Deutsche Telekom performs better than expected in Q2/2021

  •   27/08/2021 - 09h43
  •   DEHOUI Lionel

In recent quarters, Deutsche Telekom Group has seen a positive trend in its broadband business. As a result, the group continued this trend in the second quarter of 2021. It added over 93,000 new customers between April and June 2021. In the Telekom network, it currently has 16.6 million fiber-based lines. Check out its second quarter 2021 financial results below.

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Deutsche Telekom performs better than expected in Q2/2021

Deutsche Telekom's Q2/2021 revenue

Deutsche Telekom's Q2 2021 business generated net revenues of €26.6 billion. This represents organic growth of 6.8% compared to the same period in 2020. This resulted in adjusted EBITDA of €9.4 billion and organic growth of 1.1%. On a reported basis, revenue and adjusted EBITDA declined by 1.7% and 4.2% respectively in Q2/2021 compared to Q2/2020.

This organic decline is explained by the weakening of the US currency (US Dollar) between April and June 2021. However, this overall quarterly performance demonstrates a great success to be credited to the entire Deutsche Telekom team. For it highlights the improvement the group has made in each of its areas in the first six months of fiscal 2021.

In short, the company continues to make history with periods of strong growth.

 

Other performance indicators for the second quarter of 2021

Deutsche Telekom delivered a Free Cash Flow of €2.8 billion, for the entire second quarter of 2021. This corresponds to an improvement of 14.1% compared to its level a year ago.

On the other hand, the group accelerated its investment operations again during the quarter. As a result, its capex increased by 16.8% in the three months to €4.3 billion. This cash Capex figure does not take into account mobile spectrum spending.

Based on the same growth rate, Deutsche Telekom's net profit (in the second quarter) increased significantly. The growth is estimated to be more than 150% compared to the same period last year. Net profit for the period was up 65.3 percent to 2.1 billion euros.

 

Deutsche Telekom's new targets for 2021

The German group has raised its forecasts for the 2021 financial year after the strong results recorded in the second quarter. Recall that it had already raised its annual targets this year.

In a context marked by the influence of the weakening dollar on performance indicators, Deutsche Telekom expects an EBITDA of 37.2 billion euros in 2021. This new forecast is €200 million higher than the earnings before interest, taxes, depreciation and amortization (EBITDA) forecast in May.

As far as the free cash flow guidance is concerned, the company is maintaining its previous forecast (8 billion euros). It also expects its broadband business to continue its strong growth trend of the second quarter. It expects the same situation in the European market. The number of new customers at T-Mobile US is expected to see further net additions in the coming months.