Premiere AG - H1 2005 presentation - Sky Deutschland AG

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Premiere AG - H1 2005 presentation - Sky Deutschland AG

1st Half Year 2005

Premiere. Fernsehen erster Klasse. 1


H1 2005: Positive net income for the

first time

Net income jumps to € 3.3 m from net loss of € 61.2 m:

An improvement of € 64.6 m

EBITDA more than doubled from € 20.7 m to € 49.3 m

EBITDA of € 58.3 m before one time costs for the IPO

Total revenues up 6% to € 506.1 m

Core business strong: Revenues from core business

(Programming subscription, PPV, Advertising) up 12% to

€ 478.8 m

Subscriber numbers up 14.5% to 3,313,140

Operating costs stable at € 456.8 m

Premiere. Fernsehen erster Klasse. 2


Net subscriber additions of 66,000

in H1 2005

Net subscriber additions

(End of H1 in ‘000) 000)

(14)

66

H1 2004 H1 2005

Net subscriber additions

(End of Q2 in ‘000) 000)

(62)

14

Q2 2004 Q2 2005

Premiere. Fernsehen erster Klasse. 3


3.313 million subscribers at 30 June

2005, healthy package mix

Subscribers

(At 30 June in ‘000) 000)

2,894

+15%

3,313

H1 2004 H1 2005

Package structure

(At 30 June in %)

100% 100%

15%

74%

11%

PREMIERE

KOMPLETT

Other

Premium-

Packages 61%

PREMIERE

START

27%

12%

H1 2004 H1 2005

Premiere. Fernsehen erster Klasse. 4


Churn rate down,

Full year outlook: 13 – 14 %

Q2 2005: 12 month rolling churn rate down to 11.5%

FY 2005: 12 month rolling churn rate of 13% - 14%

expected

12.9%

16.0% 16.0%

13.6%

13.8%

11.5%

Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005

Premiere. Fernsehen erster Klasse. 5


ARPU up 3% from Q1 to Q2

ARPU from core business

(Annualized in €)

295 292

9

14

272

PPV

Advertising

Program

Subscription

10

10

272

H1 2004 H1 2005

ARPU from core business

(Annualized in €)

287

10

7

271

+ 3%

PPV

Advertising

Program

Subscription

295

9

13

272

Q1 2005 Q2 2005

Premiere. Fernsehen erster Klasse. 6


Total revenues up 6%,

Revenues from core business up 12%

Total revenues

(€m) m)

478

+ 6%

506

H1 2004 H1 2005

Revenues from core business –

Program subscription, pay-per pay per-

view, advertising

(€m) m)

428

+12%

479

H1 2004 H1 2005

Premiere. Fernsehen erster Klasse. 7


Operating costs remain stable, more

efficiencies in subscriber acquisition

Total Costs (excl. depreciation)

(€m) m)

457 0% 457

H1 2004 H1 2005

Subscriber Acquisition Costs

(€m) m)

64

(9%)

58

H1 2004 H1 2005

Premiere. Fernsehen erster Klasse. 8


Decrease in costs per subscriber

SAC per Subscriber

(€)

293

(17%)

243

H1 2004 H1 2005

Current Costs per Subscriber w/o

receiver costs and depreciation

(Annualized in €)

294

(11%)

261

H1 2004 H1 2005

Premiere. Fernsehen erster Klasse. 9


EBITDA more than doubled,

Net Income up by € 64.6 million

EBITDA

(End of half year in €m) m)

21

>100%

58

9

49

H1 2004 H1 2005

IPO-

Costs

Net income

(End of half year in €m) m)

(61)

>100%

H1 2004 H1 2005

3

Premiere. Fernsehen erster Klasse. 10


Launching a new innovation cycle

1. Programming: More exclusivity, more choice

Fresh presentation: Premiere Sports Portal

More sport, new theme channels, new series

More interactivity: PREMIERE WIN

2. New package structure

PREMIERE FOOTBALL LIVE as a new add-on

subscription for €14.90 per month

Standard packages redefined: PREMIERE

THEMA and PREMIERE SPORT (€ 19.90

each), PREMIERE FILM (€ 24.90)

3. Technology

Video on demand: PREMIERE DIREKT+ via

Premiere Digital Recorder

High Definition TV: PREMIERE HD

Premiere. Fernsehen erster Klasse. 11


PREMIERE WIN: The new brand for

betting and gaming

Interactive channel with betting on live horse-racing,

gaming and sports news in co-operation with

Magna Entertainment and Betandwin

Range of programming and betting options will be

gradually extended, in the lead up to the FIFA World

Cup in 2006

New triple-play betting: TV, internet, betting agencies

Premiere well positioned to enter betting business with

customer base of 3.3 million subscribers and nearly

5,000 hours of live sports

Forecast 2008: Over € 1 billion in betting receipts.

Revenues for Premiere between 5% and 15%.

Premiere. Fernsehen erster Klasse. 12


Full year 2005 outlook

Net subscriber additions: 300,000 – 350,000

> 3.4 million subscribers as of 30 September 2005

3.55 – 3.60 million subscribers as of 31 December 2005

Churn between 13% and 14%

Double digit percentage revenue growth:

Revenues > € 1.1 billion

EBITDA € 120 – 150 million

Premiere. Fernsehen erster Klasse. 13


Reiterating mid- and long-term

targets

Mid Term (End 2007/H1 2008):

> 4 million subscribers

ARPU > € 350

EBITDA margin > 20%

Long Term (2011 -> 2014)

> 7 million subscribers

ARPU > € 400

EBITDA margin > 25%

Premiere. Fernsehen erster Klasse. 14


Disclaimer

This presentation contains forward forward-looking looking statements based on the currently held beliefs and assum assumptions ptions

of the management of Premiere AG, which are expressed in good fa faith ith and, in their opinion, reasonable.

Forward Forward-looking looking statements involve known and unknown risks, uncertaintie uncertainties s and other factors, which may

cause the actual results, financial condition, performance, or aachievements

chievements of Premiere AG, or media

industry results, to differ materially from the results, financi financial al condition, performance or achievements

expressed or implied by such forward forward-looking looking statements. Given these risks, uncertainties and other ffactors,

actors,

recipients of this document are cautioned not to place undue rel reliance iance on these forward forward-looking looking statements.

Premiere AG disclaims any obligation to update these forward forward-looking looking statements to reflect future events or

developments.

Whilst all reasonable care has been taken to ensure that the inf information ormation and facts stated herein are

accurate and that the opinions and expectations contained herein are fair and reasonable, no representation

or warranty, express or implied, is made by Premiere AG with res respect pect to the fairness, completeness,

correctness, reasonableness or accuracy of any information and oopinions

pinions contained herein. It is pointed out

that the existing presentation may be incomplete or condensed, aand

nd it may not contain all material

information concerning Premiere AG or the Premiere group.

Premiere AG reserves the right to change and complete the inform information ation in this presentation without notice.

Premiere. Fernsehen erster Klasse. 15


1st Half Year 2005

Questions & Answers

Premiere. Fernsehen erster Klasse. 16

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