DT touts 7 million LTE subscribers in Germany
Deutsche Telekom posted revenue of 17.42 billion euros ($18.94 billion) in the second quarter of 2015, surging 15.3% year-on-year. The operator’s net profits for the quarter reached 712 million euros, flat vs. the year-ago quarter.
Second-quarter earnings before interest, taxes, depreciation and amortization totaled 5.02 billion euros, up 13.5% compared to Q2 2014, while overall capital expenditures for the period reached 2.57 billion euros, climbing 17.2%.
In Germany, Deutsche Telekom posted revenue of 5.58 billion euros in the quarter, up 2.1% year-on-year. Mobile revenue grew 8.8% year-on-year to 2.05 billion euros. The telco ended June with a total of 7 million LTE subscribers in the German market, an increase of 63.5% compared to the same period in 2014.
In June, the operator acquired spectrum in the 700 MHz, 900 MHz, 1500 MHz and 1800 MHz bands to expand mobile services in Germany.
In the United States, where Deutsche Telekom controls mobile operator T-Mobile US, total revenue reached 7.44 billion euros in Q2, up 41.2% compared to 5.27 billion euros in Q2 2014.
T-Mobile US ended the period with 58.9 million customers, up 16.5% year-on-year. During the second quarter, the operator added 2.07 million customers. “Our LTE network now covers 290 million pops, up from 275 million at the end of Q1 and we will reach 300 million people by end of the year. Our new 700 MHz frequencies covering 60% of the U.S. population have been almost completely cleared and now reach 141 markets,” Deutsche Telekom’s CFO Thomas Dannenfeldt said in a conference call with investors.
Deutsche Telekom’s European operations recorded revenue of 3.13 billion euros in Q2, down 0.9% year-on-year. The telco’s regional operations include Austria, Croatia, Netherlands, Czech Republic, Greece, Hungary, Poland, Romania and Slovakia.
In Europe (excluding Germany), Deutsche Telekom’s LTE technology covered 60% of the population, up compared to 30% a year earlier.
Mergers and acquisition strategy in the U.S.
Commenting on the company’s M&A outlook in the U.S., Dannenfeldt said that the operator was not in a hurry to make local acquisitions.
“There is no rush, not any strategic needs to any deal at this point … We are preparing ourselves for the low-band auctions and the total footprint is in a very good shape,” Dannenfeldt said. “We are very excited about the performance of T-Mobile US. We are not only adding more subscribers than expected, we are capturing the entire growth of the markets,” the executive added.
