Telenor Broadcast February 13th
Highlights Strong sale of premium add-on services for both Cable and DTH 44.000 HDTV subscribers on DTH 120.000 Multiroom subscriptions on DTH in the Nordics 123,000 internet subscribers on CATV in Denmark and Norway DTT launched in 13 Norwegian counties Danmark Digital TV established to apply for DTT license in Denmark Telenor acquire Danish football rights Successful launch of THOR-5 Contract signed for THOR-6 Conax sold 5.7 million smartcards 54 contracts signed in Telenor Media and Content Services established
Stable performance from Telenor Broadcast in 15 % revenue growth from 12% growth in ARPU on cable from 06 6,000 new subscribers in the Nordics from DTH subscribers 932,000; - 11,000 Cable TV subscribers 705,000; +8,000 Cable TV Internet subscribers increased to 127,000; +36,000 Internet penetration 42% of upgraded base 30 Rock Canal+
Continued revenue growth in Broadcast 15 % revenue growth from EBITDA margin at 22% Revenues (NOKm)/ EBITDA% 1776 1764 1700 1655 1573 1897 Investments in Norwegian terrestrial network and Norwegian CATV upgrade affects CAPEX 31 % 16 % 22 % 26 % 25 % 22 % Continued strong growth in add on services for both DTH and CATV Strong new sales in Conax, and good performance from Norkring and Telenor Satellite Broadcasting 06 06 Q1 07 Q2 07 07 07 485 157 EBITDA CAPEX 462 444 375 359 332 260 260 258 418 281 06 06 Q1 07 Q2 07 07 07
Canal Digital serves more than 3 million households Households Monthly ARPU DTH Premium Pay-TV Subscribers 932,000 NOK 334 DTH Basic Tier Households 199,000 Cable-TV Basic Tier, Premium Pay-TV and Internet 705,000 NOK 179 SMATV Households in small antenna TV-networks 1,174,000 NOK 40 DTT Premium Pay-TV Subscribers in Finland 52,000 NOK 184
CANAL DIGITAL GROUP
Strong sale of premium add-on services for both Cable and DTH 123,000 internet subscribers in Denmark and Norway 33% growth in Norway since 07 89% growth in multiroom subscriptions since 06 120.000 Multiroom subscriptions in the Nordics (+17,000 from ) 10 HDTV-Channels distributed by Canal Digital Canal+ Sport HD, Canal+ Film HD, Discovery HD, National Geographic HD, Voom HD, Silver HD, The History Channel HD, Kanal 5 HD, SVT HD, TV4 HD. Continuous growth in HDTV subscriptions 44.000 HDTV subscriptions in the Nordics
22 % revenue growth from Revenues (NOKm) / EBITDA % EBITDA and Capex (NOKm) EBIT (NOKm)/EBIT % 1 300 1 291 1 356 1 442 1 431 1 497 EBITDA CAPEX 268 19% 21% 12% 16% 10% 67 57 68 170 64 233 203 144 121 115 81 214 15% 8 % 115 178 8% 178 12% 83 6% 4% 17% Q2 Q2 Q1 Q2-12 Q1 Q2
Pay-TV subscriber growth of 0,3% from 06 1.7M pay-tv subscribers in the Nordics DTH, Cable TV, DTT (Finland), and SMATV (households w/decoder) 13% Multiroom penetration DTH 10,000 new HDTV subscribers in 837,000 (807,000) 583,000 (607,000) 109,000 (103,000) In addition Canal Digital has 1.3m card-only and SMATV households 202,000 (208,000)
Growth in ARPU driven by higher revenue from add-on services DTH subscribers ( 000) and monthly ARPU (NOK) 900 800 700 600 500 400 300 200 100 929 943 944 934 935 932 295 309 317 318 317 334 1000 900 800 700 600 500 400 300 200 100 Subscription growth in Norway from 06 Denmark - 4% Finland - 1% Norway + 5% Sweden 6% Strong growth in Multiroom subscriptions in Sweden and Norway from 06 Sweden 23,000 Norway 30,000 Denmark 4.000 0 0 06 06 Q1 07 Q2 07 07 07 DTH subscriber base Monthly DTH ARPU
12 % growth in Cable-TV ARPU from Cable subscribers ( 000) and ARPU (NOK) 300 687 691 696 700 697 701 705 700 250 200 150 100 50 147 148 160 165 167 171 179 600 500 400 300 200 100 High speed internet and digital TV drives Cable TV ARPU 108,000 CATV Internet subscribers in Norway 15,000 CATV Internet subscribers in Denmark 173,000 subscribers with decoder in Norway 0 Q2 06 06 06 Q1 07 Q2 07 07 07 Cable subscriber base Monthly CATV ARPU 0
Transmission and encryption
Successful launch of THOR 5 THOR 5 launched from Baikonur Cosmodrome in Kazaksthan on February 11th 2008 HDTV drives revenue growth for Telenor Satellite Broadcasting Replacement and expansion program on track Contracted THOR 6 in Q2 Telenor and Intelsat continue their commitment in building the 1 West position THOR 6 to be launched in summer 2009 Thor 5 during testing phase
DTT transmission opened in 13 Norwegian counties DTT transmissions opened in 13 counties. Rogaland, Østfold, Oslo/Akershus, Buskerud, Vestfold, Telemark, Hordaland, Møre og Romsdal, Sogn og Fjordane, Hedmark, Oppland, Sør-Trøndelag 5 regions to open in November 2008. Regional and national digital radio network extended to 80% coverage Norkring continue to deliver strong results Ulrikken - Bergen Ulrikken - Bergen
Conax with strong growth in smart card production Revenue is up by 31 % compared with - (135 MNOK vs. 103 MNOK) Accumulated revenue is up by 71 % compared with (467 MNOK vs. 273 MNOK) EBITDA margin for is 34% compared to 31% in 46 MNOK in 07 vs. 32 MNOK in 06 Accumulated EBITDA is up by 118 MNOK (185 MNOK vs. 67 MNOK) 5,7 million cards sold in
22 % revenue growth in transmission and encryption from 06 Revenues (NOKm) / EBITDA % EBITDA and Capex (NOKm) EBIT (NOKm)/ EBIT % 388 435 427 455 448 530 220 EBITDA 215 220 CAPEX 259 240 214 285 57% 49% 52% 53% 58% 54% 76 176 174 192 167 131 34% 147 121 127 28% 32% 30% 168 174 38% 33% Q1 Q2 Q1 Q2 Q1 Q2
SUMMARY
Continued good performance from Broadcast Total revenue NOK 1,897m (+15% from 06) and EBITDA NOK 418m (+61% from 06) Successful launch of THOR 5 Stable subscriber levels and strong growth in add on services on both DTH and CATV Telenor and MTG signs non-exclusivity agreement Telenor acquired Danish football rights DTT network launched in 13 Norwegian counties The Black Donnellys Canal+
Appendix Canal Digital's Pay-TV subscribers (in thousand) Denmark Finland Norway Sweden DTH 163 169 54 55 388 370 327 349 DTT 0 0 52 46 0 0 0 0 SMATV* 664 655 57 57 173 167 280 276 CATV 32 31 0 0 431 419 242 246 BBTV 0 0 <1 0 0 0 3 2 *Household