Telecom Lead Europe: René Obermann, CEO of Deutsche Telekom, says the group would invest around EUR 30 billion as Capex in 2013-2015.
Deutsche Telekom’s confidence to invest heavily in networks reflects its net revenue in 2012.
The company on Thursday said that unlike many of its European competitors, Deutsche Telekom held its net revenue more or less steady, at EUR 58.2 billion. The organic decline in revenue – i.e., adjusted for exchange rate effects and changes in the composition of the Group – was reduced from from 3.6 percent in 2011 to 2.7 percent.
In Germany, Deutsche Telekom said it also working flat out to roll out its broadband networks as part of its integrated network strategy: Investments in German mobile communications, for example, increased by 16 percent in 2012 compared with the prior year, the number of LTE base stations quadrupled compared with 2011 as of year-end.
In America, in the past year, T-Mobile USA increased its network investments by almost 7 percent; or in a comparison with the prior-year quarter, by as much as 63 percent. network modernization and LTE roll-out are focus areas for T-Mobile USA.
Deutsche Telekom says its adjusted EBITDA margin for 2012 stood at 30.9 percent, a decline of around 0.9 percent, largely due to the increase in market investments in the German mobile communications market, especially in Q4 of around 27 percent compared with Q4 of 2011.
In Q4 2012 , sales of smartphones increased to a record high of around 1.5 million, and the number of new contract customers under the Deutsche Telekom and Congstar brands increased by 226,000. Competitive and price pressure and regulatory decisions also had a negative impact on the reduced EBITDA margin.
The company’s adjusted net profit was EUR 2.5 billion, 11.3 percent less than in the prior year.
In 2012, Deutsche Telekom reported net loss of EUR 5.3 billion. The loss is almost entirely attributable to the impairment loss recognized in the United States in the third quarter of 2012 of EUR 7.4 billion net.
“This loss of billions is not what it appears to be: We are not lacking in funds to drive forward the development of the Group,” said René Obermann.
