EN: Deutsche Telekom showed strong Q2 results and confirms 2010 guidance
Deutsche Telekom continued the healthy development of the Q1 of 2010 in the period April to June and confirms its guidance for the full year. Revenue in the Germany operating segment stabilized in Q2 and, at the same time, adjusted EBITDA increased. T-Mobile USA continued its strong growth in the mobile data sector and recorded an increase in the number of contract customers for the first time after three quarters. The EBITDA margin remained at a high level in the Europe segment despite negative regulatory and economic factors impacting several markets. T-Systems increased revenue generated outside the Deutsche Telekom Group and internationally, and improved its EBIT margin.
"On the basis of these good first six months, we can once again confirm our guidance," said Chief Executive Officer René Obermann at a press conference in Bonn. "We have achieved one of our key goals, that of making our business in Germany competitive again."
Free cash flow increased by 60.9% year-on-year to EUR 2.9 billion in the first half of 2010, and by 6.1% in the second quarter to EUR 1.5 billion.
The positive development in the first half-year was supported by gross savings of EUR 1.0 billion generated by the Save for Service program. Around EUR 0.5 billion of these savings was reinvested in business operations to improve the Company's market and competitive position.
The results in short are:
- Adjusted EBITDA of EUR 9.9 billion half way through the year
- Net profit of EUR 1.2 billion at end of half-year, compared with loss of EUR 0.6 billion in prior year
- Free cash flow up 61 percent to EUR 2.9 billion for the half-year
- Strong growth in mobile data continues: up 28 percent in the first six months
- Business in Germany recorded almost stable revenue in the second quarter coupled with an increase in earnings
- 106,000 net additions to the contract customer base in the United States in the second quarter
- Margin in the Europe segment largely stable
- Systems Solutions: Revenue growing, EBIT margin improved
To see the results and analysis in further details, please click here.
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