Group Development
For information on changes resulting from the first-time application of the IFRS 16 “Leases” accounting standard and changes in the organizational structure, please refer to the section “Group organization, strategy, and management.”
Since the spin-off from T‑Mobile Netherlands on January 1, 2019, the cell tower business of T‑Mobile Netherlands has been reported under GD Towers, the new unit set up in the Group Development operating segment. This unit comprises DFMG and the cell tower business of T‑Mobile Netherlands. Prior-year comparatives were not adjusted.
Customer development
thousands |
|
|
|
|
|
|
|
|
---|---|---|---|---|---|---|---|---|
|
|
Sept. 30, 2019 |
June 30, 2019 |
Change |
Dec. 31, 2018 |
Change |
Sept. 30, 2018 |
Change |
NETHERLANDS |
Mobile customers |
5,531 |
5,455 |
1.4 |
4,021 |
37.6 |
4,004 |
38.1 |
Fixed-network lines |
601 |
578 |
4.0 |
241 |
n.a. |
227 |
n.a. |
|
Broadband customers |
601 |
578 |
4.0 |
241 |
n.a. |
227 |
n.a. |
The number of mobile and fixed-network customers in the Netherlands increased significantly compared with the end of 2018 due to the customer base acquired in connection with Tele2 Netherlands. There was also clear customer growth in the operating business. Despite intense competition, customer additions were recorded in particular in mobile communications thanks to our attractive rate plan portfolio offering large data packages through to unlimited data volumes. The number of fixed-network consumers also increased further as a result of our attractive rate plan portfolio.
Development of operations
millions of € |
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|
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|
|
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---|---|---|---|---|---|---|---|---|---|---|---|---|
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|
Q1 |
Q2 |
Q3 |
Q3 |
Change |
Q1-Q3 |
Q1-Q3 |
Change |
FY |
||
|
||||||||||||
TOTAL REVENUE |
|
682 |
683 |
704 |
544 |
29.4 |
2,068 |
1,607 |
28.7 |
2,185 |
||
Of which: Netherlands |
|
461 |
458 |
479 |
335 |
43.0 |
1,398 |
962 |
45.3 |
1,322 |
||
Profit (loss) from operations (EBIT) |
|
126 |
102 |
270 |
134 |
n.a. |
498 |
431 |
15.5 |
560 |
||
Depreciation, amortization and impairment losses |
|
(200) |
(199) |
(208) |
(86) |
n.a. |
(607) |
(244) |
n.a. |
(334) |
||
EBITDA |
|
325 |
300 |
479 |
220 |
n.a. |
1,105 |
675 |
63.7 |
893 |
||
EBITDA ALa |
|
249 |
232 |
402 |
215 |
87.0 |
883 |
658 |
34.2 |
865 |
||
Special factors affecting EBITDA |
|
(6) |
(18) |
134 |
(7) |
n.a. |
109 |
(16) |
n.a. |
(27) |
||
EBITDA (adjusted for special factors) |
|
332 |
319 |
345 |
227 |
52.0 |
996 |
691 |
44.1 |
921 |
||
Of which: Netherlands |
|
147 |
137 |
153 |
104 |
47.1 |
437 |
321 |
36.1 |
425 |
||
EBITDA AL (ADJUSTED FOR SPECIAL FACTORS)a |
|
255 |
250 |
269 |
222 |
21.2 |
774 |
674 |
14.8 |
892 |
||
Of which: Netherlands |
|
123 |
117 |
132 |
102 |
29.4 |
372 |
312 |
19.2 |
413 |
||
EBITDA AL margin (adjusted for special factors)a |
% |
37.4 |
36.6 |
38.2 |
40.8 |
|
37.4 |
41.9 |
|
40.8 |
||
CASH CAPEX |
|
(86) |
(106) |
(99) |
(60) |
(65.0) |
(291) |
(201) |
(44.8) |
(271) |
Total revenue
Total revenue in our Group Development operating segment in the first three quarters of 2019 increased by 28.7 percent year-on-year, primarily due to the inclusion of Tele2 Netherlands since the start of 2019. Both business customer and consumer operations contributed to this revenue growth, on the back of customer growth and a positive trend in business with MVNOs in the Netherlands. The GD Towers unit also recorded a year-on-year increase in revenue, driven by volume-based growth at DFMG.
EBITDA AL, adjusted EBITDA AL
EBITDA AL increased from EUR 658 million in the prior-year period to EUR 883 million. In August 2019, we transferred our stake of around 11 percent in Ströer SE & Co. KGaA to the Group’s own trust, Deutsche Telekom Trust e.V., to use as plan assets to cover pension obligations. The resulting income of EUR 142 million was recorded as a special factor. The revenue-increasing effects and the inclusion of Tele2 Netherlands also contributed to the increase in EBITDA AL. EBITDA AL of T‑Mobile Netherlands increased from EUR 674 million to EUR 774 million, partly as a result of the inclusion of Tele2 Netherlands and the transfer of the EBITDA AL contribution of the Dutch cell tower business to GD Towers. Initial synergy effects, measures to improve cost management efficiency, and rising customer numbers and revenues from business operations also contributed to the EBITDA AL growth. The GD Towers business continues to post consistent growth on the back of rising volumes.
EBIT
EBIT increased from EUR 67 million to EUR 498 million year-on-year. The income from the transfer of our stake in Ströer amounting to EUR 142 million had a positive effect. An increase in depreciation, amortization and impairment losses in connection with the consolidation of Tele2 Netherlands at T‑Mobile Netherlands as well as non-recurring effects in the course of the integration had a negative effect. GD Towers’ high investments in new cell sites also increased depreciation, amortization and impairment losses. Whereas previously expenses had been recognized in connection with operating leases, the right-of-use assets recognized in this context since the application of accounting standard IFRS 16 as of January 1, 2019 result in particular in higher depreciation charges.
Cash capex
Cash capex increased by EUR 90 million or 44.8 percent compared with the prior-year period, due mainly to the additional investments required to integrate Tele2 Netherlands and higher capital expenditure at DFMG in connection with building out mobile infrastructure in Germany.