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Strong growth in the US underpinned a solid start to the year for Deutsche Telecom, although net profit was down due to an impairment charge related to the company’s stake in BT.
Thanks to the continued performance of T-Mobile US, Deutsche Telekom grew adjusted earnings before interest tax, depreciation and amortisation by 7.5 per cent from a year earlier to €5.6bn in the three months ended March 31. That was slightly ahead of estimates for €5.5bn.
Revenue grew 5.8 per cent to €18.6bn, with the US seeing an increase of 14.9 per cent from a year earlier. The company’s Europe segment saw revenue rise by 0.7 per cent, while the home market of Germany registered a flat result.
Net profit was down 76.1 per cent to €747m, with the company pointing out its result in the first quarter of 2016 had been boosted by a number of one-off factors including asset sales. Furthermore, this year, Deutsche Telekom also booked a €700m writedown on its stake in BT, the British telecommunications provider.
Earlier this year, Deutsche Telekom took a €2.2bn charge on its investment in BT that pushed the group to a fourth-quarter loss in 2016.