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UPDATE 2-Kabel Deutschland's Q2 in line, shares down

Published 11/16/2010, 03:54 AM
Updated 11/16/2010, 04:00 AM

* Q2 sales 396 million euros, vs forecast 395 million

* Q2 core profit 179 million euros, vs forecast 180 million

* Debt down to 2.88 billion euros, from 3.08 billion

* Confirms full-year targets

* Shares down 1.6 percent (Adds trader comment, share price)

By Nicola Leske

FRANKFURT, Nov 16 (Reuters) - German cable TV company Kabel Deutschland reported second-quarter earnings in line with estimates and confirmed its outlook, disappointing investors who had hoped for stronger results.

KDG shares were down 1.6 percent by 0835 GMT, making it one of the biggest losers in Germany's mid-cap index.

"It is more of a disappointment, especially if you consider how much the shares have risen recently," a trader said.

Benefiting from demand for its Internet and phone packages, KDG stock has gained 37 percent in the past three months.

Germany's largest cable operator, which went public in March, said adjusted second-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) were 179 million euros ($243.7 million), an increase of 9.5 percent compared with the previous year and bang in line with analyst expectations.

Quarterly sales rose 7.6 percent to 396 million euros.

The Munich-based company said it was also on track to reduce debt, which stood at 2.88 billion euros by the end of September compared with 3.08 billion a year earlier.

It confirmed its outlook for the current year, saying it aims to reach the upper end of its core profit target range of 715-725 million euros, with 6.5-7 percent sales growth.

The company offers analog and digital TV, broadband Internet and fixed-line phone services via cable and competes with Deutsche Telekom and Vodafone.

KDG operates in 13 of Germany's 16 federal states and supplies its services to around 8.9 million connected households in Europe's biggest TV market. (Editing by David Cowell)

($1 = 0.7344 euro)

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