DT posts flat revenues, EUR5.3bn loss on US writedown

28 Feb 2013

German telecoms giant Deutsche Telekom (DT) has reported net revenue of EUR58.2 billion (USD76.1 billion) for the twelve months ended 31 December 2012, relatively stable compared to EUR58.7 billion in full-year 2011. A 2.2% year-on-year decline in domestic revenue to EUR25.8 billion was only partially offset by a slight increase in international sales to EUR32.4 billion, up 0.3% from EUR32.3 billion in 2011. Adjusted EBITDA fell 3.8% to EUR18.1 billion in full-year 2012 from EUR18.7 billion twelve months earlier. DT posted a net loss of EUR5.3 billion in 2012, compared to a net profit of EUR557 billion the previous year, due to the impairments loss recognised at T-Mobile USA in the third quarter of 2012. The EUR7.4 billion non-cash special accounting factor resulted from an impairment charge relating to an agreement to merge T-Mobile USA with rival MetroPCS. Adjusted net profit, meanwhile, was down 11.3% year-on-year from EUR2.9 billion in 2011 to EUR2.5 billion. Net revenue for the fourth quarter of 2012, meanwhile, fell 1.4% to EUR14.7 billion, while adjusted EBITDA was down 12.7% from EUR4.6 billion in Q4 2011 to EUR4.0 billion in the same period of 2012. DT reported a net profit of EUR793 million for 4Q12, compared to a net loss of EUR1.3 billion in the year-ago quarter, while adjusted net profit was EUR203 million, compared to an adjusted loss of EUR92 million in 4Q11.

DT’s Germany operating segment generated net revenue of EUR21.4 billion for full-year 2012 (a decrease of 1.8% y-o-y) and EUR5.4 billion for the fourth quarter (down 1.1%), while adjusted EBITDA fell 8.4% in FY12 and 16.6% in 4Q12 to EUR4.8 billion and EUR2.1 billion, respectively, due to increased market investments, especially in the last three months of the year. Total revenue in the Europe segment declined 4.7% for both the full-year (to EUR14.4 billion) and fourth-quarter of 2012 (to EUR3.6 billion), with sales negatively affected by the tough economic environment and regulatory decisions related to mobile termination rates. Adjusted EBITDA meanwhile decreased by 6.1% to EUR4.9 billion. Meanwhile, T-Mobile USA reported a 3.8% year-on-year increase in 2012 revenue to EUR15.4 billion, although fourth-quarter sales dropped 1.4% and adjusted EBITDA for the three month period decreased 22.8% to EUR805 million.

In operational terms, at the end of December 2012 DT’s domestic wireless subscriber base stood at 36.568 million (up from 35.403 million a year earlier), while retail fixed broadband connections increased by 1.3% year-on-year to reach 12.427 million. Pay-TV accesses climbed by 26.6% against end-December 2011 to 1.966 million. Internationally, the group’s US subsidiary ended the year with 33.389 million mobile subscribers, an increase of 0.6% against the same date a year earlier, representing the first time since 2009 that the number of customers rose year-on-year, mainly due to high growth in the pre-paid segment. Across all of its European operations (excluding the UK) DT’s wireless voice customers numbered 61.876 million, up 2.6% from 60.293 million twelve months earlier. The biggest gains were seen in Poland, where T-Mobile subscribers increased by 13.3% to 16.04 million, and Bulgaria (up 5.9% to 4.518 million). The Netherlands business, meanwhile, saw its mobile subscriber base dip by 3.9% from 4.909 million at end-2011 to 4.72 million a year later.

Germany,Deutsche Telekom (DT), T-Mobile US, Telekom Deutschland,

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