DT Q3 net profit improves 7%

5 Nov 2009

German telecoms giant Deutsche Telekom (DT) has posted its results for the three months ended 30 September 2009, reporting net revenue of EUR16.3 billion (USD24.07 billion), up 5.2% year-on-year (y-o-y). The group’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) also rose 5.2% compared to the same three-month period a year earlier to EUR5.5 billion, while Q3 net profit totalled EUR959 million, up 7.2% y-o-y. Meanwhile, DT’s revenue for the first nine months of 2009 amounted to EUR48.4 billion, an increase of 6.2% against the same period a year earlier, while adjusted EBITDA for the nine-month period rose 5.5% to EUR15.6 billion. However, the group’s adjusted net profit decreased 3.1% compared with the first nine months of 2008 to EUR2.5 billion.

In the group’s domestic market, revenue in the third quarter decreased 2% y-o-y to EUR6.47 billion, of which EUR4.71 billion was generated by DT’s domestic fixed network business (down 3.5% y-o-y) and EUR2.19 billion by German mobile communications (a 1.4% increase y-o-y). Adjusted EBITDA for the German operating segment fell 3.3% to EUR2.5 billion. At the end of Q3 2009 T-Mobile Deutschland subscribers totalled 39.3 million, an increase of 1.4% y-o-y. DT’s German fixed telephony customers stood at 26.65 million at 30 September 2009, down from 28.98 million a year earlier, while broadband lines totalled 11.3 million, up from 10.24 million at the end of the third quarter of 2008. The number of T-Entertain IPTV packages stood at 885,000, well on the way to achieving the target of one million for the full year.

In the US revenue grew 3% to EUR3.8 billion in the third quarter compared with the same period last year. Measured in US dollars, revenue decreased 2.3% to USD5.4 billion. T-Mobile USA posted adjusted EBITDA of EUR1.1 billion, up 5% y-o-y. 77,000 mobile customers were lost in the third quarter, bringing the total to 33.42 million, while the number of 3G-enabled handsets grew by a third to 2.8 million.

Mobile operations in the UK, Poland, the Netherlands, Austria and the Czech Republic, all combined within the new Europe operating segment, saw revenue decrease 13.2% y-o-y in Q3 2009 to EUR2.6 billion and adjusted EBITDA fall 2.6% to EUR700 million, reflecting the negative impact of exchange rate effects and the reduction of termination charges. Overall, DT’s European mobile subsidiaries served 44.4 million customers at 30 September 2009. Meanwhile, following the first-time inclusion of the OTE group, effective February of this year, the new Southern and Eastern Europe segment recorded a y-o-y revenue increase of around EUR1.4 billion to EUR2.6 billion in the third quarter. Adjusted EBITDA increased 83.6% in the same period to EUR1.1 billion. In this segment, a total of 3.7 million broadband lines were in operation at 30 September 2009, an increase of 576,000 y-o-y. This figure includes 337,000 broadband lines on the fixed networks of OTE Greece and Romtelecom (Romania). The mobile communications companies in the Southern and Eastern Europe segment served 33.7 million customers at the same date.

Germany, Deutsche Telekom (DT)