Deutsche Telekom posts strong results driven by growth at US arm
Revenues for Q2 hit €18.9 billion while EBITDA was up 27.4% to €5.9 billion
Deutsche Telekom has seen net revenue grow more than 6% and profits leap 9% in Q2, driven by strong results from T-Mobile US and small gains in a number of its European markets.
Revenues for the three months ending June 30 hit €18.9 billion, 32% of which was driven by the operator’s home market, with EBITDA of €5.9 billion – up 27.4% year-on-year.
A significant contributor to Deutsche Telekom’s strong results was its US mobile operation T-Mobile, which added more than 1.3 million new customers in the quarter, the 17th consecutive quarter it has seen more than one million customers join. It saw service revenues grow by 8.5% to $7.3 billion (€6.16 billion), with adjusted EBITDA up 18% at the 64%-owned operation.
"Our record investments are paying off: Growing numbers of customers are choosing our networks and products. And revenue and earnings are lifting Page 2 of 12 substantially on the back of this strong customer growth," said CFO Thomas Dannenfeldt.
"That is especially true of our booming U.S. business, but the trend is also positive in Germany and our European companies."
It comes as T-Mobile is being repeatedly linked with potential mergers in the US, most notably with fourth placed mobile rival Sprint. Sprint-parent SoftBank and Deutsche Telekom have held discussions before over a tie-up, but they broke down. However, Sprint CEO Marcelo Claure recently admitted a deal with another mobile operator would make most sense for the firm.
T-Systems saw sales decline 1.8 percent to €1.7 billion as it failed to sign contracts comparable to those of 12 months ago.
However, the enterprise division did contribute to earnings growth, with adjusted EBITDA up 22.5 percent to €136 million.