German cable operator Kabel Deutschland, which was acquired by Vodafone Group last year, has announced its consolidated financial results for the second quarter of its fiscal year ending 31 March 2015. Total revenue for the three-month period totalled EUR500 million (USD623.1 million), an increase of 6.0% from EUR471 million in the year-ago quarter, with growth primarily driven by a 13.8% year-on-year increase in ‘Internet and Phone’ revenues to EUR206 million. Adjusted EBITDA rose 4.9% to EUR244 million in the quarter ended 30 September 2014 from EUR232 million in 2Q 2013/14, while Kabel Deutschland posted net profit of EUR67 million, compared to a net loss of EUR129 million in the same period twelve months earlier.
Kabel Deutschland reported a total of 15.306 million revenue generating units (RGUs) at the end of September 2014, up 5.2% from 14.554 million a year earlier, with growth driven by strong demand for new premium TV, internet and telephony services. The number of internet RGUs reached 2.369 million as at 30 September 2014, up 18.7% year-on-year, and telephony RGUs grew 16.9% to 2.302 million over the same period. Premium TV RGUs totalled 2.425 million at the end of Q2 2014/15, up 12.8% from 2.149 million twelve months previously.
In a separate development, The Financial Times writes that Elliott Management has claimed Vodafone may have to pay out EUR8 billion in compensation for undervaluing its stake in Kabel Deutschland. The US hedge fund is suing Vodafone in a German court to pay a higher price than the UK group paid in last year’s takeover of the German cable operator. Elliott owns 13.5% of Kabel Deutschland shares but has held out from tendering them because it believes the company is worth over EUR250 a share, compared to the EUR84.53 that was offered by Vodafone. The UK firm has dismissed Elliott’s claim, reiterating that it would not raise its offer for the German company.