PARIS -- Neuf Cegetel reports third-quarter 2007 revenues of €859 million. Growth accelerated to 20.4% compared to Q3 2006. Excluding Club Internet, which was acquired on 29 June 2007, third-quarter growth would have been 12.1%, vs 10.9% in H1 2007.

Table 1: Revenues

Table 2: Changes on Previous Year

Mass Market division

The Mass Market division generated revenues of €400 million in the third quarter, up 98% compared to the year-earlier period. Excluding Club Internet, revenue growth would have been 64%, vs 49% in H1 2007.

The group's broadband offer, marketed under the 'Neuf' brand, continues to fuel strong division growth. In the third quarter, the 'Neuf' brand reported a net increase of 135,000 new clients1 (i.e. after churn and before migrations from other group brands). This marks an increase of more than 30% compared to Q3 2006, and supports the group's ambition for the ‘Neuf’ brand to capture between 20% and 25% of growth in the broadband market.

At 30 September, the group had 3,123,000 broadband clients. The net increase of 91,000 clients since 30 June is similar to the Q3 2006 performance. The accelerated growth of the 'Neuf' brand offset the slowdown in overall market growth, as well as the contraction in the group’s other brands, which are no longer recruiting new customers.

The 'Neuf' brand accounted for 61% of clients at 30 September 2007. The Group’s target is to increase this proportion to more than 90% at the end of 2008. AOL and Cegetel clients continue to migrate to 'Neuf' according to schedule, and most of the transition should be finished by year-end 2007. The migration of Club Internet clients will occur primarily in 2008.

Neuf Cegetel Group (Euronext: NEUF)