At the Annual Shareholders' Meeting on October 11, 2012, the Company's shareholders approved the proposed dividend of€1.50 per share for the fiscal year ended March 31, 2012, which was paid immediately after the Shareholders’ Meeting.
The shareholders also approved the proposed profit and loss transfer agreement between KDH AG and KDVS GmbH. This agreement will enable the Group to make use of the previously unused loss carryforwards from the fiscal year starting April 1, 2013.
Furthermore, the shareholders confirmed the Supervisory Board memberships of Annet Aris, Catherine Mühlemann, Paul Stodden and Torsten Winkler.
The Group has initiated steps to bundle its customer and technical service centers in Kabel Deutschland Kundenbetreuung GmbH, a wholly-owned subsidiary of KDVS GmbH effective November 1, 2012. Kabel Deutschland Vierte Beteiligungsgesellschaft mbH has been renamed Kabel Deutschland Kundenbetreuung GmbH. In this context, the employees of KDVS GmbH will be transferred to the new Group company. At the same time, about 600 temporary employees will become permanently employed.
Unterfoehring, October 29, 2012
Kabel Deutschland Holding AG
Dr. Adrian v. Hammerstein Dr. Manuel Cubero del Castillo-Olivares
Chief Executive Officer Chief Operating Officer
Erik Adams Dr. Andreas Siemen
Chief Marketing Officer Chief Financial Officer
AnalysisofFixedAssetsforthePeriodfromApril1,2012toSeptember30,2012 AcquisitionandproductioncostsAccumulateddepreciationandamortizationNetbookvalue April1,2012AdditionsDisposalsReclassificationsSept.30,2012April1,2012AdditionsDisposalsReclassificationsChangeinat- equity investmentsSept.30,2012Sept.30,2012March31, ibleassets Softwareand licencesandother contractualandlegal rights533,281,808.1538,453,450.2011,437.181,413,357.55573,137,178.72354,755,262.6123,648,524.0911,384.520.000.00378,392,402.18194,744,776.54178,526,545.54 Internallygenerated software37,551,134.233,829,041.960.000.0041,380,176.1922,547,929.592,131,293.350.000.000.0024,679,222.9416,700,953.2515,003,204 Customerlist274,809,443.890.00318,648.72(409,046.04)274,081,749.13137,315,711.0718,081,044.79318,648.72(409,046.04)0.00154,669,061.10119,412,688.03137,493,732.82 Goodwill287,273,545.950.000.000.00287,273,545.950.000.000.000.000.000.00287,273,545.95287,273,545.95 Prepayments12,070,744.625,964,299.720.00(1,413,357.55)16,621,686.790.000.000.000.000.000.0016,621,686.7912,070,744.62 1,144,986,676.8448,246,791.88330,085.90(409,046.04)1,192,494,336.78514,618,903.2743,860,862.23330,033.24(409,046.04)0.00557,740,686.22634,753,650.56630,367,773.57 and ipment Buildingsonnon- ownedland33,300,770.762,839,172.1587,505.011,368,420.9937,420,858.8914,731,194.291,997,738.9982,008.54382.810.0016,647,307.5520,773,551.3418,569,576.47 Technicalequipment2,854,057,929.15131,237,725.1169,970,114.9613,253,049.602,928,578,588.901,754,018,551.51120,102,206.2069,378,863.32(15,677.65)0.001,804,726,216.741,123,852,372.161,100,039,377.64 Otherequipment, furnitureandfixtures91,275,972.834,447,378.17679,568.01118,708.4795,162,491.4667,519,883.085,271,617.49548,634.5515,294.840.0072,258,160.8622,904,330.6023,756,089.75 Constructioninprogress55,652,576.3149,250,060.372,252.86(14,740,179.06)90,160,204.760.000.000.000.000.000.0090,160,204.7655,6 3,034,287,249.05187,774,335.8070,739,440.840.003,151,322,144.011,836,269,628.88127,371,562.6870,009,506.410.000.001,893,631,685.151,257,690,458.861,198,017,620.17 nancialassets investmentsin 1,800,909.080.000.000.001,800,909.08(6,322,204.57)0.000.000.001,607,195.26(4,715,009.31)6,515,918.398,123,113.65 1,800,909.080.000.000.001,800,909.08(6,322,204.57)0.000.000.001,607,195.26(4,715,009.31)6,515,918.398,123,113.65 4,181,074,834.97236,021,127.6871,069,526.74(409,046.04)4,345,617,389.872,344,566,327.58171,232,424.9170,339,539.65(409,046.04)1,607,195.262,446,657,362.061,898,960,027.811,836,508,507.39
AnalysisofFixedAssetsforthePeriodfromApril1,2011toSeptember30,2011 AcquisitionandproductioncostsAccumulateddepreciationandamortizationNetbookvalue April1,2011AdditionsDisposalsReclassificationsSept.30,2011April1,2011AdditionsDisposalsReclassificationsChangeinat- equity investmentsSept.30,2011Sept.30,2011March31, ibleassets andlicencesandother andlegalrights454,446,042.4528,234,576.329,947.227,675,414.36490,346,085.91303,690,790.7128,386,092.589,947.220.000.00332,066,936.07158,279,149.84150,755,251.74 generatedsoftware29,508,925.633,543,452.550.000.0033,052,378.1818,642,333.121,633,999.750.000.000.0020,276,332.8712,776,045.3110,866,592.51 list964,297,376.6733,005.860.0026,718.65964,357,101.18756,271,006.4952,353,749.940.000.000.00808,624,756.43155,732,344.75208,026,370.18 287,273,545.950.000.000.00287,273,545.950.000.000.000.000.000.00287,273,545.95287,273,545.95 16,262,867.222,532,122.050.00(7,702,133.01)11,092,856.260.000.000.000.000.000.0011,092,856.2616,262,867.22 1,751,788,757.9234,343,156.789,947.220.001,786,121,967.481,078,604,130.3282,373,842.279,947.220.000.001,160,968,025.37625,153,942.11673,184,627.60 andequipment onnon-ownedland25,407,061.241,346,364.170.00907,702.5127,661,127.9210,775,260.011,763,185.140.0047,000.000.0012,585,445.1515,075,682.7714,631,801.23 2,649,163,336.30105,610,052.7412,612,698.5124,951,823.642,767,112,514.171,590,367,673.42140,144,213.9611,789,264.87(8,926.30)0.001,718,713,696.211,048,398,817.961,058,795,662.88 equipment,furnitureand 83,451,271.043,728,890.54139,422.99(161,271.89)86,879,466.7058,540,405.844,797,862.56127,113.26(38,073.70)0.0063,173,081.4423,706,385.2624,910,865.20 inprogress60,164,107.1433,207,324.8516,113.21(25,698,254.26)67,657,064.520.000.000.000.000.000.0067,657,064.5260,164,107.14 2,818,185,775.72143,892,632.3012,768,234.710.002,949,310,173.311,659,683,339.27146,705,261.6611,916,378.130.000.001,794,472,222.801,154,837,950.511,158,502,436.45 ialAssets investmentsinassociates1,800,909.080.000.000.001,800,909.08(11,368,451.52)0.000.000.002,448,526.13(8,919,925.39)10,720,834.4713,169,360.60 1,800,909.080.000.000.001,800,909.08(11,368,451.52)0.000.000.002,448,526.13(8,919,925.39)10,720,834.4713,169,360.60 4,571,775,442.72178,235,789.0812,778,181.930.004,737,233,049.872,726,919,018.07229,079,103.9311,926,325.350.002,448,526.132,946,520,322.781,790,712,727.091,844,856,424.65
FOR THE QUARTER AND THE SIX MONTHS ENDED SEPTEMBER 30, 2012
1 General . . . 33
2 Business Segments . . . 34
2.1 TV Business . . . . 34 2.2 Internet and Phone Business . . . . 35 2.3 Legal Reorganization / Restructuring . . . . 35 2.4 Acquisition . . . . 35
3 Key Operating Measures . . . 36
3.1 Development of Subscribers and RGUs . . . . 36 3.2 ARPU . . . . 37
4 Comparison of Operating Results for the Quarters ended
September 30, 2012 and September 30, 2011 . . . 39
4.1 Revenues . . . . 39
4.1.1 TV Business Revenues . . . . 39
4.1.2 Internet and Phone Business Revenues . . . . 40
4.2 Costs and Expenses . . . . 41
4.2.1 Cost of Services Rendered . . . . 41
4.2.2 Selling Expenses . . . . 43
4.2.3 General and Administrative Expenses . . . . 44
4.3 Profit from Ordinary Activities . . . . 45
4.4 Interest Income . . . . 45
4.5 Interest Expenses . . . . 46
4.6 Income from Associates . . . . 47
4.7 Profit before Taxes . . . . 47
4.8 Taxes on Income . . . . 47
4.9 Net Profit of the Group for the Period . . . . 47
4.10 Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) . . . 47
5.2 Costs and Expenses . . . . 49 5.2.1 Cost of Services Rendered . . . . 50 5.2.2 Selling Expenses . . . . 51 5.2.3 General and Administrative Expenses . . . . 52 5.3 Profit from Ordinary Activities . . . . 53 5.4 Interest Income . . . . 53 5.5 Interest Expenses . . . . 54 5.6 Income from Associates . . . . 54 5.7 Profit before Taxes . . . . 54 5.8 Taxes on Income . . . . 55 5.9 Net Profit of the Group for the Period . . . . 55 5.10 Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) . . . 55
6 Financial Position and Cash Flows for the Six Months ended September 30, 2012 compared to the Six Months ended
September 30, 2011 . . . 56
6.1 Cash Flows from Operating Activities . . . . 56 6.2 Cash Flows from Investing Activities . . . . 56 6.3 Cash Flows from Financing Activities . . . . 57 6.4 Capital Expenditure . . . . 57 6.5 Other Comments on Net Assets . . . . 57
7 Opportunity and Risk Report . . . 58
8 Outlook . . . 59
9 Particular Events after the Balance Sheet Date . . . 60
Kabel Deutschland Holding AG (“KDH AG” or the “Company”) is listed in the regulated market (Prime Standard) of the Frankfurt Stock Exchange under ISIN DE000KD88880. Prior to the initial public offering (“IPO”) in March 2010, KDH AG was wholly owned by Cable Holding S.A. Luxembourg (“LuxCo”). In the course of the IPO and in subsequent placements, LuxCo sold all of its shares in the Company. As a result, 100% of the 90 million subscribed shares of the Company have been free float since the last placement on July 5, 2011. In the period from September 19, 2011 to December 9, 2011 around 1.48 million shares were repurchased through the stock exchange based on a share buyback program. Subsequently, the number of shares of the Company was reduced to 88,522,939 shares by retirement on March 13, 2012.
KDH AG is the ultimate management and holding company of our Group (“KDH” or the “Group”) and has its registered office in Unterfoehring, Betastrasse 6 - 8, Germany (commercial register of Munich HRB 184452). As the parent company of the Group it performs the typical tasks of a holding
company, including the strategic development of the Group and the provision of services and financing for its affiliated companies. The Group’s business activities are primarily conducted by the respective operating subsidiaries. The most significant of these is the wholly owned subsidiary Kabel Deutschland Vertrieb und Service GmbH1)(“KDVS GmbH”).
In terms of residential units that can be connected to a cable network (“homes passed”) and subscribers, we are the largest cable network provider in Germany, according to our own estimate. With more than 15 million homes passed, we believe our cable network is also the largest in a single country in Europe. We offer our customers a variety of television and telecommunications services, including Basic Cable services, Premium-TV services, broadband Internet access, fixed-line phone and mobile phone as well as mobile data services. As a triple play service provider, we believe that we are well positioned to take advantage of the growth opportunities in the converging German media and telecommunications markets.
1) Previously Kabel Deutschland GmbH (“KDG”). The change of name was registered in the commercial register early August 2011 during the course of the Merger (see section 2.3).
The Group has two reporting segments: TV Business, and Internet and Phone Business.
2.1 TV BUSINESS
Our TV Business consists of Basic Cable and Premium-TV products and services.
Our Basic Cable products consist of analog as well as digital TV and radio services. Our analog cable services currently offer up to 37 free-to-air television and up to 34 radio channels, respectively. Our digital cable services offer up to 120 digital TV (Free-TV) channels and up to 70 digital radio channels.
We provide these Basic Cable services primarily via individual contracts with customers or collective contracts with landlords or housing associations and via contracts with Level 4 network operators. Revenues are primarily generated from subscription fees.
Premium-TV products are also offered to our direct Basic Cable customers.
With our Premium-TV products revenues are primarily generated from monthly subscription fees for pay-TV and for digital video recorders (“DVR”) as well as from technical access fees for “Private HD”. “Private HD” currently offers access to six basic encrypted High Definition (“HD”) channels.
In summer 2012 an agreement was signed with RTL Group. The successive feeding of RTL HD channels into our network is conducted since the end of August 2012.
Additionally, in the cities of Berlin, Hamburg, Munich, Rostock and Wismar our Video-on-Demand (“VoD”) offering “SELECT VIDEO” is available to approximately 2.4 million households. The download offering includes over 5,000 hours of Hollywood blockbusters, current movies, movie classics, TV programs and adult content. The digital pay-video library contains approximately 1,600 movies, including 65% in HD quality; one-third can be obtained in the original version. In addition, 36 broadcasters currently provide over 3,000 TV formats from free and pay-TV. Customers who own 3D hardware may also receive part of the movie-offering in 3D.
Revenues from carriage fees are generated from both public and private broadcasters and third party pay-TV providers. Please also refer to section 7 for information on current developments.
Our TV Business generated revenues of T€296,447 or 65.5% of our total revenues in the quarter ended September 30, 2012, compared with T€286,237 or 68.5% in the quarter ended September 30, 2011. In the six months ended September 30, 2012, our TV Business generated T€590,753 or 65.9% of our total revenues, compared to T€570.597 or 68.7% in the six months ended September 30, 2011.
2.2 INTERNET AND PHONE BUSINESS
Our Internet and Phone Business consists of our broadband Internet access, fixed-line and mobile phone services, mobile data services as well as additional options.
Broadband Internet access and fixed-line phone services are offered to those homes which can be connected to our upgraded network. In the quarter ended September 30, 2012, 88.6% of our new Internet and Phone subscribers subscribed for a bundled product incorporating both broadband Internet and Phone services. In the six months ended September 30, 2012, 89.3% of our new Internet and Phone subscribers subscribed for a bundled product. As a consequence, the bundle share in our Internet and Phone subscriber base increased to 88.0% in the six months ended September 30, 2012, compared with 86.4% in the six months ended September 30, 2011.
Since November 2011 our offering for broadband Internet access includes download speeds between 8 Mbit/s and up to 100 Mbit/s. Since early 2010
we have been offering speeds of up to 100 Mbit/s in selected cities where the network is fully DOCSIS 3.0 capable. We will continue to expand our DOCSIS 3.0 footprint going forward. As of September 30, 2012 we had capacity to serve approximately 78.4% of the homes passed by our upgraded network with DOCSIS 3.0 products.
In the Phone sector, we additionally offer mobile phone and mobile data services via a contractual relationship with a German mobile network operator.
Our Internet and Phone Business generated revenues of T€156,444 or 34.5%
of our total revenues in the quarter ended September 30, 2012, compared with T€131,805 or 31.5% in the quarter ended September 30, 2011. In the six months ended September 30, 2012, our Internet and Phone Business generated T€306,026 or 34.1% of our total revenues, compared to T€259,506 or 31.3% in the six months ended September 30, 2011.
2.3 LEGAL REORGANIZATION / RESTRUCTURING
In June 2011, KDH AG’s Supervisory Board approved the mergers (“Merger”) of Kabel Deutschland Vertrieb und Service GmbH & Co. KG (“KDVS”), Kabel Deutschland Breitband Services GmbH (“KDBS”), BMH Berlin Mediahaus GmbH and six other non-operating companies1) with KDG, effective retroactively from April 1, 2011. The Merger was completed in August 2011.
KDG then changed its name to KDVS GmbH.
As part of the continuing optimization of organizational structures and to improve operating efficiency, the Group will undertake a number of steps during this fiscal year that will lead to structural changes and, in some cases, to changes in the legal structure.
A variety of measures implemented in corporate areas that provide customer service, such as the call centers, technical services and sales, are aimed at ensuring the long-term competitiveness of the Group and optimizing services
in order to further increase customer satisfaction. Key to the measures are primarily efficiency increases through improving interface processes in the functional areas concerned, and efforts to maintain and increase network quality by analyzing and adjusting the value creation chain. As part of the described optimization measures, we acquired the business operations of one of our regional complex service providers in August 2012. In addition, with effect from November 1, 2012, the Group will bundle its customer and technical service centers in Kabel Deutschland Kundenbetreuung GmbH, a wholly-owned subsidiary of KDVS GmbH.
For the implementation of the measures, T€1,321 were recorded as an expense in the quarter ended September 30, 2012, and T€2,693 in the six months ended September 30, 2012. The expenses for the implementation of the measures consist primarily of personnel and consulting costs, and costs related to the adaptation of systems.
2.4 ACQUISITION
On May 21, 2012 KDH AG entered into a purchase agreement with Tele Columbus GmbH (“Tele Columbus”) to acquire the Tele Columbus Group.
The purchase price amounts to €603 million plus accrued interest. Tele Columbus, headquartered in Berlin, provided at the end of 2011 basic cable services to approximately 1.7 million customers in 2.1 million homes connected and is Germany’s largest Level 4 cable network operator. Tele Columbus operates predominantly in Berlin and in Eastern Germany including the cities of Dresden, Magdeburg and Potsdam. The business of Tele Columbus overlaps to a large extent with KDH’s current service area.
Following a successful completion of the acquisition, most of Tele Columbus’
customers will be able for the first time to subscribe to KDH’s high-speed
Internet products and new TV services. However, the acquisition is subject to approval by the German Federal Cartel Office (“FCO”; Bundeskartellamt).
The decision is expected in January 2013. We also refer to the Notes to the interim condensed consolidated financial statements of KDH AG as of September 30, 2012, section 2.2, Share Acquisitions.
Consulting fees relating to the acquisition of Tele Columbus Group amounted to T€603 in the quarter ended September 30, 2012, and to T€3,299 in the six months ended September 30, 2012. This primarily includes legal consulting fees, consulting fees with regard to the German Federal Cartel Office and costs for due diligence.
3.1 DEVELOPMENT OF SUBSCRIBERS AND RGUS
In recent fiscal years we have significantly expanded the capacity of our network and our product offering in the Premium-TV, broadband Internet and Phone segments. Our results reflect successive year-on-year RGU and revenue growth.
in thousands, except as noted September 30, 2012 September 30, 2011
Operational data Network
Homes passed 15,293 15,293
Homes passed upgraded for two-way communication 13,064 12,562
Upgraded homes as % of homes passed 85.4% 82.1%
DOCSIS 3.0 availability as % of homes passed upgraded for two-way communication 78.4% 54.1%
Homes passed upgraded for two-way communication being marketed1) 11,005 10,480
Subscribers
Direct Basic Cable subscribers 7,212 7,222
Internet and Phone “Solo” subscribers2) 339 269
Total direct subscribers 7,551 7,491
Indirect Basic Cable subscribers 947 1,199
Total unique subscribers (homes connected) 8,498 8,690
Thereof subscribers taking Internet and Phone services 1,770 1,495
RGUs
Basic Cable3) 8,660 8,838
Premium-TV4) 1,863 1,415
Internet 1,657 1,377
Phone 1,681 1,411
Subtotal New Services 5,201 4,202
Total RGUs 13,861 13,041
RGUs per subscriber (in units) 1.63 1.50
Penetration
Premium-TV RGUs as % of Basic Cable subscribers 22.8% 16.8%
Internet RGUs as % of total subscribers 19.5% 15.8%
Phone RGUs as % of total subscribers 19.8% 16.2%
1) Homes passed being marketed are those homes to which we currently sell our Internet and / or Phone products.
2) Internet and Phone ‘‘Solo’’ subscribers are non-Basic Cable service customers subscribing to Internet and / or Phone services only.
3) The difference between the number of Basic Cable subscribers and Basic Cable RGUs is due to one additional digital product component, “Kabel Digital”. It is sold directly to the end customer in addition to the analog Basic Cable service, which is provided and billed via a housing association. A customer subscribing to the Kabel Digital product is counted as one Basic Cable subscriber (analog service via a housing association) and two Basic Cable RGUs (analog service via a housing association and digital service via a direct contract with the end customer).
4) RGU (revenue generating unit) relates to sources of revenue, which may not always be the same as subscriber numbers. For example, one person may subscribe to two different services, in which case two RGUs would be assigned to that one subscriber. Premium-TV RGUs consist of RGUs for our pay-TV product (Kabel Premium HD and Kabel International) as well as our DVR products Kabel Komfort HD and Kabel Komfort Premium HD.
The number of homes passed upgraded for two-way communication being marketed increased as of September 30, 2012 by 525 thousand or 5.0% to 11,005 thousand compared with 10,480 thousand in the prior year.
The number of direct subscribers increased by 60 thousand to 7,551 thousand as of September 30, 2012 from 7,491 thousand as of September 30, 2011.
Total unique subscribers decreased by 192 thousand or 2.2% to 8,498 thousand as of September 30, 2012 from 8,690 thousand as of September 30, 2011. This decrease was primarily due to the loss of 252 thousand indirect subscribers (Level 4 network operators) who generate the lowest ARPU of all our subscribers.
Each service that a Basic Cable subscriber receives counts as one RGU. As of September 30, 2012 we had 8,660 thousand Basic Cable RGUs, compared to 8,838 thousand as of September 30, 2011. The primary reason for the decrease was the abovementioned loss of 252 thousand indirect subscribers.
In contrary, the number of households receiving Basic Cable services via landlords or housing associations and digital access (Kabel Digital) directly from us increased. These households count as two RGUs in our statistics.
However, Private HD is not counted as RGU.
As of September 30, 2012 we had 1,251 thousand Premium-TV subscribers and accordingly 1,863 thousand Premium-TV RGUs. Compared to the 1,415 thousand Premium-TV RGUs as of September 30, 2011, this represents an increase of 448 thousand or 31.7%. In order to receive Premium-TV services, a household must be a Basic Cable subscriber. A Premium-TV RGU refers to the source of revenue and each Premium-TV service for which a subscriber pays counts as one RGU. For example, a Basic Cable subscriber using pay-TV and DVR services counts as two Premium-TV RGUs.
Internet RGUs grew by 280 thousand or 20.3% to 1,657 thousand as of September 30, 2012 from 1,377 thousand as of September 30, 2011. The number of Phone RGUs increased by 270 thousand or 19.1% to 1,681 thousand as of September 30, 2012 from 1,411 thousand as of September 30, 2011.
A growing number of our subscribers purchases more than one of our service offerings, such as Basic Cable, Premium-TV as well as Internet and Phone products. As of September 30, 2012, we recorded 1.63 RGUs per subscriber, compared to 1.50 RGUs per subscriber as of September 30, 2011.
3.2 ARPU
The ARPU indicates how far we are realizing potential revenues from subscribers. We calculate ARPU per subscriber on an annual, quarterly or monthly basis by dividing total subscription fees including usage dependent
fees (excluding installation fees and other non-recurring revenues) generated from the provision of services during the period by the sum of the monthly average number of total subscribers in that period.
Quarter ended Six months ended
in€ / month September 30, 2012 September 30, 2011 September 30, 2012 September 30, 2011
Total blended TV ARPU per subscriber1) 10.32 9.80 10.26 9.75
Total blended Internet and Phone ARPU per subscriber2) 28.51 28.21 28.48 28.25
Total blended ARPU per subscriber3) 15.72 14.25 15.55 14.12
1) Total blended TV ARPU per subscriber is calculated by dividing the subscription revenues (excluding installation fees and other non-recurring revenues) generated for a specified period from our TV Business products by the sum of the monthly average number of total Basic Cable subscribers in that period.
2) Total blended Internet and Phone ARPU per subscriber is calculated by dividing the Internet and Phone subscription revenues including usage dependent fees (excluding installation fees and other non-recurring revenues) generated in the relevant period by the sum of the monthly average number of Internet and Phone subscribers of these products in that period.
3) Total blended ARPU per subscriber is calculated by dividing recurring TV and Internet and Phone subscription revenues including usage dependent fees (excluding installation fees and other non-recurring revenues) generated in the relevant period in the TV Business and Internet and Phone segments by the sum of the monthly average number of total unique subscribers in that period.
For the quarter ended September 30, 2012, total blended ARPU per subscriber improved by€1.47 or 10.3% to €15.72 from €14.25 in the quarter ended September 30, 2011. For the six months ended September 30, 2012, total blended ARPU per subscriber rose by€1.43 or 10.1% to €15.55 from
€14.12 in the six months ended September 30, 2011. The increase in ARPU resulted primarily from an increased number of Internet and Phone subscribers, a growing number of subscribers who purchase more than one product, and a decrease in indirect subscribers, who generate the lowest ARPU of our subscribers.
In the quarter ended September 30, 2012, the total blended ARPU per subscriber in the TV Business segment rose by€0.52 or 5.3% to €10.32 compared to€9.80 in the quarter ended September 30, 2011. For the six months ended September 30, 2012, the total blended ARPU per subscriber in the TV Business segment rose by€0.51 or 5.2% to €10.26 from €9.75 in the six months ended September 30, 2011. This was primarily due to a growing number of customers subscribing to more than one TV Business product, and a decline in indirect subscribers, who generate the lowest ARPU of our subscribers.
In the quarter ended September 30, 2012, the total blended ARPU per subscriber in the Internet and Phone segment rose by€0.30 or 1.1% to
€28.51 compared to €28.21 in the quarter ended September 30, 2011. For the six months ended September 30, 2012, the total blended ARPU per subscriber in the Internet and Phone segment increased by€0.23 or 0.8% to
€28.48 from €28.25 for the six months ended September 30, 2011. This increase is due to a lower portion of customers in the promotional period and higher rentals of Customer Premise Equipment (“CPE”). Both points offset the lower variable phone usage, with a positive effect on the total blended ARPU per subscriber in the Internet and Phone segment.
We continue to focus on increasing ARPU per subscriber, particularly by increasing RGUs per subscriber. These increased as of September 30, 2012 by 0.13 or 8.7% to 1.63 RGUs per subscriber (prior year: 1.50 RGUs per subscriber).
SEPTEMBER 30, 2012 AND SEPTEMBER 30, 2011
4.1 REVENUES
Our business is divided into two operating segments: (i) TV Business, which accounted for 65.5% of total revenues in the quarter ended September 30, 2012, and (ii) Internet and Phone, which contributed 34.5%
Our business is divided into two operating segments: (i) TV Business, which accounted for 65.5% of total revenues in the quarter ended September 30, 2012, and (ii) Internet and Phone, which contributed 34.5%