Deutsche Telekom Q2 revenues up 5.4% on US expansion

News General Europe 8 AUG 2013
Deutsche Telekom Q2 revenues up 5.4% on US expansion
Deutsche Telekom has lowered its full-year outlook as the company plans to spend more to win new customers in the US. After a strong second quarter with 668,000 new postpaid customers at T-Mobile USA, the company said it now aims for 1-2 million additions over the full year, rather than the previous target of a stable customer base. The extra customer acquisition costs mean a reduction in the adjusted EBITDA outlook for 2013 to EUR 17.5 billion, from EUR 18 billion previously, and the free cash flow guidance falls to EUR 4.5 billion from EUR 5 billion. 

The growth in the US and the acquisition of MetroPCS from 01 May helped second-quarter revenues increase 5.4 percent from a year earlier to EUR 15.2 billion. On an organic basis, revenue was up 2.1 percent. In Germany, sales fell 0.8 percent to EUR 5.6 billion, and in the rest of Europe, revenue dropped 4.5 percent to EUR 3.4 billion, mainly due to cuts in mobile termination rates. Adjusted EBITDA for the group fell 6.0 percent to EUR 4.4 billion due to the higher spending in the US. DT increased capex 35 percent in Q2 to EUR 2.2 billion, mainly due to accelerated roll-out of the US network. Free cash flow fell 33.5 percent to EUR 1.1 billion. Net profit for the quarter was up 10.0 percent to EUR 530 million thanks to fewer one-time charges. 

Categories:

General

Companies:

T-Mobile,  MetroPCS,  T-Mobile USA,  Deutsche Telekom

Regions:

Europe

Countries:

Germany,  United States

Tags:

Voice services, Financial figures, Internet Access

Related Articles

EUROPE 7 NOV 2013

Deutsche Telekom Q3 results improve on growth in the US

Deutsche Telekom reported improved results for the third quarter, helped by the turnaround at its US operations. Revenues were up 6.0 percent year-on-year to EUR 15.5 billion, as 30.5 percent growth in the US offset a 6.0 percent slide in Europe and 1.2 percent lower revenues in Germany. On a pro forma basis for the takeover of MetroPCS in the US, group revenues were still up 2.4 percent. Adjusted EBITDA declined 2.6 percent to EUR 4.7 billion on extra costs for customer growth, but the drop slowed consider

GLOBAL 9 OCT 2013

Deutsche Telekom launches offering of T-Mobile USA bonds

Deutsche Telekom has launched an offering of T-Mobile USA bonds, worth a total USD 3.10 billion, from its own holdings. The operator will offer three series to international investors, including USD 1.25 billion worth of senior notes due 2019, USD 1.25 billion worth of senior notes due 2021 and USD 600 million worth of senior notes due 2023. The offering comes on the back of the merger between Deutsche Telekom's T-Mobile USA unit and newly acquired MetroPCS Communications. As part of the transaction, Deutsc

GREECE 8 AUG 2013

OTE revenues, EBITDA down over 8% in Q2

Greek operator OTE reported a continued slide in second-quarter revenues but maintained its margins in the face of a difficult economy and regulatory pressures. Revenues were down 8.6 percent to EUR 1.00 billion, in part due to the sale of Hellas Sat. EBITDA fell 8.8 percent to EUR 346.6 million, leading to a small drop in the margin to 34.6 percent from 34.8 a year ago. Net profit fell 39.5 percent to EUR 57.2 million, while free cash flow improved 1.6 percent to EUR 128.4 million. OTE increased capex 28.7

HUNGARY 8 AUG 2013

Magyar Telekom revenues up 8% to HUF 156.9 bln in Q2

Magyar Telekom revenues increased by 7.9 percent in the second quarter compared with the same period of 2012 to HUF 156.9 billion. This reflects the significant increase in revenues both from energy services and mobile equipment sales, the growing revenues from SI/IT services and the improving underlying performance of Telekom Hungary. EBITDA increased slightly by 0.3 percent, from HUF 49.6 billion to HUF 49.8 billion, while the EBITDA margin was 31.7 percent compared with 34.1 percent in the same period la

GERMANY 8 AUG 2013

Deutsche Telekom revenue in Germany remains stable in Q2

Deutsche Telekom's revenue in Germany remained almost stable in Q2 2013, down 0.8 percent year-on-year to EUR 5.6 billion. Adjusted EBITDA for the Germany operating segment was down 2.9 percent to EUR 2.3 billion due to an increase in market investments, which equates to an adjusted EBITDA margin of 40.6 percent. In mobile communications, the company ended Q2 with 37.49 million customers, up 1.3 percent from 37.01 million in Q1, with the contract mobile customer base up by 434,000 or 2.2 percent to 20.44 mi

GERMANY 8 AUG 2013

T-Systems order entry up 3.1% in Q2, up 16.6% in H1

Deutsche Telekom's corporate customer division T-Systems has reported revenue of EUR 2.27 billion for Q2 2013, down 8.6 percent from EUR 2.49 billion in Q2 2012, with revenue for the six months down to EUR 4.59 billion, from EUR 4.94 billion a year earlier. Order entry was up 3.1 percent to EUR 1.98 billion in Q2, from EUR 1.92 billion in Q2 2012, and up 16.6 percent to EUR 4.08 billion for the six months, from EUR 3.50 billion a year earlier. EBITDA was EUR 52 million in Q2, down 31.6 percent from Q2 2012,

NETHERLANDS 8 AUG 2013

T-Mobile Netherlands sales down 4.9% in H1

T-Mobile Netherlands saw its revenues in the first six months of 2013 fall 4.9 percent from a year earlier to EUR 799 million, hurt by cuts to termination rates and lower SMS volumes. Second-quarter revenues fell 3.1 percent to EUR 406 million. Adjusted EBITDA fell 10.5 percent to EUR 222 million and was down 18.8 percent in Q2 to EUR 108 million, amid an increase in spending on customer retention. The mobile customer base was 3.9 percent lower year-on-year at 4.561 million. While postpaid grew by 1.8 perce

CZECH REPUBLIC 8 AUG 2013

T-Mobile CR Q2 revenues down 9.3 percent

T-Mobile Czech Republic reported revenues for the second quarter at EUR 235 million, which is a year-on-year decrease of 9.3 percent compared with EUR 259 million in the same period of 2012. EBITDA in the second quarter amounted to EUR 104 million, which is a year-on-year decrease of 10.3 percent from EUR 116 million The decline in revenue was mainly attributable to drastic price cuts in the mobile market in April. As of 30 June, T-Mobile had 5.667 million mobile customers, which is an increase of 5.4 perce

SLOVAKIA 8 AUG 2013

Slovak Telekom Q2 revenues down 1 percent

Based on the second quarter results published by Deutsche Telekom, as of 30 June, Slovak Telekom had 2.273 million mobile customers, down 2.2 percent from 2.325 million on the same date in 2012; 932,000 fixed telephony subscribers, down 6.1 percent from 993,000; and 496,000 broadband lines, up 5.5 percent from 470,000 a year earlier. Revenues in the second quarter amounted to EUR 200 million, a 1 percent year-on-year decrease from EUR 202 million in the second quarter of 2012. EBITDA amounted to EUR 78 mill

POLAND 8 AUG 2013

T-Mobile Poland Q2 EBITDA up 5.8 percent

T-Mobile Poland reported that it had 15.969 million customers as of 30 June, which is a year-on-year increase of 6.1 percent. Revenues for the second quarter amounted to EUR 407 million, compared with EUR 418 million in the same quarter of 2012, a decrease of 2.6 percent. EBITDA for the second quarter amounted to EUR 147 million, an increase of 5.8 percent from EUR 139 million in the same period of 2012.

UNITED STATES 8 AUG 2013

T-Mobile strategy pays off with 1.1 mln new customers in Q2

T-Mobile USA reported net additions of 1.1 million new customers in the second quarter, as its new 'un-carrier' strategy started to pay off. The mobile operator claims it led the market in retail postpaid net additions, with 688,00 such customers added in the quarter. Its quarterly results include two months of MetroPCS, following the company's takeover as of 01 May. The group finished June with a total 44 million customers, including 8.9 million acquired from MetroPCS and the 1.1 million added since the fi

EUROPE 8 AUG 2013

Deutsche Telekom ziet omzet stijgen door uitbreiding in VS

Deutsche Telekom heeft de verwachtingen voor het hele jaar iets naar beneden bijgesteld omdat het plannen heeft om meer uit te geven aan het winnen van nieuwe abonnees in de VS. Het tweede kwartaal leverde 668.000 nieuwe postpaid klanten voor T-Mobile USA op, waardoor het bedrijf haar zinnen heeft gezet op het aantrekken van 1 tot 2 miljoen nieuwe klanten. Voorheen had het een doelstelling van een stabiel klantenbestand. De hogere kosten die hiermee gepaard gaan, gaan ten koste van het aangepaste EBITDA-voo

CROATIA (HRVATSKA) 26 JUL 2013

T-Hrvatski Telekom reports H1 revenues down 5.9%

Croatian operator T-Hrvatski Telekom has published the unaudited results for the first six months to 30 June 2013, which show a 5.9 percent drop in revenue to HRK 3.435 million (EUR 454 million). EBITDA was down 17.8 percent to HRK 1.362 million (EUR 180 million). Net profit was down 29.4 percent at HRK 570 million (EUR 75 million), with margin at 16.6 percent. Non voice revenue was up 2.9 percent, fixed broadband ARPU was up 2.3 percent to HRK 127, with smartphone sales at 56 percent of total post-paid ha

UNITED STATES 25 JUL 2013

MetroPCS expands in fifteen new markets, doubles reach

T-Mobile USA has announced that less than three months after completing the combination of T-Mobile USA and MetroPCS, the company has doubled its MetroPCS brand presence across the country and is bringing "Wireless for All" to fifteen new markets. MetroPCS customers will experience speeds on average of seven times faster than the company's previous markets. MetroPCS is offering "all-in" unlimited data, talk and text service in its existing fifteen markets as well as in the following markets: Baltimore, Mary

GERMANY 17 JUL 2013

Deutsche Telekom launches Entertain to go service

Deutsche Telekom has announced the launch of the 'Entertain to go' service. This brings the Entertain TV service to PCs, laptops and iPads, giving customers access to around 40 channels at launch, including ARD, ZDF, 3sat, ProSieben, SAT.1, RTL and Vox. The iPad app can be downloaded free from the App Store. Telekom is working on an app for iPhone and Android devices. With the Entertain Premium or Entertain Comfort tariffs, Entertain to go is available as an add-on option for EUR 4.95 per month, with custom

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.