Deutsche Telekom said it increased its capital spending, particularly on networks on both sides of the Atlantic. Cash Capex (excluding expenses for mobile spectrum) reached €3.2 billion in the first three months of the year, up 14.6 percent year-on-year.
The company’s revenue growth in Q1 2017 was driven by its operations in the United States and Germany.
“We are growing in the United States and have recently returned to growth in Germany,” said Tim Hottges, CEO of Deutsche Telekom.
Deutsche Telekom expects to report adjusted EBITDA of around 22.2 billion euros and free cash flow of 5.5 billion euros for the 2017 full year.
Deutsche Telekom Germany expanded broadband business in its home market. The number of fiber-optic lines (FTTH/FTTC/vectoring) used by customers increased by 775,000. Retail sales channels accounted for 433,000 fiber-optic lines. The number of fiber-optic lines rose by 2.6 million or 51 percent. Data volumes in Germany increased 63 percent.
T-Mobile US has added 1.1 million new customers in the first quarter of 2017. ARPU was $38.52 (+2.5 percent) year-on-year. T-Mobile US posted 11.6 percent increase in revenue to $7.2 billion, while adjusted EBITDA increased 20.7 percent to $2.5 billion.
Deutsche Telekom’s European subsidiaries added 130,000 customers thanks to products bundling fixed-network and mobile communications. Broadband lines rose by 51,000, while the number of mobile contract customers grew by 167,000.