In the Q3 2016, Deutsche Telekom registered a net revenue growth of 5.9% compared to the previous year quarter and reached 18.1 billion euros. The adjusted EBITDA rose 7.2% to 5.5 billion euros. Its major revenue source this quarter was the United States. Germany too depicted a stable trend.
Commenting on the performance, Tim Höttges, CEO of Deutsche Telekom said, “These figures show once again that we are on the right track in our markets. We are working on the technologies and products of the near and more distant future – on the basis of a convincing strategy.”
The net profit of Deutsche Telekom stood at 1.1 billion euros, compared to 0.8 billion euros in the third quarter of 2015. This is an increase of 30.2%. The free cash flow surged 45.6% and reached 1.9 billion euros. The adjusted net revenue remained stable at 1.0 billion euros.
In Germany, Deutsche Telekom showcased a growth in the broadband market in the Q3 2016. “The company recorded the largest number of fiber-optic lines (FTTC/vectoring and FTTH) of all European network operators, with more than 6 million lines. The number of fiber-optic broadband lines rose by 526,000 in the third quarter alone. Fiber-optic coverage reached almost 60% of households in Germany at the end of the reporting quarter,” said a release from the company.
In Germany, the revenue from broadband increased 1.7% year-on-year. The demand for company’s MagentaEINS was high. By the end of September 2016, 2.6 million customers were using one of the MagentaEINS bundles, allowing a flexible combination of fixed-network and mobile communications. This is a one million customer increase compared with the third quarter of the previous year.
Deutsche Telekom’s mobile revenue increased by 0.2%. “This revenue growth was significantly dampened by the reduction in termination rates and the price discounts from the MagentaEINS bundles posted to mobile revenues,” the company pointed out. However, the data usage of consumers with Deutsche Telekom contracts increased by around 80% year-on-year to almost a gigabyte.
In the United States, T-Mobile US remained as the largest player. It added two million customers. 969,000 of these new customers are postpaid. In prepaid segment, the company added 684,000 new customers. The total revenue increased by 17.8% year-on-year to 9.2 billion U.S. dollars in the third quarter of 2016. At the same time, adjusted EBITDA increased by 27.1% to 2.4 billion U.S. dollars.
In Europe, the mobile contract customer base increased by 219,000 in Q3 2016. More than 1.2 million customers use the product bundles of fixed network and mobile communications, showcasing 51% increase year-on-year. There are also more than 4 million TV customers.
According to Deutsche Telekom, the company’s standard LTE is now available to 78% of the population. Moreover, 55% of lines in the fixed network have now been migrated to IP technology. Overall, the revenue remained stable compared with the prior-year quarter.