Deutsche Telekom investment reaches $3.2 bn in Q1

Deutsche Telekom CEO Timotheus Hottges
Deutsche Telekom today said it made an investment of 2.8 billion euros (+11.9 percent) or $3.2 billion towards Capex (capital expenditure) in the first quarter of 2016.

Capex of Deutsche Telekom including mobile spectrum fell 12 percent to 3,896 million euros. The net debt of Deutsche Telekom was 47,603 million euros (+2 percent) in Q1 2016.

The telecom network operator installed 5 million fiber-optic lines (VDSL/vectoring and FTTH) for branded customers and competitors (under lease) in Germany. Of the five million lines, more than 1.7 million are leased by competitors and marketed under their own brands.

Deutsche Telekom’s investment was aimed at integrating networks on the basis of IP and offering the best customer experience.

Deutsche Telekom revenue break-up

Total revenue €17,630 million (+4.7%)

Germany €5,452 million (–2.5%)

United States €7,816 million (+13.2%)

Europe €3,080 million (–2.4%)

Enterprise business €1,522 million (+25%)

Deutsche Telekom’s Capex in Germany was 0.9 billion euros (–4.3 percent).

Telekom Deutschland plans to increase Capex in 2016 against 4 billion euros in the previous year. Telekom Deutschland, under the integrated network strategy, increased fiber-optic coverage by another 4 million households to 23.7 million. The company’s LTE network reached population coverage of 91 percent compared with 82 percent. Deutsche Telekom converted another 3.5 million lines of branded customers and leased by competitors to IP technology.

In Germany, the growth in fiber-optic lines was 660,000. Of these new lines, 363,000 related to branded customers and 297,000 to wholesale business.

Due to the strong demand for fiber-optic lines, the number of branded broadband customers grew by 62,000 in the quarter.

T-Mobile US has around 65.5 million subscribers. T-Mobile’s revenue increased 10.9 percent to $8.6 billion, with service revenues rising 14.2 percent to $6.5 billion.

Revenue of Deutsche Telekom was 17.6 billion euros (+4.7 percent) or $20.22 billion, while net profit quadrupled to 3.1 billion euros or $3.56 billion.

Deutsche Telekom’s revenue rose due to positive effect on earnings of 2.5 billion euros from sale of stake in EE joint venture in the UK to BT.

Deutsche Telekom CEO Timotheus Hottges said: “Our integrated 5G network of tomorrow with low latencies and high bandwidths is opening up the digital future to Europe. We have a clear timetable on our way toward the gigabit society. Our next goal is the federal government’s broadband target for 2018.”