August 13, 2009 / 6:29 AM / in 9 years

UPDATE 1-Sky Deutschland's Q2 in line, confirms outlook

* Q2 core loss of 63.4 mln eur, in line with estimates

* Says rebranding negative net effect was 253.9 mln eur

* Confirms outlook * Shares indicated 1.9 percent lower

(adds detail, background

FRANKFURT, Aug 13 (Reuters) - German pay-TV broadcaster Sky Deutschland PREGn.DE reported second-quarter results in line with expectations on Thursday and confirmed its outlook for this year and the following years.

Its loss before interest, tax, depreciation and amortisation (EBITDA) was 63.4 million euros ($89.6 million) on second-quarter sales of 230.6 million euros, bang in line with analyst estimates.

The company’s shares were indicated to fall 1.9 percent when the market opens at 0700 GMT.

Sky Deutschland’s major shareholder is Rupert Murdoch’s News Corp (NWSA.O), which increased its stake in the German company last week to almost 40 percent.

The company last month rebranded itself from Premiere to Sky Deutschland, joining the Murdoch brand as it goes about restructuring its business.

The corporate identity switch led to a negative net effect of 253.9 million euros as forecast by the company.

News Corp fully owns Sky Italia and holds a 39 percent stake in Britain’s BSkyB. Sky Deutschland has said it expects negative cash flow of 250-275 million euros and a significant EBITDA loss this year. It aims to break even on an EBITDA basis by the end of 2010 and to turn a profit in 2011 and beyond.

Sky Deutschland’s main draw is German premier league soccer. It also broadcasts Hollywood movies, documentaries, dramas and pornography.

It said it had a total of 2.364 million direct subscribers at the end of the second quarter compared with 2.376 million in the previous year.

Reporting by Nicola Leske

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