000.00
Interest received 548,152.79 434,278.18
Payments of finance leasing liabilities (7,026,974.49) (9,262,994.16)
Repayment of borrowings (368,234,111.45) 0.00
Interest paid (50,611,025.70) (5,902,702.56)
Net cash provided / used by financing activities 6,739,942.57 (7,481,418.54)
Net decrease in cash and cash equivalents (23,709,362.26) (36,480,125.30)
Cash and cash equivalents at beginning of period 60,994,798.99 69,377,594.61
Cash and cash equivalents at end of period 37,285,436.73 32,897,469.31
27

Notes
28

General information
and basis of preparation
Premiere AG (also referred to as "the Company")
has prepared consolidated interim financial statements
in accordance with the International
Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB)
and their interpretations issued by the
International Financial Reporting Interpretations
Committee (IFRIC). The accompanying consolidated
interim financial statements have been prepared in
compliance with International Accounting Standard
(IAS) 34.
All standards and interpretations published by the
IASB, which have to be applied as of March 31,
2005, have been taken into account. The Company
voluntarily early adopted IFRIC 4 “Determining
whether an Arrangement contains a Lease“ in its
financial statements for the year ended December
31, 2004. The prior year figures have been determined
in accordance with the standards in force
as of December 31, 2004.
Adoption of the following standards and interpretations
is obligatory for financial years commenc-ing
on or after January 1, 2006:
IFRS 6 Exploration for and Evaluation of Mineral
Resources
IFRIC 3 Emission Rights
IFRIC 5 Rights to Interests arising from
Decommissioning, Restoration and
Environmental Rehabilitation Funds
Early adoption would have no impact on the consolidated
interim financial statements, since Premiere
AG and its subsidiaries (referred to as
"Premiere") do not hold any such assets or emission
rights.
Premiere AG | 1st Quarter 2005
Notes
General information and basis of preparation
The accounting policies applied as of March 31,
2005 comply with those as of December 31,
2004, so that reference should be made to the
notes to the consolidated financial statements at
December 31, 2004. There have been no changes
in the scope of the consolidation compared with
December 31, 2004.
The financial statements present a true and fair
view of the net assets, financial position and
results of operations of the Group.
29

Changes in assets
Receivers
During the reporting period, a lessor exercised its
put option at the end of the contractual term. This
transaction resulted in the reclassification of KEUR
666 (cost of KEUR 1,218 less accumulated depreciation
of KEUR 552) within property, plant and
equipment from "receivers under finance leases"
to "own receivers". In addition, a further finance
lease expired as scheduled. The receivers previously
leased were repurchased at the end of the
term of the lease. This resulted in the reclassification
of KEUR 576 (cost of KEUR 1,802 less accumulated
depreciation of KEUR 1,226) from "receivers
under finance leases" to "own receivers".
Fixed disk receivers recognized as assets were
tested for impairment as of March 31, 2005. The
impairment test performed in accordance with IAS
36 resulted in an impairment loss of KEUR 462.
The recoverable amount comprises the fair value
less costs to sell.
Inventories
Some of the receivers recognized in inventories in
the amount of KEUR 13,492 have been written
down by KEUR 3,136 to their net realizable value
of KEUR 10,355. The write-down of KEUR 521
recorded against the receivers as of December 31,
2004 was reversed by KEUR 43. The new carrying
amount of KEUR 993 represents the adjusted net
realizable value.
Premiere AG | 1st Quarter 2005
Notes
Significant influences in the consolidated interim financial statements
Significant influences on the consolidated
interim financial statements
Changes in liabilities and stockholders' equity
IPO and stockholders' equity
At the extraordinary meeting of the stockholders
on February 28, 2005, Premiere AG's stockholders
approved the Company's IPO, including the admission
of the Company's entire subscribed capital for
trading on the official market (prime standard) and
the commencement of stock exchange trading in
the Company's shares on the Frankfurt stock
exchange on March 9, 2005.
In addition, the stockholders approved at the same
meeting an increase of KEUR 12,000 in Premiere
AG's subscribed capital from KEUR 70,000 to
KEUR 82,000. The increase was to be carried out
by means of a contribution in cash through the
issuance of 12,000,000 new registered shares
with no par value and an imputed value of EUR
1.00 per share, to the exclusion of the statutory
subscription rights of the stockholders.
A total of 42,090,000 shares, comprising
12,000,000 shares from the increase in capital as
a result of the resolution dated February 28,
2005, 24,600,000 shares owned by Fernseh
Holding III S.à.r.l. and 5,490,000 shares from the
over-allotment option granted ("Greenshoe-shares"),
were issued in the course of the IPO on
March 9, 2005.
The issue price for Premiere AG's shares was EUR
28.00. The allotment resulted in a total issue volume
of KEUR 1,179,000. Following the IPO,
Premiere AG is reporting a total of 82,000,000
shares.
30

Old working capital credit
The working capital credit with a nominal volume of
KEUR 140,000 ("old working capital credit") plus
the accumulated interest of KEUR 14,265 was
repaid in full to the consortium banks on March
11, 2005, using the funds generated by the increase
in capital.
New working capital credit
On December 22, 2004, Bayerische Landesbank,
Bayerische Hypo- und Vereinsbank AG
(HypoVereinsbank) and the Austrian Bank für Arbeit
und Wirtschaft AG (BAWAG) granted Premiere AG a
new working capital credit in the form of an overdraft
line of altogether KEUR 25,000. It was agreed
that this credit would only be used for the operative
business operations, and in particular for
preparations for the IPO. This credit expired on
March 23, 2005. Premiere made no use of this
credit facility.
Bonds
The bonds totaling KEUR 228,234 reported as of
December 31, 2004 plus accumulated interest thereon
of KEUR 10,340 were repaid in full to the
bondholders on March 11, 2005. A kicker payment
of KEUR 11,412 was made in addition.
Please refer for further details on the kicker payment
to the notes to the consolidated financial statements
at December 31, 2004. The interest for
the period between January 1, 2005 and the repayment
of the bonds amounted to KEUR 3,960.
Premiere AG | 1st Quarter 2005
Notes
Significant influences in the consolidated interim financial statements
Refinancing
On February 18, 2005, Premiere agreed new credit
financing with a bank consortium under the leadership
of HypoVereinsbank and HSH Nordbank AG.
The new credit line consists of a fixed tranche
("Term Facility") and a revolving tranche
("Revolving Facility"). The Term Facility originally
had an aggregate maximum nominal value of KEUR
175,000, and was reduced on account of the successful
increase in capital in conjunction with the
IPO to KEUR 100,000. This amount was taken up
in full on March 11, 2005. The Term Facility is
repayable by December 31, 2009 in increasing
semi-annual installments, commencing on June
30, 2006. Interest is payable at a floating rate,
interest rate may vary depending on the company's
leverage (defined as proportion of total net debt to
EBITDA). The average interest rate during the first
quarter of 2005 was 4.34 per cent.
The aggregate nominal value of the Revolving
Facility amounts to KEUR 325,000, of which up to
KEUR 165,000 can be made use of in cash. The
remaining amounts can be used in the form of
bank guarantees and letters of credit. Up to KEUR
90,000 from the Revolving Facility can furthermore
be made use of in the form of an overdraft credit
line. No cash drawings had been made on the facility
as of March 31, 2005. The Revolving Facility is
available to the Company for a period of five years;
the term of the cash drawings can be agreed in
each case within this period between Premiere and
the lenders. Amounts repaid within the framework
of the Revolving Facility can be taken up again at
any time up to a month before expiry of the term.
Interest is payable at a floating rate, interest rate
may vary depending on the company's leverage
(defined as proportion of total net debt to EBITDA).
31

Various transaction costs, which have been deferred
over the term of the credit agreement, were
payable for the refinancing.
Statement of operations
Restructuring expenses and income
In the previous year, the restructuring expenses
and income were reported separately in the
consolidated statement of operations. Starting
2005 restructuring cost are reported no longer in
separate line item. The prior year figures have
been adjusted accordingly.
Earnings per share
Basic earnings per share are calculated as the
ratio of Group earnings attributable to the
Company's stockholders and the weighted average
number of shares outstanding during the quarter.
31/3/05 31/3/04
Earnings attributable to
stockholders of Premiere AG
in KEUR (3,350) (41,360)
Weighted average number
of outstanding shares
in thousand 74,000 44,135
Basic earnings per share
in EUR (0.05) (0.94)
No circumstances resulting in a dilution of the earnings
per share existed at the balance sheet date.
Premiere AG | 1st Quarter 2005
Notes
Significant influences in the consolidated interim financial statements
Cash flow statement
Non-cash expenses resulted primarily from sales of
receivers to existing subscribers. The revenues of
KEUR 1,231 on the sales resulted in a corresponding
reduction in the liabilities for security deposits.
The carrying amount of the receivers retired
as a result of the sales amounted to KEUR 141.
The proceeds of KEUR 332,064 from the increase
in capital and the inflow of funds of KEUR 100,000
from taking up a new credit were used to redeem
the existing borrowings, including interest, in particular
for the complete repayment of the old working
capital credit and the bond issue.
32

Other explanatory comments
Derivatives
The interest swaps existing as of December 31,
2004 satisfied the criteria for hedge-accounting.
Changes in their fair value were recognized directly
in equity. The criteria for hedge accounting are no
longer satisfied at the end of the first quarter of
2005. Changes in fair value are accordingly recognized
in the statement of operations as gains or
losses. In the first quarter of 2005, such changes
in fair value resulted in expense of KEUR 4,544.
This expense includes the release of changes of
KEUR 4,781 in the fair value of the interest swap
transactions that had been recognized directly in
equity in the previous year.
The measurement of foreign exchange forward contracts
resulted in a gain of KEUR 409 in the first
quarter of 2005.
Other financial commitments
Other financial commitments are made up as
follows:
TOTAL TOTAL
3/31/05 12/31/04
KEUR KEUR
Film licenses 387,953 388,245
Sport licenses 374,444 452,376
Partner channels 465,729 410,703
Purchase commitments
on receivers 35,362 20,265
Miscellaneous 75,315 83,328
Total 1,338,803 1,354,917
Financial commitments for channels operated by
major film suppliers on the Premiere platform were
reported for the first time as of March 31, 2005
under the partner channels. As a consequence of
this, other financial commitments of KEUR
156,283 have been reclassified as of December
31, 2004 from film licenses to partner channels.
Future commitments under non-cancelable operating
leases are as follows:
Segment reporting
Premiere AG | 1st Quarter 2005
Notes
Other explanatory comments
TOTAL TOTAL
3/31/05 12/31/04
KEUR KEUR
Network operators and
transponder rents 481,076 502,630
Office buildings 28,799 30,248
Motor vehicles 646 828
Technical office equipment 254 292
Total 510,775 533,998
Premiere's business activities concentrate on the
operation of a pay-TV channel in Germany and
Austria. No different business activities or national
differences with varying risks and rewards exist within
this area. A segment report is therefore not required.
Significant events after the end of the reporting
period
Premiere AG has established a subsidiary called
Primus Sport, which is an agency for sport rights
and sport marketing. Primus Sport's objects are
the purchase and marketing of sport rights.
33

Financial Calendar
• Q2 Earnings release: 8/9/2005
• Q3 Earnings release: 11/8/2005
Contact
Corporate Communications:
Dirk Heerdegen
Vice President Corporate Communications
Company Spokesman
Phone: +49 89/99 58-63 50
dirk.heerdegen@premiere.de
Stefan Vollmer
Head of Financial and Business Communications
Phone: +49 89/99 58-63 77
stefan.vollmer@premiere.de
Disclaimer
This report contains forward-looking statements
based on the currently held beliefs and assumptions
of the management of Premiere AG, which are
expressed in good faith and, in their opinion, reasonable.
Forward-looking statements involve
known and unknown risks, uncertainties and other
factors, which may cause the actual results, financial
condition, performance, or achievements of
Premiere AG, or media industry results, to differ
Investor Relations:
Shane Naughton
Deputy CFO
Vice President Investor Relations
Phone: +49 89/99 58-11 00
shane.naughton@premiere.de
Christine Scheil
Director Investor Relations
Phone: +49 89/99 58-10 10
christine.scheil@premiere.de
Premiere AG | 1st Quarter 2005
Financial Calendar
Contact
materially from the results, financial condition, performance
or achievements expressed or implied by
such forward-looking statements. Given these
risks, uncertainties and other factors, recipients of
this document are cautioned not to place undue
reliance on these forward-looking statements.
Premiere AG disclaims any obligation to update
these forward-looking statements to reflect future
events or developments.
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Published by:
Premiere AG · Corporate Communications
Medienallee 4 · 85774 Unterföhring
info.premiere.de
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