DT posts 6% rise in Q3 revenue

7 Nov 2013

German telecoms group Deutsche Telekom (DT) has reported net revenue of EUR15.525 billion (USD20.9 billion) for the three months ended 30 September 2013, an increase of 6.0% from EUR14.651 billion in the year-ago period. Adjusted for changes in the composition of the group (such as the inclusion of US mobile company MetroPCS and for exchange rate effects) revenue grew 2.4%, while adjusted EBITDA declined 2.6% year-on-year to EUR4.659 billion due to ‘investments in customer growth’. DT said that adjusted net profit was EUR823 million in the third quarter of 2013, compared to EUR929 million in the same period a year earlier. ‘After an excellent second quarter, these figures are further proof of our strength,’ commented Rene Obermann, CEO of DT, adding: ‘In the United States, we have managed to achieve an impressive turnaround and in our home market we show ongoing stability, making us the envy of many companies in our industry.’

In its domestic market, the Bonn-based telco generated total revenue of EUR5.670 billion in Q3 2013, down 1.2% from EUR5.736 billion in the year-ago quarter, while adjusted EBITDA fell 1.1% to EUR2.375 billion, resulting in an EBITDA margin of 41.9%, which is within the target range of around 40% for 2013. Mobile data revenue remains one of the driving forces in DT’s German wireless operations, increasing by 30.7%. In the US, revenues climbed 30.5% in the three months ended 30 September 2013 to EUR5.108 billion, including MetroPCS which was consolidated as of 1 May 2013. T-Mobile US saw adjusted EBITDA grow 8.9% year-on-year to EUR1.082 billion, despite considerably higher market investments in the same quarter. Meanwhile, net revenue in the Europe segment declined 6.0% to EUR3.436 billion in Q3 2013, attributable to the strained economic environment, exchange rate effects and changes in the composition of the group, above all the deconsolidation of the Bulgarian units as of 31 July. Adjusted for the effects of regulatory decisions and one-time effects, revenues remained virtually stable (down 0.6% year-on-year). Higher market investments in the Netherlands and intensified price wars in the Czech Republic and Croatia resulted in a significant decline in adjusted EBITDA of 13.6% to EUR1.162 billion.

As at 30 September 2013 DT’s domestic wireless subscriber base stood at 37.936 million (up 5.4% from 35.994 million a year earlier), while fixed broadband connections decreased by 0.3% year-on-year to 12.383 million and pay-TV accesses (IPTV and satellite) climbed 11.3% to 2.121 million. More than a third of the 1.2 million smartphones sold in the third quarter were LTE-enabled devices, while the total number of VDSL and FTTH lines climbed by 119,000 to 1.4 million in 3Q13, up 65% year-on-year. Internationally, the group’s US subsidiary ended the third quarter with 45.039 million mobile subscribers, a jump of 35.1% year-on-year. T-Mobile US now expects to gain 1.6 million to 1.8 million new branded contract customers, instead of the previous estimate of 1.0 million to 1.2 million. Across its European operations, mobile customers numbered 56.825 million at 30 September 2013, down 0.5% from 57.096 million twelve months earlier, while retail broadband lines and TV customers rose 5.3% to 4.935 million and 21.8% to 3.447 million, respectively, due in part to the acquisition of Digi Slovakia.

Germany, Deutsche Telekom (DT), T-Mobile US, Telekom Deutschland