Deutsche Telekom Backs Guidance After Revenue Rises on Strong Growth in Core Markets
By Najat Kantouar
Deutsche Telekom backed its full-year guidance after delivering higher revenue in first quarter, boosted by strong growth in its core markets.
The German telecommunications said Thursday that adjusted earnings before interest, taxes, depreciation and amortization after leases--a closely watched profitability metric--for the first three months rose to 10.47 billion euros ($11.40 billion) from EUR9.96 billion for the same period a year earlier. This beat a compiled analysts' forecast of EUR10.25 billion taken from the company's website.
Net profit declined to EUR1.98 billion from EUR15.36 billion, reflecting the sale of the majority stake in GD Towers in the prior year, and ahead of expectations of EUR1.78 billion based on two analysts' estimates.
Group revenue rose 1.6% on organic basis to EUR27.94 billion from EUR27.84 billion, below analysts' expectations of EUR27.99 billion.
Within this, Germany service revenue increased 2.6% to EUR6.3 billion, driven by MagentaTV continued momentum. U.S. service revenue rose 3.6%, boosted by customer growth. Europe service revenue grew 5.7%, helping profit grow at a record level.
Deutsche Telekom maintained its full-year guidance and still expects adjusted Ebitdaal of around EUR42.9 billion. It still expects free cash flow of EUR18.9 billion and adjusted earnings per share of more than EUR1.75.
Write to Najat Kantouar at najat.kantouar@wsj.com
(END) Dow Jones Newswires
May 16, 2024 01:27 ET (05:27 GMT)
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