Deutsche Telekom 1Q Net Profit Surges on Gain From JV Stake Sale -- Update
May 04 2016 - 2:08AM
Dow Jones News
By Ulrike Dauer
FRANKFURT--Germany's Deutsche Telekom AG (DTE.XE) on Wednesday
reported an almost fourfold rise in net profit for the first
quarter, driven by a one-time gain from selling a U.K.
telecommunications joint venture, and said it was on track for
full-year targets.
The German telecommunications company also confirmed mid-term
goals through 2018.
Quarterly net profit rose to 3.13 billion euros ($3.79 billion)
from EUR787 million, a strong beat of the EUR789 million estimate
from a Dow Jones Newswires poll.
However, net profit includes a one-time gain of EUR2.5 billion
related to Deutsche Telekom's sale of its stake in U.K. joint
venture EE that closed in January.
Revenue was EUR17.63 billion, a 4.7% rise from EUR16.84 billion
in the same period a year ago and above the forecast EUR17.57
billion.
The company's main yardstick--adjusted earnings before interest,
tax depreciation and amortization--rose 13% to EUR5.15 billion from
EUR4.57 billion, beating the forecast EUR5.10 billion. Deutsche
Telekom guides for adjusted Ebitda of around EUR21.2 billion for
2016, up from EUR19.9 billion it generated in 2015.
At the end of January, Deutsche Telekom received a 12% stake in
BT Group PLC (BT.A.LN), some cash and a final dividend from EE when
the sale of the joint venture with French peer Orange SA (ORA.FR)
to BT closed.
Write to Ulrike Dauer at ulrike.dauer@wsj.com
(END) Dow Jones Newswires
May 04, 2016 01:53 ET (05:53 GMT)
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