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Deutsche Telekom Q2 revenues up 5.4% on US expansion
2013-08-08 08:11:00| Telecompaper Headlines
(Telecompaper) Deutsche Telekom has lowered its full-year outlook as the company plans to spend more to win new customers in the US. After a strong second quarter with 668,000 new postpaid customers at T-Mobile USA, the company said it now aims for 1-2 million additions over the full year, rather than the previous target of a stable customer base. The extra customer acquisition costs mean a reduction in the adjusted EBITDA outlook for 2013 to EUR 17.5 billion, from EUR 18 billion previously, and the free cash flow guidance falls to EUR 4.5 billion from EUR 5 billion. The growth in the US and the acquisition of MetroPCS from 01 May helped second-quarter revenues increase 5.4 percent from a year earlier to EUR 15.2 billion. On an organic basis, revenue was up 2.1 percent. In Germany, sales fell 0.8 percent to EUR 5.6 billion, and in the rest of Europe, revenue dropped 4.5 percent to EUR 3.4 billion, mainly due to cuts in mobile termination rates. Adjusted EBITDA for the group fell 6.0 percent to EUR 4.4 billion due to the higher spending in the US. DT increased capex 35 percent in Q2 to EUR 2.2 billion, mainly due to accelerated roll-out of the US network. Free cash flow fell 33.5 percent to EUR 1.1 billion. Net profit for the quarter was up 10.0 percent to EUR 530 million thanks to fewer one-time charges.
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deutsche
expansion
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Category:Telecommunications