Deutsche Telekom managed to keep growing throughout 2018, with revenue up by 0.9 percent to 75.7 billion euros, representing organic growth of 3.1 percent. Adjusted EBITDA rose by 5.0 percent to 23.3 billion euros, and free cash flow increased by 13.7 percent in the full year to 6.2 billion euros. The figures exceed the carrier’s financial guidance.
The DT Group’s CAPEX increased to a record level with spending before expenses for mobile spectrum reaching 12.2 billion euros. This takes the investments made by the Group worldwide in the last four years to more than 46 billion euros, around 21 billion euros of this in Germany.
Some highlights:
- In Germany, of branded mobile contract customers, 50.7 percent now use product packages combining mobile communications and fixed network, compared with 41.7 percent a year earlier. The number of MagentaEINS customers rose to 4.3 million as of the end of the year, up 17.5 percent from the end of December 2017.
- In Germany, the fiber-optic build-out, which has been driven forward year after year, is resulting in a steady rise in customer numbers. 12.2 million customers now use a fiber-optic line, up more than 27 percent compared with the end of 2017. About half of branded consumers in the broadband business are already benefiting from the high speeds of fiber-optic lines.
- While revenue remained almost stable, falling just 1.1 percent to 21.7 billion euros, adjusted EBITDA in the Germany segment increased by 2.4 percent to 8.6 billion euros. The first-time application of the new accounting standard IFRS 15 had a negative impact on revenue and a positive effect on adjusted EBITDA.
- T-Mobile US’ total revenue grew by 6.8 percent in 2018 to 43.1 billion U.S. dollars. At the same time, adjusted EBITDA rose by 13.6 percent to 11.9 billion U.S. dollars.
- In other European markets, revenue increased by 1.5 percent on an organic bases in the full year, and adjusted EBITDA by 1.8 percent. Due to the first-time consolidation of UPC in Austria, the increases in the reported figures were even higher. Revenue increased by 2.6 percent in 2018 to 11.9 billion euros. Adjusted EBITDA rose by 3.5 percent to 3.9 billion euros.
