DT Q2 revenue boosted by Sprint consolidation

13 Aug 2020

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.