German telecoms giant Deutsche Telekom (DT) has posted its results for the three months ended 30 June 2010, reporting an 8.8% fall in net profit to EUR475 million (USD626 million). The company attributed the decline to a net cost of around EUR200 million following the merger of its UK wireless unit T-Mobile UK with France Telecom’s Orange UK in April this year. DT’s net revenue for the second quarter of 2010 totalled EUR15.531 billion, down 4.4% from EUR16.238 billion reported in the same period a year earlier on the non-inclusion of T-Mobile UK, while 2Q10 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) slipped 4.7% year-on-year to EUR5.012 billion. Meanwhile, net profit for the first six months of 2010 rose to EUR1.242 billion from a net loss of EUR603 million in 1H09, while first-half 2010 revenue and adjusted EBITDA fell 2.5% and 1.7% year-on-year to EUR31.343 billion and EUR9.902 billion, respectively. The Bonn-based firm confirms its guidance for adjusted EBITDA of EUR19.5 billion-EUR19.6 billion and free cash flow of EUR6.2 billion for full-year 2010.
DT’s domestic business recorded revenue of EUR6.197 billion in 2Q10 (almost stable compared to EUR6.22 billion a year earlier), of which EUR4.496 billion was generated by Germany’s fixed line business and the remainder by its mobile division. DT’s German business saw second-quarter adjusted EBITDA grow 2.4% year-on-year to EUR2.438 billion, of which fixed line accounted for EUR1.53 billion and mobile business EUR912 million. DT reported 25.549 million fixed lines in service at 30 June 2010, down 6.2% y-o-y, while total broadband lines rose 2% to 13.872 million, including 11.795 million retail connections (up 5%) and 1.354 wholesale lines (a fall of 30.6%). T-Mobile Deutschland’s wireless customer base fell 5.4% y-o-y to 36.976 million at end-June 2010. Elsewhere, total revenue from DT’s European segment in 2Q10 dropped 20.4% y-o-y to EUR4.03 billion, due to the non-inclusion of T-Mobile UK from 1 April, with the division’s mobile customers remaining relatively stable at 60.507 million, compared to 60.650 million at 30 June 2009. In the US, 2Q10 revenue was EUR4.188 billion, an increase of 6.9% compared to EUR3.918 billion a year earlier, although adjusted EBITDA declined 4.8% y-o-y to EUR1.12 billion. T-Mobile’s wireless customer base rose 0.4% to 33.62 billion.