Deutsche Telekom has reported an increase in sales and profits for the first half, helped by its mobile arm in the US.
Group revenue was up by 3.2% for the first six months to €39.2bn, and adjusted EBITDA AL (earnings before interest, tax, depreciation and amortisation, after leases) went up 3.7% year-on-year to €12.2bn.
“These increases are excluding exchange rate effects and changes in the composition of the group. If these changes are included, growth rates are higher, primarily on account of the acquisitions in Austria and the Netherlands and due to the translation of US dollars,” said Deutsche Telekom.
“We remain reliable,” said Tim Höttges, CEO of Deutsche Telekom. “Our business performed well in all areas again in the first half of 2019.”
For the first half, net profit increased by 24.1 percent year-on-year to €1.8bn. Cash capex before expenses for mobile spectrum rose by 14.9% to €7bn. Investments increased due to the continued build-out and upgrade of networks in the Germany, Europe, US and Group Development operating segments.
Revenue in the Germany segment amounted to €5.4bn in the second quarter, up by 1.2% annually. T-Mobile US set new records in the second-quarter period, with sales up 5.1% to $11bn. Quarterly adjusted EBITDA AL increased by 6% to $3.2bn in the US.
There were 1.8m net US customer additions in the second quarter, bringing the total customer count to 83.1m at the end of June.
Following the launch of converged products comprising fixed-network and mobile communications (FMC) in Austria and Poland in the second quarter, these offers are are now available in all European countries.
“This segment continued to develop very well, with 330,000 new FMC customers in the quarter,” said the firm. Quarterly sales in Europe outside Germany increased by 0.4% year-on-year to €3bn, and adjusted EBITDA AL rose by 2% to €1bn.
Business services arm T-Systems saw quarterly sales stagnant at €1.7bn, while adjusted EBITDA AL increased by €3m to €127m. Adjusted EBITDA AL at T-Systems increased by 19% year-on-year in the first half of 2019 to €219m, as the company continues its restructuring of the division to improve returns.
