Deutsche Telekom reported Q2 revenue of 27.0 billion euros, up 37% yoy after the inclusion of Sprint but down 0.6 percent in organic terms as the coronavirus pandemic impacted Systems Solutions and roaming revenues.
"The merger in the United States is a historic step for the Group”, said Tim Höttges, CEO of Deutsche Telekom. “Our figures are formidable and our strong business operations in Germany and the rest of Europe also play a part in this."
Some highlights:
- In Germany, Deutsche Telekom recorded its most successful quarter in broadband business in two years, measured in terms of net customer additions.
- Between April and June, the number of broadband customers increased by 87,000, thus outperforming all competitors.
- 386,000 customers switched to fiber-optic-based lines (FTTH, FTTC/vectoring). A total of 15.2 million of these lines now exist, which is 1.8 million more than a year earlier.
- In mobile business, roaming revenues lost on account of the travel restrictions had an impact. As a result, mobile service revenues were down 1.1 percent year-on-year in the second quarter.
- Excluding the negative effects of the coronavirus restrictions, mobile service revenues increased by around 2 percent.
- Despite the negative effect of the pandemic on roaming revenues, total mobile revenue in the Germany operating segment increased by 1.1 percent in the second quarter compared with the prior-year period to 5.4 billion euros.
- At the same time, adjusted EBITDA AL grew 3.0 percent to 2.2 billion euros.
- In Europe, total mobile revenue decreased by 2.0 percent in the second quarter in organic terms to 2.8 billion euros. Strict cost discipline helped to prevent this trend being reflected in earnings. Adjusted EBITDA AL increased by 1.1 percent year-on-year in organic terms to 1.0 billion euros, marking the tenth quarter of growth in succession. DT's national companies recorded 174,000 mobile contract net additions. The broadband customer base grew by 69,000 between April and June. In addition, the companies gained 265,000 new users of converged fixed-mobile products, a year-on-year increase of more than 30 percent in the FMC customer base.
- As a result of the pandemic, T-Systems saw a slowdown in new deals closed with corporate customers. Many new IT projects were suspended or stopped. Customers are focusing on securing the continuity of their business and preparing for the period after the pandemic. Below the line, order entry declined by 24.0 percent year-on-year in the second quarter to 1.4 billion euros. The growth areas public cloud and security each recorded substantial double-digit growth.
