DT revenue up 4.2% in FY 2014, 8.5% in Q4

26 Feb 2015

German telecoms giant Deutsche Telekom (DT) has reported net revenue of EUR62.658 billion (USD71.1 billion) for the twelve months ended 31 December 2014, an increase of 4.2% from EUR60.132 billion the previous year, with turnover for the fourth quarter rising 8.5% year-on-year to reach EUR17.002 billion. Adjusted EBITDA grew slightly from EUR17.424 billion in 2013 to EUR17.569 billion the following year, but witnessed stronger growth of 9.5% in 4Q14 to reach EUR4.444 billion. DT said that net profit totalled EUR2.924 billion in 2014, compared to EUR930 million twelve months earlier, mainly due to the partial sale of the Scout group; adjusted for special factors, full year net profit declined 12.1% year-on-year to EUR2.422 billion due to increased depreciation and amortisation as a result of higher network investments and the inclusion of MetroPCS for twelve months. ‘It was a strong quarter to close a successful year,’ said CEO Tim Hoettges, adding: ‘We have put the Group back on course for growth and will continue rigorously to forge ahead with this path.’

In its domestic market, DT generated total revenue of EUR22.257 billion in 2014, down 0.8% from EUR22.435 billion in the year-ago period, while adjusted EBITDA declined 1.4% to EUR8.810 billion, resulting in an EBITDA margin of 39.7%, which is within the target range of around 40% for 2013. In the US, revenues climbed 20.8% in 2014 to EUR22.408 billion and adjusted EBITDA grew 10.9% year-on-year to EUR4.296 billion. DT said that the synergies expected in connection with the merger with MetroPCS are greater than anticipated; while at the time of the merger in 2013, the present value of the synergies was estimated to be between USD6 billion and USD7 billion, T-Mobile US now expects a value of between USD9 billion and USD10 billion. Meanwhile, revenue in the Europe segment declined 5.3% to EUR12.972 billion in 2014 and adjusted EBITDA dropped 2.6% year-on-year to EUR4.432 billion.

As at 31 December 2014 DT’s domestic wireless subscriber base stood at 38.989 million (up 0.9% from 38.625 million a year earlier), with the company recording its best ever quarter in terms of smartphones sold (more than 1.5 million, around 75% of which were LTE-enabled devices). The number of fixed broadband connections was more or less stable at 12.361 million, although fixed telephony lines dropped 3.4% to 20.686 million as of end-2014, while pay-TV accesses (IPTV and satellite) climbed 12.2% to 2.442 million. DT said the total number of VDSL and fibre-to-the-home (FTTH) lines jumped by 44.4% in the year to 1.799 million. Internationally, the group’s US subsidiary ended 2014 with 55.018 million mobile subscribers, a jump of 17.9% year-on-year and including 27.185 million branded post-paid customers (up by almost five million in a year). Across its European operations, mobile customers numbered 55.992 million at 31 December 2014, down 1.2% from 56.679 million twelve months earlier, while retail broadband lines and TV customers rose 5.3% to 4.995 million and 6.0% to 3.714 million, respectively.

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