Deutsche Telekom has raised its guidance for the year after what it says are strong Q2 results, on the back of T-Mobile USA better than expected financials. In the areas we follow – broadband and TV – were up slightly in every territory, but nothing revolutionary has yet come through from its very recent video moves in Germany, where it plans to tie up vast chunks of the TV market offering a free year one, and then a suicidal low price going forwards.
In the US T-Mobile preferred to compare with the quarter a year before and claimed it was up 2 million customers, but from last quarter it has dropped 3 million customers, with 4 million being lost in wholesale. However the US had revenues up 13.8% on this time last year to €9.2 billion, and total quarterly revenue for Deutsche reached €18.2 billion, up 6% across all territories.
As we say we are waiting for a breakthrough in TV and broadband sales, but that has yet to emerge. Germany had just a 48,000 rise in broadband to 13 million, but with 5 million on fiber now, up over 1 million from last year, so it finally has its fiber engine running. Across all of Europe broadband rose to 18.7 million retail lines in Europe. TV customers broke though the 3 million mark in its home market, while mobile in Germany was flat at 42 million. TV overall rose by around 130,000 customers to 6.96 million.
In diversified territories including Greece, Romania, Hungary, Croatia and Slovenia, where it has a strong TV presence, each TV market ended Q2 with more customers, up between 2,000 and 21,000. The growth of 79,000 in Germany may have taken in some sales uplift from its new offer at the end of the quarter, but next quarter will tell us whether its disruptive TV plan is working.