Deutsche Telekom’s European operations recorded revenue growth of 2.4 percent in the second quarter, as earnings at T-Mobile US pushed the operator to up its guidance.
Across the board, the Germany-based operator saw sales rise six percent year-on-year to €18.9 billion while net profit soared by over 40 percent to €874 million. The profit surge comes a week after BT revealed it had paid its German rival an undisclosed amount to settle claims related to its accounting scandal in Italy.
Deutsche Telekom added 372,000 mobile customers, 65,000 broadband lines and 56,000 new TV subscribers in EU countries outside of its home market, leading sales to grow 2.4 percent to €2.9 billion.
It said the number of households in countries such as Croatia and Poland with access to 100MBps broadband increased by one million versus 12 months ago to 5.3 million.
The number of people with access to LTE increased by 21 million to 102 million over the same period.
In Germany, sales were up 0.6 percent to €5.4 billion as growth in broadband and TV subscribers offset a decline of 103,000 mobile subscribers.
The number of broadband customers in its home market rose by 46,000 in Q2 to break through the 13 million mark, while TV subscriber numbers went up by 69,000 to go past the three million barrier.
The company’s operations in Europe continue to play catch up with T-Mobile US, however.
Revenues there rose 12.7 percent to €9.2 billion after the opco added 1.3 million mobile subscribers to reach 69.5 million in total.
T-Mobile US also registered adjusted EBITDA growth of over 21 percent to €2.6 billion, pushing Deutsche Telekom to up its overall EBITDA guidance for the year from €22.2 billion to €22.3 billion.
T-Systems saw sales decline 1.8 percent to €1.7 billion as it failed to sign contracts comparable to those of 12 months ago.
However, the enterprise division did contribute to earnings growth, with adjusted EBITDA up 22.5 percent to €136 million.
Group capex rose 13.5 percent in the first half of 2017 to €6.2 billion.
CFO Thomas Dannenfeldt said: "Our record investments are paying off: Growing numbers of customers are choosing our networks and products.
“And revenue and earnings are lifting substantially on the back of this strong customer growth.
"That is especially true of our booming US business, but the trend is also positive in Germany and our European companies."