iesy Repository GmbH - Irish Stock Exchange

Basis of Presentation of Financial Information
The financial information included in this section for the year ended December 31, 2003 is an aggregation of unaudited
information for the month ended January 31, 2003 of the operating business of the subsidiaries of ish and the operating
business for the eleven month period to December 31, 2003, included in the audited financial information for the year ended
December 31, 2003.
Results of Operations for the three months ended March 31, 2004 and 2005
The following table sets forth certain items of unaudited income statement information for the three months ended
March 31, 2005 and the three months ended March 31, 2004:
122
Unaudited
three months ended
March 31,
2004 2005
(€ ‘000s)
Sales 100,557 100,051
Own work capitalized 1,481 1,302
Other operating income 991 2,116
Total revenues 103,029 103,469
Cost of materials
Cost of raw materials and supplies (537) (1,827)
Cost of purchased services (13,957) (10,822)
Personnel expenses
Wages and salaries (12,430) (12,048)
Social security, and other pension costs (2,445) (2,426)
Depreciation and amortizations on intangible assets, property, plant and equipment and on business
expansion expenses (49,346) (47,922)
Other operating expenses (21,716) (19,670)
Other interest and similar income 696 506
Interest and similar expenses (21,164) (16,577)
Result from ordinary activities (17,870) (7,317)
Income taxes (5) (8)
Other taxes (0) (0)
Group net loss for the year (17,875) (7,325)
Comparison of Results of Operations
Unaudited three months ended March 31, 2005 compared to unaudited three months ended March 31, 2004
ish derives revenues from five main business activities: its basic cable television business (including subscription and
installation fees), its premium cable television business (including subscription and installation fees), its high speed Internet
business (including subscription and installation fees), its telephony business and its carriage fees relating to its basic cable
television and premium cable television services. ish refers to the revenues generated by these activities as “sales.” In
addition, ish recognizes other revenues, including own work capitalized and other operating income. Other operating income
includes release of accruals relating to prior periods and prior period income. For further reference, “total revenues” are
defined as the total of sales, own work capitalized and other operating income.
Sales
Sales decreased by €0.5 million, or 0.5%, from €100.6 million in the three months ended March 31, 2004 to €100.1
million in the three months ended March 31, 2005. Sales represented 96.7% of ish’s total revenues in the three months ended
March 31, 2005 and 97.6% of ish’s total revenues in the three months ended March 31, 2004. This decrease was primarily
due to a decline in the total number of basic cable television subscribers (in particular relating to the disconnections by key
account customers like ewt, Bosch and Marienfeld Multimedia, as well as a seasonal high volume of disconnections from
residential customers at the end of 2004) in the three months ended March 31, 2005 compared to the three months ended
March 31, 2004.
With respect to the basic cable television business, basic cable subscription fees decreased by €1.8 million, or 2.1%,
from €88.6 million in the three months ended March 31, 2004 to €86.8 million for the three months ended March 31, 2005.