Frankfurt, May 16, 2024 (Reuters) – German telecom giant Deutsche Telekom reported mixed results for the first quarter of 2024, with a decline in net profit but growth in adjusted earnings. The company’s European division posted strong growth, driven by record-breaking revenue from fixed and mobile network services.
Net profit for the quarter plunged 87.1% to €1.98 billion ($2.17 billion), primarily due to the sale of a majority stake in GD Towers in the previous year. However, adjusted net profit, excluding extraordinary items, rose to €2.24 billion from €1.96 billion in the same period last year. Adjusted earnings per share were €0.45 compared to €0.39 per share a year ago.
EBITDA AL (earnings before interest, taxes, depreciation, amortization and leases) increased by 5.8% year-on-year to €10.47 billion. Deutsche Telekom’s European division recorded a record 8.1% increase in EBITDA AL, while domestic German market profit rose 3.5% and US profit grew 6.1%.
The European division’s growth, which has continued for 25 consecutive quarters, was driven by strong revenue from both fixed and mobile network services.
Revenue for the period was up slightly by 0.4% to €27.94 billion from €27.84 billion a year ago.
Looking ahead, Deutsche Telekom still expects adjusted EBITDA AL of around €42.9 billion for the full year 2024, up around 6% from the previous year.
Key points:
- Deutsche Telekom’s net profit fell 87.1% to €1.98 billion.
- Adjusted net profit rose to €2.24 billion.
- EBITDA AL increased by 5.8% to €10.47 billion.
- Growth in Europe was driven by strong revenue from fixed and mobile network services.
- Revenue was up slightly by 0.4% to €27.94 billion.
- The company expects adjusted EBITDA AL to reach €42.9 billion by the end of 2024.
Sources:
- Reuters: https://www.reuters.com/
- RTTNews: https://www.rttnews.com/
