T-Mobile parent continues cost-cutting across group

T-Mobile parent continues cost-cutting across group

The squeeze is still on at T-Mobile as parent company Deutsche Telekom revealed further plans to cut costs across the group.

Reporting its results, the German operator said: ‘Deutsche Telekom will continue its cost-cutting and will address the entire cost base of the group.’

Deutsche Telekom said its UK subsidiary had stabilised after a tough year but noted it had been hit hard by the poor exchange rate and regulatory caps.

MD Richard Moat (pictured) has tightened costs since his arrival at T-Mobile in June.

Its Q3 results last week revealed an 18.7% increase in EBITDA profit to £159m in Q3 and a 4.1% rise in profit margin on Q2, to 21.4%.

Prepaid customer numbers in Q3 rose by 59,000, and showed a 46% year on year increase. Contract sales also soared by 12.9% in the same period. However, contract customer numbers fell by 40,000 in the quarter.

T-Mobile said it was addressing the fall with new tariffs in Q4 aimed at low value contract customers.

T-Mobile declined to discuss Deutsche Telekom’s plans for the group.

A spokesman said: ‘We have taken rigorous steps to control operational expenditure. We are running the business more efficiently but this is not a one-off cost-cutting exercise. It is just a more rigorous on-going financial management of the business.’

Written by Mobile Today
Mobile Today


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