Broadband User Gains Drive Revenue, Profit Growth at Kabel Deutschland
Mobile giant Vodafone has offered $10.2 billion to take over the German cable group, outbidding John Malone's Liberty Global.
COLOGNE, Germany – The $10.2 billion Vodafone has put up for German cable giant Kabel Deutschland (KDG) looks like a better deal every day now.
KDG published its first-half figures for the 2013/2014 fiscal year on Wednesday and they show impressive growth, with revenue up 5 percent to $616 million (€464 million) and adjusted operating profits (EBITDA) 4 percent stronger at $288 million (€217 million). The figures were broadly in line with analyst expectations.
Revenue driver at KDG is broadband. The group now provides high-speed Internet to some two million customers in Germany. Its cable TV business serves 8.5 million homes.
Vodafone outbid competitors, including John Malone's Liberty Global, to take over Kabel Deutschland.
The mobile phone giant, which is still a minor player in the German broadband business, hopes to combine KDG's strength in cable and online to offer so-called quad play services, providing customers with Internet, TV and both mobile and landline phone service in a single monthly package.