Deutsche Telekom Capex up 35 percent to €2.2 billion in Q2

Deutsche Telekom Capex (capital expenditure) increased 35 percent in the second quarter to €2.2 billion.

The main investment was for mobile network in the U.S.

Deutsche Telekom revenue increased 5.4 percent to €15.2 billion. This was due to the merger between MetroPCS and T-Mobile US, as well as higher revenue from handset revenues in the United States.

Its net profit declined 1.5 percent to €820 million.

Deutsche Telekom Group gained 1.38 million new mobile customers. The number of television customers increased by 121,000 in the quarter and 44,000 broadband customers were also added.

Out of this, T-Mobile US, Deutsche Telekom’s subsidiary, posted 688,000 new branded postpaid customers against loss of 557,000.

Deutsche Telekom also recorded customer growth in other markets, such as

Deutsche Telekom Germany made 434,000 mobile contract additions.

European subsidiaries made 258,000 contract additions.

“Our strategy is bearing fruit: We are in the middle of a massive turnaround in the United States and we want to carry on along this successful course. We are prepared to spend more on high-value growth this year than previously planned,” said René Obermann, chairman of Deutsche Telekom.

Investment plans

T-Mobile US is planning to invest more in customer acquisition and marketing for the rest of the year. The aim is to increase the number of branded postpaid customers by another 500,000 to 700,000 in the second half of the year.
Mobile data revenue

Deutsche Telekom Germany data revenue rose 17.6 percent. Data revenue now generates more than a third of service revenues. More than a third of the one million smartphones sold in the second quarter were LTE-enabled devices.

T-Mobile US revenue rose 28.8 percent to $6.3 billion.

Deutsche Telekom Europe segment revenue declined 4.5 percent to €3.4 billion. Mobile data revenue grew 8.4 percent.

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