German telecoms group Deutsche Telekom (DT) has reported net revenue of EUR27.84 billion (USD30.5 billion) for the three months ended 31 March 2023, a slight increase of 0.3% from EUR27.75 billion in the year-ago quarter, as service revenue grew by 3.5%. Adjusted EBITDA rose 0.7% to EUR11.52 billion in Q1 2023 and adjusted EBITDA AL was up 0.9% to EUR9.96 billion (+4.4% on an organic basis). The Bonn-based telco said that reported net profit (after non-controlling interests) jumped from EUR3.95 billion to EUR15.36 billion, driven by sale of a 51% stake in its tower business in Germany and Austria to DigitalBridge and Brookfield, while adjusted net profit declined 12.5% year-on-year to EUR1.96 billion in 1Q23, mainly due to the interest effect in the measurement of liabilities and provisions. For the full year, DT now expects adjusted EBITDA AL of around EUR40.9 billion, up from the previous guidance of EUR40.8 billion, driven by the raised outlook at T-Mobile US.
In its domestic market, DT generated total revenue of EUR6.14 billion in the first quarter of 2023, up 3.0% compared to the year-ago period mainly thanks to broadband revenues, while adjusted EBITDA AL grew 4.0% to EUR2.49 billion. The firm’s German mobile subscriptions reached 56.07 million at 31 March 2023 (an increase of 3.9% y-o-y), of which 24.04 million were post-paid (up by 3.8%). Domestic fixed broadband lines grew 1.8% y-o-y to 14.79 million (of which 12.24 million were fibre-based – VDSL, vectoring and FTTH – lines, up by 15.6%) and pay-TV subscriptions rose 3.8% to 4.17 million.
T-Mobile US ended March 2023 with 114.92 million mobile subscriptions, an increase of 4.9% from 109.54 million a year earlier, as the number of post-paid subscriptions rose 5.8% y-o-y to 93.52 million. Revenue grew by 2.1% to EUR18.26 billion and adjusted EBITDA AL climbed 5.9% y-o-y to EUR6.54 billion. Mobile subscriptions across DT’s European operations rose 3.9% to 47.36 million at 31 March 2023, while retail broadband lines and TV subscriptions grew by 5.0% to 6.76 million and 2.7% to 4.16 million, respectively. Revenue in the Europe segment increased by 3.8% y-o-y to EUR2.78 billion in Q1 2023, and adjusted EBITDA AL rose by 0.7% to EUR983 million.