Premiere announces results for Q1 2009

Q1 2009 key results:
• Revenues of €232.7m (Q1 2008: €231.0m*)
• EBITDA negative €29.8m (Q1 2008: positive €2.9m)
• Net loss of €80.0m (Q1 2008: net loss of €28.1m)
• 2.371m subscribers as of 31 March
• Monthly ARPU of €24.85, increase of nearly €1 compared to Q4 2008
• New credit facilities of €525m after completion of capital increase in April 2009
• Existing outlook for 2009 and following years confirmed

Munich, 14 May 2009.  In Q1 2009, Premiere posted total revenues of €232.7m (Q1 2008: €231.0m). Operating expenses rose to €262.5m (Q1 2008: €228.1m), mainly due to the absence of one-time gains of €16.3m compared to Q1 2008 and costs for restructuring of €9.0m in Q1 2009. EBITDA (earnings before interest, taxes, depreciation and amortization) was negative €29.8m (Q1 2008: positive €2.9m). Net income was negative €80.0m (Q1 2008: negative €28.1m).

Operating cash-flow in Q1 2009 was negative €14.2m (Q1 2008: negative €45.9m) and net debt at the end of Q1 2009 was €313.4m (Q4 2008: €318.1m).

Premiere had a total of 2.371m direct subscribers at the end of Q1 2009, a reduction of 28k from 2.399m at 31 December 2008. The number of customers of the Flex offer, which Premiere is phasing out, decreased during Q1 2009 by 17k to 68k. The churn rate for Q1 2009 was 22.4 percent, slightly down versus Q4 2008 (22.9 percent). Program ARPU increased by nearly €1 per month from €23.86 in Q4 2008 to €24.85 in Q1 2009.

Mark Williams, CEO of Premiere AG: “Our Q1 results are in line with our expectations. We expect subscriber growth to commence only in the second half of this year following our comprehensive sales, marketing and customer service initiatives.”

New credit facilities of €525m after completion of capital increase in April 2009
Premiere used the proceeds of the capital increase completed in April 2009 to repay the existing credit facilities. Following the completion of the offering, Premiere now has access to new long-term facilities with a total amount of €525m. 

Existing outlook for 2009 and following years confirmed
Premiere confirms its targets for full year 2009 and the following years, which were announced with the full year 2008 results:
• growth in subscriber base expected to commence in Q3 2009 following sales, marketing and customer services initiatives
• negative operating cash flow in the range of €250m to €275m and a significant EBITDA loss in 2009 expected
• EBITDA and cash flow break even on a monthly basis targeted during Q4 2010; both figures expected to be negative for full year 2010
• net income and positive cash flow targeted for the year 2011 and onwards  

* Revenues and expenses of discontinued operation Home of Hardware have been excluded. Q1 2008 figures in this press release are not comparable with figures provided in May 2008.

Contact for press:
Torsten Fricke 
Vice President Corporate Communications           
Tel.: +49 89/99 58-63 50  
torsten.fricke@premiere.de  

Contact for investors and analysts:
Christine Scheil
Vice President Investor Relations
Tel.: +49 89/99 58-10 10
christine.scheil@premiere.de
 
This press release contains statements regarding future developments that have been based on current evaluations and have been made to best of the knowledge of the management of Premiere AG. Such statements with regard to future developments are subject to known and unknown risks, uncertainties and other factors that could cause the profit situation, profitability, value development or the performance of Premiere AG or the success of the media industry to diverge from those profit situations, profitability, value development or performance results that are assumed expressly or implied or described in these statements regarding the future. Considering these risks, uncertainties and well as other factors, readers of these documents should not rely in an incommensurate manner on these statements dealing with future developments. Premiere AG has no obligation to behave in keeping with such statements regarding future developments or to alter its behavior to accommodate future events and developments.

Press Release and Key Figures Q1 2009

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