Supplemental Disclosure Material - Ono

points to 94.6% at the end of 2011. This increase was primarily due to our efforts to acquire customers taking bundles with
telephony and the lower net churn experienced in customers taking this service. This service is showing resistance to the
decrease in the customer base and minutes of use, remaining strong in terms of national fixed-to-fixed calls; although
fixed-to-mobile and international call volumes remain weak.
In 2010, the number of telephony customers increased by 20 thousand, or 1.2% to 1,686 thousand as of
December 31, 2010. Telephony customers as a proportion of total residential fiber customers increased by 1.8 percentage
points to 93.1% at the end of 2010.
Residential ADSL Services
Residential ADSL services are comprised of services offered through full unbundling of the local loop. These
services provide us with revenues from monthly fees from telephony and broadband internet services and usage charges from
telephony services. The following table sets forth customers, RGU and revenue from our residential ADSL services and
percentage change over the period.
As of and for
December 31, Percentage change
2009 2010 2011 2009/2010 2010/2011
(unaudited)
Customers (in thousands, except percentages) ........................... 77 88 94 14.2% 6.8%
RGUs (in thousands, except percentages) ............................... 136 162 176 18.8% 9.0%
RGUs per customers ............................................... 1.77x 1.84x 1.88x 0.07x 0.04x
In 2011, residential ADSL revenues increased by €4 million, or 10.3%, to €43 million from €39 million in 2010,
reflecting increased focus on this business segment, which resulted in an increase in the number of our ADSL customers,
offset in part by a decrease in variable fee revenues. ADSL customers increased by 6 thousand, or 6.8%, to 94 thousand at the
end of 2011 from 88 thousand at the end of 2010.
In 2010, residential ADSL revenues increased by €5 million, or 14.7%, to €39 million from €34 million in 2009.
ADSL customers increased by 11 thousand, or 14.2%, to 88 thousand at the end of 2010 from 77 thousand at the end of 2009.
Business Services
revenue.
Business services revenues comprise revenues from SMEs, large accounts, corporations, wholesale and other
In 2011, business services revenues, which represented 21.0% of our revenues, increased by €8 million, or 2.6%, to
€310 million from €302 million in 2010, primarily as a result of the good performance in the SME and wholesale segments.
SMEs
Revenues from SMEs services are derived from fees paid by small- and medium-sized enterprises, for voice and
data services, offered individually or as a bundle and incoming interconnection revenues of this segment. We offer SME
services over fiber and ADSL.
The following table sets forth revenues and customers from SMEs services and the percentage change from period
to period:
Percentage change
2009 2010 2011 2009/2010 2010/2011
(unaudited unless stated otherwise)
Customers (in thousands, except percentages) ........................... 67 72 89 6.9% 24.4%
RGUs (in thousands, except percentages) ............................... 111 132 174 18.4% 32.5%
RGUs per customers ............................................... 1.66x 1.83x 1.95x 0.17x 0.12x
Revenues (euro in millions, except percentages) (audited) .................. 70 73 77 4.3% 5.5%
In 2011, SME revenues, which represented 5.2% of our revenues, increased by €4 million, or 5.5%, to €77 million.
SMEs customers increased by 24.4%, to 89 thousand as of December 31, 2011. The good performance in the SME segment is
mainly driven by: (i) our continued focus in this business segment, (ii) the development of new sales channels through the
year, (iii) our competitive price plans and, (iv) our renewed product portfolio including mobile offers.
In 2010, SME revenues, which represented 5.0% of our revenues, increased by €3 million, or 4.3%, to €73 million.
SMEs customers increased by 6.9%, to 72 thousand as of December 31, 2010. The increase in revenue primarily reflects the
effort carried out by the company in this segment despite the difficult macroeconomic environment and the difficulty in
acquiring new customers.
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