Group Development

Customer development

thousands

 

 

Dec. 31, 2018

Dec. 31, 2017

Change

Change %

Dec. 31, 2016

NETHERLANDS

Mobile customers

4,021

3,850

171

4.4

3,746

Fixed-network lines

241

191

50

26.2

164

Broadband customers

241

191

50

26.2

164

After successfully repositioning itself in the market, T-Mobile Netherlands posted year-on-year growth of 4.4 percent for the 2018 financial year with its mobile services for consumers and business customers. This was driven by a positive response to the rate plan portfolio, made particularly attractive thanks to high-volume and unlimited data packages, as well as growth in the business customer base. Despite intense competition, the number of fixed-network consumers increased by 50 thousand as a result of our attractive rate plan portfolio.

Development of operations

millions of €

 

 

2018

2017

Change

Change %

2016

TOTAL REVENUE

 

2,185

2,263

(78)

(3.4)

2,347

Of which: Netherlands

 

1,322

1,355

(33)

(2.4)

1,331

Profit from operations (EBIT)

 

560

1,504

(944)

(62.8)

2,730

Depreciation, amortization and impairment losses

 

(334)

(304)

(30)

(9.9)

(760)

EBITDA

 

893

1,808

(915)

(50.6)

3,490

Special factors affecting EBITDA

 

(27)

893

(920)

n. a.

2,547

EBITDA (ADJUSTED FOR SPECIAL FACTORS)

 

921

915

6

0.7

943

Of which: Netherlands

 

425

421

4

1.0

358

EBITDA margin (adjusted for special factors)

%

42.2

40.4

 

 

40.2

CASH CAPEX

 

(271)

(290)

19

6.6

(271)

Total revenue

Total revenue in our Group Development operating segment decreased in 2018 by 3.4 percent year-on-year, due to the forgone revenue following the sale of Strato effective March 31, 2017. Revenue at DFMG remained almost unchanged against the prior year. The positive effects on revenue at T-Mobile Netherlands of high mobile handset sales and growing fixed-network business were more than offset by negative effects from the mandatory application of the new IFRS 15 accounting standard as of January 1, 2018, as well as by regulatory effects including lower EU charges and national termination rates.

EBITDA, adjusted EBITDA

EBITDA decreased year-on-year from EUR 1.8 billion to EUR 0.9 billion. Regular reviews of our investment portfolio prompted us to sell our stake in Strato and our remaining shares in Scout24 AG last year. The disposals resulted in income recognized as special factors of around EUR 0.7 billion. In addition, the prior year had included positive special factors of EUR 0.2 billion originating from a settlement agreement with BT concluded in July 2017.

Adjusted EBITDA in our Group Development operating segment was on a par with the prior-year level. Forgone earnings following the deconsolidation of Strato caused a decline. At T-Mobile Netherlands, adjusted EBITDA was up by 1.0 percent in the 2018 financial year due to positive customer development. Adjusted EBITDA at DFMG increased substantially by 3.7 percent year-on-year.

EBIT

EBIT decreased by EUR 0.9 billion year-on-year to EUR 0.6 billion, due primarily to the same factors described under EBITDA. Depreciation, amortization and impairment losses were higher than in the prior-year period, mainly due to higher capital expenditure on network capacity and quality at T-Mobile Netherlands.

Cash capex

Cash capex at our Group Development operating segment decreased in the 2018 financial year by 6.6 percent year-on-year as a result of lower investments in network build-out at T-Mobile Netherlands.

Roaming
Refers to the use of a communication device or just a subscriber identity in a visited network rather than one’s home network. This requires the operators of both networks to have reached a roaming agreement and switched the necessary signaling and data connections between their networks. Roaming comes into play when cell phones and smartphones are used across national boundaries.