Deutsche Telekom's Q1 2019 net revenue increased by 3.5% in organic terms to 19.5 billion euros. Adjusted EBITDA AL rose 3.9 percent year-on-year to 5.9 billion euros in organic terms. Free cash flow AL totaled 1.6 billion euros. In organic terms, it increased by 9.6 percent.
“We got off to a successful start to the year,” said Tim Höttges, CEO of Deutsche Telekom. “Deutsche Telekom has much more to offer than just our sensational success in the United States. We are seeing positive trends throughout the Group.”
Cash CAPEX excluding expenses for mobile spectrum stood at 3.7 billion euros, up 19.7 percent against the first quarter of 2018. This increase was attributable to the accelerated network build-out in the United States and further extensive investments to build out and modernize the network in Germany.
Some highlights:
Germany – MagentaTV gains ground
- 4.4 million customers now use MagentaEINS, a convergence product package of fixed-network and mobile communications, up 17.1 percent yoy. 53 percent of branded mobile contract customers now use MagentaEINS packages, an increase of 9 percentage points in a year.
- The number of customers with fiber-optic-based products (FTTH, FTTC/vectoring) increased by 688,000 in the quarter, reaching 12.9 million at the end of March, up 24 percent year-on-year.
- 66,000 new MagentaTV customers were recorded in the quarter just ended, taking the total number to 3.4 million, an increase of 7.1 percent compared with March 2018.
- German mobile service revenues increased again substantially by 2.8 percent compared with the first quarter of 2018. The trend in adjusted EBITDA AL in the Germany operating segment was also very positive in the reporting period, with an increase of 2.4 percent to 2.1 billion euros. Revenue increased 0.6 percent to 5.4 billion euros.
United States
- For the last six years now, T-Mobile US has recorded more than one million customer additions in every single quarter.
- Between January and March 2019, 1.65 million net additions were recorded, including one million branded postpaid customers.
- Total revenue increased by 7.0 percent to 11.1 billion U.S. dollars. Adjusted EBITDA AL reached 3.0 billion U.S. dollars, an increase of 6.2 percent year-on-year.
Europe
- European national companies' revenue increased by 2.8 percent to 2.9 billion euros compared with the first quarter of 2018. Adjusted EBITDA AL increased by as much as 5.2 percent to 0.9 billion euros.
T-Systems Solutions
- At 1.6 billion euros, order entry was up 6.8 percent against the first quarter of 2018, primarily driven by new deals in growth areas such as SAP, public cloud, and health.
- Revenue declined 2.1 percent to 1.6 billion euros.
- There was a general decline in the volume of traditional IT and telecommunications business in Western Europe. T-Systems also terminated contracts in unprofitable business areas.
