je.st
news
Deutsche Telekom maintains FY growth outlook, Q2 sales up 2%
2016-08-11 08:15:00| Telecompaper Headlines
(Telecompaper) Deutsche Telekom reported second-quarter revenues up 2.2 percent year-on-year to EUR 17.8 billion, led by the customer growth at T-Mobile US. On an organic basis, adjusted for exchange rate effects, revenue increased by 3.9 percent. DT said its decision to reduce the low-margin handset distribution business in Germany took around 0.7 percent off revenue. Adjusted EBITDA increased by 8.6 percent to EUR 5.5 billion and rose 9.9 percent on an organic basis. The improvement in EBITDA was partially offset by higher depreciation and amortization, mainly as a result of the further roll-out of LTE and handset leasing the US. This led to a drop in net profit to EUR 621 million from EUR 712 million a year ago. Free cash flow fell 4.0 percent to EUR 1.3 billion, hurt by no more dividends from EE, and an increase of 3.5 percent in capital expenditure to EUR 2.664 billion, excluding spectrum. Deutsche Telekom said the positive development in the second quarter supports its guidance for the full year.
Tags: up
sales
growth
deutsche
Category:Telecommunications