US mo­bile unit bright­ens Deutsche Telekom earn­ings

The China Post - - BUSINESS INDEX & -

Ger­man tele­coms op­er­a­tor Deutsche Telekom said Thurs­day its op­er­at­ing profit and sales rose strongly in the sec­ond quar­ter, thanks in large part to its U.S. mo­bile sub­sidiary T-Mo­bile USA and a resur­gent dol­lar.

Net profit, hit by ex­cep­tional items and restruc­tur­ing charges, was sta­ble at 712 mil­lion eu­ros in the April to June pe­riod com­pared to the sec­ond quar­ter the pre­vi­ous year.

But op­er­at­ing profit as mea­sured by earn­ings be­fore in­ter­est, taxes, de­pre­ci­a­tion and amor­ti­za­tion (EBITDA) climbed by 14 per­cent to 5.03 bil­lion eu­ros.

Sales rose by 15 per­cent to 17.43 bil­lion eu­ros, with the pos­i­tive con­tri­bu­tion by T-Mo­bile USA mag­ni­fied by the stronger dol­lar.

Un­til re­cently Deutsche Telekom’s prob­lem child, T-Mo­bile USA has come of age as a ma­jor op­er­a­tor on the U.S. mo­bile mar­ket thanks to a merger and has be­come a bread­win­ner in re­cent quar­ters for its par­ent.

T-Mo­bile USA saw the num­ber of its sub­scribers rise 3.6 per­cent to 59 mil­lion dur­ing the three month pe­riod.

Mean­while in Ger­many, the num­ber of mo­bile clients edged up just 0.7 per­cent, while the num­ber of fixed-line sub­scribers at the for­mer na­tional mo­nop­oly op­er­a­tor fell.

Deutsche Telekom is still be­lieved to be look­ing to sell T-Mo­bile USA how­ever, with ru­mors regularly cir­cu­lat­ing of in­ter­est from ca­ble or satel­lite com­pa­nies, as the Ger­man com­pany needs funds to in­vest in its Euro­pean fiber-op­tic and mo­bile net­works.

Deutsche Telekom con­firmed its forecast for an EBITDA op­er­at­ing profit for this year of about 18.3 bil­lion eu­ros.

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