Germany’s Deutsche Telekom (DT) has reported net revenue of EUR26.393 billion (USD31.12 billion) for the three months ended 30 September 2020, an increase of 31.9% from EUR20.017 billion in the year-ago quarter, due 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 EUR10.615 billion in Q3 2020, up 45.1% from EUR7.314 billion twelve months previously, while adjusted EBITDA grew 48.2% to EUR11.102 billion. The Bonn-based telco said that reported net profit dropped 40.3% year-on-year to EUR817 million, impacted by the costs of integrating T-Mobile US and Sprint; adjusted for special factors, net profit improved 6.3% y-o-y to EUR1.509 billion in Q3 2020.
In its domestic market, DT generated total revenue of EUR5.839 billion in the third quarter of 2020, down by 1.1% from the year-ago period, mainly attributed to the negative effect of the pandemic on roaming revenues, while adjusted EBITDA decreased 4.5% to EUR2.184 billion. The firm’s German mobile subscriber base reached 47.844 million at 30 September 2020 (an increase of 4.9% y-o-y), of which 25.744 million were post-paid customers. Domestic fixed broadband lines grew 2.3% to 13.997 million (of which 9.246 million were fibre-based – VDSL, vectoring and FTTH – lines, up by 12.3%) and pay-TV accesses rose 6.9% to 3.787 million, while fixed network lines continued to slide, falling from 17.996 million at Q3 2019 to 17.602 million twelve months later.
T-Mobile US ended Q3 2020 with 100.362 million mobile subscribers, an increase of 50.9% from 66.503 million a year earlier, as the number of branded post-paid customers rose 74.4% y-o-y to 79.732 million. Revenue grew 65.6% to EUR16.569 billion and EBITDA more than doubled to EUR6.923 billion. Mobile customers across DT’s European operations fell by 1.6% to 45.743 million, although broadband lines and TV customers grew by 4.0% to 6.866 million and 1.4% to 4.986 million, respectively. Revenue in the Europe segment fell by 1.7% to EUR2.880 billion in 3Q20, due to lower roaming revenue, while adjusted EBITDA increased 5.0% to EUR1.205 billion.
Given the positive business trends in the US and elsewhere – despite the challenging economic environment as a result of the Coronavirus pandemic – DT said that it is raising its guidance for the group’s adjusted EBITDA after leases (EBITDA AL) and free cash flow AL for FY 2020. DT now expects to post EBITDA AL of EUR35 billion, while free cash flow AL is forecast at between EUR5.5 billion and EUR6 billion.