Mobile growth fuels Deutsche Telekom Q1 earnings

11 May 2006

Europe’s largest telco in terms of revenue, Deutsche Telekom, has reported a 2.7% rise in first quarter core earnings, on the back of improved results from its stateside wireless arm T-Mobile USA. Deutsche Telekom’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to EUR5 billion (USD6.4 billion), while sales in the first three months of the year rose 3.9% to EUR14.8 billion. First quarter results were boosted by T-Mobile, which saw adjusted core earnings increase 8.5% to EUR2.28 billion. T-Mobile won 1.035 million new subscribers in the US, 379,000 in the UK and 284,000 in Germany. Overall the number of mobile customers increased 1.2% in the quarter to 87.7 million. T-Mobile USA, which has proven to be the strongest part of T-Mobile in terms of growth, saw its core earnings rise 52% to EUR917 million.

Germany, Deutsche Telekom (DT)