DT confirms outlook on ‘satisfying’ Q1 results

10 May 2012

German telecoms group Deutsche Telekom (DT) has reported net revenues of EUR14.432 billion (USD18.72 billion) for the three months ended 31 March 2012, a decrease of 1.1% from EUR14.597 billion in the year-ago quarter. The lower-than-expected decline was helped by stabilisation of its European business and slight growth of the T-Mobile USA unit, which saw revenue rise 2% to EUR3.8 billion and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) climb 12.9% in Q1 2012 to EUR1.0 billion. Group EBITDA – excluding special items – was flat at EUR4.48 billion, while non-adjusted EBITDA dropped 8.1% year-on-year in Q1 2012 to EUR3.952 billion. Reported net profit for the quarter dropped 50.4% from EUR480 million in the first quarter of 2011 to EUR238 million, which the Bonn-based company said was impacted by a one-time charge of EUR464 million attributable to an early retirement programme as part of its restructuring. Net profit adjusted for special factors declined 17.1% year-on-year to EUR581 million. Commenting on the results, DT’s CEO Rene Obermann, said: ‘This was a very satisfying quarter for us. We have made significant progress in many areas and can now confirm our guidance for the year.’ DT expects adjusted EBITDA of around EUR18 billion and free cash flow of around EUR6 billion for the 2012 financial year.

In its domestic market, DT saw revenue decrease 2.3% year-on-year to EUR5.658 billion in the first quarter of 2012. The company said the decline in sales was primarily slowed by greater stability in the fixed network business, particularly in the wholesale unit, which saw a decrease of just 3.9% compared with a two-digit decline at times during the prior year. Mobile service revenues meanwhile decreased by 1.8% year-on-year, although mobile data revenues increased 20% to EUR462 million. EBITDA in the Germany segment declined 12.1% year-on-year to EUR2.006 billion, while adjusted EBITDA decreased to a lesser extent by 2% to EUR2.302 billion in Q1 2012. At 31 March 2012 DT reported a total of 35.1 million domestic mobile subscribers (up 1.5% y-o-y), 12.367 million retail broadband lines (an increase of 2.5%) and 23.14 million fixed network lines (down 4.8%). Customers of the firm’s ‘Entertain’ television service meanwhile jumped 37% from 1.257 million at the end of March 2011 to 1.725 million twelve months later, with 81,000 of those subscribers receiving the service via satellite.

Germany, Deutsche Telekom (DT)