Deutsche Telekom AG (DTEGY.PK), a leading telecom company in Germany, announced on Thursday a significant decline in its net profit for the first quarter, plummeting 87.1 percent to 1.98 billion euros compared to 15.36 billion euros in the same period last year. Earnings per share also fell to 0.40 euro, down from 3.09 euros.
The previous year's robust performance was attributed to a special gain from the sale of a majority stake in GD Towers.
However, when adjusted for such one-time factors, the net profit for the first quarter stood at 2.24 billion euros, an increase from 1.96 billion euros the previous year. Similarly, adjusted earnings per share rose to 0.45 euro from 0.39 euro last year.
Furthermore, adjusted EBITDA AL (Earnings Before Interest, Taxes, Depreciation, and Amortization After Leases) saw a year-on-year organic growth of 5.8 percent, reaching 10.47 billion euros.
Net revenue experienced a slight increase of 0.4 percent, reaching 27.94 billion euros from last year’s 27.84 billion euros, marking a 1.6 percent organic growth.
Looking ahead to fiscal year 2024, Deutsche Telekom reaffirmed its guidance for operations outside the United States, while T-Mobile US slightly increased its outlook.
The Group anticipates adjusted EBITDA AL to be around 42.9 billion euros, approximately 6 percent higher than the previous year. Additionally, adjusted earnings per share are expected to exceed 1.75 euros, up from 1.60 euros in 2023.