Deutsche Telekom adds more US customers

November 7, 2013 by David Mchugh

Telephone company Deutsche Telekom said Thursday it made a net profit of 588 million euros ($793 million) in the third quarter as it continued to add customers at T-Mobile USA.

The company's bottom line rebounded after a loss of 7 billion euros in the same quarter a year ago due to non-cash accounting charges related to the merger of its U.S. business with Dallas-based MetroPCS Communications.

Despite the profit rebound and increasing sales in the U.S., the company's figure fell short of the average analyst estimate for 759 million as compiled by financial information provider FactSet.

Once the merger effect is taken out, profits fell 2.6 percent as the company increased its investment spending to build out its high-speed LTE mobile data network in the U.S. market in hopes of improving service and increasing future profits.

Operating earnings fell to 4.46 billion euros from 4.64 billion euros, measured before financial factors such as interest, taxes and depreciation. Capital spending rose 18.3 percent in the third quarter and by more than 50 percent in the U.S., most of it for the rollout of the LTE network.

The company has boosted customer numbers in the U.S. by allowing people to terminate their mobile service instead of locking them in to fix-term contracts. The company said Thursday its U.S. customer base grew 2.3 percent, to 45 million. Of 1 million new customers, 648,000 were the more valuable contract customers under the company's own brand.

CEO Rene Obermann said the quarterly figures were "proof of our strength" and demonstrated "an impressive turnaround" in the U.S. market.

Explore further: T-Mobile US sells 500,000 iPhones in a month

Related Stories

Merck back to profits on lower one-time costs

August 6, 2013

German drug and high-tech materials company Merck KGaA bounced back from losses this time last year to record a net profit of 316 million euros ($420 million) in the second quarter.

Deutsche Telekom profit up, sees rebound in US

August 8, 2013

Telephone company Deutsche Telekom AG said net profit increased 10 percent in the second quarter to 530 million euros ($704 million) and said its U.S. business was adding "droves" of new customers as its operations there ...

SAP profits up 23 percent as cloud computing grows

October 21, 2013

Business management software company SAP AG says net profit rose 23 percent in the third quarter as its cloud computing business grew rapidly and the company kept down costs by holding down hiring of new employees.

China Telecom profit up 20 percent on 3G users

October 28, 2013

State-owned China Telecom, the country's third-biggest mobile phone operator by subscribers, said Monday that quarterly profit grew by a fifth as it continued to benefit from spending by new users of data-hungry iPhones.

Bayer says new products push profits higher in Q3

October 31, 2013

German chemicals and pharmaceuticals group Bayer, maker of Aspirin, said on Thursday that new pharmaceutical products and favourable agrochemical prices gave profits a fillip in the third quarter.

Recommended for you

Inferring urban travel patterns from cellphone data

August 29, 2016

In making decisions about infrastructure development and resource allocation, city planners rely on models of how people move through their cities, on foot, in cars, and on public transportation. Those models are largely ...

How machine learning can help with voice disorders

August 29, 2016

There's no human instinct more basic than speech, and yet, for many people, talking can be taxing. 1 in 14 working-age Americans suffer from voice disorders that are often associated with abnormal vocal behaviors - some of ...

Sponge creates steam using ambient sunlight

August 22, 2016

How do you boil water? Eschewing the traditional kettle and flame, MIT engineers have invented a bubble-wrapped, sponge-like device that soaks up natural sunlight and heats water to boiling temperatures, generating steam ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.