Deutsche Telekom reported revenues down 3.9 percent year-on-year to EUR 17.92 billion in the first quarter, and adjusted EBITDA was flat at EUR 5.55 billion. Growth was held back by the stronger euro versus the dollar, while on an organic basis, revenues rose 3.1 percent, the company said.
Deutsche Telekom also raised its guidance for adjusted EBITDA in the full-year 2018, by EUR 100 million to around EUR 23.3 billion, saying this was due to its "unique growth profile" with operations on both sides of the Atlantic. Revenues are still expected "slightly" higher over the full year, and free cash flow at EUR 6.2 billion, after EUR 1.2 billion in Q1.
The free cash flow forecast remains unchanged at around EUR 6.2 billion for 2018. In Q1, free cash flow rose 12.5 percent to EUR 1.38 billion, as cash capex dropped 4.3 percent to EUR 3.14 billion. The company's net profit jumped 32.8 percent to EUR 992 million, thanks to lower losses from financial activities.
Revenue growth in the Q1 was led by the Europe division, up 1.1 percent to EUR 2.81 billion, or 0.2 percent higher after excluding forex effects. Revenues in Germany were down 1.3 percent to EUR 5.3 billion, but Deutsche Telekom noted this was mainly due to hardware sales, with service revenue growing 1.2 percent. Revenue at T-Mobile US was down 5.9 percent due to the negative currency effects, but rose by 8.7 percent in dollars.
