DT anticipates ‘limited impact’ of COVID-19 on FY financials as Q1 revenue rises 2.3%

14 May 2020

Germany’s Deutsche Telekom (DT) has reported net revenue of EUR19.94 billion (USD21.6 billion) for the three months ended 31 March 2020, an increase of 2.3% from EUR19.49 billion in the year-ago quarter, despite the ongoing COVID-19 pandemic and the consequent restrictions imposed in many of its operating markets. Group EBITDA totalled EUR6.94 billion in Q1 2020, up 7.4% from EUR6.46 billion in the first three months of 2019 and adjusted EBITDA grew by 9.6% year-on-year to EUR7.56 billion. The Bonn-based telco said that reported net profit (including special factors) grew 1.8% y-o-y to EUR916 million, while adjusted net profit was up by 8.5% to EUR1.28 billion in 1Q20. DT says it expects the pandemic to have limited impact on revenue and adjusted EBITDA and as such has confirmed its guidance for the current financial year. ‘Deutsche Telekom is an anchor of stability in a global crisis. Our networks are working reliably as digital lifelines for society,’ commented CEO Tim Hottges.

In its domestic market, DT generated total revenue of EUR5.41 billion in the first quarter of 2020, up by 0.9% compared to the year-ago period, while EBITDA grew 1.4% to EUR1.97 billion. The firm’s German mobile subscriber base reached 46.96 million at 31 March 2020 (an increase of 5.2% y-o-y), of which 25.47 million were post-paid customers. Domestic fixed broadband lines grew 1.5% y-o-y to 13.81 million (of which 8.78 million were fibre-based – VDSL, vectoring and FTTH – lines, up by 15.5%) and pay-TV accesses rose 7.6% to 3.68 million, while fixed network lines continued to slide, falling 3.8% to 17.71 million as of 31 March 2020.

T-Mobile US ended March 2020 with 68.54 million mobile subscribers (excluding wholesale customers), an increase of 5.9% from 64.74 million a year earlier, as the number of branded post-paid customers rose 9.8% y-o-y to 47.81 million. Revenue grew by 3.7% to EUR10.16 billion and EBITDA jumped 11.9% y-o-y to EUR3.59 billion. Mobile customers across DT’s European operations fell by 3.9% to 45.92 million, though retail broadband lines and TV customers grew by 4.0% to 6.74 million and 0.7% to 4.94 million, respectively. Revenue and EBITDA in the Europe segment were stable y-o-y at EUR2.90 billion and EUR1.03 billion, respectively.

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