iesy Repository GmbH - Irish Stock Exchange

average installation fees from July 1, 2004. In total, the basic cable television business contributed a constant €31.8 million,
or 96.4%, of total revenues in the three months ended March 31, 2004 compared to 95.2%, of total revenues in the three
months ended March 31, 2005.
Subscription fees from iesy’s premium cable television business contributed €0.2 million, or 0.5%, of total revenues in
the three months ended March 31, 2004 compared to €0.2 million, or 0.7%, for the three months ended March 31, 2005.
iesy launched its high speed Internet business in the fourth quarter of 2004. The high speed Internet business
contributed €0.1 million, or 0.3%, of total revenues in the three months ended March 31, 2005.
Own work capitalized
Own work capitalized as fixed assets increased by €0.4 million, from €0.1 million in the three months ended March 31,
2004 to €0.5 million in the three months ended March 31, 2005, reflecting an increase in the level of network projects staffed
by in-house employees and an increased level of installation resulting from the launch of the iesy Internet product portfolio.
Other operating income
Other operating income decreased by 12.2% from €0.9 million in the three months ended March 31, 2004 to €0.8
million in the three months ended March 31, 2005. This decrease was primarily due to lower income resulting from the
release of certain accruals in the financial statements for the three months ended March 31, 2004.
Cost of materials
Raw materials and consumables. Cost of raw materials and consumables increased by €0.1 million, or 14.8%, from
€0.5 million in the three months ended March 31, 2004 to €0.6 million in the three months ended March 31, 2005. This
increase was primarily due to increased Level 3 and Level 4 network activity in conjunction with the network upgrade in
Frankfurt in the three months ended March 31, 2005 as compared to the prior period. The cost of raw materials and
consumables as a percentage of iesy’s total revenues increased from 1.5% to 1.7% in the respective three months.
Purchased services. Cost of purchased services decreased by €0.3 million, or 4.0%, from €6.1 million in the three
months ended March 31, 2004 to €5.8 million in the three months ended March 31, 2005. This decrease was primarily due to
iesy’s review and optimization of services under the Term Sheets with DTAG, which decreased the cost of purchased
services under the SLAs. Cost of purchased services as a percentage of iesy’s revenues decreased to 17.5% in the three
months ended March 31, 2005 compared to 18.5% in the three months ended March 31, 2004.
Personnel expenses
Total personnel expenses increased by €0.4 million, or 7.5%, from €4.9 million in the three months ended March 31,
2004, to €5.3 million in the three months ended March 31, 2005. This increase was due to wage increases and an accrual for
untaken vacation (€0.2 million) at the end of the three months ended March 31, 2005 which had not been booked in the
previous year. Personnel expenses as a percentage of revenues increased to 15.9% in the three months ended March 31, 2005
compared to 14.9% in the three months ended March 31, 2004.
Depreciation and amortization
Depreciation increased by €0.6 million, or 5.3%, from €10.0 million in the three months ended March 31, 2004 to
€10.6 million in the three months ended March 31, 2005. This increase was primarily due to certain capital expenditures
made on iesy’s network in the three months ended March 31, 2005. Depreciation expenses as a percentage of revenues
increased to 31.7% in the three months ended March 31, 2005 compared to 30.4% in the three months ended March 31, 2004.
Other operating expenses
Other operating expenses decreased by €3.6 million, or 38.8%, from €9.4 million in the three months ended March 31,
2004 to €5.8 million in the three months ended March 31, 2005. The costs in the three months ended March 31, 2004 include
€3.8 million of fees paid in respect of strategic advisory services, and €0.3 million in legal and consulting fees. Adjusting for
these fees, other operating expense increased by €0.2 million, or 2.7%, from €5.6 million in the three months ended March
31, 2004 to €5.8 million in the three months ended March 31, 2005. This increase was primarily due to increased sales and
marketing expenditure related to the iesy Internet product portfolio.
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