Deutsche Telekom's US mobile business drove a 14 percent rise in the German operator's second-quarter core profit that beat market expectations. Second-quarter earnings before interest, tax, depreciation and amortisation (EBITDA), excluding special items, rose to 5.03 billion euros ($5.49 billion), Deutsche Telekom said on August 06, beating the average forecast of 4.95 billion euros in a Reuters poll. T-Mobile US, of which Deutsche Telekom owns 65.7 percent, last week already reported expectations-beating results and raised its forecast for new subscribers in 2015 for the second time this year.
The US wireless operator was the biggest contributor to the group's second-quarter sales and is even bigger than Deutsche Telekom's German business. Once faced with subscriber losses, T-Mobile has revamped pricing plans, eliminated service contracts and launched marketing campaigns to turn around its business and lure customers from bigger rivals Verizon Communications Inc and AT&T Inc.
In Germany, where Deutsche Telekom has the top spot, the company's revenues grew 2 percent to 5.6 billion euros. Adjusted EBITDA of 2.22 billion euros was down 1 percent from a year earlier but was still the biggest contributor to group profit.