Deutsche Telekom adds 124,000 TV customers in 2Q 2014

Thursday, August 7th, 2014
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BONN – Deutsche Telekom (Frankfurt: DTE)(NYSE:DT) has released its second quarter 2014 results report. The company added 63 thousand TV customers in Germany during the quarter to finish the first half with 2.3 million TV subscribers. In the same period Deutsche Telekom’s other European businesses gained 61 thousand TV customers to pass the 3.6 million mark.

TV Customers Summary

                                  June 30, 2014  Mar. 31, 2014     Change  Change
                                      thousands      thousands  thousands       %
                                  -------------  -------------  ---------  ------
Germany (IPTV, satellite)                 2,318          2,255         63     2.8
Europe (IPTV, satellite, cable)           3,619          3,558         61     1.7

                                  June 30, 2014  June 30, 2013     Change  Change
                                      thousands      thousands  thousands       %
                                  -------------  -------------  ---------  ------
Germany (IPTV, satellite)                 2,318          2,078        240    11.5
Europe (IPTV, satellite, cable)           3,619          3,045        574    18.9

Germany

Among the encouraging developments for Deutsche Telekom in the quarter was the increase in the number of Entertain customers to more than 2.3 million, with more than half of new branded fiber-optic-product customers booking Entertain as an add-on.

In total, 18.8 percent of the company’s broadband customers are TV customers, up 1.2 percentage points against the end of the prior year.

In the fixed network, DT migrated 922 thousand customers to IP-based retail lines and won another 132 thousand TV customers in the first half of 2014.

TV Customers – Germany (IPTV, satellite)(‘000)

                     Q2 2013  Q3 2013  Q4 2013  Q1 2014  Q2 2014  Change %
                     -------  -------  -------  -------  -------  --------
Consumer               1,906    1,948    2,001    2,071    2,133      11.9
Business                 170      172      174      182      184       8.2
                     -------  -------  -------  -------  -------  --------
 TOTAL                 2,078    2,121    2,177    2,255    2,318      11.5

Europe

Deutsche Telekom’s TV business has established itself over the last few quarters as a consistent growth driver in its Europe operating segment. As of June 30, 2014, the total TV customer base grew by 3.3 percent to around 3.6 million. The majority of the 116 thousand net additions were satellite TV customers, especially in Greece, and IPTV customers, especially in Hungary.

Between April and June, the number of broadband lines increased by 48,000; the number of TV customers rose by 61,000.

The number of broadband lines increased by 1.9 percent compared with the end of 2013. Products based on fiber-optic technology in particular are becoming increasingly popular with DT’s customers. TV business also profited from this trend, growing 3.3 percent compared with December 31, 2013.

TV Customers – Europe (IPTV, satellite, cable)(‘000)

                     Q2 2013  Q3 2013  Q4 2013  Q1 2014  Q2 2014  Change %
                     -------  -------  -------  -------  -------  --------
Greece                   175      218      256      278      296      69.1
Romania                1,296    1,320    1,353    1,370    1,384       6.8
Hungary                  852      871      885      896      905       6.2
Czech Republic            26       28       31       27       28       7.7
Netherlands [1]           49       55       59        0        0   (100.0)
Croatia                  374      383      391      392      394       5.3
Slovakia [2]             184      438      440      444      455      n.a.
Others                    89       85       88      151      157      76.4
                     -------  -------  -------  -------  -------  --------
 TOTAL [2,3]           3,045    3,398    3,503    3,558    3,619      18.9

1. DVB-T only.
2. Incl. DIGI Slovakia since September 1, 2013.
3. The customers of Euronet Communications have no longer been included in the Europe operating segment since January 2, 2014. Historical customer figures have been adjusted accordingly to improve comparability.