Kabel Deutschland speeds up cable upgrade
The management board of Germany's largest cable operator Kabel Deutschland has decided to invest an additional €300 million to accelerate the upgrade of its cable network.
The move follows the company's failed attempt to buy Tele Columbus.
Throughout the next two fiscal years the funds will be poured into network infrastructure in addition to the existing investment plans to enable faster growth. Previously, these investments were envisaged for later years.
The cash injection will be used for earlier network upgrades for high speed Internet access, video-on-demand (VOD) and Wi-Fi products as well as a significant expansion of network capacity. Kabel Deutschland hopes that this will further strengthen its ability to benefit from the growth potential in the German broadband and TV market.
The company has also presented its business report for the first nine months of its fiscal year 2012/13. Between 1 April and 31 December 2012 turnover rose by 8.3% to €1.36 billion compared with last year, while EBITDA grew by 9% to €643 million. The net profit doubled to €200 million.
1.9 million of Kabel Deutschland's 8.5 million customers signed up for Internet or telephony at the end of 2012 (2011: 1.6 million) while 1.3 million customers subscribed to the cable company's pay-TV packages (2011: 1.1 million).
From the 15.3 million households covered by Kabel Deutschland's cable network, 87% were upgraded for Internet and telephony at the end of 2012, of which 81% can use an Internet data rate of up to 100Mbit/s.