German telecoms giant Deutsche Telekom (DT) has reported net revenue of EUR17.817 billion (USD19.878 billion) for the second quarter of 2016, an increase of 2.2% from EUR17.428 billion in the year-ago period. The rise was driven by a 10.1% year-on-year jump in US turnover to EUR8.196 billion, thanks to ‘rapid customer growth’ at the mobile unit. On an organic basis, especially adjusted for exchange rate effects, group revenue increased by 3.9%. The Bonn-based company posted EBITDA of EUR4.697 billion for the three months ended 30 June 2016, up 3.6% from EUR4.534 billion in 2Q15, while adjusted EBITDA grew 8.6% year-on-year to EUR5.457 billion, also driven by T-Mobile US. Reported net profit (before adjustment for special factors) fell from EUR712 million in 2Q15 to EUR621 million twelve months later, while adjusted net profit declined by 2.2% to EUR1.054 billion over the same timeframe, as the improvement in adjusted EBITDA was partially offset by higher depreciation and amortisation.
DT’s domestic operating segment generated revenue of EUR5.406 billion in the second quarter of 2016, a fall of 3.1% from EUR5.580 billion in 2Q15, while adjusted EBITDA was stable at EUR2.225 billion. At 30 June 2016 the firm’s German wireless subscriber base stood at 41.138 million (an increase of 4.2% from 39.465 million a year earlier), with retail fixed broadband connections growing 2.0% year-on-year to 12.770 million (of which 3.577 million were fibre-based – VDSL, Vectoring and FTTH – lines, up by 51.2%) and pay-TV accesses rising 7.7% to 2.777 million.
Internationally, T-Mobile US ended the second quarter of 2016 with 67.384 million mobile subscribers, an increase of 14.4% from 58.908 million a year earlier, as the number of branded post-paid customers jumped 14.7% y-o-y to 33.626 million. As such, T-Mobile US has revised its forecast for customer acquisition upwards by 200,000, with 3.4 million to 3.8 million net branded post-paid additions now expected in 2016. In contrast, total mobile customers across DT’s European operations declined by 7.3% from 56.345 million at mid-2016 to 52.213 million a year later, although retail broadband lines and TV customers rose 4.4% to 5.307 million and 5.1% to 3.961 million, respectively. Revenue in the Europe segment fell by 3.2% y-o-y to EUR3.106 billion in Q2 2016 and adjusted EBITDA dropped 4.0% to EUR1.038 billion.