German operator group Deutsche Telekom has reported solid Q1 revenue growth, driven largely by T-Mobile US.
As you can see from the table below, revenues and EBITDA all grew nicely in Q1 2019. Profits, however, went in the opposite direction, apparently due to one-off things like the cost of trying to get the merger between TMUS and Sprint approved. Speaking of the US the second table shows just how much of the revenue growth is attributable to TMUS.
|Proportion generated internationally in %||69.0||66.6||2.4p||67.8|
|Adjusted EBITDA AL||5,940||5,487||8.3||23,074|
|Adjusted net profit||1,183||1,190||(0.6)||4,545|
|Free cash flowa||2,370||1,382||71.5||6,250|
|Free cash flow ALa||1,557||1,318||18.1||6,051|
|Cash capexb(before spectrum)||3,682||3,076||19.7||12,223|
|Number of employeesd||214,609||216,926||(1.1)||215,675|
|Adjusted EBITDA AL||2,108||2,058||2.4||8,516|
|Number of employeesa||62,358||64,695||(3.6)||62,621|
|Adjusted EBITDA AL||2,679||2,331||14.9||10,084|
|Adjusted EBITDA AL||945||898||5.2||3,813|
|Adj. EBIT margin (%)||(0.2)||(2.3)||2.1p||0.5|
|Adjusted EBITDA AL||92||60||53.3||442|
“We got off to a successful start to the year,” said Tim Höttges, CEO of DT. “Deutsche Telekom has much more to offer than just our sensational success in the United States. We are seeing positive trends throughout the Group.”
Not included in his canned comments, but picked up by Reuters, was Höttges inevitable irritation at the amount of cash DT is having to drop on the interminable German 5G spectrum auction. We’re on round 305 of the bidding, believe it or not, and the total pledged has now reached €5,687,520,000. Expect to hear persistent muttering about how that’s money they can’t spend on infrastructure, etc, before long.