Deutsche Telekom records jump in profit in the third quarter
- Net profit up by almost 60 percent to more than 800 million euros, adjusted net profit up by 30 percent
- Revenue up 9.3 percent to 17.1 billion euros
- Adjusted EBITDA up 12.9 percent to 5.2 billion euros
- Free cash flow increased 16.3 percent on prior-year figure to 1.3 billion euros
- Strong growth in number of fiber-optic customers in Germany and mobile customers in the United States
Deutsche Telekom's performance in the third quarter of 2015 was dominated by double-digit growth rates in the most important financial indicators. Net profit increased by 59.9 percent to 809 million euros compared with the same period in the prior year. Adjusted for special factors, net profit increased by 30 percent to 1.0 billion euros.
Adjusted EBITDA also recorded substantial growth, increasing by 12.9 percent to 5.2 billion euros. At the same time, net revenue increased by 9.3 percent to 17.1 billion euros. Revenue growth was somewhat lower than in the previous quarters due to the effects of the new terminal equipment lease model in the United States. On an organic basis, i.e., adjusted for exchange rate effects and changes in the composition of the Group, revenue increased by 2.2 percent and adjusted EBITDA by 8.1 percent in the third quarter.
"We are resolutely forging ahead with our strategy," explained Tim Höttges, CEO of Deutsche Telekom. "High investments in broadband roll-out and connectivity remain the basis for growth."
The Group invested 2.7 billion euros in the third quarter of 2015, which in terms of cash capex excluding mobile spectrum expenses is 8.2 percent more than the previous year. Despite the high capital expenditure, free cash flow also increased substantially, by 16.3 percent to 1.3 billion euros. This made a significant contribution to reducing net debt from 48.8 billion euros to 47.8 billion euros in just three months.
Deutsche Telekom confirms its guidance for the full year 2015. Based on a constant exchange rate compared with 2014 of USD 1.33 per euro, adjusted EBITDA is expected to reach around 18.3 billion euros and free cash flow around 4.3 billion euros.
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