No Sign of Cable Cutting in Germany at John Malone's Kabel BW
Pay TV and Internet offerings have helped Germany’s cable giants hold on to customers and boost revenue.
COLOGNE, Germany – There’s been no sign of dreaded cable cutting at Kabel BW, Germany’s third-largest cable group in terms of revenue. In figures released Thursday, Kabel BW, which is controlled by John Malone's LIberty Global, posted double digit sales and earnings (EBITDA) growth. Expanding pay TV and Internet services helping to keep customers loyal as well as getting them to pay more per month for their cable bill.
Kabel BW’s pay TV customers jumped 36 percent to 353,000 in the first nine months of 2011, while its Internet and telephony services saw a 25 percent uptake, with 779,000 customers currently opting in. Overall, subscriber figures held steady, increasing slightly, by 2 percent, to 2.4 million.
All those extra Internet and pay TV services mean more monthly revenue for Kabel BW. The company says its average customer pays $26.5 (€19.3) a month for services, up 8.4 percent on this time last year.
Overall, revenue shot up 10.8 percent to $626 million (€456.4 million) through Sept. 30. EBITDA profits were up 15.3 percent to $368 million (€268 million).