Deutsche Telekom reports good third quarter of 2008

Thursday, November 6th, 2008
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Reported net profit for Deutsche Telekom (Frankfurt: DTE)(NYSE:DT) in the third quarter increased by EUR 0.6 billion to around EUR 0.9 billion compared with the same period last year. Net profit adjusted for special factors increased by 12 percent to around EUR 1.2 billion.

Broadband/Fixed Network

T”‘Home reinforced its strong position in the DSL market in Germany. With a 49 percent DSL net add market share in the third quarter, this was the highest level reported by the company since the launch of the resale DSL offer in 2004. Of the 344,000 new DSL customers, around 50,000 were customers returning from competitors. This brings the total of DSL customers won back from resale providers and other network operators to around 150,000 since the beginning of the year. The innovative IP-TV service, Entertain, now has around 333,000 customers – an increase of 33 percent within a single quarter.

Revenue from international business at T-Home declined, chiefly due to the deconsolidation of T-Online France and T-Online Spain in the previous year. The adjusted EBITDA margin of the fixed-network companies in Central and Eastern Europe in the first nine months of 2008 was 42.9 percent compared with 36.4 percent in the same period last year. Broadband growth and positive exchange rate effects at national companies in Eastern Europe did not fully compensate for the decline in the traditional fixed network. At the end of September, the number of IP-TV customers in Eastern Europe was at 164,000, driven mainly by Croatia, with a total of 92,000.

More: Earnings Release