Deutsche Telekom 3Q Net Profit Up 7.2% On Cost Savings
November 05 2009 - 3:26AM
Dow Jones News
Deutsche Telekom AG (DT) Thursday posted a 7.2% rise in its
third-quarter net profit helped by tight cost control, and became
the latest major European telecommunications company to keep its
full-year outlook.
Still, in the U.S., once the growth engine of the company, its
performance was "unsatisfactory," the company said.
Net profit for the quarter ended Sept. 30 was EUR959 million, up
from EUR895 million a year earlier and beating analysts' forecasts
for EUR863 million as it trimmed operating expenses.
Revenue for the period rose 5.2% to EUR16.26 billion.
Closely watched earnings before interest, taxes, depreciation
and amortization, or Ebitda, adjusted for one-time items and
restructuring, the company's preferred measure of operating
performance, rose 5.2% to EUR5.53 billion, also just topping
analysts' forecasts.
Deutsche Telekom's sales and operating profit benefited from the
consolidation of Hellenic Telecommunications Organization (OTE),
which contributed EUR1.5 billion to Deutsche Telekom's
third-quarter sales and EUR600 million to adjusted Ebitda.
Deutsche Telekom reported for the first time in its new
geographical structure.
In the U.S., where Deutsche Telekom runs T-Mobile USA, the
country's fourth largest mobile operator, revenue was down to $5.38
billion down from $5.51 billion a year earlier, while its operating
profit margin increased by 2 percentage points to 33%. But the
company lost 77,000 customers in the July to September quarter in
the country, leaving its subscriber base at 33.42 million, just 4%
higher than a year ago.
In its home market of Germany and across Europe, sales and
adjusted Ebitda fell.
Deutsche Telekom followed European peers Royal KPN NV (KPN.AE)
of the Netherlands and France Telecom (FTE) in confirming its
full-year 2009 outlook. The German telecoms firm forecast OTE to
boost its adjusted Ebitda by around EUR2.0 billion in the 11 months
of fiscal 2009 following the consolidation of the Greek firm.
Excluding OTE, Deutsche Telekom forecast Ebitda to fall by
around 2% to 4% this year from EUR19.5 billion a year earlier.
Deutsche Telekom also said it expects OTE to contribute around
EUR0.6 billion to free cash flow, bringing the group's total free
cash flow to around EUR7 billion.
Third-quarter free cash flow was EUR3.29 billion, beating
analysts' expectations of EUR2.41 billion.
In early reaction, traders said the results were better than
expected and they expected the share to rise when trading starts
Thursday. Deutsche Telekom's shares closed Wednesday at
EUR9.28.
Company Web site: www.telekom.de
-By Archibald Preuschat, Dow Jones Newswires, +49 211 138 7218,
archibald.preuschat@dowjones.com
Hellenic Telecommunications (NYSE:OTE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hellenic Telecommunications (NYSE:OTE)
Historical Stock Chart
From Apr 2023 to Apr 2024