Deutsche Telekom sees solid growth in German TV base

Telekom’s TV subscriber base in Germany increased by 2.7% to 4.039 million year-on-year in the second quarter, outperforming growth in fixed broadband access lines, which amounted to 1.9%.

The company added 38,000 TV customers in the first half of the year, despite a decline in the number of fixed lines it serves and despite slower growth in broadband access.

TV revenue in Germany were up 8% to €525 million. Telekom highlighted its innovative TV and entertainment offerings as a reason for te uplift.

TV subscribers for the rest of Europe were down 20.2% to 4.067 million. However, the updated numbers exclude Telekom’s former Romanian operation, Telekom Romania, which was sold to Orange last year.

Excluding that, TV numbers for Europe outside Germany grew by 1.2%, reflecting what the company said was its success in acquiring exclusive rights to sports events. The company said that the TV market was under pressure with both telecom providers and OTT players offering video services.

Nevertheless, Telekom pointed to a strong positive contribution from TV to its top line in Greece, where OTE saw revenues climb by 3% year-on-year to €1.5 billion.

Overall, Telekom’s net revenues grew by 6.1% to €56.2, boosted by an exchange rate effect in the US. EBITDA after leases – the company’s preferred metric of performance – grew by 5.9% to €19.8 billion, while organic EBITDAaL growth was 0.7%.

“We continue to grow, despite the difficult economic environment,” said Tim Höttges, chairman of the board of management at Deutsche Telekom.

“We are well on track this year to meet our ambitious targets announced at the 2021 Capital Markets Day. Our investments are paying off.”