US mobile unit brightens Deutsche Telekom earnings
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.