Interim Results for Period Ended 31 December 2004

17 February 2005

Macquarie Communications Infrastructure Group (MCG) today announced its financial results for the half year ended 31 December 2004.

MCG has achieved operating revenues of $97.8 million for the half year, approximately 16% above the previous corresponding period (pcp), and earnings before interest, tax, depreciation and amortisation and pre fees (EBITDA pre fees) of approximately $58.4 million, approximately 23% above the pcp.

MCG CEO Mr Scott Davies said “The MCG results reflect the sustained strong operating performance of MCG’s cornerstone asset, Broadcast Australia (BA), which delivered substantial revenue and EBITDA improvements for the period mainly as a result of the continued rollout of digital terrestrial television services and the ongoing provision of quality broadcasting transmission to customers.

“Significantly, BA’s revenues increased by 15.5% and EBITDA by 23%, resulting in an EBITDA margin improvement to 61.1%, above the pcp margin of 57.4%.  BA’s ability to both grow revenue and increase profitability is an important demonstration of BA’s underlying strength and solid outlook.

Mr Davies said the six months to 31 December 2004 was also marked by the announcement of MCG’s acquisition of a 54% interest in ntl:broadcast in the United Kingdom for £342.0 million (A$854.8 million) and associated capital raising.

“MCG has been transformed by the ntl:broadcast acquisition. MCG has more than doubled in size to a market capitalisation of A$2.4bn and now has a significantly enhanced portfolio with two complementary assets in BA and ntl:broadcast,” Mr Davies said.

“The high level of demand and success of the capital raising reflected the strong support from existing security holders and the market for the acquisition of ntl:broadcast and of MCG's broad strategy.

“The ntl:broadcast acquisition completed 31 January 2005 and the business transition is well underway.  MCG is confident that the addition of ntl:broadcast, with its strong order book and accompanying cashflows, will complement BA’s excellent performance and outlook.

“Both BA and ntl:broadcast are also well positioned to benefit from the continuing evolution of digital broadcasting and the expansion of broadcast networks and applications, which offers the opportunity for continued earnings growth for MCG and its assets,” Mr Davies said.

Distributions
In December 2004, MCG announced an interim distribution of 14.4 cents per stapled security for the half year to 31 December, in line with forecasts.  This represents significant outperformance after taking into account the extra securities on issue due to DRP participation and the reinvestment of performance fees in securities.  The interim distribution was paid on
14 February 2004. 

As previously announced, MCG has reconfirmed its existing distribution forecast of 28.8 cents per stapled security for the 2005 financial year and increased by 9% its preliminary guidance for the 2006 financial year from 33.0 cents to 36.0 cents per security.

Performance in brief

• Download Interim Results Investor Presentation (pdf 600 KB).
• Dowload Interim Financial Report (pdf 281 KB).
• Download Appendix 4D (pdf 20 KB).
• View the Interim Results Announcement webcast held on 17th February 2005.

For more information, please contact:

Investor Enquiries
Richard Nelson
Head of Investor Relations
Tel: (612) 8232 5301
Email: richard.nelson@macquarie.com

Media Enquiries
Suzanne Mercer
Public Affairs Manager
Tel: (612) 8232 8525
Email: suzanne.mercer@macquarie.com