German telecoms giant Deutsche Telekom (DT) has reported net revenue of EUR17.630 billion (USD20.35 billion) for the three months ended 31 March 2016, an increase of 4.7% from EUR16.842 billion in the year-ago quarter. EBITDA jumped by 84.3% from EUR4.160 billion in Q1 2015 to EUR7.667 billion the following year, while adjusted EBITDA rose 12.9% over the same period to EUR5.163 billion. DT said that net profit totalled EUR3.125 billion in the first quarter of 2016, compared to EUR787 million twelve months earlier, mainly driven by the sale of DT’s stake in UK joint venture EE to BT, which contributed earnings of EUR2.5 billion; adjusted for special factors, 1Q16 net profit rose 1.1% year-on-year to EUR1.047 billion.
In its domestic market, DT generated total revenue of EUR5.452 billion in the first three months of 2016, a decrease of 2.5% from EUR5.589 billion in the year-ago period, partly attributable to a reduction in the low-margin distribution business with mobile devices, while adjusted EBITDA declined 1.4% to EUR2.180 billion. In the US, revenues climbed 13.2% in Q1 2016 to EUR7.816 billion and adjusted EBITDA jumped 55.8% y-o-y to EUR1.908 billion. Elsewhere, revenue in the Europe segment fell by 2.4% to EUR3.080 billion in the first quarter of 2016 and adjusted EBITDA dropped 3.0% y-o-y to EUR986 million.
At 31 March 2016 DT’s domestic wireless subscriber base stood at 40.643 million (up 3.7% from 39.200 million a year earlier), while the number of fixed broadband connections grew by 2.2% and pay-TV customers by 8.7% to 12.706 million and 2.736 million respectively, although fixed telephony lines dropped 2.2% to 20.093 million as of end-March 2016. DT said the total number of VDSL, Vectoring and fibre-to-the-home (FTTH) lines jumped by 56.9% in the twelve-month period to 3.286 million. Internationally, the group’s US subsidiary ended March 2016 with 65.503 million mobile subscribers, a jump of 15.2% y-o-y and included 32.736 million branded post-paid customers (up by 15.6%). As such, T-Mobile US has revised its forecast for customer acquisition upwards, with 3.2 million to 3.6 million net branded post-paid additions now expected in 2016, compared to the previous target of between 2.4 million and 3.4 million. In contrast, total mobile customers across DT’s European operations declined by 7.4% from 56.365 million in March 2015 to 52.208 million a year later, although retail broadband lines and TV customers rose 4.1% to 5.254 million and 4.8% to 3.922 million, respectively.