MetroPCS charges push DT into the red

MetroPCS charges push DT into the red

28 FEB 2013

Deutsche Telekom today reported a EUR5.3 billion net loss for 2012 on the back of charges relating to the merger of its US arm, T-Mobile USA, with MetroPCS.

“The loss is almost entirely attributable to the impairment loss recognised in the US in the third quarter of 2012 of EUR 7.4 billion,” the firm explained.

“This loss of billions is not what it appears to be: we are not lacking in funds to drive forward the development of the Group,” added CEO Rene Obermann.

Adjusted net profit was EUR 2.5 billion, 11.3 percent down on the previous year. Net revenue was “more or less steady,” at EUR58.2 billion.

The firm confirmed a dividend payment of EUR70 per share.

Sales at its domestic Germany segment were down 2 percent down year-on-year in 2012 to EUR22.7 billion, halving the decline compared with 2011.

In the Europe operating segment (which excludes Germany), sales were down 4.7 per cent to EUR 14.4 billion due to “strong headwind caused by regulation and despite the difficult economic environment.”

Sales in the US (T-Mobile USA) declined 4.1 percent in 2012 to $19.8 billion.

The mobile customer base in Germany was up 3.3 per cent to 36.6 million, in Europe up 2.6 per cent to 61.9 million, and in the US up 0.6 per cent to 33.4 million.