Kabel Deutschland Boosts Quarterly Revenue, Profits
The German cable giant makes up for minimal cord cutting with higher revenues from Internet, telephony and DVR services.
COLOGNE, Germany – Kabel Deutschland (KDG) delivered solid quarterly figures Tuesday by keeping cable cutting to a bare minimum while adding new Internet and telephony customers at a rapid pace.
The German cable giant saw its total subscriber base dip to 8.69 million as of Sept. 30, a 1.8 percent year-on-year drop. But take up for its add-on Internet and telephony services jumped nearly 33 percent to 1.5 million over the same period. It was a similar story for KDG’s digital video recording service, which added 180,000 new customers, a 75 percent increase from this time last year. All that add-on revenue helped KDG boost sales 5.5 percent to $573 million (€418 million) for the quarter, with net profit at $50 million (€36.4 million) compared to a €6 million loss year-on-year.
For the full fiscal year, KDG expects sales to climb 6.25 – 6.75 percent and is forecasting operating profits (EBITDA) of between $1.08 billion – $1.1 billion (€790 million - €800 million).
KDG’s mainly positive figures were marred only by the company’s statement that recent flooding in Thailand could interrupt its supply of DVRs for the German market. “(The) sourcing of HD DVRs at planned volumes is not secured over the next months, which creates uncertainty around DVR sales,” the company said. Flooding in the Thai capital Bangkok has hit suppliers of DVR hard drives and other high-tech equipment.