EverythingEverywhere grows earnings despite revenue fall

Rumors Deutsche Telekom is considering an exit from the UK market seem premature, given its UK joint venture with France Telecom just reported a 2.4% rise in annual EBITDA.
EverythingEverywhere, the combination of Deutsche Telekom’s T-Mobile UK with France Telecom’s Orange business, grew EBITDA to £1.4 billion (€1.6 billion) in 2011 despite a 2.1% fall in revenue due to cuts in mobile termination rates. The EBITDA margin increased 1.3 percentage points year-on-year to 20.9%, due mostly to a cut in operating expenditure.
Chief Olaf Swantee attributed the EBITDA growth to lower churn, achieved by increasing the level of network sharing between the former T-Mobile and Orange infrastructure. “We are seeing good commercial momentum and are capitalising on the smartphone and data opportunity to drive underlying growth,” he notes.

A report by Bloomberg last week claimed Deutsche Telekom is considering selling out of EverythingEverywhere, as it seeks to generate cash to cover its failed attempt to sell T-Mobile USA to AT&T.

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.