Citing strong earnings trends despite macroeconomic headwinds, Deutsche Telekom reported Q2 2022 net revenue of 28.2 billion euros, up 5.9 percent compared to a year earlier. Adjusted net profit was up 15.7 percent to 2.4 billion euros.
“We continue to grow, despite the difficult economic environment,” said Tim Höttges, Chairman of the Board of Management at Deutsche Telekom. “We are well on track this year to meet our ambitious targets announced at the 2021 Capital Markets Day. Our investments are paying off.”
Some highlights
Germany: revenue and earnings continue to grow
The Germany segment delivered strong financials in the second quarter of 2022. Revenue grew by 2.7 percent year-on-year to 6.1 billion euros. Adjusted EBITDA AL recorded even stronger growth of 3.1 percent to 2.4 billion euros in the second quarter. This corresponds to an EBITDA margin of 40.0 percent and earnings growth for 23 quarters in a row.
In mobile communications, service revenues grew by 2.6 percent, continuing the high-level growth of the previous quarters. Branded contract net additions of 194,000 substantially exceeded the prior-year quarter.
Telekom remains the strongest broadband provider in the German market, which was weaker overall in the second quarter. 45,000 broadband net additions were recorded between April and June. The number of fiber-optic-based lines (FTTx, retail and wholesale) increased to 17.7 million. This means that around 75 percent of retail broadband customers are already using the fiber infrastructure.
United States: customer growth at record level
In the second quarter of 2022, the mobile postpaid net additions were at a record level of 1.7 million: the best-ever customer growth in a second quarter, more than the competitors AT&T and Verizon in this quarter combined. The total customer base increased to 110 million, up 5.2 million year-on-year.
Total revenue at T-Mobile US decreased slightly by 1.1 percent in the reporting quarter to 19.8 billion U.S. dollars. This was due to the decline in revenue from handset leasing, due to the planned gradual withdrawal from this Sprint business model. Adjusted EBITDA AL declined by 2.4 percent to 6.7 billion U.S. dollars.
Thanks to the fact that the integration of Sprint has continued to progress well and rapidly, T-Mobile US is raising its guidance for the synergies from the business combination to between 5.4 and 5.6 billion U.S. dollars in 2022, up from the previous range of between 5.2 and 5.4 billion U.S. dollars.
Europe: growth course continues unabated
The European national companies continued to grow unabated in the second quarter. Adjusted EBITDA AL grew 4.5 percent year-on-year in organic terms, making 18 successive quarters of growth.
Revenue also recorded organic growth of 4.2 percent. The reported revenue of 2.7 billion euros was 2.7 percent lower than in the prior-year quarter. The difference between the reported and organic figures essentially results from the sale of the Romanian fixed-network business at the end of September 2021.
243,000 mobile contract net additions were recorded in the second quarter. Broadband net additions were at the same level as in the previous quarter at 70,000. 186,000 new users were won for fixed-mobile convergence products.
https://www.telekom.com/en/media/media-information/archive/second-quarter-report-2022-1012842
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