German cable viewers are finally embracing premium products, as evidenced by record annual results reported by Kabel Deutschland, but the cablenet is having trouble holding onto basic customers. In its annual results for the financial year ending March 31, 2007, the operator has pushed up blended ARPU to €10.03 compared to €8.63 in the same period in 2007. Although the figures remain well below those enjoyed in the other leading TV markets, it gives an indication that the investment by KDG and other operators such as Unitymedia is finally paying off. KDG has in the last year alone put in € 316.4 million.
“The present numbers impressively document the successful transformation of the company from the former ‘one product supplier’ to Germany’s largest triple play company,” said CEO Dr Adrian Hammerstein.
23% of the subscriber base is now receiving a ‘premium product’ of either digital TV, internet or telephony. 393,500 subscribers now have broadband internet and 361,000 cable telephony. Digital TV is now in 1.7 million homes and 778,500 are taking a digital TV pay package. The operator also reports approximately 800,000 subscribers to the Premiere pay-TV packages residing on its networks.
However, while premium subscribers have risen basic cable access numbers have successively fallen from 9,465,000 in December 2006 to 9,000,2000 in December 2007 and 8,979,800 in March 2008 as the company faces erosion from DTT in particular.
Year on year revenues rose from €1,093 million to €1,196.9 million. At the same time a record increase in EBITDA added 19.7% to last year’s €382.5 million to reach €457.8 million.
