Kabel Deutschland trims forecasts

kabel-deutschlandKabel Deutschland has trimmed its revenue forecast for the current financial year and said the pending takeover of the company by Vodafone would hit full-year net income.

The German cable company, releasing “selected” preliminary results for the second quarter, said it now expected revenue growth of 5-6 per cent in the year ending March 31st 2014, against a previous forecast of about 8 per cent, after concluding it was unlikely to make up for a revenue shortfall seen in the first quarter.

In addition, the loss of deferred tax assets and other effects prompted by the takeover by Vodafone would hurt Kabel Deutschland’s net income by about €205 million in the current fiscal year, Kabel Deutschland added.

Kabel Deutschland said revenue rose four per cent to €471 million in the second quarter from a year ago, helped by a recovery in pay-TV as well as strength in the Internet and phone business.

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