Loss Warning, Subscriber Data Revision at Premiere

MUNICH, October 3: German
pay-TV giant Premiere saw its share price halve today as it announced a
downward revision in subscriber numbers, an expected EBITDA loss this year of
between 40 million euros and 70 million euros, and the resignation of its CFO.

The resignation of
Alexander Teschner comes less than a month since CEO Michael Börnicke stepped down. New CEO Mark Williams will assume Teschner’s
responsibilities until a successor is named. Williams came to Premiere from
News Corporation, which owns a 25-percent stake in the platform.

Teschner’s resignation
came as the company revealed projections for an EBITDA loss this year,
prompting it to commence discussions about restructuring its debt facilities.
In addition, Premiere revealed that it has 2.4 million customers, as opposed to
the 3.55 million it said it had a few months ago, under its new subscriber
classification system. The 940,000 subscribers excluded under the new
methodology include 606,000 that are linked to business partners but are not
active subscriptions; and 334,000 still holding Premiere smartcards but no
longer paying for services.

“We are conducting a
thorough review of operations and are confident that this will result in a new
strategic direction supported by a financially sound business plan for the
future growth and profitability of Premiere,” Williams said in a statement.

—By Mansha Daswani