KDG reduces losses as premium sub base grows

German cable operator Kabel Deutschland (KDG) has posted a net loss for its first quarter financial results, but has increased its number of premium TV subscribers.

The largest cabler in Europe also confirmed that it is in talks with News Corp-backed satellite pay-TV operator Sky Deutschland over a possible marketing partnership that would strengthen relations between the two companies.

KDG posted a net loss of €2.1m, however this was compared with a loss of €10.5m last year. While revenues rose by 6.1% to €389.5m, the company said that it made a loss as a result of the high costs of upgrading its network, which it has been doing for the last five years.

The number of premium TV subscribers rose by 125,700 (or 12.8%) to 1.1 million, although the number of basic cable subscribers fell by 82,000 to 7.29 million. The operator also benefited from growing demand for its broadband internet and fixed-line telephone services, which saw a 29.1% increase.

Chief executive Adrian von Hammerstein said that it would concentrate on launching new products in this market. “We continued to drive growth in our new services even in a soft broadband market. We are adding new products to stimulate the inflow of broadband switchers in our footprint and accelerate growth,” he said.

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