German cable operator Kabel Deutschland (KDG) is to pull forward network investment plans of €300 million to be spent over the next two years in order to accelerate growth.
The additional funds will be allocated to earlier than planned network upgrades for highs-peed internet video-on-demand and WiFi products, and the expansion of network capacity. The company said it would also repay its €71 million C1 loan due in March 2014.
The announcements follow yesterday’s news that the German Federal Cartel Office had blocked KDG’s planned acquisition of smaller cable operator Tele Columbus.
KDG posted revenue growth of 8.8% to €465 million for its third fiscal quarter to December 31, with EBITDA of €220 million, up 10.2%.
The company saw its internet base expand by 84,000, its strongest result to date. The company had 1.856 million phone and internet subscribers at the end of December, up 18.7%. Premium TV subscribers grew by 107,000 in the quarter, comprising 61,000 DVR customers and 47,000 pay TV customers while the overall direct subscriber base grew by 65,000 year-on-year to 7.566 million and total RGUs amounted to 14.1 million, up 6.3%. Total premium TV RGUs now number 1.97 million. Blended ARPU for the third quarter increased by 10.8% year-on-year to €16.05.
KDG said it would increase its dividend to €2.50, up from €1.50 for the previous fiscal year.
