iesy Repository GmbH - Irish Stock Exchange

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 €0.2 million, or 0.1%, from €401.9 million in the year ended December 31, 2003 (€369.9 million in
the audited year ended December 31, 2003 (including eleven months of operations)) to €401.7 million in the year ended
December 31, 2004. Sales represent 94.7% of total revenues in the year ended December 31, 2004 and 91.7% of total
revenues in the year ended December 31, 2003. This decrease was primarily due to renegotiated contracts with certain Level
4 operators and changes to multiple-dwelling units contracts from a standard tariff to a business tariff.
With respect to the basic cable television business, basic cable subscription fees decreased by €5.6 million, or 1.6%,
from €359.5 million in the year ended December 31, 2003 (€330.9 million in the audited year ended December 31, 2003
(including eleven months of operations)) to €353.8 million for the year ended December 31, 2004. This decrease was
primarily due to lower ARPU resulting from a change to multiple-dwelling units contracts from a standard tariff to a flat
tariff. Installation fees increased by €3.5 million, or 166.7% from €2.1 million in the year ended December 31, 2003 (€1.9
million in the audited year ended December 31, 2003 (including eleven months of operations)) to €5.6 million for the year
ended December 31, 2004. This increase was primarily due to the separation of charges for certain cable equipment in the
billing process and higher one-time charges. In total, the basic cable television business contributed €359.5 million, or 84.8%,
of total revenues in the year ended December 31, 2004 compared to €361.6 million, or 82.5%, of total revenues in the year
ended December 31, 2003 (€332.8 million in the audited year ended December 31, 2003 (including eleven months of
operations)).
ish launched its foreign-language programming as part of its premium cable television business in May 2003 and ish
Digital TV in November 2003. Subscription fees from its premium cable television business contributed €2.7 million, or
0.6%, of total revenues in the year ended December 31, 2004.
Basic and premium cable television carriage fees decreased by €2.0 million, or 5.7%, from €35.2 million in the year
ended December 31, 2003 (€32.2 million in the audited year ended December 31, 2003 (including eleven months of
operations)) to €33.2 million in the year ended December 31, 2004. The decrease was primarily due to one-time revenues in
2003.
High speed Internet sales increased by €1.5 million, or 39.5%, from €3.8 million in the year ended December 31, 2003
(€3.6 million in the audited year ended December 31, 2003 (including eleven months of operations)) to €5.3 million in the
year ended December 31, 2004. High speed Internet sales represent 1.2% of total revenues in the year ended December 31,
2004 and 0.9% of total revenues in the year ended December 31, 2003 (0.9% of the total revenues in the audited year ended
December 31, 2003 (including eleven months of operations)). This increase was primarily due to an increase in customers
since ish launched its “ish Internet flat” and “ish Internet flat pro” products.
Telephony sales remained stable at € 1.1 million for the year ended December 31, 2004 and represented 0.3% of total
revenues.
Own Work Capitalized
Own work capitalized as fixed assets decreased by €0.3 million, or 4.8%, from €6.3 million in the year ended
December 31, 2003 (€5.1 million in the audited year ended December 31, 2003 (including eleven months of operations)) to
€6.0 million in the year ended December 31, 2004 reflecting a stable level of network projects staffed by in-house employees.
Other Operating Income
Other operating income decreased by €13.7 million, or 45.5%, from €30.1 million in the year ended December 31,
2003 (€29.2 million in the audited year ended December 31, 2003 (including eleven months of operations)) to €16.4 million
in the year ended December 31, 2004. This decrease was primarily due to a gain realized in 2003 from a settlement relating to
the cost allocations for services provided by MSG on carriage fees and a settlement with Kabel Baden-Württemberg GmbH
& Co. KG relating to the termination of a shared services agreement in 2003.
Cost of Materials
Cost of materials consists of cost of raw materials and supplies, and cost of purchased services. The former is
comprised mainly of repairs and maintenance and the latter of network infrastructure services, which include costs under
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