Deutsche Telekom 1Q Net Profit Surges on Gain From JV Stake Sale -- Update

By Ulrike Dauer

FRANKFURT--Germany's Deutsche Telekom AG (DTE.XE) on Wednesday reported an almost fourfold rise in net profit for the first quarter, driven by a one-time gain from selling a U.K. telecommunications joint venture, and said it was on track for full-year targets.

The German telecommunications company also confirmed mid-term goals through 2018.

Quarterly net profit rose to 3.13 billion euros ($3.79 billion) from EUR787 million, a strong beat of the EUR789 million estimate from a Dow Jones Newswires poll.

However, net profit includes a one-time gain of EUR2.5 billion related to Deutsche Telekom's sale of its stake in U.K. joint venture EE that closed in January.

Revenue was EUR17.63 billion, a 4.7% rise from EUR16.84 billion in the same period a year ago and above the forecast EUR17.57 billion.

The company's main yardstick--adjusted earnings before interest, tax depreciation and amortization--rose 13% to EUR5.15 billion from EUR4.57 billion, beating the forecast EUR5.10 billion. Deutsche Telekom guides for adjusted Ebitda of around EUR21.2 billion for 2016, up from EUR19.9 billion it generated in 2015.

At the end of January, Deutsche Telekom received a 12% stake in BT Group PLC (BT.A.LN), some cash and a final dividend from EE when the sale of the joint venture with French peer Orange SA (ORA.FR) to BT closed.

Write to Ulrike Dauer at [e-mail]

(END) Dow Jones Newswires

May 04, 2016 01:53 ET (05:53 GMT)

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