Bloomberg News

Kabel Deutschland Declines on Proposed Dividends: Munich Mover

June 14, 2012

Kabel Deutschland Holding AG (KD8), Germany’s largest cable operator, declined in Frankfurt trading after proposed dividend payments missed analysts’ estimates.

The stock fell as much as 4.2 percent. The shares traded 2.8 percent lower at 44.24 euros as of 10:08 a.m. in Frankfurt.

Kabel Deutschland will pay a dividend of 1.50 euros a share this year and plans to maintain that level next year if it makes enough progress cutting debt, the company, based near Munich, said on its website today. The payments are less than Bloomberg dividend forecasts for a 1.65 euro payment this year and 2.23 euros next year.

The cable company agreed last month to buy Tele Columbus for 603 million euros ($758 million) to expand in eastern Germany. Kabel Deutschland took on 600 million euros of short- term debt for the purchase, and maintained its goal to keep debt at between 3 and 3.5 times its earnings before interest, tax, depreciation and amortization.

Adjusted earnings before interest, taxes, depreciation and amortization will probably be 855 million euros to 870 million euros, excluding acquisitions, in the year through March 2013, Kabel Deutschland said today. In the last fiscal year, adjusted Ebitda was 795.5 million euros. Kabel Deutschland ended the period with debt at 3.4 times Ebitda.

German TV

Germany is set to grow faster than any other cable market in Europe as fewer people there currently use digital and pay-TV technologies, Guy Bisson, an analyst at IHS Screen Digest, said in April. Kabel Deutschland is trying to sell more phone and Internet services for multiple home devices to TV customers to boost revenue per user.

Sales will increase 7.5 percent to 8.5 percent this fiscal year, excluding acquisitions, the company said today. That implies revenue between 1.83 billion euros and 1.84 billion, compared to an average estimate of 1.82 billion euros in a Bloomberg survey of 23 analysts.

Kabel Deutschland said it expects “higher absolute growth levels” in sales excluding acquisitions in coming years.

Net income for the year through March 2012 was 159.4 million euros, compared with a 45.3 million-euro loss in the year-earlier period.

To contact the reporter on this story: Cornelius Rahn in Frankfurt at crahn2@bloomberg.net

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


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