iesy Repository GmbH - Irish Stock Exchange

Sales
COURTESY TRANSLATION FROM THE GERMAN LANGUAGE
FOR INTERPRETATION, THE GERMAN TEXT SHALL PREVAIL
KABELNETZ NRW HoldCo GmbH, Cologne
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR FINANCIAL YEAR 2004—(CONTINUED)
370
2004 2003
EUR k EUR k
Cable Television revenues 360,904 332,454
Program revenues and other revenues 40,779 37,481
401,683 369,935
Cable Television revenues principally include monthly as well as annual fees paid by direct subscribers and strategic
customers. In addition to monthly revenues, one-time provisioning charges for cable television are also included.
Program and other revenues are derived from content providers for the distribution of national and regional/local
programs through cable network. Also included in program and other revenues are digital content revenues. Revenues
recognized in this respect in the fiscal year comes to EUR 6,618k. These revenues relate to the feeding in and broadcasting of
digital TV programs. The digital content income is received via MSG MediaServices GmbH (“MSG”), a Kabel Deutschland
GmbH (“KDG”)-Group company that operates the digital platform of the broadband cable business of KDG. Cost incurred
associated with the digital platform of EUR 4,656k is included in costs of purchased services. Due to renegotiations of
contractual conditions for the year 2004, revenues and costs decreased.
Furthermore, other revenues also includes revenues from the internet business (EUR 5,255k) and the fixed-line
telephony business (EUR 1,108k). In April 2004 we launched our “lower priced” internet product “ish internet flat” which
contributed substantially to the increase in the internet segment.
All revenues were generated in North Rhine-Westphalia.
Other Operating Income
Other operating income includes income not related to the period of EUR 14,417k which mainly results from the
reversal of accruals and changes in allowances.
Cost of Materials
Regarding cost of materials (EUR 55,128k) the Group achieved cost savings through the renegotiation with MSG
regarding the takeover of expenses for the supply of the digital platform.
Personnel Costs
Compared with the previous year personnel costs have decreased.
This mainly results from the lower average number of employees compared to last year (in average 949 employees;
prior year: 1,145 employees).