iesy Repository GmbH - Irish Stock Exchange

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 each of the three months
ended March 31, 2004 and 2005:
92
Unaudited three
months ended
March 31,
2004 2005
(€ ‘000s)
Sales 32,012 32,122
Own work capitalized as fixed assets 133 475
Other operating income 871 765
Total revenues 33,016 33,362
Cost of materials
Raw materials and consumables (507) (582)
Purchased services (6,093) (5,847)
Personnel expenses
Salaries and wages (4,065) (4,426)
Social security, pension and other benefits (855) (862)
Depreciation (10,042) (10,577)
Other operating expenses (9,411) (5,760)
Other interest and similar income 298 617
Interest and similar expenses (1,836) (3,087)
Profit from ordinary activities 505 2,838
Extraordinary income — —
Extraordinary expenses — (14,457)
Extraordinary result — (14,457)
Taxes on income (190) —
Net profit/loss 315 (11,619)
Profit/Loss attributable to minority interests (134) —
Consolidated profit/loss 181 (11,619)
iesy derives revenues from three main business activities: its basic cable television business (including subscription,
installation, and carriage fees), its premium cable television business (including subscription and installation fees), and its
high speed Internet business (including subscription and installation fees). iesy refers to the revenues generated by these
activities as “sales.” In addition, iesy recognizes other revenues, including own work capitalized and other operating income.
Other operating income includes prior period income, such as the release of accruals and allowances, as well as premium
cable television program carriage fees.
Comparison of Results of Operations
Unaudited Three Months ended March 31, 2005 compared to Unaudited Three Months ended March 31, 2004
Sales
Sales increased by €0.1 million, or 0.3%, from €32.0 million in the three months ended March 31, 2004 to €32.1
million in the three months ended March 31, 2005. Sales represent 96.3% of total revenues in the three months ended March
31, 2005 and 97.0% of total revenues in the three months ended March 31, 2004. The increase in sales was primarily due to
price increases, partly offset by churn as a result of those price increases and high speed Internet sales.
Basic cable subscription fees increased by €0.1 million, or 0.5%, from €29.4 million in the three months ended March
31, 2004 to €29.5 million for the three months ended March 31, 2005. This increase was primarily due to iesy’s price
increase and the correction of other smaller pricing anomalies. Basic cable carriage fees increased by €0.1 million, or 4.4%,
from €1.8 million in the three months ended March 31, 2004 to €1.9 million in the three months ended March 31, 2005. This
increase was primarily due to increased revenues from shopping channels such as HSE and QVC. Installation fees decreased
by €0.2 million, or 44.0%, from €0.6 million in the three months ended March 31, 2004 to €0.4 million for the three months
ended March 31, 2005. This decrease was primarily due to lower levels of new homes connected, and a decrease in the