Deutsche Telekom revenue up 8% in Q1 on US growth
(Telecompaper) Deutsche Telekom reported first-quarter revenue up 8.0 percent year-on-year to EUR 14.9 billion, thanks to strong subscriber growth at T-Mobile US. Adjusted for currency effects and acquisitions, organic revenue growth was 4.2 percent. The growth in the US helped offset a 1.5 percent drop in sales in Germany and 6.5 percent lower revenues in the rest of Europe. The extra costs for growing the US business led to a 3.9 percent fall in adjusted EBITDA to EUR 4.1 billion. Net profit however more than tripled to EUR 1.8 billion, due to a gain on the sale of Scout24. Excluding the sale, net profit was down 23.5 percent to EUR 587 million. The operator's capex was down slightly to EUR 2.1 billion, and free cash flow declined 5.3 percent from a year earlier to EUR 983 million. Net debt was reduced by more than EUR 1 billion compared with the end of 2013 to EUR 38.0 billion. Deutsche Telekom reiterated its guidance for the full year 2014, for adjusted EBITDA flat at around EUR 17.6 billion and free cash flow lower at EUR 4.2 billion.