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Deutsche Telekom Q1 net revenue increased 4.7%

Staff writer |
Deutsche Telekom, in the first quarter of 2016, passed the mark of five million fiber-optic lines (VDSL/vectoring and FTTH) in Germany.

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Of the five million lines, more than 1.7 million are leased by competitors and marketed under their own brands.

With its role at the forefront of the next-generation 5G mobile communications standard, Deutsche Telekom is on track to maintain its network leadership into the future as well.

Deutsche Telekom invested 2.8 billion euros excluding mobile spectrum expenses worldwide in the core elements of integrated networks on the basis of IP and best customer experience in the first quarter, 11.9 percent more than in the same period of the prior year.

This paid off with positive trends in customer numbers and consequently in revenue and earnings growth.

Net revenue increased by 4.7 percent to 17.6 billion euros. Adjusted EBITDA climbed by 12.9 percent to 5.2 billion euros.

As a result of the higher cash capex, depreciation of property, plant, and equipment also increased substantially such that, below the line, adjusted net profit rose by 1.1 percent to 1.0 billion euros.

By contrast, reported net profit quadrupled to 3.1 billion euros. This increase was mainly driven by the sale of Deutsche Telekom's stake in the EE joint venture to the British company BT, which contributed earnings of 2.5 billion euros.

The increase in cash capex resulted in a moderate decline in free cash flow by 5 percent to 0.8 billion euros.

The Group confirmed both its guidance for the financial targets for 2016 and its medium-term outlook for 2014 to 2018.

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