German telecoms group Deutsche Telekom (DT) has announced it recorded ‘sound figures’ in the first quarter of 2010, posting a 1.6% rise in adjusted earnings before interest, depreciation and amortisation (EBITDA) to EUR4.89 billion (USD6.2 billion), compared to EUR4.812 billion in the same period a year earlier. Revenue for the three months ended 31 March 2010 remained stable, declining only 0.6% year-on-year to EUR15.81 billion, of which EUR6.74 billion was generated by DT’s domestic operations, with international business accounting for the remaining EUR9.07 billion. DT described the development of adjusted net profit as ‘particularly encouraging’, with the figure increasing 36% year-on-year to EUR900 million, up from EUR655 million in 1Q09, while unadjusted net income jumped from a loss of EUR1.12 billion to EUR767 million at 31 March 2010. Free cash flow was recorded at EUR1.4 billion in the first three months of 2010, up from EUR400 million in the year-ago period. DT maintains its 2010 guidance for the group; excluding the effects of the joint venture between T-Mobile UK and Orange UK in the UK, the company expects to generate adjusted EBITDA of approximately EUR20 billion and free cash flow of around EUR6.2 billion. The company added that the assets and liabilities of T-Mobile UK have no longer been shown in DT’s consolidated statement since 1 April 2010, following the establishment of the JV in the UK.
In Germany revenue decreased 2.2% year-on-year to EUR6.2 billion, while adjusted EBITDA fell 2.7% to EUR2.3 billion. At 31 March 2010 DT served 38.54 million domestic mobile customers, down 1.1% compared to the end of Q1 2009, while fixed telephony lines fell 6.6% year-on-year to 25.86 million. Retail broadband customers increased 6.2% to 11.67 million, although the number of wholesale lines slipped 31% compared to the year-ago quarter to 1.52 million. Meanwhile, T-Mobile USA’s figures were negatively impacted by the exchange rate of the US dollar against the euro, resulting in a 7.8% fall in revenue compared with the prior-year period to EUR3.8 billion. At the same time, adjusted EBITDA decreased by 5% to EUR1 billion. At the end of 1Q10 T-Mobile USA recorded a wireless subscriber base of 33.71 million, up 1.6% year-on-year. Total mobile subscribers in the European segment were reported at 44.003 million (down from 44.026 million a year earlier), while the wireless customer base of DT’s Southern and Eastern Europe businesses increased 5% year-on-year to 33.98 million, although total fixed lines for the segment dropped 8% to 11.65 million.