Germany’s Deutsche Telekom (DT) has reported net revenue of EUR27.04 billion (USD31.8 billion) for the three months ended 30 June 2020, an increase of 37.5% from EUR19.66 billion in the year-ago quarter, thanks to the inclusion of US cellco Sprint following the conclusion of the merger with T-Mobile US as of 1 April 2020. Group EBITDA totalled EUR10.03 billion in Q2 2020, up 49.6% from EUR6.70 billion twelve months previously, while adjusted EBITDA grew 55.2% to EUR11.27 billion. The Bonn-based telco said that reported net profit dropped 20.1% year-on-year to EUR754 million, impacted by the costs of integrating T-Mobile US and Sprint; adjusted for special factors, net profit decreased 3.8% to EUR1.28 billion in Q2 2020.
In its domestic market, DT generated total revenue of EUR5.45 billion in the second quarter of 2020, up by 1.1% from the year-ago period, despite the negative effect of the pandemic on roaming revenues, while adjusted EBITDA grew 2.9% to EUR2.22 billion. The firm’s German mobile subscriber base reached 47.39 million at 30 June 2020 (an increase of 5.7% y-o-y), of which 25.51 million were post-paid customers. Domestic fixed broadband lines grew 1.9% to 13.90 million (of which 9.01 million were fibre-based – VDSL, vectoring and FTTH – lines, up by 13.9%) and pay-TV accesses rose 7.1% to 3.72 million, while fixed network lines continued to slide, falling from 18.23 million at mid-2019 to 17.65 million twelve months later.
T-Mobile US ended Q2 2020 with 107.72 million mobile subscribers, an increase of 63.3% from 65.98 million a year earlier, as the number of branded post-paid customers rose 74.2% y-o-y to 77.75 million. As of 1 July, however, T-Mobile sold Sprint’s pre-paid business, as required by the US authorities, leaving a customer base of 98.3 million. Revenue grew 76.0% to EUR17.29 billion and EBITDA jumped 96.4% to EUR6.55 billion. Mobile customers across DT’s European operations fell by 1.7% to 45.66 million, although broadband lines and TV customers grew by 4.1% to 6.81 million and 1.0% to 4.96 million, respectively. Revenue in the Europe segment fell by 2.1% to EUR2.84 billion in 2Q20, due to lower roaming revenue, and adjusted EBITDA declined 1.4% to EUR1.08 billion.