Deutsche Telekom didn’t hike Capex after revenue and EBITDA drop

Deutsche Telekom today announced the one of the worst performances in its recent quarters with revenue, EBITDA and net profit declining in Q2 2018.
Deutsche Telekom network EuropeDeutsche Telekom has reported revenue of EUR 18.36 billion (–2.8 percent), EBITDA of EUR 5.56 billion (–7.2 percent) and net profit of EUR 495 million (–43.4 percent) in the second quarter of 2018.

Deutsche Telekom said cash Capex remained stable at EUR 3 billion euros (+0.9 percent) before expenses for mobile spectrum.

Deutsche Telekom has generated revenue of EUR 5.322 billion (–0.9 percent) in Germany, EUR 8.821 billion (–4.5 percent) or $10.51 billion (+3.5 percent) from US, EUR 2.896 billion (+1.3 percent) from Europe and EUR 1.674 billion (+42 percent) from enterprise business.

Deutsche Telekom has 43.023 million mobile customers, 18.98 million fixed line users, 13.43 million broadband subscribers and 3.24 million IPTV and satellite customers in Germany.

Deutsche Telekom’s American business T-Mobile has 75.61 million mobile phone customers in US.

Deutsche Telekom has 49.88 million mobile customers, 8.41 million fixed line users, 5.67 million broadband subscribers and 4.29 million IPTV and satellite customers in Europe.

The number of employees at Deutsche Telekom has increased 0.5 percent to 217,207 in the second quarter.

Deutsche Telekom has revised upward its guidance for adjusted EBITDA due to the positive earnings trend in the United States. The Group now expects to post around 23.4 billion euros (at constant exchange rates) of EBITDA in 2018.

“We remain firmly on track,” said Thomas Dannenfeldt, CFO of Deutsche Telekom. “The trends in Germany and the United States are positive. At our European subsidiaries, we are again posting sustained growth.”

Deutsche Telekom has set up 1,000 new mobile sites over the last 12 months to close gaps in coverage. 74 percent of households in Germany with a fixed line have access to fiber-optic-based products (FTTH, VDSL/vectoring) against 67 percent a year ago.

Deutsche Telekom recently signed an agreement with City of Stuttgart and 5 municipalities to provide 90 percent of households with direct fiber-optic lines by 2030. Super-vectoring technology will grant 6 million households in Germany broadband access at speeds of up to 250 Mbit/s. Around two-thirds of households in Germany will have access to this high-speed technology in 2019.

624,000 additional customers have opted for fiber-optic-based products, and the total number reached almost 11 million. Deutsche Telekom added another 80,000 customers overall in the broadband market.

T-Mobile Polska signed an agreement with its competitor Orange that will grant it access to more than 4 million households via the latter’s fiber-optic network. T-Mobile Czech Republic plans to invest more in its fiber-optic network to enhance its business with product bundles.