11/11/2009 3:19:00 PM
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.’