DT posts 33% rise in Q1 net profit

9 May 2018

Germany’s Deutsche Telekom (DT) has reported net revenue of EUR17.92 billion (USD21.3 billion) for the three months ended 31 March 2018, a decrease of 3.9% from EUR18.64 billion in the year-ago quarter, as the strong euro, which gained more than 15% against the US dollar in one year, impacted on the figures reported. Group EBITDA totalled EUR5.27 billion in Q1 2018, down 11.6% from EUR5.96 billion in the first three months of 2017, although adjusted EBITDA was flat at EUR5.55 billion. Due to a marked decrease in the loss from financial activities, the Bonn-based telco said that reported net profit (including special factors) rose 32.8% year-on-year to EUR992 billion, while adjusted net profit jumped by 26.7% from EUR939 million in Q1 2017 to EUR1.19 billion a year later.

In its domestic market, DT generated total revenue of EUR5.33 billion in the first quarter of 2018, down by 1.3% compared to the year-ago period, while adjusted EBITDA grew 1.3% to EUR2.08 billion. The firm’s German mobile subscriber base reached 42.73 million at 31 March 2018 (an increase of 1.5% y-o-y), of which 25.1 million were post-paid customers. Domestic fixed broadband lines grew 2.8% y-o-y to 13.36 million (of which 6.23 million were fibre-based – VDSL, vectoring and FTTH – lines, up by 32.8%) and pay-TV accesses rose 8.1% to 3.19 million, while fixed network lines continued to slide, falling from 19.65 million at the end of March 2017 to 19.15 million twelve months later.

T-Mobile US continued to see rapid customer growth, recording more than one million net customer additions for the 20th consecutive quarter. The cellco US ended Q1 2018 with 74.04 million mobile subscribers, an increase of 2.0% from 72.59 million a year earlier, as the number of branded post-paid customers rose 10.5% y-o-y to 39.07 million. Revenue declined 5.9% to EUR8.45 billion, but in US dollars increased by 8.7% y-o-y to USD10.39 billion. Mobile customers across DT’s European operations increased by 4.0% to 49.25 million and retail broadband lines and TV customers grew by 6.9% to 5.82 million and 4.2% to 4.27 million, respectively. Revenue in the Europe segment was relatively flat at EUR2.81 billion in 1Q18 and adjusted EBITDA rose 2.5% to EUR911 million.

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