Sogecable (DIGITAL+) First Quarter 2008 consolidated results

Friday, April 4th, 2008
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  • The subscriber base of DIGITAL+ stood at 2,080,000 subscribers as of March 31st 2008. During the quarter, DIGITAL+ has continued growing the subscriber base with a net figure of 15,000 new clients joining.
  • Over the quarter, the average revenue per client reached Euros 48.7. The cancellation rate as of March 31st 2008 stood at 12.0%.
  • Since December 1st 2007, DIGITAL+ has been marketing, in conjunction with Telefónica TRIO+, the only triple play service with national coverage which combines the leading services of each company.
  • On January 31st 2008, CANAL+ HD started broadcasting, and with the i+, the latest generation PVR decoder which is exclusive to DIGITAL+ subscribers, it allows viewers to enjoy the main content of CANAL+ in High Definition.
  • During the next quarter, DIGITAL+ subscribers will be able to have exclusive access to all the matches in the Euro Cup Football competition, which will be broadcast in High Definition for the first time in Spain.

Evolution of Subscribers

As of March 31st 2008, the subscriber base for DIGITAL+, the Sogecable pay television channel, stood at 2,080,000 clients. At the end of the previous quarter, at 31 December 2007, DIGITAL+ had 2,065,000 clients. The DIGITAL+ subscriber base saw an increase of 15.000 members over the first quarter of 2008.

As at March 31st 2007, Sogecable had 2,065,000 subscribers. Over the last twelve months, Sogecable posted a net accumulated increase of 15,000 clients in their subscriber base.

Yearly evolution of Sogecable’s subscriber base Mar.06 – Mar.08
(Thousands of subscribers)
Mar.06 Mar.07 Mar.08
1,985 2,065 2,080

Progress in the subscriber base of DIGITAL + over the last five quarters was as follows:

Quarterly subscriber evolution (Thousands of subscribers)
1Q07 2Q07 3Q07 4Q07 1Q08
21 -9 -10 19 15

Marketing activity at DIGITAL+ for recruiting new subscribers has been slowly recovering its normal levels after the difficulties in exploitation of Spanish football rights which occurred in the summer of 2007 and during the first few months of the current football season. It is to be highlighted as well the fact that Easter – when installations for new clients typically slow down- has taken place during the first quarter. In 2007, it fell within the second quarter.

Over the last six months, in spite of the difficulties in marketing we have mentioned, DIGITAL+ has brought a net figure of more than 34,000 new subscribers into their client base.

New iPLUS decoder

The I+ is a latest generation decoder (PVR-HD) exclusive to the subscribers of DIGITAL+. With I+ it is possible to record and store up to eighty hours of programmes, it includes an improved EPG programming guide, it provides access to Digital Terrestrial Television (DTT), and it makes it possible to receive Canal+ HD, the first channel to broadcast in High Definition, available exclusively on DIGITAL+ since January 31st 2008.

In addition to the principal content of CANAL+ in High Definition, DIGITAL+ subscribers will have the opportunity to enjoy, exclusively and for the first time in Spain, the broadcasts of the forthcoming Euro Cup Football in High Definition, which begins on June 7th 2008 in Austria and Switzerland.

New services

As from 1 December 2008, Sogecable and Telefónica have been marketing the triple play TRIO+ product, which combines ADSL and Voice services from Telefónica with DIGITAL+ satellite pay television. Each of the two companies invoices their own product under TRIO+, and the installation and client assistance services are managed separately. The marketing capacity of the two companies is facilitating the progressive capture of new clients through this new service. TRIO+ is the only product with a national coverage with which it is possible to enjoy the combined top services of these two companies.

Similarly, Sogecable and Orange will soon commence a joint triple play package, which will include ADSL and telephone services from Orange with DIGITAL+ satellite pay television.

More: 1Q08 Results Release