Wednesday, May 8, 2013

Deutsche Telekom's Profits Rise in Q1 as Revenue Dips 4.5%

Deutsche Telekom's net revenue for Q1 2013 decreased by 4.5 percent compared with the prior-year period to EUR 13.8 billion and adjusted EBITDA declined by 4.3 percent to EUR 4.3 billion. However, Deutsche Telekom generated a year-on-year increase in adjusted net profit of more than 30 percent to EUR 767 million in the first quarter. Reported net profit increased by 3.5 percent to EUR 564 million.

"We have resolved some major issues," said René Obermann, Chairman of the Board of Management of Deutsche Telekom. "The biggest of those were our customer figures in the United States, which are finally back on the up. The positive regulatory decisions form the basis for our planned broadband build-out."

Some highlights for Q1 2013:


  • Smartphone sales recorded growth of 16 percent, reaching over a million.
  • In the fixed network, the total number of VDSL and FTTH lined climbed 63 percent, compared with the first quarter of 2012, to 1.1 million. With 156,000 new fiber-optic customers in the quarter, Deutsche Telekom achieved a record high. Of these customers, 46,000 came from the wholesale area, mainly due to the successful launch of what is known as the contingent model.
  • The number of mobile contract customers increased by 441,000 in the first three months of the year, after a decline of 107,000 in the prior-year quarter. In addition to the expanding reseller segment (service providers), new customer growth was also attributable to 144,000 new customers under the Deutsche Telekom and Congstar brands.
  • Revenue in the Germany operating segment amounted to EUR 5.6 billion in the first quarter of 2013, 1.6 percent lower than in the prior-year period. 


  • T-Mobile USA completed its merger with MetroPCS as of April 30, 2013.
  • T-Mobile USA sold some 500,000 iPhones in the first four weeks after marketing began.
  • The number of branded contract customers declined by 199,000, after a decrease of 510,000 a year earlier.
  • The total number of customers increased by 579,000 to 34 million.
  • Revenue in the United States operating segment amounted to EUR 3.5 billion in the first quarter, 8.0 percent lower than in the prior-year period. 


The European subsidiaries made progress in growth areas, while at the same time battling with negative effects from the economy and regulation. Total revenue in the Europe operating segment declined 6.9 percent year-on-year to EUR 3.3 billion. Excluding the reduction in mobile termination rates, the decline in revenue would have been much lower at 3.4 percent. In Greece, for example, rates were reduced by 74 percent compared with the prior-year quarter.
Mobile data revenue in Europe increased substantially by 14 percent year-on-year due to exchange rate effects.


Deutsche Telekom's Systems Solutions segment recorded strong order entry of EUR 2.1 billion, up 33 percent compared with the prior-year period. This was due to agreements with EADS and the Swiss National Railways (SBB) as well as numerous deals for cloud services.