Q1 profit drops 80% for Deutsche Telekom

13 May 2004

Europe’s largest fixed line telco Deutsche Telekom (DT) has reported a net income of EUR169 million for the first quarter of 2004, down from EUR853 million in the same period of 2003. The operator attributed the severe drop to additional charges for its failed German truck-toll system. Net revenue grew by 2.7% to EUR13.98 billion year-on-year, despite negative effects from foreign currency exchange rates, while EBITDA rose from EUR4.5 billion to EUR4.6 billion. Sales increased to EUR14 billion from EUR13.6 billion, and net debt fell by EUR11.7 billion to EUR44.6 billion.

At the end of March 2004 Deutsche Telekom claimed a total fixed line customer base of 57.9 million, down from 58.2 million the previous year. Of the total, 48.7 million were in Germany, with Matav in Hungary claiming 3.5 million, Slovakia’s Slovak Telecom 1.4 million and Hrvatske Telekomunikacijie (Croatia) 1.9 million. The number of broadband subscribers stood at 4.5 million at the end of March, up from 4.1 million the year before.

The group’s cellular arm T-Mobile claimed a total of 63.4 million subscribers at the end of the quarter, of which T-Mobile Deutschland accounted for 26.7 million, T-Mobile USA 14.3 million, T-Mobile UK 14.3 million, T-Mobile Czech Republic 4 million, T-Mobile Netherlands 2.1 million and T-Mobile Austria 2 million.