FRANKFURT ( Dow Jones) – Everything Everywhere , the wireless joint venture of Deutsche Telekom AG and France Telecom SA in the UK, has suffered in the second quarter of significant sales and profits decline. (Photo : German Telekom)
The joint venture ( JV) attributed this development on Tuesday to lower termination charges , restructuring costs and higher cost of customer acquisition.
On a pro forma basis , earnings before interest, taxes , depreciation and amortization (EBITDA ) to 309 million GBP 379 million GBP during the same period last year. The EBITDA margin declined in the 30 June ended quarter by 3 percentage points. Turnover shrank by 4.8 % to 1.72 billion pounds , with the proceeds were lower with mobile services by 5.3 %.
At 30 June was one of the joint venture Everything Everywhere , in which the German Telekom and France Telecom, its British subsidiaries T -Mobile have UK or introduced orange, a total of 27.93 million customers and 3.4% more than last year. The number of subscribers, that allows significantly higher average turnover is derived , rose reportedly within a year by 8.6 %.
The joint venture reiterated his goal to try to achieve in the coming quarters, at least 3.5 billion pounds of synergies . The EBITDA margin is expected to rise by 2014 to more than 25 % from the current 21 %.
Liberum telecoms analyst Mark James described the results as " bleak ". The joint venture would pay 90 % of the free cash flow as dividends. In view of the integration costs James is concerned that such distributions will be significantly lower than the approximately 300 million EUR of free cash flow that had received the two parent companies former from their respective daughters.
In the UK mobile market , competition is intense . Everywhere competes with Telefonica subsidiary O2, Vodafone Group plc and Hutchison – Whampoa ‘s subsidiary third
– By Archibald Preuschat , Dow Jones Newswires ;
+49 ( 0) 69 29725 104, unternehmen.de @ dowjones.com
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