DT Remains Stable and Delivers Double-Digit Earnings Growth in Q1

DT Remains Stable and Delivers Double-Digit Earnings Growth in Q1

Foto: Dražen Tomić - Tomich Productions

Despite the global spread of the coronavirus and restrictions imposed in many countries since March, Deutsche Telekom had a strong start to the 2020 financial year. Revenue increased 2.3% year-on-year to 19.9 billion euros in the first quarter. Adjusted EBITDA AL rose by 10.2 percent, reaching 6.5 billion euros.

“Deutsche Telekom is an anchor of stability in a global crisis,” said CEO Tim Höttges. “Our networks are working reliably as digital lifelines for society.” The Group expects the pandemic to have limited impact on revenue. Taking into account all foreseeable consequences of the pandemic, the Group confirms its guidance for the current financial year.

With 83,000 new broadband customers, DT achieved its best result in two years in Germany. The number of TV customers also increased significantly, with 60,000 new users. The number of fiber-optic lines grew by 389,000, bringing the total to around 14.8 million, 1.9 million more than a year earlier. Mobile service revenues also performed well, with a year-on-year increase of 1.7 percent. Adjusted EBITDA AL increased by 2.7% to 2.2 billion euros. Revenue increased by 0.9% to 5.4 billion euros.

T-Mobile US strengthened its position further going into the business combination with its competitor Sprint. The transaction was completed on April 1, 2020 and will be reflected for the first time in the figures for the second quarter. In the first three months of the year, adjusted EBITDA AL grew by 14.5% to 3.5 billion U.S. dollars, while revenue grew 0.7% against the prior-year level to 11.2 billion U.S. dollars, with mobile service revenues increasing by 5.5%.

Driven primarily by growing fixed-network and mobile service revenues, revenue in the Europe operating segment grew by 2.0% in organic terms year-on-year in the first quarter to 2.9 billion euros. Adjusted EBITDA AL rose by 3.4% in organic terms to 1.0 billion euros. Thus, the Europe segment began its third year of unbroken growth in every quarter. The trend in customer numbers also continues to rise.

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