Wednesday, August 4, 2010

Deutsche Telekom Reports Better First Half Despite Customer Loss

Deutsche Telekom Group reported net revenue of EUR 31.3 billion for the first half of 2010, down by 2.5 percent year-on-year. This development was primarily influenced by positive (EUR 0.5 billion: OTE) and negative (EUR 0.9 billion: T-Mobile UK) effects of changes in the composition of the Group and by positive exchange rate effects
of EUR 0.3 billion. Revenue in the Germany operating segment stabilized in the second quarter and, at the same time, adjusted EBITDA increased. Free cash flow increased significantly. The group recorded a net profit of EUR 1.2 billion at end of half-year, compared with loss of EUR 0.6 billion in prior year.

T-Mobile USA continued its strong growth in the mobile data sector and recorded an increase in the number of contract customers for the first time after three quarters.

"On the basis of these good first six months, we can once again confirm our guidance," said Chief Executive Officer René Obermann at a press conference in Bonn. "We have achieved one of our key goals, that of making our business in Germany competitive again."

Some additional highlights:

  • The proportion of net revenue generated internationally decreased from 57.2 percent to 56.9 percent. Domestic net revenue was EUR 13.5 billion in the first six months of 2010, EUR 0.3 billion lower than in the first half of 2009. International net revenue decreased year-on-year by EUR 0.5 billion to EUR 17.8 billion.

  • In Germany, the number of mobile communications customers decreased by 2.2 million compared with year-end 2009 to 37 million in the first half of 2010.

  • For T-Mobile USA, the number of contract customers rose for the first time since the second quarter of the previous year, rising by 106,000 in the second quarter, compared with a plus of 56,000 in the prior-year quarter. The total number of customers declined by 93,000 compared with the first quarter as a result of the decreases in the prepay segment. At June 30, T-Mobile USA had 33.6 million customers, compared with 33.5 million one year before.

  • Total revenue of the Europe operating segment decreased by 6.8 percent in the first half-year, in particular as a result of the deconsolidation of T-Mobile UK.

  • German LTE Spectrum - Telekom Deutschland GmbH has purchased frequency spectrum by auction from the Federal Network Agency for around EUR 1.3 billion. Deutsche Telekom has purchased two times 10 MHz in the 790 to 862 MHz
    frequency range, the digital dividend.

  • Dutch LTE Spectrum -- T-Mobile Netherlands has purchased two-part 10 MHz bandwidths in the 2.6 GHz
    range for EUR 109,000 at the mobile frequency auction.

  • 3G in Europe -- In Austria, the Czech Republic, Romania, and Greece, Deutsche Telekom has significantly advanced its 3G/UMTS network build-out.

  • T-Mobile USA and HSPA+ -- Having deployed HSPA+ in around 50 metropolitan areas, T-Mobile USA now offers speeds comparable to those in 4G networks.

See also