FRANKFURT (Reuters) - Kabel Deutschland KD8Gn.DE on Wednesday trimmed its revenue forecast for the current fiscal year and said the pending takeover of the company by Britain’s Vodafone (VOD.L) would hit full-year net income.
The cable company, releasing “selected” preliminary results for the second quarter, said it now expected revenue growth of 5-6 percent in the year ending March 31, 2014, against a previous forecast of about 8 percent, 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 euros ($277 million) in the current fiscal year, Kabel Deutschland added in a statement.
Analysts on average expect Kabel Deutschland to post net profit of 263 million euros this year, data from Thomson Reuters I/B/E/S show.
The news may undercut hopes for an improved Vodafone offer among Kabel Deutschland shareholders who have yet to tender their shares.
“In light of the takeover of more than 75 percent of shares by Vodafone and the implied negative net income effect, Kabel Deutschland can currently give no guidance on the shareholder return for FY 2013/14,” the statement said.
Some hedge funds that had built up stakes in Kabel Deutschland plan to contest the deal in court to attain a better price, sources told Reuters last month.
Kabel Deutschland said revenue rose 4 percent to 471 million euros in the second quarter from a year ago, helped by a recovery in premium TV as well as strength in the Internet and phone business.
Reporting by Jonathan Gould; Editing by Greg Mahlich and David Evans