KDG FY net loss widens on one-off expenses

9 Jun 2011

German cable operator Kabel Deutschland (KDG) has posted its results for the fiscal year ended 31 March 2011, reporting a 6.5% year-on-year rise in revenues to EUR1.598 billion (USD2.3 billion). Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 10.6% from EUR659.1 million in the 2009/10 fiscal year to EUR729.1 million twelve months later, while adjusted EBITDA margin improved to 45.6% compared to 43.9% the previous year. The company said its net loss for fiscal 2010/11 widened to EUR45.3 million from EUR40.1 million in the year-ago period, attributed to one-off refinancing expenses of EUR48.8 million. However, the cableco said a refinancing should result in a net profit in the year ending 31 March 2012. The company said it invested EUR344.6 million in its cable network and in customer acquisition efforts in the twelve-month period, up slightly from EUR327.2 million the previous year. In the 2011/12 fiscal year KDG predicts adjusted EBITDA to be in the range of EUR790 million to EUR800 million, and expects sales to increase by between 6.25% and 6.75%.

In operational terms, KDG reported 12.698 million revenue generating units (RGUs) at 31 March 2011, up from 12.119 million a year earlier, with growth driven by strong demand for new premium TV, internet and telephony services. These services accounted for 3.821 million RGUs, representing a 30.1% share of total RGUs (up from 25.7% a year earlier). The number of internet and telephony RGUs rose from 2.037 million at 31 March 2010 to 2.556 million a year later, while total internet and telephony subscribers rose 22.2% year-on-year to 1.382 million. Monthly average revenue per user (ARPU) increased to EUR13.78 in the fourth quarter ended 31 March 2011 from EUR12.87 in the year-ago period.

Germany, Kabel Deutschland