Group Development

CUSTOMER DEVELOPMENT

thousands
    June 30, 2018 Mar. 31, 2018 Change
June 30, 2018/
Mar. 31, 2018
 %
Dec. 31, 2017 Change
June 30, 2018/
Dec. 31, 2017
 %
June 30, 2017 Change
June 30, 2018/
June 30, 2017
 %
NETHERLANDS Mobile customers 3,967 3,905 1.6 3,850 3.0 3,830 3.6
  Fixed-network lines 210 198 6.1 191 9.9 184 14.1
  Broadband lines 210 198 6.1 191 9.9 184 14.1

After successfully repositioning itself in the market, T-Mobile Netherlands posted year-on-year growth of 3.0 percent in the first half of 2018 with its mobile services for consumers and business customers. This increase was mainly due to the new rate plan portfolio introduced in 2017 and to the enhanced market approach it enabled, but also to business customer net additions. The number of customers in the fixed-network consumer portfolio also grew – by 9.9 percent.

DEVELOPMENT OF OPERATIONS

 
millions of €
    Q1 2018 Q2 2018 Q2 2017 Change % H1 2018 H1 2017 Change % FY 2017
TOTAL REVENUE   528 535 562 (4.8) 1,063 1,157 (8.1) 2,263
Netherlands   309 318 345 (7.8) 627 687 (8.7) 1,355
Profit from operations                  
(EBIT)   148 149 388 (61.6) 297 1,074 (72.3) 1,504
Depreciation, amortization and impairment losses   (78) (80) (71) (12.7) (158) (143) (10.5) (304)
EBITDA   227 228 460 (50.4) 455 1,217 (62.6) 1,808
Special factors affecting EBITDA   (5) (5) 223 n. a. (9) 742 n. a. 893
EBITDA (ADJUSTED FOR SPECIAL FACTORS)   231 233 236 (1.3) 464 475 (2.3) 915
Netherlands   108 109 119 (8.4) 217 229 (5.2) 421
EBITDA margin (adjusted for special factors) % 43.8 43.6 42.0   43.7 41.1   40.4
CASH CAPEX   (85) (56) (57) 1.8 (141) (138) (2.2) (290)

Total revenue

In the first half of 2018, total revenue in our Group Development operating segment decreased by 8.1 percent year-on-year, due to the forgone revenue following the sale of Strato effective March 31, 2017. The mandatory first-time application of the IFRS 15 accounting standard, plus regulatory effects, e.g., lower EU roaming charges and national termination rates, had a negative impact at T-Mobile Netherlands. By contrast, DFMG reported a slight volume-driven increase in revenue year-on-year.

EBITDA, adjusted EBITDA

EBITDA in the first half of 2018 decreased by EUR 0.7 billion year-on-year to EUR 0.5 billion. Regular reviews of our investment portfolio prompted us to sell our stake in Strato and our remaining shares in Scout24 AG last year. The disposals resulted in income of EUR 0.7 billion, which was recognized as special factors in the first half of 2017.

Adjusted EBITDA in our Group Development operating segment was down 2.3 percent year-on-year. Forgone earnings following the deconsolidation of Strato were the main cause of this decline. Adjusted EBITDA at T-Mobile Netherlands decreased by 5.2 percent in the first half of 2018 owing to the first-time application of IFRS 15 and to the effects of regulatory intervention. Adjusted EBITDA at DFMG increased by 4.4 percent year-on-year.

EBIT

EBIT decreased by EUR 0.8 billion year-on-year to EUR 0.3 billion, due primarily to the same factors described under EBITDA. Depreciation, amortization and impairment losses were higher than in the prior-year period, mainly due to higher capital expenditure on network capacity and quality at T-Mobile Netherlands.

Cash capex

Cash capex at our Group Development operating segment rose by 2.2 percent year-on-year in the first half of 2018 due to ongoing investment in network capacity and quality at T-Mobile Netherlands.