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Deutsche Telekom confirms full-year guidance after in-line Q1 profits

Key Points
  • Deutsche Telekom's first-quarter earnings came in at 5.94 billion euros, just shy of the average in its own poll of analysts.
  • T-Mobile U.S., which is in late-stage regulatory review of its $26 billion deal to buy Sprint, has already reported strong results.
  • Bonn-based Deutsche Telekom confirmed its forecast for full-year earnings of 23.9 billion euros and free cash flow of 6.7 billion.
Ulrich Baumgarten | Getty Images

Deutsche Telekom reported a 4 percent gain in first-quarter core profits on Thursday as its U.S. unit T-Mobile again outperformed, and confirmed its revenue guidance for this year.

Europe's largest telecoms company reported adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) of 5.94 billion euros ($6.65 billion), just shy of the average in its own poll of analysts.

After adjustments, mainly for the impact of takeovers in Austria and the Netherlands and for changes in lease accounting, first-quarter EBITDA was ahead by 8.3 percent. On an organic basis, stripping out currency effects, EBITDA rose 3.9 percent.

T-Mobile U.S., which is in late-stage regulatory review of its $26 billion deal to buy Sprint, has already reported strong results, adding a net 1.65 million customers in the first quarter.

In the German home market, service revenues rose by 2.8 percent in the quarter as Telekom pushed "converged" products of fixed-line and mobile services. Its European markets stayed in positive territory after stripping out acquisition effects.

"We got off to a successful start to the year," Chief Executive Tim Hoettges said in a statement. "Deutsche Telekom has much more to offer than just our sensational success in the United States. We are seeing positive trends throughout the group."

Bonn-based Deutsche Telekom confirmed its forecast for full-year EBITDA of 23.9 billion euros and free cash flow of 6.7 billion.