DT posts 6% rise in Q2 revenue driven by ‘booming US business’

3 Aug 2017

German telecoms group Deutsche Telekom (DT) has reported net revenue of EUR18.89 billion (USD22.4 billion) for the three months ended 30 June 2017, an increase of 6.0% from EUR17.82 billion in the year-ago quarter. The growth was mainly driven by T-Mobile US, which reported a 12.7% year-on-year rise in turnover to EUR9.24 billion, thanks to rapid customer growth which saw the cellco add more than a million new customers in each of the last 17 quarters. The Bonn-based company posted EBITDA of EUR5.99 billion for the second quarter of 2017, up 27.4% from EUR4.69 billion twelve months previously, while adjusted EBITDA grew 8.9% year-on-year to EUR5.94 billion. Reported net profit (before adjustment for special factors) climbed from EUR621 million in 2Q16 to EUR874 million twelve months later, while adjusted net profit rose by 13.8% to EUR1.19 billion over the same timeframe.

DT’s domestic operating segment generated revenue of EUR5.37 billion in the second quarter of 2017, up marginally from EUR5.34 billion in 2Q16, while adjusted EBITDA rose 1.1% y-o-y to EUR2.10 billion. At 30 June 2017 the firm’s German wireless subscriber base stood at 42.01 million (an increase of 2.1% from 41.14 million a year earlier), with retail fixed broadband connections growing 2.1% year-on-year to 13.04 million (of which 5.03 million were fibre-based – VDSL, vectoring and FTTH – lines, up by 40.7%) and pay-TV accesses rising 8.9% to 3.02 million.

Internationally, T-Mobile US ended June 2017 with 69.56 million mobile subscribers, an increase of 3.2% from 67.38 million a year earlier, as the number of branded post-paid and branded pre-paid customers rose by 7.5% and 7.3% respectively. In contrast, total mobile customers across DT’s European operations declined by 1.8% from 48.54 million at mid-2016 to 47.69 million a year later, although retail broadband lines and TV customers grew 3.8% to 5.51 million and 4.9% to 4.16 million, respectively. Revenue in the Europe segment rose by 2.4% y-o-y to EUR2.86 billion in Q2 2017 and adjusted EBITDA dropped 2.2% to EUR947 million.

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