DT ups full year projections following strong Q2 results

12 Aug 2004

Deutsche Telekom (DT) has reported a net profit of EUR1.7 billion for the second quarter of 2004, up from EUR256 million in the same period the previous year, boosted by strong growth at its cellular subsidiary T-Mobile. EBITDA stood at EUR9.4 billion at the same date, up 4% on the year ago period, while sales rose 6% to EUR14.4 billion. Debt was reduced by EUR3.3 billion to reach EUR43.3 billion at the end of June.

Customer growth at DT’s mobile and broadband sectors beat expectations, with the total number of DSL subscribers totaling almost five million at the end of June, of which 4.7 million were in Germany, up 17% in six months; by the end of the year it expects to have 5.6 million. T-Mobile, meanwhile, added 4.5 million customers worldwide in the second quarter, to total 71.6 million, an increase of 16% year-on-year. 27.1 million were T-Mobile Deutschland customers, with T-Mobile UK claiming 14.9 million, T-Mobile USA 15.4 million, T-Mobile Austria 2 million, T-Mobile Czech Republic 4.1 million and T-Mobile Netherlands 2.2 million. T-Mobile Hungary claimed 3.9 million customers, HT mobile 1.4 million and Mobimak 600,000. The total number of fixed lines in service stood at 57.7 million at the same date, down marginally from 58.1 million the previous year.

CEO Kai-Uwe Ricke said the second quarter results show that DT is ‘back on track’ in spite of the difficult economic and regulatory environment in the country. He expects to see net profit double to EUR2.5 billion by the end of the year, with results from ordinary business activities expected to triple from EUR1.4 billion to EUR4.2 billion. EBITDA is expected to grow from EUR1.8 billion to EUR19.2 billion.

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