Deutsche Telekom Q2 hit by loss of T-Mobile UK

Deutsche Telekom, the biggest European telecommunications operator, posted weaker second quarter results on Thursday after it stripped out contributions from British mobile unit T-Mobile UK.

Deutsche Telekom Q2 hit by loss of T-Mobile UK
Photo: DPA

Net profit fell by nine percent to €475 million ($625 million), while adjusted earnings before interest, tax, depreciation and amortization (Ebitda), its benchmark, lost five percent to €5.01 billion, a statement said.

Deutsche Telekom and France Telecom have set up a joint venture with their respective mobile operations in Britain, T-Mobile UK and Orange UK.

The former’s results are thus no longer integrated into Deutsche Telekom’s figures, a factor in a four percent drop in sales to €15.53 billion.

When that development was stripped out of the calculation, group sales gained a slight 0.9 percent, Deutsche Telekom said as it welcomed a stabilisation of its domestic market.

The former German monopoly has been faced with a flood of fixed line clients cancelling their contracts. Fixed-lines sales decreased by 2.9 percent in the second quarter, the slowest decline since 2008, the statement said.

Around 1.7 million clients have dropped such service in the past year, however.

Sales of the group’s T-Mobile USA division gained seven percent over the same period meanwhile, a welcome stabilisation amidst tough competition in one of Deutsche Telekom’s most important foreign markets.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


It’s official! Switzerland is the most expensive country in the world

While anyone living in Switzerland might not have needed the reminder, a new study shows the cost of living in Switzerland is the highest of anywhere in the world.

It's official! Switzerland is the most expensive country in the world

Switzerland topped the list well ahead of Norway in second place, with Iceland, Japan and Denmark rounding out the top five. 

The rankings, put together by CEO World magazine, took into account rent, groceries, purchasing power, restaurants and the cost of living in 132 countries across the globe. 

European countries featured prominently in the top 20, while countries in Asia and the Caribbean were also prominent. 

Switzerland top of the list

Not only did Switzerland top the overall list, but it also ranked highly in several individual metrics, making the cost of living there officially the highest in the world. 

READ: Everything you need to know about the cost of living in Switzerland

Groceries in Switzerland are also more expensive than anywhere in the world, ranking a full 30 points higher than second-placed South Korea. 

But if you’re looking to avoid the grocery shop, eating out in Switzerland is also more expensive than anywhere else in the world. 

The only bright light in the rankings is Switzerland’s national purchasing power – which is also top of the list – perhaps explaining why the Swiss love to travel or even just shop abroad. 

This is of course more beneficial elsewhere, with the benefits of the country’s excellent purchasing power somewhat eroded by high prices at home. 

Photo: CEO World

In fact, the only metric Switzerland doesn’t top is rental costs. That’s not to say renting in Switzerland is cheap, but it trails Hong Kong, Singapore and Luxembourg on the international rent index. 

READ MORE: Eight things you need to know before renting in Switzerland 

Least expensive countries

Among the least expensive countries, central Asian nations rank highly. Pakistan is officially the least expensive, followed by Afghanistan, India and Syria. 

The least expensive European country on the list is Kosovo (124th) followed closely by Georgia (123rd). Romania is the least expensive European country on the list, in 99th place. 

Top ten most expensive countries as per CEO World magazine

1. Switzerland

2. Norway

3. Iceland

4. Japan

5. Denmark

6. Bahamas

7. Luxembourg

8. Israel

9. Singapore

10. South Korea