DT reports stable Q2 revenue

7 Aug 2014

German telecoms group Deutsche Telekom (DT) has posted revenue of EUR15.114 billion (USD20.2 billion) for the second quarter of 2014, a slight decrease of 0.3% from EUR15.157 billion in the year-ago period, as US turnover rose 9.2% year-on-year to EUR5.270 billion. Group adjusted EBITDA totalled EUR4.429 billion for the three months ended 30 June 2014, up by 0.3% compared to EUR4.417 billion in 2Q13. The Bonn-based company said that reported net profit grew 34.2% from EUR530 million to EUR711 million, boosted by positive effects on earnings from the spectrum swap with Verizon in the US, while adjusted net profit decreased by 21.5% year-on-year to EUR636 million from EUR810 million in Q2 2013; the fall was primarily due to increased depreciation and amortisation as a result of the increased asset base following the MetroPCS takeover and the investment drive in the US in the prior year. DT invested EUR2.197 billion in the second quarter of 2014 (excluding spectrum), an increase of 6.2% from the year-ago quarter.

In its home market, DT generated revenue of EUR5.464 billion in the second quarter of 2014, a decrease of 1.8% year-on-year, while adjusted EBITDA fell 1.0% to EUR2.256 billion. Adjusted EBITDA for the European segment decreased by 1.7% to EUR1.098 billion, while total revenue declined 7.9% to EUR3.163 billion; in organic terms, turnover fell by 5.3%, with the firm noting that almost half of this decline was a result of regulatory decisions relating to mobile communications. Meanwhile, T-Mobile US reported a 9.2% year-on-year rise in 2Q14 revenue to EUR5.270 billion and adjusted EBITDA for the three-month period increased 16.5% to EUR1.083 billion.

As at 30 June 2014 DT’s German wireless subscriber base stood at 39.337 million (an increase of 4.9% from 37.492 million a year earlier), while retail fixed broadband connections fell 0.6% year-on-year to 12.361 million (of which 1.494 million were fibre lines [VDSL, vectoring and FTTH]) and pay-TV accesses climbed 11.5% to 2.318 million. Internationally, the group’s US subsidiary ended the second quarter of 2014 with 50.545 million mobile subscribers, an increase of 14.8% against the same date a year earlier, as the number of branded post-paid customers rose 18.0% to 24.530 million, with 908,000 such customers added in 2Q14. As a result, T-Mobile US has again revised its forecast for customer acquisition upwards, with 3.0 million to 3.5 million net branded post-paid additions now expected in full year 2014, compared to the previous forecast of between two and three million. Across its European (excluding Germany) operations, DT’s mobile customers numbered 56.485 million at 30 June 2014, down 0.9% from 56.985 million twelve months earlier, while retail broadband lines climbed 4.7% to 4.832 million and pay-TV customers jumped 18.9% year-on-year to 3.619 million at the end of 2Q14.

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