Profit miss for Voda’s Kabel Deutschland

City A.M. Reporter
KABEL Deutschland yesterday posted worse-than-expected core profit for the three months to the end of June, as extra investments in broadband and marketing weighed.

The company, which is in the process of being bought by Vodafone, reported 3.8 per cent higher earnings before interest, taxes, depreciation and amortisation (EBITDA), at €217m (£185m).

Revenues increased 4.6 per cent to €64m, also below analyst estimates.

Germany’s biggest cable company said it expected its 2013/14 revenue to increase by about eight per cent, while the adjusted EBITDA margin is seen at about 48 per cent.

“Our broadband products are very popular. That is why we are making significant investments in that area,” chief executive Adrian von Hammerstein said in a statement.

In June, Kabel Deutschland agreed to be bought by Vodafone for €7.7bn, marking the British company’s largest deal in six years and its second major buy of a European fixed line network in 12 months.

So-called quad-play services offering TV, broadband, mobile and fixed-line telephony have caught on in European markets.