Revenue up slightly but German operator says it could have been more if not been for government taxes, the economic crisis and depreciation
Deutsche Telekom posted an increase in net revenue of €62.4 billion – a year-on-year rise of 0.4 percent and an adjusted net profit of of €3.4 billion – a sum that is on par with 2009.
However profits could have been larger were it not for a €582 million loss in Q4 which was blamed on depreciation costs and a new special tax on mobile operators in Hungary.
Adjusted core earnings also declined by 6 per cent to €19.5 billion but the company said this was expected due to the fact T-Mobile UK figures are no longer calculated into results.
Deutsche Telekom said economic conditions were still making trading difficult in Greece and Romania but said other countries such as Poland and the Netherlands had developed “very positively”.
Strong growth trends continued in the US, where T-Mobile USA average data revenues per user climbed 25.5 per cent over the year due in part to the number of smartphones in use on its network rising by 1 million to finish at 8.2 million.
T-Mobile USA recorded total revenue of $21.3 billion in 2010 – on par with 2009 results.
Deutsche Telekom chief executive Rene Obermann (pictured) said: “We delivered solid figures in 2010. We have battled through the headwind caused by the economic environment, special taxes in several countries, and stiff competition.
“I am particularly pleased about the slight increase in revenue.=
At the same time, we have started to implement our new strategy and invested in the future. You have to sow before you can reap.”
Deutsche Telekom said it expects earnings to remain “almost” stable in the 2011 financial year.
