Earnings: T-Mobile UK Health Hits Deutsche Telekom
Deutsche Telekom (NYSE: DT) must now be looking to offload T-Mobile UK ASAP. The German group swung to a January-to-June loss of €600 million, from a €1.3 billion profit this time last year, after writing off €1.8 billion from the UK carrier.
While all DT’s other countries added customers in the last three months, T-Mobile UK lost 100,000, now standing at 16.6 million, as Virgin Media (NSDQ: VMED), which uses T-Mob as its mobile network, added more contract than prepay customers. UK Q2 income is down 12.8 percent from last year to €836 million - whilst blamed partly on negative currency rates, sales were nevertheless down all the same and DT acknowledges “regulatory decisions and fierce competition again impacted revenue”.
US Q2 mobile sign-ups halved to 325,000 from 668,000 same time last year and from 415,000 in Q109. Overall, DT’s Q2 profit jumped 32.2 percent to €521 million on 7.4 percent higher revenue. It’s targeting southern and eastern Europe for its next growth areas.
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