UPDATE 1-French cable group Numericable keeps mid-term targets

Wed Mar 12, 2014 3:22am EDT

* Revenue rises 0.9 pct to 1.31 bln eur in 2013

* Adj EBITDA falls 0.5 pct to 616 mln eur in 2013

* Confirms three-year targets set at November IPO

* Drahi says won't raise SFR offer (Adds detail, founder on SFR offer)

PARIS, March 12 (Reuters) - French cable company Numericable reiterated its three-year targets on Wednesday to grow sales 2-5 percent annually and invest in upgrading its network, as it posted a small drop in full-year core profit.

Numericable, backed by entrepreneur Patrick Drahi, is in a bidding battle with Bouygues Telecom to take over France's second-biggest telecom operator, Vivendi's SFR.

Drahi told Les Echos newspaper that he would not raise its 10.9 billion euro ($15.1 billion) cash bid, which will leave Vivendi with a 32 percent stake in the new combined company. Bouygues is offering 10.5 billion and 46 percent.

Numericable is 40 percent owned by Altice, the holding company of founder Drahi.

Numericable said in a statement it confirmed the targets set at the time of its stock market listing in November, which include 220-230 million euros of additional spending to upgrade its network through 2016.

The company said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 0.5 percent to 616 million euros in 2013 as revenue edged 0.9 percent higher to 1.31 billion.

Average revenue per user rose 2.7 percent to 41.9 euros at the end of the fourth quarter, Numericable added.

($1 = 0.7212 Euros) (Reporting by James Regan; Editing by Mark Potter)