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Deutsche Telekom Q4 2014 net revenue went up 8.5 percent

Staff writer |
Deutsche Telekom Q4 2014 net revenue increased 8.5 percent year-on-year to EUR 17 billion. In organic terms, excluding exchange rate effects and changes in the composition of the Group, growth was 5.6 percent.

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In the full 2014 financial year, Deutsche Telekom recorded revenue growth of 4.2 percent to EUR 62.7 billion. Adjusted EBITDA increased 0.8 percent to EUR 17.6 billion, reaching the target for 2014. In the fourth quarter of 2014, adjusted EBITDA rose by as much as 9.5 percent to EUR 4.4 billion. Organic growth stood at 6.9 percent.

Deutsche Telekom invested in its networks even more heavily than in the prior year. In 2014, the Group spent EUR 9.5 billion in terms of cash capex before expenses for mobile spectrum. That was 7.6 percent more than in 2013. Consequently, free cash flow declined as expected by 10.1 percent to around EUR 4.1 billion, which was in line with the target for the full year.

As a result of the increase in EBITDA, adjusted net profit increased by 12.4 percent to EUR 399 million in the fourth quarter. Unadjusted, it increased year-on-year by more than 85 percent due to negative special factors in the fourth quarter of 2013.

For the full year, Deutsche Telekom recorded a decrease in adjusted profit of 12.1 percent to EUR 2.4 billion due to increased depreciation and amortization as a result of higher network investments and the inclusion of MetroPCS for twelve months. Unadjusted net profit tripled year-on-year in the full year to EUR 2.9 billion, mainly due to the partial sale of the Scout group.

Based on the results, the Board of Management and Supervisory Board will be proposing to the shareholders' meeting on May 21 an unchanged dividend of EUR 0.50 per share. As in the previous two years, this dividend can be received in cash or, if desired, in the form of shares.

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