DT reports 32.3% rise in Q1 revenue, lifts full-year guidance

12 May 2021

German telecoms group Deutsche Telekom (DT) has reported net revenue of EUR26.39 billion (USD32.1 billion) for the three months ended 31 March 2021, an increase of 32.3% from EUR19.94 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. Adjusted group EBITDA totalled EUR10.69 billion in Q1 2021, up 41.5% from EUR7.56 billion in the first three months of 2020. The Bonn-based telco said that reported net profit (including special factors) grew 2.2% year-on-year to EUR936 million, while adjusted net profit fell by 6.5% to EUR1.20 billion in 1Q21, thanks to higher interest expenses, higher depreciation, amortisation and impairment losses, and higher non-controlling interests. ‘We are sustaining momentum and continuing our successful growth story,’ said CFO Christian Illek, adding: ‘Our customer numbers and key financial metrics are on track on both sides of the Atlantic.’ The group has raised its full-year guidance for 2021 and now expects adjusted EBITDA after leases to exceed the previous forecast of EUR37 billion.

In its domestic market, DT generated total revenue of EUR5.94 billion in the first quarter of 2021, up by 1.9% compared to the year-ago period, while adjusted EBITDA grew 3.4% to EUR2.31 billion. The firm’s German mobile subscriber base reached 49.09 million at 31 March 2021 (an increase of 5.1% y-o-y), of which 22.51 million were post-paid customers. Domestic fixed broadband lines grew 2.9% y-o-y to 14.21 million (of which 9.76 million were fibre-based – VDSL, vectoring and FTTH – lines, up by 11.1%) and pay-TV accesses rose 5.9% to 3.89 million.

T-Mobile US ended March 2021 with 103.44 million mobile subscribers, an increase of 50.9% from 68.54 million a year earlier, as the number of post-paid customers rose 72.7% y-o-y to 82.57 million. Revenue grew by 62.3% to EUR16.48 billion and adjusted EBITDA jumped 80.6% y-o-y to EUR5.71 billion. Mobile customers across DT’s European operations fell by 1.0% to 45.45 million, though retail broadband lines and TV customers grew by 4.0% to 7.00 million and 3.3% to 5.11 million, respectively. Revenue in the Europe segment declined by 1.1% y-o-y to EUR2.73 billion in Q1 2021, although adjusted EBITDA rose by 1.1% to EUR946 million.

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