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Deutsche Telekom FY17 Profit Up 29.4%; Board To Propose Dividend Increase

German telecom giant Deutsche Telekom AG (DTEGY.PK) Thursday reported a 29.4 percent increase in profit for fiscal 2017 and said that it met all its financial targets for the year.

For the year, the Group's net profit rose to 3.46 billion euros from 2.68 billion euros last year.

The company noted that several factors contributed to the growth in profit, including a positive non-recurring effect from the tax reform in the United States totaling 1.7 billion euros in the fourth quarter.

Adjusted net profit for the year was 6.04 billion euros, compared to 4.11 billion euros last year.

Adjusted EBITDA for the year rose 3.8 percent to 22.23 billion euros from 21.42 billion euros last year.

Net revenue for the year grew 2.5 percent to 74.95 billion euros from 73.1 billion euros in the prior year. Organic revenue growth for the year was 3.6 percent.

The Supervisory Board and the Board of Management will propose to the shareholders' meeting on May 17 a dividend of 65 eurocents per share.

This increases the dividend by another 5 eurocents per share, following rises from 50 eurocents for the 2014 financial year to 55 eurocents for 2015 and 60 eurocents for 2016. All in all, this represents a 30-percent increase over three years.

Looking ahead to fiscal 2018, the company forecast adjusted EBITDA to grow 4 percent to around 23.2 billion euros and free cash flow to increase 12 percent to around 6.2 billion euros.

The Group expects to see high growth rates across all key financial performance indicators for the four years from 2015 through 2018. Adjusted EBITDA is set to grow on average by some 5 percent a year on this basis. The increase in free cash flow averages around 11 percent a year.

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