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Primacom on the up after Telekabel acquisition

PrimacomGerman cable operator Primacom was boosted by its acquisition of Deutsche Telekabel in the first half, with a 40% increase in revenues and an EBITDA uplift of over 50%.

Primacom posted revenues of €65.9 million for the first half, up 39.7%, while EBITDA was up 54.7% to €27 million.

Over 80% of the company’s revenues are now derived from its unified backbone-connected network, Primacom said.

Primacom is beginning to reap the rewards of its investment in its network and higher triple-play penetration, according to its management. Digital services saw growth of 38.5% in the first half.

Excluding Deutsche Telekabel, Primacom’s revenues were up 6.2% to €50.1 million and EBITDA was up 14.1% to €20 million. IP capable homes were up 47% and blended ARPU rose 6.9% to €16.59.

The acquisition of Deutsche Telekabel in March gave the operator access to an additional 270,000 connected homes.

Our first half performance underlines the significant progress made by PrimaCom over the past three years, as our investment in our own state-of-the-art IP capable network has transformed our growth trajectory,” said CEO Joachim Grendel.

“Creating an integrated Level 3/Level 4 provider is driving growth of higher value triple play services, while ensuring that the business has the technological capability to meet customer needs far into the future. More than 80% of our EBITDA and cash flow now comes from the backbone-connected part of our business a level consistent with that achieved by the two largest players in our market and significantly ahead of other peers. We believe that the quality of our infrastructure represents both an enduring competitive advantage and a significant differentiator for our business.”