Deutsche Telekom Q1 net profit fell 76.1 percent
Looking ahead, Deutsche Telekom continues to expects higher net revenues, and adjusted EBITDA would rise by just under 4 percent to around 22.2 billion euros. Free cash flow is expected to increase by about 12 percent.
Net profit for the first quarter fell 76.1 percent to 747 million euros from last year's 3.13 billion euros. Earnings per share declined 76.5 percent to 0.16 euro from 0.68 euro last year.
The 2.4 billion euros reduction in net profit was primarily due to negative remeasurement effects from the exercise and subsequent measurement of embedded derivatives in T-Mobile US bonds and impairment of its financial stake in BT.
Adjusted for special items, net profit was 939 million euros or $0.20 euro per share, compared to 1.05 billion euros or 0.23 euro per share a year ago.
Earnings before interest and tax or EBIT for the period slid 38.8 percent to 2.8 billion euros from 4.5 billion euros. Meanwhile, adjusted EBITDA grew 7.5 percent to 5.6 billion euros.
At 29.8 percent, the Group's adjusted EBITDA margin increased slightly from prior-year level's 29.3 percent.
For the first quarter, net revenue grew 5.8 percent to 18.6 billion euros from 17.63 billion euros a year ago.
On a comparable basis, excluding exchange rate effects and effects from changes in the composition of the Group, net revenue increased by 3.9 percent.
Of the total revenues, domestic revenues represented 32.7 percent in the quarter, down from last year's 34.5 percent.
International revenues represented 67.3 percent of total revenues, up from 65.5 percent from the previous year.
United States operating segment remained the Group's growth driver with revenue increasing by 14.9 percent.
Revenue also increased 0.7 percent in Europe operating segment, while Germany operating segment saw revenue remain stable with an increase of 0.2 percent.
The company reported positive revenue and earnings trends in Europe.
As of March 31, Mobile customers increased 4.7 percent from last year to 165.8 million.
Fixed-network lines dropped 1.7 percent to 28.3 million, while Broadband lines grew 3.3 percent to 18.6 million. ■