Deutsche Telekom on Thursday posted a strong set of second quarter financials and confirmed its outlook for the full year, driven in no small part by the performance of its T-Mobile US business.
The German incumbent reported 15.3% year-on-year growth in Q2 revenue to €17.43 billion, 64.2% of which was generated outside of its home market, compared with less than 60% a year earlier.
EBITD A rose by 2.6% to €4.53 billion, while adjusted EBITDA increased 13.5% to €5.03 billion. Net profit was flat at €712 million and free cash flow rose by 31.1% to €1.38 billion.
"We have emphatically confirmed the strong figures from the first quarter," said Tim Höttges, CEO of Deutsche Telekom.
"The transformation of the group is continuing at full speed in all areas," he added. "We are heading in the right direction."
The telco reiterated its full-year 2015 guidance of €18.3 billion in adjusted EBITDA and free cash flow of around €4.3 billion, based on a constant exchange rate.
Deutsche Telekom’s U.S. business once again outperformed the group, reporting 41.2% revenue growth to €7.44 billion and adjusted EBITDA of €1.65 billion, up 52.5%.
By contrast, in Germany Deutsche Telekom saw revenue rise by 2.1% to €5.58 billion and adjusted EBITDA contracted by 1.4% to €2.22 billion.
As it reported last week, T-Mobile US had 58.9 million mobile subscribers at the end of Q2, thanks to 2.1 million net adds during the quarter.
T-Mobile Germany added 265,000 customers during the same period to reach 39.5 million in total, while the telco’s European operations collectively served 55.8 million, a decline of 42,000 over the quarter.
Fixed-line losses continued in Germany, the number of lines declining by 118,000 to 20.4 million, but Deutsche Telekom had positive news on the fixed broadband front.
It added 81,000 retail broadband customers in Q2 to reach 12.5 million, its strongest rise in more than three years. As a result it has upped its broadband growth forecast for the full year; it now aims to add 250,000 retail customers over the 12 months, up from an earlier prediction of 100,000.
