T-Mobile parent Deutsche Telekom reported a steep loss of £0.9bn in Q1 2009, as it booked a huge writedown for the UK business.
The group took a goodwill impairment of £1.6bn for T-Mobile UK, which it blamed on the economic slowdown and ‘intense competition’ in the United Kingdom. Last week, a Mobileanalyst source valued the T-Mobile UK business at around £3.5bn.
T-Mobile UK also had a 2.6% fall in customers to 16.675 million in Q1 2009, compared with 17.124 million in the first quarter of 2008.
Overall, DT group revenues were up by 6.2% compared with the first quarter of 2008 to £13.9bn. However, it reported an adjusted profit fall of 12.7% to £0.6bn on the previous year’s figure.
Last month, the operator issued a profits warning, where it announced that operating profit could drop by 2 – 4% this year on 2008, due to poor performance in its UK, US and Polish units. The company said UK revenue was down around 21% year on year for the first quarter of 2009.
The operator plans to freeze around €1bn (£0.8bn) of planned capital expenditure this year, which it expects to be about €8.7bn (£7.7bn).
T-Mobile chief executive Rene Obermann said DT was considering all options in the UK, which could include a sale of the business.
T-Mobile confirmed today (7 May) its new UK managing director, Richard Moat, will join the operator in June – at the same time as its new chief marketing officer, Srini Gopalan.