DT posts 2.5% rise in 2017 revenue, forecasts 4% EBITDA growth for 2018

22 Feb 2018

German telecoms group Deutsche Telekom (DT) has reported revenue of EUR74.95 billion (USD92.3 billion) for the twelve months ended 31 December 2017, an increase of 2.5% from EUR73.09 billion the previous year. The growth was mainly driven by T-Mobile US, which posted a 5.9% year-on-year rise in turnover to EUR35.74 billion; as a result, international revenues accounted for 67.2% of DT’s total in 2017, compared to 66.3% the previous year. The Bonn-based telco posted group EBITDA of EUR23.97 billion for full year 2017, up 6.3% from EUR22.54 billion in 2016, while adjusted EBITDA grew 3.8% over the same timeframe to EUR22.23 billion. Reported net profit (including special factors) rose 29.4% from EUR2.67 billion to EUR3.46 billion over the twelve-month period, in part due to a positive non-recurring effect from the tax reform in the US totalling EUR1.7 billion in Q4, while adjusted net profit jumped 46.8% in 2017 to EUR6.04 billion. Looking ahead, DT says it forecasts adjusted EBITDA to grow by 4% in 2018 to around EUR23.2 billion.

DT’s domestic operating segment generated revenue of EUR21.93 billion in 2017, a slight increase of 0.7% year-on-year and EBITDA grew by 11.4% to EUR8.16 billion. The firm’s German mobile subscriber base reached 43.12 million at the end of 2017 (an increase of 3.0% from 41.85 million a year earlier), of which 25.89 million were post-paid customers (up 2.6%). Domestic fixed broadband lines grew 2.2% y-o-y to 13.21 million (of which 5.80 million were fibre-based – VDSL, Vectoring and FTTH – lines, up by 36.5%) and pay-TV accesses rose 9.0% to 3.14 million, while fixed network lines continued to slide, falling from 19.79 million at the end of 2016 to 19.24 million twelve months later.

T-Mobile US ended December 2017 with 72.59 million mobile subscribers, an increase of 1.6% from 71.46 million a year earlier, as the number of branded post-paid customers rose 10.5% y-o-y to 38.05 million. Total mobile customers across DT’s European operations grew by 1.9% to 48.84 million during 2017 and retail broadband lines and TV customers increased by 4.7% to 5.65 million and 4.8% to 4.24 million, respectively. Revenue in the Europe segment rose by 1.2% y-o-y to EUR11.59 billion in FY 2017, although adjusted EBITDA dropped 3.0% from EUR3.87 billion in 2016 to EUR3.75 billion the following year.

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