Unternehmensprofil

- Normalised EBITDA increased by 9.2% year on year to EUR 27.7 million

- Revenues grew by 2.3% year on year to EUR 54.3 million; normalised total operating performance increased by 7.0% year on year to EUR 62.2 million

- Internet and telephony RGUs reached 213,000 and 202,000 respectively, representing a bundle ratio of 82.7% as of June 2015 (versus 73.0% end of Q2 2014) and leading to a segment revenue growth by 20.3% to EUR 15.1 million

- RGUs per subscriber reached all time high 1.50x

- Total blended ARPU for the quarter grew by approx. EUR 0.20 to EUR 14.30 quarter over quarter

Berlin, 14 August 2015. Tele Columbus Group ('Tele Columbus' or 'Company'), the third largest German cable network operator, continued to deliver on its success story in the second quarter of 2015. Revenues in the second quarter of 2015 increased by 2.3% year on year to EUR 54.3 million. Compared to a high normalised EBITDA of EUR 25.4 million in the previous year's second quarter, the Company again showed significant growth of 9.2% year on year to EUR 27.7 million in Q2 2015, generating an EBITDA margin uplift of 3.2ppt to 51.0% (47.8% in Q2 2014). With capital expenditures of EUR 23.4 million in the second quarter, Tele Columbus was able to increase the number of households connected to its own two way fully upgraded network to 955,000 which is an increase of 15,000 compared to March 2015.

Stable housing industry customer base

In the second quarter 2015, Tele Columbus was able to increase its homes connected base by 9,000 to 1.68 million on the back of the acquisition of several smaller cable network operators which compensated the termination of the Nassauische Heimstätte contract in Western Germany (approximately 41,000 homes connected) in the reported quarter.

In May 2015, the Company successfully migrated 22,000 Internet-only customers with low broadband speeds onto double flat products with minimum 16 Mbit/s. Given the attractive Internet and Telephony product portfolio, the churn on the migrated customer base was kept to a minimum. This underpinned the increase in telephony RGUs by 27,000 to a total of 202,000, up 15.3% quarter on quarter or 26.0% year on year. Based on this customer migration, the bundle rate increased to 82.7% at the end of June 2015, significantly up from 72.8% at the end of Q1 2015 and from 73.0% at the end of Q2 2014.

At the same time, Internet RGUs reached 213,000 at the end of the second quarter 2015 (+12.3% yoy). Compared to the second quarter 2014, the number of subscriptions per Tele Columbus customer reached an all time high of 1.50 RGUs per subscriber versus 1.42 RGUs per subscriber at the end of Q2 2014. Monthly average revenue per user (ARPU) for the Internet & Telephony product in the second quarter jumped to EUR 23.20, up EUR0.60 quarter on quarter and EUR 0.90 year on year. Total blended monthly ARPU showed stable growth of 3.3%, reaching EUR 14.30 compared to EUR 13.90 in the same period in 2014.

The Company continues its execution of the ongoing migration projects: As of 30 June 2015, approximately 57% or 955,000 of Tele Columbus' homes connected were upgraded for two-way communication and connected to its own Level 3 network, compared to 54% or 925,000 as at 30 June 2014, an increase of 30,000. In line with the future growth strategy, the Company invested EUR 23.4 million in network and infrastructure upgrades in the second quarter 2015, compared to EUR 12.5 million in the second quarter 2014 (+ 86.4%).

Overall, the Internet & Telephony business continued to be the growth engine of Tele Columbus generating revenues of EUR 15.1 million in the second quarter, reporting 20.3% growth year on year.

Recent developments

In April and May 2015, Tele Columbus Group acquired several cable network assets with approximately 30,000 homes connected primarily in Eastern Germany.

In May 2015, Tele Columbus stopped selling its Internet only product with speeds of less than 16 Mbit/s. The customers were offered new bundle Internet and telephony products with broadband speed of 16 Mbit/s or more.

In May 2015, for the first time the Company launched business tariffs based on its 50 Mbit/s and 150 Mbit/s retail customer products.

In June 2015, the Company launched two pilot Wifi hotspots in Halle/Saale to test the Wifi opportunity.

On 22 June 2015, Tele Columbus AG was included in the SDAX index of Deutsche Börse, Frankfurt.

On 16 July 2015, Tele Columbus announced the acquisition of Leipzig based primacom, the fourth largest cable operator in Germany, for EUR 711 million, which was closed on 31 July 2015. The acquisition added 1.2 million homes connected to the 1.7 million of Tele Columbus' homes connected. In 2014, primacom generated total revenues of EUR 132 million and adjusted EBITDA of EUR 55 million. The fully underwritten financing of the transaction which contains a EUR 125 million equity bridge loan was successfully syndicated early August 2015.

On 30 July 2015, Moody's affirmed the 'B2' rating but changed the Outlook for Tele Columbus from 'Positive' to 'Stable' in response to the primacom acquisition.

On 31 July 2015, Standard & Poors affirmed the 'B+' rating but changed the Outlook for Tele Columbus from 'Stable' to 'Negative', again in response to the primacom acquisition.

On 31 July 2015, Tele Columbus announced the closing of the primacom transaction and on 3 August 2015, the amendment and syndication of the incremental senior credit facilities in the total amount of EUR 935 million was finalized.

On 6 August 2015, Tele Columbus announced that it will host an EGM on 14 September 2015 in Berlin. Tele Columbus plans to conduct a rights offering with pre-emptive rights of targeted EUR 240 million to finance further acquisitions thereby the maximum number of new shares shall not exceed the existing number of shares.

Confirmed guidance for the full year 2015

The Management Board of Tele Columbus confirms its guidance for the full fiscal year 2015 of Tele Columbus standalone:

- Stabilization of the homes connected base at 2014 levels

- Revenue growth towards the lower end of 4.0% to 6.0%

- Expansion of Normalised EBITDA margin to more than 47.5%

- Capex between EUR 80 and 100 million (was EUR 110 to 120 million) with the additional amount deferred to 2016

- Increase of two-way upgraded networks connected to own signal to more than 60% by year end

Guidance for the combined Tele Columbus and primacom entity will be provided later in the year.

On the back of the primacom acquisition announced in July 2015, Tele Columbus increased its leverage temporarily to approximately 5.0 times Normalised EBITDA and expects to reduce leverage back to 3.0 to 4.0 times Normalised EBITDA within 18-24 months.

In view of the investment requirements over the next years for both companies and in view of increased leverage, Tele Columbus does not expect to propose a dividend for fiscal year 2015.

Summary table for Q2 2014 / Q2 2015 and H1 2014 / H1 2015 respectively:

Additional information:

Please be informed that TC Management S.à r.l., a shareholder owning 10.15% in Tele Columbus AG, will be liquidated at the end of August 2015. Shares will be transferred to individual shareholders. This action will increase the free float of the Company to close to 100%.

Release of Q3 and 9M results: 12 November 2015

About Tele Columbus

The SDAX listed Tele Columbus Group is one of Germany's largest cable network operators. Via its origins - individual regional cable network operators that were merged into Tele Columbus - the company dates back to 1972. About 1.7 million connected households in Germany use Tele Columbus' TV signals and, increasingly, digital broadcast packages, Internet and voice connections provided via high-performance broadband cable. As a national provider with a regional focus and a partner of the housing industry, the Group is present throughout its core markets Berlin, Brandenburg, Saxony, Saxony-Anhalt and Thuringia as well as in numerous key regions in western Germany. In tune with current demand trends, the company is upgrading its networks in a hybrid fibre-optic infrastructure for superfast Internet connections of up to several hundred megabits per second with the state-of-the-art Internet transmission standard DOCSIS 3.0. The broadband cable caters to the entire range of innovative media applications from analogous, digital and high-definition TV to high-speed Internet and voice connections to telemetry services, tenant portals and interactive services. Beyond merely transmitting signals, Tele Columbus uses its own product platform in order to actively increase the programme offering and to develop additional services.

Disclaimer

This Investor Relations release may contain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward- looking events and circumstances discussed in this Investor Relations release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on the forward-looking statements.

This Investor Relations release may contain references to certain non-GAAP financial measures, such as Normalized EBITDA and Capex, and operating measures, such as RGUs, ARPU, and Unique subscribers calculation. These supplemental financial and operating measures should not be viewed in isolation as alternatives to measures of Tele Columbus's financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. The non-GAAP financial and operating measures used by Tele Columbus may differ from, and not be comparable to, similarly titled measures used by other companies. For further information please see in particular the Footnotes in this Investor Relations release and the financial statements.

We disclaim any obligation to publicly update or revise any forward-looking statements or other information contained in this Investor Relations release. It is pointed out that the present Investor Relations release may be incomplete or condensed, and it may not contain all material information concerning Tele Columbus AG or the Tele Columbus group.