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Deutsche Telekom Q2 adjusted EBITDA up 0.3%

Staff writer |
For Deutsche Telekom, the second quarter of the current year was dominated by an improved earnings trend. Adjusted EBITDA was up slightly by 0.3 percent to EUR 4.4 billion.

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At the same time, the froup's total revenue remained more or less on a par with the prior-year level, down 0.3 percent to EUR 15.1 billion, leading to an adjusted EBITDA margin of 29.3 percent compared with 29.1 percent in the prior-year period.

In organic terms, i.e., adjusted for changes in the composition of the Group and currency effects, revenue was up 0.6 percent in the second quarter; adjusted EBITDA was slightly down by 0.3 percent. For comparison, the organic decline in EBITDA stood at 8.3 percent in the first quarter.

Deutsche Telekom invested EUR 2.2 billion in the second quarter, which in terms of cash capex before mobile spectrum was 6.2 percent more than in the prior-year period. Substantially more was invested between April and June in Germany with an increase of 58.1 percent to more than EUR 1 billion. Nevertheless, at Group level, free cash flow was just 5.4 percent below the prior-year level at EUR 1.0 billion, and was therefore in line with the forecast.

Reported net profit increased by 34.2 percent to EUR 711 million, driven by positive effects on earnings from the spectrum swap with Verizon in the United States.

By contrast, adjusted net profit declined 21.5 percent to EUR 636 million, primarily due to increased depreciation and amortization as a result of the increased asset base following the MetroPCS takeover and the investment drive in the United States in the prior year.

Deutsche Telekom confirms its guidance for the full year 2014, with adjusted EBITDA expected to amount to around EUR 17.6 billion. Free cash flow is expected to total some EUR 4.2 billion.

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