Deutsche Telekom 1Q Profit Fell on Special Charges

By Patrick Costello

Deutsche Telekom AG (DTE.XE) said Thursday that net profit fell more than 9% on year in the first quarter, even as the company reported growth across all its business areas.

The German telecommunications company booked a first-quarter net profit of 900 million euros ($1.01 billion) compared with EUR992 million the same period last year.

The company said its net profit for the quarter was hit by net negative special factors of EUR300 million related primarily to staff restructuring charges and expenses from the merger between T-Mobile and Sprint in the U.S.

Revenue rose 8.7% to EUR19.49 billion from EUR17.92 billion. Mobile service revenues in its home market of Germany were up 2.8% on year, Telekom said.

Adjusted earnings before interest, taxes, depreciation and amortization after leases, or Ebitdaal, was up 8.3% to EUR5.94 billion.

The company said it began using Ebitdaal as a financial indicator to measure operating earnings performance in January to account for the adoption of the IFRS 16 accounting standard.

Telekom confirmed its 2019 outlook, including an adjusted Ebitdaal of EUR23.9 billion for the year and a free cash flow after leases of roughly EUR6.7 billion.

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

(END) Dow Jones Newswires

May 09, 2019 01:37 ET (05:37 GMT)

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