Deutsche Telekom Exceeds 2018 Targets Despite 4Q Loss

By Patrick Costello

Deutsche Telekom AG (DTE.XE) said Thursday that it exceeded its financial guidance for 2018, even as the company posted a loss in the fourth quarter.

The German telecommunications company booked a net loss of 431 million euros ($489 million), compared with a net profit of EUR1.33 billion in the fourth quarter of 2017.

Telekom attributed its net loss in the quarter to the beneficial effects of U.S. tax reform incurred in the prior-year quarter as well as "net negative special factors" of EUR1.2 billion, including impairment losses of EUR700 million and staff-related expenses of EUR300 million.

Revenue rose 5.7% in the quarter on year to EUR20.26 billion, while adjusted earnings before interest, taxes, depreciation and amortization rose 12.6% to EUR5.65 billion.

The company said it would propose an increased dividend of EUR0.70 at its annual meeting, up from EUR0.65.

Telekom said it exceeded its financial targets for 2018 on an organic basis. The company posted an adjusted Ebitda of EUR23.8 billion for 2018, compared with a forecast of EUR23.6 billion.

The company confirmed the medium-term outlook given at its 2018 capital markets day, including an average annual increase in revenue of 1% to 2% and adjusted Ebitda growth of 2% to 4% through 2021.

Write to Patrick Costello at patrick.costello@dowjones.com.

(END) Dow Jones Newswires

February 21, 2019 01:42 ET (06:42 GMT)

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