KDG posts solid 9M09 results, attracts bids from six private equity firms

12 Feb 2010

German cable operator Kabel Deutschland (KDG) has announced its financial results for the nine months ended 31 December 2009 of its fiscal year 2009/10, posting revenue of EUR1.11 billion (USD1.53 billion), up 9.3% compared to EUR1.02 billion in the same period a year earlier. Subscription-based revenue grew by 8.8% year-on-year to reach EUR980.3 million and accounted for 88% of total turnover. Adjusted earning before interest, tax, depreciation and amortisation (EBITDA) rose 13.8% in the nine-month period to EUR486.4 million, while KDG’s net profit totalled EUR23.1 million, compared to a net loss of EUR48.6 million during the same period in 2008. CAPEX amounted to EUR233.2 million, representing 20.9% of revenue, down from EUR259.5 million in the nine months to end-2008. Meanwhile, the company generated revenue of EUR378.8 million in the quarter ended 31 December 2009, up 8% year-on-year, and adjusted EBITDA increased 9.5% in 3Q09 to EUR164.5 million. KDG posted net profit of EUR19.1 million in the quarter, compared to a net loss of EUR28.0 million in the same period a year earlier.

At 31 December 2009 KDG reported a total of 11.93 million Revenue Generating Units (RGUs), representing an increase of 4.8% from end-2008. Internet and telephony RGUs jumped 48.6% year-on-year to reach 1.844 million, of which broadband internet services accounted for 906,000 (up from 625,000), while telephone services made up the remaining 938,000 (up from 616,000). The company’s total subscribers reached 8.9 million at end-2009, with subscribers representing an average 1.33 RGUs compared to 1.25 a year earlier.

Meanwhile, Vodafone Germany has rejected reports that it is interested in bidding for KDG, which is also sounding out options for an initial public offering (IPO). According to a report from Dow Jones, citing people familiar with the matter, six private equity firms have expressed an interest in buying the cableco; BC Partners and CVC Capital Partners have made a joint bid, while other bidders include Advent International, Bain Capital, Carlyle Group and Hellman & Friedman.

Germany, Kabel Deutschland, Vodafone Germany