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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