Kabel Deutschland cuts FY revenue, net profit guidance

German cable operator Kabel Deutschland, which is in the process of being bought by UK-based Vodafone Group, has reported selected preliminary figures for the quarter ended 30 September 2013 and has revised its guidance for the fiscal year ending 31 March 2014. In the three-month period, the firm’s ‘Internet & Phone’ business saw 84,000 net subscriber adds, while ‘Premium TV’ RGUs increased by 55,000, helping to drive a 4.0% year-on-year increase in Q2 revenue to EUR471 million (USD638 million). However, the company said it is unlikely to make up for a revenue shortfall seen in the first quarter, and as such now expects revenue growth of 5%-6% for 2013/14, compared to the previously forecast 8% (on a pro forma basis excluding carriage fees from public broadcasters). Meanwhile, Kabel Deutschland noted that the Vodafone transaction ‘triggers certain events which will negatively impact net income by approximately EUR205 million in this fiscal year’, although the company guidance for adjusted EBITDA margin, CAPEX and leverage remains unchanged.