Deutsche Telekom raises dividend 8% as US fuels growth in Q4, 2018

News General Germany 21 FEB 2019
Deutsche Telekom raises dividend 8% as US fuels growth in Q4, 2018

Deutsche Telekom announced an 8 percent increase in its annual dividend, after meeting its improved outlook for full-year results in 2018. The company said it expects further improvement in adjusted EBITDA and free cash flow in 2019. 

Revenues for the year increased by 0.9 percent to EUR 75.7 billion, adjusted EBITDA rose 5.0 percent to EUR 23.3 billion, and free cash flow was up 13.7 percent to EUR 6.2 billion. In organic terms, assuming constant exchange rates and the same composition of the group, revenue grew by 3.1 percent, and adjusted EBITDA rose 7.2 percent to EUR 23.8 billion, better than the company's guidance. Free cash flow rose 18.9 percent to EUR 6.3 billion on an organic basis, in line with forecast.

Net profit fell 37.4 percent to EUR 2.2 billion, due to one-time gains in 2018 from the US corporate tax reform and divestments. The company still raised its dividend, to 70 cents a share from 65 cents in 2017. 

For 2019, Telekom adjusted its outlook for the new accounting rules on leases. The operator expects adjusted EBITDA to grow from a pro forma EUR 23.2 billion in 2018 to EUR 23.9 billion this year, and free cash flow is estimated at around EUR 6.7 billion versus EUR 6.0 billion last year. 

For the fourth quarter of 2018, Telekom's revenues rose 5.7 percent to USD 20.3 billion, again led by the US with a 10.7 percent increase. Revenues in Europe rose 4.3 percent to EUR 3.1 billion, while Germany was down 1.1 percent to EUR 5.6 billion. Adjusted EBITDA improved 12.6 percent in Q4 to EUR 5.6 billion, and free cash flow was up 34.5 percent to EUR 1.5 billion, after a 7.7 percent rise in cash capex to EUR 3.1 billion. 

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Deutsche Telekom

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Financial figures, Wireline, Wireless

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