iesy Repository GmbH - Irish Stock Exchange

Business of ish
Products and Services
ish’s core business is the provision of basic cable television services in North Rhine-Westphalia, Germany. ish also
offers its premium cable television services, high speed Internet access, and voice-over-Internet telephony services.
The following chart sets forth certain unaudited information related to ish’s operations:
169
As of and for the
years ended
December 31,
As of and for the
three months ended
March 31,
2003 2004 2004 2005
Subscriber information (’000s, except percentages and ARPUs)
Homes passed (1) 6,544 6,544 6,544 6,544
Total basic cable subscribers (2) 4,048 4,096 4,128 4,021
% penetration 62% 63% 63% 63%
Residential (3) 1,262 1,244 1,260 1,222
Business (4) 1,488 1,410 1,447 1,403
Strategic accounts (2)(5) 1,298 1,442 1,422 1,396
Premium cable television subscribers 18 43 26 60
High speed Internet 10 16 10 19
Telephony 3 5 3 7
Total RGUs 4,079 4,160 4,167 4,107
Basic cable ARPU(€) (2) (6) 7.52 7.36 7.13 7.21
Adjusted basic cable ARPU(€) (7) 7.39 — 7.36 —
Premium cable television ARPU(€) (8) 6.20 8.02 5.60 7.29
High speed Internet ARPU(€) (9) 37.75 33.07 38.22 28.97
Telephony ARPU(€) (10) 25.11 25.11 25.75 26.62
(1) ish calculates homes passed based on ish’s estimate of the number of potential subscribers who are passed by its
network and to whom ish can offer its cable television services.
(2) Does not include 135,000 Tele Columbus subscribers as of December 31, 2003, which were added to ish’s subscriber
number in 2004, when its contract with Tele Columbus was renegotiated.
(3) Residential subscribers typically represent accounts with single dwelling units.
(4) Business customers typically represent accounts with multiple-dwelling units and encompass mainly landlords, small
and medium housing associations and local Level 4 operators.
(5) Strategic accounts encompass professional and other large Level 4 operators and large housing associations and
represent customers outside of ish’s standard terms and conditions. ish includes signal delivery services provided to ish
KS in this category.
(6) Calculated by dividing basic cable subscription revenues (including installation fees, but excluding carriage fees) for a
period by the average number of basic cable subscribers for that period and the number of months in that period.
(7) ish’s basic cable ARPU number for the year ended December 31, 2003 adjusted to include approximately 135,000 Tele
Columbus subscribers.
(8) Calculated by dividing its premium cable television subscription revenues (including installation fees, but excluding
carriage fees) for a period by the average number of its premium cable television subscribers for that period and the
number of months in that period.
(9) Calculated by dividing high speed Internet subscription revenues (including installation fees) for a period by the
average number of high speed Internet subscribers for that period and the number of months in that period.
(10) Calculated by dividing telephony subscription revenues for a period by the average number of telephony subscribers
for that period and the number of months in that period.
Basic Cable Television
As of March 31, 2005, ish’s network passed approximately 6.5 million homes, of which approximately 4.0 million
were connected and subscribed to ish’s services. ish’s basic cable television services account for approximately 84.8% of
ish’s total revenues for the three months ended March 31, 2005. The majority of ish’s customers subscribe to a basic analog
programming package consisting of an average of 33-36 channels (depending on the region served) and up to 35 radio
channels.