German telecoms giant Deutsche Telekom (DT) has announced that it ‘broke new ground in the 2020 financial year’, reporting that net revenue exceeded EUR100 billion (USD121.9 billion), mainly driven by the takeover of Sprint in the US as of 1 April 2020. Net revenue increased by 25.4% from EUR80.5 billion in 2019 to EUR101.0 billion the following year; in organic terms (excluding the change in the composition of the group and exchange rate effects), revenue still grew by 3.0% year-on-year. EBITDA jumped by 42.5% to EUR38.6 billion in 2020 and adjusted EBITDA AL was up 41.6% to EUR35.0 billion. DT thereby exceeded its guidance for the year, which had been raised in November, despite the negative effects of the COVID-19 pandemic, including lower roaming revenues due to travel restrictions, shop closures, and impeded business with corporate customers. Net profit increased by 7.5% from EUR3.9 billion to EUR4.2 billion, while adjusted net profit rose 15.5% year-on-year to EUR5.7 billion.
In its domestic market, DT generated total revenue of EUR23.8 billion in FY 2020, up by 0.2% from 2019, despite the negative effect of the pandemic on roaming revenues, while adjusted EBITDA grew 1.7% to EUR9.3 billion. The firm’s German mobile subscriber base reached 48.5 million at 31 December 2020 (an increase of 5.1% y-o-y), of which 26.0 million were post-paid customers. Domestic fixed broadband lines grew 2.8% to 14.1 million (of which 9.5 million were fibre-based – VDSL, vectoring and FTTH – lines, up by 11.6%) and pay-TV accesses rose 6.8% to 3.9 million, while fixed network lines continued to decline, falling from 17.8 million at end-2019 to 17.6 million twelve months later.
T-Mobile US ended Q4 2020 with 102.0 million mobile subscribers, an increase of 50.3% from 67.9 million a year earlier, as the number of post-paid customers rose 73.0% y-o-y to 81.4 million. Revenue grew 51.4% to EUR61.2 billion and adjusted EBITDA jumped 81.9% to EUR25.1 billion. Mobile customers across DT’s European operations fell by 1.2% to 45.6 million, although broadband lines and TV customers grew by 4.2% to 6.9 million and 2.3% to 5.1 million, respectively. Revenue in the Europe segment fell by 2.2% to EUR11.3 billion in FY20, due to lower roaming revenue, and adjusted EBITDA declined 0.5% to EUR4.3 billion.
‘We made history in 2020. We added a substantial and important chapter to DT’s story,’ commented CEO Tim Hoettges, adding: ‘We closed a groundbreaking deal in the United States, improved our market position in Europe and at the same time made an important contribution to managing the impact of the coronavirus pandemic with our stable networks.’