German telecom giant Deutsche Telekom AG (DTEGY.PK) Wednesday reported a higher first-quarter profit, and also confirmed its earnings outlook for the full-year 2013.
The company noted that for the first time in 15 quarters, number of branded customers at T-Mobile USA has risen. In the U.S. operating segment, mobile customers increased 1.8 percent to 33.97 million.
The firm also saw growth in mobile contract customers and fiber lines in Germany, and mobile customers increase in Europe.
René Obermann, chairman of the board of management of Deutsche Telekom stated, "We have resolved some major issues. The biggest of those were our customer figures in the United States, which are finally back on the up. The positive regulatory decisions form the basis for our planned broadband build-out."
In the first-quarter, the company's net profit increased to 564 million euros from 545 million euros in the previous year. On an adjusted basis, net profit was 767 million euros, while the prior-year quarter reported adjusted net profit of 586 million euros.
EBITDA, a key earnings metric, declined 7.2 percent to 4.08 billion euros. Adjusted EBITDA was 4.29 billion euros, while, the company posted 4.48 billion euros a year ago. Adjusted EBITDA margin remained unchanged at 31.1 percent.
T-Mobile US Inc. (TMUS), the combined company resulting from the combination of MetroPCS Communications Inc. and T-Mobile USA Inc., reported first-quarter results for T-Mobile USA. Net income was $107 million, lower than $200 million in the prior year. Adjusted EBITDA was $1.2 billion; a decrease of 7.5 percent mainly due to service revenue declines.
Revenue in the United States operating segment was 3.54 billion euros in the first quarter, down 7.9 percent from last year. In U.S. Dollars terms, revenue decreased 7.3 percent.
Deutsche Telekom's net revenues for the quarter declined 4.5 percent to 13.79 billion euros. Domestic revenues dropped 1.7 percent to 6.3 billion euros, and international revenues were 7.49 billion euros, down 6.7 percent from last year.
The company also confirmed its guidance for full-year 2013, for adjusted EBITDA of around 17.4 billion euros plus pro rata contribution for the year from the consolidation of MetroPCS.
On Frankfurt's Xetra, Deutsche Telekom shares are currently trading at 9.41 euros, up 3.09 percent, on a volume of 11.46 million shares.
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