Released today, the figures beat analyst expectations, despite USD currency fluctuations.
Adjusted core profit is now expected to reach €37.2 billion ($43.7 billion) this year, an increase of €200 million euros on the previous outlook. The guidance for free cash flow AL remains unchanged at more than €8 billion.
“Every area of the group saw an increase in results in the first half of the year, thus continuing the group’s growth story," CEO Tim Hoettges (pictured) said in a statement.
Over the quarter, organic revenue grew 6.8% to €26.6 billion while net profit "surged almost 150%" reaching €1.9 billion.
Across its international markets, T-Mobile strengthened US results through US customer additions while the broadband business in Germany "remains strong" and Europe as a whole noted "strong growth".
Elsewhere, reported group revenue declined by 1.7% in the quarter and adjusted EBITDA after leases declined by 4.2%, but after accounting for one-off factors such as exchange rate moves, they were up 6.8% and 1.1% respectively on an organic basis.
Segment by segment
In the European market, Deutsche Telekom saw its 14th consecutive quarter of growth. Revenue grew by 4% in organic terms compared with the prior-year period to €2.8 billion.
T-Mobile NL added 70,000 mobile contract customers in the second quarter alone. Revenue increased in this period by 2.7% in organic terms compared with the same period in 2020 to €506 million. The organic increase in adjusted EBITDA AL was even stronger, with growth of 3.6% to €155 million.
In Germany, mobile service revenues were up 2% against the prior-year period. The negative impact of coronavirus-induced measures on roaming and visitor revenues had been stronger in the prior-year quarter, giving rise to a positive net effect compared with the prior-year period. Adjusted for this effect as well as for regulatory effects, the increase totalled 1.4%.
In the cell tower business, revenue grew by 5.1% in organic terms to €283 million, while adjusted EBITDA AL grew by 8.8% year-on-year in the second quarter in organic terms to €170 million. The number of sites increased by 1,100 in a year on a like-for-like basis – i.e., adjusted for the sale of the Dutch towers and the inclusion of the Austrian towers – to 39,800.
T-Mobile US once again recorded stronger customer growth than its competitors in the second quarter of 2021. At the end of the reporting period, T-Mobile US’ customer base totalled 104.8 million, an increase of almost 6.5 million year-on-year.
Revenue at T-Mobile US increased by 5.4% in the second quarter compared with the same quarter of the prior year to $20.1 billion.
Also beating guidance, DT said the integration of Sprint is progressing faster than planned. T-Mobile US now expects synergies from the transaction to reach $2.9 to $3.1 billion in the current financial year. That is $100 million more than the company’s most recent guidance.
