Deutsche Telekom reports net loss on US writedown

News General Europe 8 NOV 2012
Deutsche Telekom reports net loss on US writedown
Deutsche Telekom has recorded a net loss of EUR 6.90 billion for the third quarter due to an impairment charge on T-Mobile USA ahead of its proposed merger with MetroPCS. Excluding the one-time charge, net profit fell 28.3 percent from a year earlier to EUR 0.9 billion, which the company also blamed on one-time effects from the proposed merger with AT&T last year. The German operator's revenues were down 0.1 percent year-on-year to EUR 14.65 billion, led by a 1.7 percent drop in Germany. Adjusted EBITDA fell 2.6 percent to EUR 4.78 billion, and the margin dropped to 32.6 percent from 33.4 a year ago. Free cash flow was strong, up 37.4 percent to EUR 2.34 billion, and net debt was down by some EUR 2 billion in the quarter to EUR 39.0 billion. Deutsche Telekom said it now expects to report a net loss for the full year due to the impairment charge, but will still pay its earlier announced dividend from retained earnings and expects a return to net profit in 2013. The company otherwise maintained its outlook for the full year.

Categories:

General

Companies:

T-Mobile,  MetroPCS,  T-Mobile USA,  Deutsche Telekom

Regions:

Europe

Countries:

Germany,  United States

Tags:

Voice services, Financial figures, Internet Access

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