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Ziggo : Ziggo : Solid performance in unchanged market conditions

       Ziggo : Ziggo : Solid performance in unchanged market conditions

Utrecht, April 17, 2013
Ziggo N.V. Q1 Results

               Solid performance in unchanged market conditions

· New marketing campaigns launched in February; increased new All-in-1
sales
· Successful launch of our cloud-based video user interface; higher
number of interactive set top boxes
· B2B continues to record double-digit organic revenue growth
· Completion of €1.1 billion debt refinancing; extending the maturity
profile, reducing interest costs and increasing flexibility

Operational highlights Q1 2013
· All-in-1 bundle subscribers up 31,000 in Q1, resulting in 2.2% q-o-q
growth and 8.3% y-o-y growth; All-in-1 bundle penetration reaches 52.2% of our
consumer customer base
· Internet subscribers up 24,000 in Q1, representing 1.3% q-o-q growth
and 5.0% y-o-y growth
· Telephony usage revenue up 3.1% q-o-q and down 5.8% y-o-y (down 1.1%
excluding FTA rate reduction)
· Higher Digital Pay TV revenue, including Video on Demand, resulting in
0.4% q-o-q growth and 5.0% y-o-y growth
· B2B expands services through acquisition of Esprit Telecom, subject to
approval by the Dutch Competition Authority (ACM)

Financial highlights Q1 2013
· Revenues up 0.2% y-o-y to €387.8 million; up 1.8% excluding 'Other
Revenues', despite a 5.8% decline in telephony usage revenues
· Adjusted EBITDA €222.6 million, up 3.0% y-o-y
· Free cash flow €160.1 million, up 8.3% y-o-y
· Special tax treatment for innovation lowers effective tax rate
· Net profit increased to €92.6 million from a loss of €14.5 million in
Q1 2012
· Earnings per share €0.46
· Leverage ratio down to 3.15x compared to 3.33x at year-end 2012

CEO Bernard Dijkhuizen:
"The first quarter of 2013 showed solid results with strong EBITDA margins in
a continuing competitive environment. We have successfully stepped up our
marketing activities in the consumer market with the launch of new sales
campaigns in February. However churn remains high, so we will initiate new
loyalty campaigns in the second quarter with a strong focus on customer
retention. These should give support to our overall objective to reduce churn
and create revenue momentum in the course of 2013. Meanwhile, we will focus on
enhancing customer experience through new innovations and product
enhancements. The recent launch of our cloud based user interface for set top
boxes has resulted in a strong increase in the number of interactive receivers
since its launch. With the roll-out of Ziggo WiFi Hotspots this year we will
prepare and position ourselves for converged services by adding mobility for
our customers.

Our B2B operations again showed double digit organic growth, driven by the
sale of business bundles focusing on home offices and small businesses. With
the acquisition of Esprit Telecom we will strengthen our propositions and
services for the mid-market and benefit from operating leverage through a
substantial increase in our customer base and reseller channel. Together with
our state-of-the-art infrastructure, the acquisition of Esprit will bring new
growth opportunities for our B2B operations in this segment."

Outlook
We reiterate our guidance for 2013 EBITDA which we expect to increase between
2.5% and 3.5%. Based on the first quarter operational results, including
elevated churn, we anticipate 2013 revenue growth (excluding 'Other Revenues')
to be around the low end of the EBITDA growth. We anticipate improved revenue
momentum over the course of 2013 as our marketing and retention initiatives
take effect. Our capital expenditure for 2013 is expected to be in the range
of €320-€330 million.

In line with the dividend policy, Ziggo will pay a final dividend over 2012 of
€180 million, or €0.90 per share, to its shareholders on April 29. On
September 6, Ziggo expects to make a 2013 interim dividend payment of €190m.

CEO succession
On March 6, the Supervisory Board of Ziggo announced its intention to appoint
René Obermann as the new CEO of Ziggo, effective January 1, 2014. René
Obermann is currently CEO of Deutsche Telekom AG. This planned transition
coincides with the previously disclosed retirement of the current CEO, Bernard
Dijkhuizen, in January 2014, ensuring continued strong leadership of Ziggo in
the future.

Acquisition Esprit Telecom
On March 14^th, Ziggo announced it is further expanding its services for the
business market through the acquisition of Esprit Telecom, a leading provider
of voice and data services for the SME market in the Netherlands. The company
has an active sales channel of dealers across the country. The acquisition
includes Zoranet, an ICT service provider that focuses on the retail sector.
The acquisition is subject to approval by the Dutch Competition Authority
(ACM). In 2012, Esprit Telecom generated revenues of €37 million. The
acquisition is valued at €18 million.

Important dates
This year, Ziggo expects to publish its quarterly results on the following
dates:
Q2 2013 July 18, 2013
Q3 2013 October 18, 2013

The 2012 Annual General Meeting of Shareholders will be held on April 18,
2013.

April 18, 2013 AGM and final declaration of dividend
April 22, 2013 Ex-dividend (at opening)
April 24, 2013 Record date (after close)
April 29, 2013 Payment date

Interim dividend 2013:
September 3, 2013 Ex-dividend (at opening)
September 5, 2013 Record date (after close)
September 10, 2013 Payment date

Please note that the results published in this press release are the
consolidated results of Ziggo N.V.
("Ziggo"), and not those of Ziggo Bond Company B.V., the entity that we
reported on prior to Q1 2012.
As a consequence of the initial public offering of 25% of its ordinary shares
on March 21, 2012, Ziggo is now
reporting quarterly results at the level of the entity that issued the
ordinary shares at NYSE Euronext Amsterdam, referred to as "Ziggo". A
reconciliation of the results for Ziggo N.V. to Ziggo Bond Company B.V. is
attached as a separate schedule to this earnings release and an explanation of
the most important reconciling items is provided at the end of this release.
Ziggo was incorporated on April 1, 2011 and indirectly acquired all of the
issued and outstanding shares of Ziggo Bond Company B.V. on March 20, 2012.

Definitions/Footnotes
(1) Adjusted EBITDA refers to EBITDA, adjusted to eliminate the effects of
operating expenses incurred in connection with the initial public offering of
ordinary shares of the company on March 21, 2012, which were €0.0 million for
the quarter ended on March 31, 2013 and €39.7 million for the quarter ended on
March 31, 2012 respectively.
(2) EBITDA represents operating income plus depreciation and amortization.
Although EBITDA should not be considered a substitute for operating income and
net cash flow from operating activities, we believe that it provides useful
information regarding our ability to meet future debt service requirements.
(3) Operating data relating to our footprint and RGUs are presented as at
the end of the period indicated.
(4) Digital television RGUs equals the total number of standard TV
subscribers who have activated a smart card as at the end of the periods
indicated. As a result, digital TV RGUs represents the number of subscribers
who have access to our digital TV services. In any given period, not all of
these digital TV RGUs will have subscribed to additional digital pay TV
services. As at March 31, 2013, 909,000 of our total digital TV RGUs
subscribed to one or more of our digital pay TV services.
(5) Total RGUs are calculated as the sum of total standard TV subscribers,
digital pay TV subscribers, internet subscribers and telephony subscribers
which are serviced by our coaxial products for both the consumer and the
business markets. Total consumer RGUs excludes the subscriptions for our
products Office Basis (29,388), Office Plus (1,075) and Internet Plus (9,311)
targeted at SOHO and small businesses and our collective TV contracts TOM and
TOMi (representing 82,000 RGUs), as these coaxial products are serviced by our
business division and revenues generated through these products are recognized
as business service revenues. These products represent 122,000 TV RGUs, 13,000
digital pay TV RGUs, 40,000 internet RGUs and 30,000 telephony RGUs.
(6)  Besides 1,426,000 subscribers who subscribed to the All-in 1 bundle,
13,000 customers subscribed to standard TV, internet and telephony on an
individual product basis instead of an All-in-1 bundle.
(7) RGUs per customer is the total number of consumer RGUs (6,891,000 as at
March 31, 2013) divided by the total number of consumer standard TV
subscribers (2,729,000 as at March 31, 2013).
(8) Average Revenue per User (ARPU) for the consumer market is calculated as
the sum of total standard TV, digital pay television, internet, telephony
(including call charges and interconnection revenue) and All-in-1 bundle
subscription revenues generated in the consumer market for the period divided
by the number of months used and divided by the period's average monthly total
standard TV RGUs. It excludes revenue from other sources, including
installation fees and set-top box sales.

About Ziggo
Ziggo is a Dutch provider of entertainment, information and communication
through television, internet and telephony
services. The company serves around 2.9 million households, with over 1.8
million internet subscribers, almost 2.3 million subscribers for digital
television and 1.5 million telephony subscribers. Business-to-business
subscribers use services such as
data communication, telephony, television and internet. The company owns a
next-generation network capable of providing the
bandwidth required for all future services currently foreseen. More
information on Ziggo can be found on: www.ziggo.com
Not for publication                  Analysts and Investors
                                     Wouter van de Putte
For more information please contact: Director Corporate Finance & Investor
                                     Relations
Press                                +31 (0)88 717 1799 |
Martijn Jonker                       investorrelations@office.ziggo.nl
Deputy Director Corporate
Communications.                      Christian Berghout
+31 (0)88 717 2419 |                 Manager Corporate Finance & Investor
Martijn.Jonker@office.ziggo.nl       Relations
                                     +31 (0)88 717 1051|
                                     investorrelations@office.ziggo.nl

Q1 2013 results

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(ii) they are solely responsible for the content, accuracy and originality of
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information contained therein.

Source: Ziggo via Thomson Reuters ONE
HUG#1693631
 
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