German telecoms group Deutsche Telekom (DT) has reported net revenue of EUR14.894 billion (USD20.74 billion) for the first three months of 2014, an increase of 8.0% from EUR13.785 billion in the year-ago period, driven by a 43.3% year-on-year rise in US turnover to EUR5.074 billion. Adjusted for changes in the composition of the group (such as the merger with MetroPCS in the US, as well as currency effects), revenue increased by 4.2%. Group adjusted EBITDA totalled EUR4.121 billion for the first quarter of 2014, down 3.9% compared to EUR4.288 billion in 1Q13, as a result of higher market investments in the US. The company said that reported net profit more than tripled to EUR1.817 billion due to the partial sale of online classifieds company Scout24, while adjusted for this factor, net profit decreased by 23.5% year-on-year to EUR587 million from EUR767 million in Q1 2013, reflecting the decline in adjusted EBITDA. ‘Our success story in the United States continues. The decision to invest boldly in this market was right on the mark,’ commented Tim Hottges, CEO of DT, adding: ‘We are once again delivering figures in the first quarter that confirm we are on the right track to achieving our leadership ambition in Europe’s telecoms industry.’
DT’s Germany operating segment generated revenue of EUR5.483 billion in the first quarter of 2014, a decrease of 1.5% year-on-year, while adjusted EBITDA fell 1.1% to EUR2.230 billion. Net revenue in the Europe segment declined 6.5% to EUR3.125 billion in Q1 2014, and in organic terms (adjusted for the sale of Bulgarian company Globul and exchange rate effects) revenue declined by 2.6% year-on-year. Adjusted EBITDA meanwhile decreased by 6.4% to EUR1.027 billion. T-Mobile US reported a 43.3% year-on-year rise in 1Q14 revenue to EUR5.074 billion, but adjusted EBITDA for the three-month period fell 5.0% to EUR844 million, attributed to increased expenses for customer acquisition and marketing.
As at the end of March 2014 DT’s domestic wireless subscriber base stood at 39.145 million (an increase of 5.8% from 37.005 million a year earlier), while retail fixed broadband connections fell 0.7% year-on-year to 12.354 million (of which 1.375 million were fibre lines [VDSL, vectoring and FTTH]) and pay-TV accesses climbed 10.8% to 2.255 million. Internationally, the group’s US subsidiary ended the first quarter of 2014 with 49.075 million mobile subscribers, an increase of 44.5% against the same date a year earlier, as the number of branded post-paid customers rose 17.6% to 23.622 million, with 1.3 million such customers added in 1Q14. As such, T-Mobile US has revised its forecast for customer acquisition upwards, with 2.8 million to 3.3 million net branded post-paid additions now expected in full year 2014, compared to the previous forecast of between two and three million. Across its European operations, DT’s mobile customers numbered 56.615 million at 31 March 2014, down 0.6% from 56.949 million twelve months earlier, while retail broadband lines climbed 4.9% to 4.784 million and pay-TV customers rose 19.8% year-on-year to 3.558 million at the end of 1Q14.