Deutsche Telekom’s net revenue rose by 3.2% in organic terms in the first six months of 2019 to 39.2 billion euros, while adjusted EBITDA was up by 3.7% to 12.2 billion euros, and free cash flow by 9.0% to 3.1 billion euros. There was a jump in reported net profit in the second quarter to 0.9 billion euros, up 90.7% compared to the prior-year level.
“We remain reliable,” said Tim Höttges, CEO of Deutsche Telekom. “Our business performed well in all areas again in the first half of 2019. That puts us in a position to deliver the results we promised.”
Some operational highlights
Germany – Between April and June, German mobile market service revenues increased by 2.4 percent against the prior-year period, thereby continuing the strong trend of the first three months of the reporting year. The average mobile data used per month by branded contract customers exceeded 3 gigabytes for the first time. Customers with an LTE rate plan and LTE-enabled smartphone used six times as much data as other customers.
In the fixed network, growth in fiber-optic-based lines (FTTH, FTTC/vectoring) continued. At 13.4 million lines, the number was up 22 percent on the prior-year figure. 521,000 lines were added in the second quarter. 83 thousand new customers opted for converged product under the name MagentaEINS.
Revenue in the Germany operating segment amounted to 5.4 billion euros in the second quarter, up by 1.2 percent against the prior-year period. Growth in adjusted EBITDA AL was even more substantial, up by 2.4 percent to 2.2 billion euros, leading to a margin of 40.0 percent compared with 39.5 percent in the second quarter of the prior year.
United States – T-Mobile US set new records again in the second quarter of 2019. Total revenue increased by 5.1 percent year-on-year to 11.0 billion U.S. dollars, while service revenues rose by 6.9 percent to 8.3 billion U.S. dollars.
Adjusted EBITDA AL increased by 6.0 percent to 3.2 billion U.S. dollars. The company accelerated its customer growth again with 1.8 million net customer additions in the second quarter, bringing the total customer count to 83.1 million at the end of June. T-Mobile US had a reason to celebrate: It recorded more than one million net customer additions in a quarter for the 25th time in a row. Of the total customer growth, 710,000 were branded phone postpaid net customer additions. In the United States, T-Mobile US remains far and away the fastest growing company on the market. The record low churn rate of 0.78 percent made a significant contribution to this. In the prior year, this figure had been 17 basis points higher.
Europe – Telekom’s European national companies reported that the encouraging trends of last year continued steadily. Following the launch of converged products comprising fixed-network and mobile communications (FMC) in Austria and Poland in the second quarter, these offers are now available in all ten countries. This segment continued to develop very well, with 330,000 new FMC customers. The number of customers thus increased by 53 percent compared with the end of June 2018, passing the 4 million mark for the first time. The companies again recorded strong development in the number of mobile contract customers, with 300,000 net additions, and broadband lines, with an increase of 63,000.
Systems Solutions – T-Systems managed to increase order entry compared with the prior-year period to 1.9 billion euros, 2.4 percent higher than between April and June 2018. Successes included wins in the area of the connected car.
https://www.telekom.com/en/media/media-information/archive/second-quarter-report-2019-578396
