KDG revenue up 16%, EBITDA increases by 30%

27 Feb 2009

German cableco Kabel Deutschland (KDG) increased its third quarter revenue of its 2008/2009 fiscal year by 16% to EUR351 million (USD447.3 million), up from EUR301 million compared to the same period a year earlier. The company achieved third quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR150 million, a 30% increase compared to the EUR115 million reported in the same quarter a year earlier. However, the net result in the quarter amounted to a loss of EUR28 million, compared to a net loss of EUR27 million a year earlier, due to continued high investments in its internet and telephony business, as well as depreciations related to the acquisition of Orion Cable.

In the third quarter of its 2008/2009 fiscal year the total number of revenue generating units (RGUs) rose to 11.4 million, up from 10.5 million in 2007, an increase of over 8%. The share of its premium products – internet, telephony and digital TV – of total RGUs rose to over 28%, up from 20% a year earlier. Average monthly ARPU rose by almost 17% to EUR11.22, compared to the previous year’s figure of EUR9.62. The share of subscribers who ordered more than one product from KDG also increased significantly; the company’s customers now order 1.25 products on average, up from 1.16 in the same period a year earlier. For KDG’s Internet & Phone package, it reflects the company’s most successful quarter since market launch; subscriptions increased to 1.24 million by 31 December 2008, up from 604,700 at the end of 2007 and therefore doubling in the space of a year. At the end of the 2008/2009 fiscal year on 31 March 2009 the total number of internet and telephony subscribers is expected to increase by a further 750,000. RGUs for digital pay TV grew by 82,900 in the most recent quarter to a total of 846,300 units, an increase of 11%. At the end of 2008 the number of all digital pay TV subscribers totalled two million, up from 1.5 million a year earlier.

Germany, Kabel Deutschland