Input from Finance Telenor Broadcast Q4-2008 11th of February 2009 1
8,170 billion NOK in revenues in 2008 2
Broadcast Broadcast Q4 highlights Nordic pay-tv subscribers base relatively stable but continued high activity and high sale of add on products BBC HD launched December 1st Strong quarter from both Conax and Telenor Satellite Broadcasting DTT network in Norway finalised on time and on budget Norkring to enter Flanderen
Norkring and VRT partners in new network operator in Belgium The VRT and Norkring to establish a new network operator Norkring has acquired 49 per cent of the new network operator for a consideration of EUR 9.8 million Norkring has an option to increase its holding to 75 per cent. All broadcasting network assets and services will be transferred to the new operator 4
Q4 2008 Broadcast Revenues (NOKm) and EBITDA% 13% revenue growth in Canal Digital related to add-on services and hardware sales 1763 1898 1922 2066 2022 2 160 + 11% Increased sales and marketing costs and higher logistics costs related to hardware 25 % 24 % 21 % 22 % 18 % 16 % Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 EBITDA and capex (NOKm) Strongest quarter ever in Conax EBITDA CAPEX 1398 1144 18k net internet subscriber growth in Norway in Q4 443 403 423 327 281 254 489 329 390 323 322 327-3% Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Organic growth assuming fixed currency, adjusted for acquisitions and disposals. EBITDA and EBITDA margin before other items Organic revenue / EBITDA growth YoY Satellite 5
Canal Digital 6
Canal Digital Nordic subscriber base relatively stable in a tough environment, but continued strong growth in ARPU Households Monthly ARPU DTH Cable-TV SMATV 1,113,000 (1,131,000) 746,000 (705,000) 1,144,000 NOK 304 (NOK 275) NOK 206 (NOK 179) NOK 46 1,148,000 (1,127,000) 852,000 (878,000) 144,000 (166,000) (1,174,000) (NOK 40) DTT 35,000 NOK 227 (52,000) (NOK 184) BBTV/IPTV 5,000 NOK 211 (4,000) (NOK 165) 898,000 (894,000) *in brackets: Q4 07 Households served 3.043.000 per Q408 compared to 3.065.000 per Q407 7
Canal Digital Strong demand for multiroom and HD from our DTH subscribers 20% 15% 11% 4% Q4 07 Q4 08 Q4 07 Q4 08 DTH - Multiroom penetration DTH - HDTV decoder penetration
Canal Digital Strong position and development in Canal Digital Norge DTH subscribers and product penetration Cable subscribers and product penetration 522 539 431 476 52% 11% 24% 12% 35% 25% 34% 30% 3% 0% DTH subs. Multiroom HDTV dec. Cable basic Digital TV Internett HDTV dec DTH and Cable basic subscribers in 1000 Q407 Q408
Canal Digital More than 300 000 HDTV decoders from Canal Digital Strong line up of international HDTV channels Animal Planet HD, BBC HD, Canal+ Film HD, Canal+ Sport HD, Discovery HD, Eurosport HD, History Channel HD, National Geographic HD, Silver HD, Voom HD National broadcasters with HDTV channels TVNorge HD, SVT HD, TV4 HD, TV2 Film HD (DK), Kanal 5 HD Nelonen HD, Major events in HD UEFA Euro 2008, Tour de France, Beijing Olympics, FA Premier League 10
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Broadcast in 2009 Canal Digital Continued high focus on the Norwegian pay- TV and Internet market Secure DTH position in Sweden Strengthening of the DTH product in Denmark and analogue shut off Even higher focus on customer loyalty Transmission & Encryption Further growth for Conax Launching THOR 6 Norkring to enter Flandern 12
Appendix 13
Canal Digital Continuous good revenue growth 13 % revenue growth from Q4 2007 driven by higher sales of additional products for DTH and cable, depreciated NOK and price increase for DTH. 1431 Revenues (NOKm)/ EBITDA% 1690 1633 1592 1497 1477 Q2 08 includes resale of UEFA Euro 2008 content rights EBITDA reduction from Q4 07 due to higher costs related to new sales DTH and cable, CRM and logistics due to higher share of additional products as multiroom, internet and HDTV decoders. 14 % 9 % 8 % 2 % 12 % 7 % Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 EBITDA CAPEX Per Q408 164.000 cable TV subscribers in Norway subscribe to our internet product 203 115 128 124122 81 40 132 188 142 122 162 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 14
Transmission & Encryption Strong revenue growth and stable EBITDA margin Revenues (NOKm)/ EBITDA% 602 530 554 563 547 14 % revenue growth from Q4 2007 448 Revenue growth in Conax from Q4 07 driven by higher card sales in EMEA and India and higher base of rental cards. 58 % 54 % 56 % 55 % 56 % 52 % Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q408 Revenue in Norkring slightly decreased due to lower revenues from analogue TV distribution in Norway. EBITDA 1 249 CAPEX Norkring to acquire 49% of new network operator in Flandern. Option to increase ownership to 75% Higher revenue in Satellite Broadcasting from Q4 07 driven by increased capacity related to Thor 5, and Thor 2 lease agreement 259 285 311 308 306 315 192 167 165 161 137 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 15
Canal Digital's Pay-TV subscribers (in thousands) Denmark Finland Norway Sweden DTH 177 (198) 54 (57) 539 (522) 343 (353) DTT 0 35 (52) 0 0 SMATV* 684 (662) 49 (54) 121 (159) 267 (278) CATV 35 (32) 0 476 (431) 235 (242) BBTV 0 0 0 5 (3) Canal Digital's CATV internet subscribers (in thousands) 2006 2007 2008 Denmark 14 15 21 Norway 73 108 164 Sweden 4 4 3 16