Kabel Deutschland posts net loss on Vodafone takeover

11 Nov 2013

German cable operator Kabel Deutschland, which is in the process of being bought by UK-based Vodafone Group, has announced its financial results for the three months ended 30 September 2013, reporting a 4.0% increase in revenues to EUR471.2 million (USD629.6 million) from EUR452.9 million in the year-ago period. Growth was primarily driven by a 16.9% year-on-year rise in ‘Internet and Phone’ revenues to EUR181 million, while TV turnover was relatively stable at EUR290 million, mainly due to a reduction of carriage fees from public broadcasters. Adjusted EBITDA for the three months to end-September 2013 reached EUR232.3 million, up 8.9% from EUR213.3 million twelve months earlier. Kabel Deutschland posted a net loss of EUR129.3 million compared to a net profit of EUR61.1 million in the year-ago quarter, due to a negative net income effect of EUR206 million from the Vodafone transaction. Last month the British company announced that it had completed the voluntary public takeover offer Kabel Deutschland and now holds 76.57% of the cableco’s share capital.

In operational terms, Kabel Deutschland reported a total of 14.554 million revenue generating units (RGUs) at 30 September 2013, up 5.5% year-on-year, with growth driven by strong demand for new premium TV, internet and telephony services. These services accounted for 6.114 million of total RGUs (up from 5.201 million a year earlier). The number of internet RGUs reached 1.995 million at the end of September 2013, up 21.2% from 1.657 million a year earlier, while telephony RGUs grew 19.6% from 1.681 million to 1.970 million over the same period. Premium TV RGUs totalled 2.149 million at the end of Q2 2013/14, up from 1.863 million year-on-year.

Germany, Kabel Deutschland, Vodafone Group