Thursday, February 25, 2016
Deutsche Telekom Plans Sales and Capex Growth
Deutsche Telekom forecast an increase in revenues in 2016 following a rise of 10.5% in 2015 to 69.2 billion euros. In organic terms (i.e., adjusted for exchange rate effects and changes in the composition of the Group) revenue increased by 3% last year.
In the fourth quarter, however, revenues in Germany slipped 1.1% year-on-year to 5.7 billion euros, dragged down by a 1.6% decline in fixed-line revenues. Although broadband revenues rose, the group continued to see a decline in telephony revenues. In the U.S., revenues rose 1.2% year-on-year to 8.2 billion US dollars in the fourth quarter.
Deutsche Telekom expects to increase group capex to 11.2 billion euros in 2016, up from 10.8 billion euros last year. The Bonn-based company said: "The core element is the build-out of the network infrastructure in terms of population coverage and increased transmission bandwidths. In addition, the switching to a consistent, IP-based infrastructure is being driven forward in Germany and the integrated subsidiaries in Europe." source: Deutsche Telekom statement
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