Bloomberg News

Kabel Deutschland Falls as Revenue Seen at Low End of Forecasts

November 15, 2011

Nov. 15 (Bloomberg) -- Kabel Deutschland Holding AG, Germany’s largest cable television operator, fell the most in two weeks in Frankfurt trading after predicting full-year sales will hit the low end of its range of its forecasts.

The company had predicted revenue to increase by a range of 6.25 percent to 6.75 percent for the year ending March 31, 2012. Second-quarter sales climbed 5.5 percent to 418 million euros ($569 million), in line with analysts’ estimates.

Kabel Deutschland, based near Munich, is counting on television customers buying telephone and Internet services for multiple devices in their homes as the main drivers of growth as it lags behind peers in Germany and the rest of Europe in average revenue per user.

“The number of minutes that heavy users called fell more than we had expected,” Chief Financial Officer Andreas Siemen said on a conference call today. “We think the main reason is that more and more people are signing up for mobile flat-rate contracts.”

The shares dropped as much as 4.3 percent to 40.33 euros, and were down 2.5 percent to 41.10 euros as of 9:15 a.m. in Frankfurt, giving the company a market value of 3.7 billion euros. Before today, the stock had gained 21 percent this year.

Second-quarter adjusted earnings before interest, taxes, depreciation and amortization rose 10 percent to 196.5 million euros. For the full year, the company is expecting Ebitda in the range of 790 million euros to 800 million euros.

--Editors: Kenneth Wong, Tom Lavell

To contact the reporter on this story: Ragnhild Kjetland in Frankfurt at rkjetland@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


Video Game Avenger
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus