Deutsche Telekom reported lower results for the second quarter, hurt by the weaker dollar. On an organic basis, revenue was still up 6.8 percent to EUR 26.6 billion, and adjusted EBITDA AL increased 1.1 percent year-on-year to EUR 9.4 billion. For the full year, Telekom expects adjusted EBITDA to pass EUR 37.2 billion, compared to a forecast in May for more than EUR 37 billion.
On a reported basis, revenue fell 1.7 percent and adjusted EBITDA AL was down 4.2 percent, hurt by the weaker dollar and a small drop in EBITDA at T-Mobile US due to a change in handset leasing. Net profit more than doubled, to EUR 1.9 billion from EUR 754 million a year ago.
Cash capex, excluding spectrum payments, was up 16.8 percent year-on-year to EUR 4.3 billion after the slowdown in the year-earlier period. Free cash flow AL improved 14.1 percent to EUR 2.8 billion, and Telekom still expects a figure of over EUR 8 billion for the full year.
Underlying growth in the quarter was led by over 4 percent higher revenue and EBITDA at the European operations, to respectively EUR 2.8 billion and EUR 994 million. Germany also benefited from a pick-up in commercial activity, with revenues up 1 percent to EUR 5.9 billion and EBITDA growing almost 4 percent to EUR 2.4 billion.
T-Systems recorded much stronger new business in the second quarter, with orders up over 25 percent to EUR 1.1 billion, helped primarily by a deal in the automotive sector. Revenue at the business services division still declined 5.5 percent to EUR 1.0 billion, and EBITDA was little changed at EUR 72 million.
