Deutsche Telekom passed EUR 100 billion in revenues for the first time in 2020, thanks to its takeover of US operator Sprint. Revenue increased by 25.4 percent to EUR 101.0 billion and grew 3.0 percent on an organic basis. Adjusted EBITDA after leases was up 41.6 percent, or 7.9 percent higher on an organic basis, to EUR 35 billion, in line with the company's forecast.
Net profit rose 7.5 percent to EUR 4.2 billion, and free cash flow was better than expected, with a drop of 10.3 percent to EUR 6.3 billion. Deutsche Telekom expects this to improve to EUR 8.0 billion in 2021, and adjusted EBITDA should reach EUR 37 billion this year.
The company said it managed to grow underlying results despite the impact of the coronavirus pandemic, which led to lower roaming revenues due to travel restrictions, shop closures, and less business with corporate customers. In the fourth quarter, revenues rose 29.3 percent to EUR 27.6 billion, led by the Sprint takeover. Revenues in Germany were up 0.6 percent to EUR 6.3 billion but down 2.9 percent to EUR 3.0 billion in the rest of Europe.
Capital expenditure jumped 30.2 percent over the year to EUR 18.7 billion, including an 84.6 percent rise in Q4 to EUR 5.8 billion. Spending was driven by expansion of the 5G network, both in the US and Germany. Net debt increased 58.1 percent in 2020 due to the costs of the takeover, to a total of EUR 120.2 billion. Deutsche Telekom left its dividend unchanged at EUR 0.60 per share.
