T-Mobile decline continues

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Cost cutting strategies within T-Mobile UK appear to be working, as the network announced its quarterly EBITDA has fallen 13.5 per cent year on year, compared with a 40.8 per cent drop last quarter.

The network’s EBITDA margin rose to 17.3 per cent in Q2, from 13.5 per cent recorded between January and March.

Customer numbers continue to fall, recording a total of 16.588 million to June 30, compared with 16.794 million in the same period last year, representing a 1.2 per cent decline.

Parent group Deutsche Telekom’s quarterly net revenue increased by 7.4 per cent year-on-year to €16.238 billion (£13.9 billion). Mobile communications generated net revenue of €9.220 billion euro, up 8.3 per cent year on year.

Deutsche Telekom reported 149.838 million subscribers for mobile services as of the end of June, up 5.7 per cent year on year, while fixed line customers are down 7.4 per cent.

The company said its results would allow it to stick to its current full-year forecast, owing largely to improved profitability in the UK and Poland.

Deutsche Telekom chairman of the board of management René Obermann said: “We took resolute action at the right time in a difficult environment. The figures for the second quarter make us confident for the full year.

In the United Kingdom, we are seeing some initial improvements in terms of costs and margins. Richard Moat has been managing director of T-Mobile UK since the end of June and he and his team have found their feet in the company and have already implemented some initial measures.

“Over the next few weeks, he will set out and present the details of his strategy for our UK subsidiary. We have no intention of pre-empting here what he will say in due course”

 Obermann said the results show that Deutsche Telekom is “back on track” after a tumultuous first quarter which saw it post a profit warning.

 

 

 

 

 

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