[August 06, 2014]

Sky Deutschland Preliminary Results

In Q2 2014 (April-June), Sky Deutschland delivered strong net growth, new record-level churn rates and continued improvement across all key operating metrics. Net growth increased by 71% year-on-year to 82,000 (Q2 2013: 48,000) with 3,813,000 direct subscribers at the end of the quarter (Q2 2013: 3,453,000). Gross additions grew by 17% year-on-year to 154,000 (Q2 2013: 131,000).

Customer loyalty has improved significantly with the quarterly annualized churn rate decreasing to 7.7% (Q2 2013: 9.7%) and the 12-month rolling churn rate to 10.1% (Q2 2013: 12.0%). Both represent the lowest rates in the company's history.

EBITDA increased by 23% to positive €45 million (Q2 2013: €37 million). The continued growth of both subscribers as well as average revenue per user (ARPU) led to total revenues rising 14% to €428 million (Q2 2013: €375 million). ARPU increased by €0.85 to €34.59 (Q2 2013: €33.74). Total costs excluding depreciation were €382 million (Q2 2013: €339 million), representing cost growth of just 6.6 percent when excluding the effect of the enhanced Bundesliga rights.

When looked at from the perspective of the new financial year, EBITDA in 2013/14 (July 2013-June 2014) more than doubled (+127% yoy) to positive €29 million (2012/13: €13 million), total revenues went up by 16% to €1,655 million (2012/13: €1,428 million), and ARPU increased by €1.28 to €34.52 (2012/13: €33.24).

Brian Sullivan, CEO of Sky Deutschland: "Having recently marked the fifth anniversary of Sky Deutschland, in what was not too long ago a dormant pay-TV market, we have now seen 20 consecutive quarters of continuous growth, and we think the potential is just starting to be tapped. We couldn't be more excited about the year ahead."

For the new 2014/15 financial year, Sky expects subscriber net growth of 400 to 450k, and full year EBITDA in the range of €80m to €110m, which will be supported by a continued strong increase in total revenues.

About Sky Deutschland:

Sky Deutschland AG is the leading pay-TV company in Germany and Austria with over 3.8 million subscribers and revenues amounting to 1.7 billion euros. The MDAX-listed company offers subscription TV as well as on-demand services for private and business customers.

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