Kabel Deutschland Profit Cut by $270 Million Post-VodafoneAmy Thomson
Kabel Deutschland Holding AG said that its sale to Vodafone Group Plc will trigger loss of tax deferrals and financing charges that will cut net income by about 205 million euros ($277 million) this fiscal year.
Kabel Deutschland also lowered its revenue growth forecast for the year ending in March after a slowdown in the first quarter. Sales should grow 5 percent to 6 percent for the year, compared with earlier projection for 8 percent growth, the Unterfoehring, Germany-based cable company said yesterday.
The cable operator also adjusted its revenue figures to exclude carriage fees from public broadcasters, which were 25 million euros last fiscal year.
Vodafone is buying the German company to add to its broadband and TV offerings in its biggest market as the Newbury, England-based carrier expands beyond wireless service. The transaction -- which values Kabel Deutschland at 84.50 euros per share, or about 7.5 billion euros -- is scheduled to close this month.
Kabel Deutschland added 84,000 subscribers to its phone and Internet business and 55,000 for premium television service in the second quarter.
Shareholders of Kabel Deutschland will meet today to vote on a 2.50 euro-per-share dividend.
Kabel Deutschland fell less than 1 percent to 93.88 euros at 9:54 a.m. in Frankfurt. The shares have gained 66 percent this year. Vodafone gained less than 1 percent to 215.85 pence in London.