BONN (dpa-AFX) - German telecom giant Deutsche Telekom AG (DTEGY.PK) reported Thursday lower net profit in its first quarter, while pre-tax profit increased from last year on revenue strength. The results were benefited by improved performance in all regions, mainly United States.
Looking ahead for fiscal 2019, the company continues to expect adjusted EBITDA AL of around 23.9 billion euros, compared to last year's pro forma 23.2 billion euros, and revenues to grow slightly from 76.4 billion euros. Excluding US, annual adjusted EBITDA AL is expected to be around 13.4 billion euros.
For the first quarter, net profit decreased 9.3 percent to 900 million euros from 992 million euros last year. Earnings per share was 0.19 euros compared to 0.21 euros.
Adjusted net profit was 1.18 billion euros, compared to 1.19 billion euros last year. Adjusted earnings per share were 0.25 euros, same as last year.
Profit before income taxes, however, increased by 0.1 billion euros from last year to 1.9 billion euros
Group EBIT of 2.3 billion euros increased 4 percent from last year. EBITDA AL increased 5.6 percent year-on-year to 5.5 billion euros.
Excluding special factors, adjusted EBITDA AL increased 8.3 percent year-on-year to 5.9 billion euros. The company noted that all operating segments made a positive contribution to the adjusted earnings growth.
In the first quarter, the company generated net revenue of 19.5 billion euros, up 8.7 percent from 17.92 billion euros a year ago. Adjusted for positive effects, revenue increased 3.5 percent on organic terms.
Revenue in the home market of Germany edged up 0.6 percent from last year to 5.36 billion euros, driven mainly by the strong performance in mobile business and higher IT and broadband revenues from fixed-network business.
In the United States, revenue climbed 15.9 percent on a reported basis or 7 percent organically to 9.80 billion euros. The growth mainly reflected higher service revenues from the rise in the average branded customer base.
In Europe operating segment, revenue was up 2.8 percent year-on-year to 2.89 billion euros.
In Germany, Deutsche Telekom shares were trading at 14.95 euros, up 0.13 percent.
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