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Deutsche Telekom revenue increased by 4.7 percent

Staff writer |
On a like-for-like basis, i.e., excluding the effects of the strong dollar exchange rate and changes in the composition of the group, Deutsche Telekom revenue increased by 4.7 percent.

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In this analysis, adjusted EBITDA rose by 5.6 percent. Also benefiting from the translation effect from the increased dollar exchange rate, recognized net revenue increased by 13.1 percent to EUR 16.8 billion. Adjusted EBITDA increased 11.0 percent to EUR 4.6 billion.

Adjusted for special factors, net profit increased by a good three quarters compared with the prior-year period to EUR 1.0 billion. A settlement agreement had a positive effect of EUR 175 million here.

In addition, the change in the accounting treatment of Deutsche Telekom's stake in the EE joint venture in the United Kingdom as held for sale means its dividends are now recognized in profit/loss from financial activities, which also has a positive impact on adjusted net profit.

In the prior year, reported net profit had been dominated by the positive special effect of some EUR 1.7 billion from the sale of 70 percent of the stake in Scout. This resulted in a year-on-year lower figure.

Deutsche Telekom continued to invest strongly in its networks on both sides of the Atlantic. Overall, cash capex excluding expenses for mobile spectrum increased by 22.5 percent compared with the first three months of 2014 to EUR 2.5 billion. Investments in Germany alone rose by a good third to around EUR 950 million. This was also the main factor behind the scheduled decline in free cash flow by 12.0 percent to EUR 0.9 billion.

Deutsche Telekom confirms its guidance for the full year. Based on a constant exchange rate compared with 2014 of USD 1.33 per euro, adjusted EBITDA is expected to reach around EUR 18.3 billion and free cash flow some EUR 4.3 billion.

The one-time effect of EUR 175 million was not included in the forecast and accordingly was not taken into account for the achievement of the adjusted EBITDA target for the year.

Based on the average dollar/euro exchange rate in the first quarter of USD 1.13 per euro, expected adjusted EBITDA for the full year 2015 would stand at around EUR 19.3 billion.

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