FRANKFURT (Reuters) - Deutsche Telekom (DTEGn.DE), Europe’s largest telecoms firm, nudged up its forecast for core earnings this year on a strong showing by its T-Mobile US (TMUS.O) unit, which has agreed to take over Sprint Corp (S.N).
Bonn-based Deutsche Telekom said on Wednesday it now expected adjusted earnings before interest, taxation depreciation and amortization (EBITDA) of 23.3 billion euros ($27.6 billion), just up from its prior expectation of 23.2 billion.
“We remain on course for success in 2018,” CEO Tim Hoettges said in a statement as Telekom published first-quarter results that were broadly in line with market expectations but reflected the impact of the weak U.S. dollar.
Adjusted EBITDA was flat in the quarter at 5.55 billion euros, in line with the expectations of 21 analysts in a poll commissioned by Deutsche Telekom. Reported revenues slipped by 3.9 percent to 17.92 billion euros.
Organically, that is adjusting for currency effects, revenues rose by 3.1 percent in the first quarter while EBITDA gained 6.6 percent, the company said.
Deutsche Telekom reiterated its forecast for free cash flow of 6.2 billion euros in 2018. Free cash flow rose by 12.5 percent in the first quarter to 1.38 billion euros.
Reporting by Douglas Busvine; Editing by Maria Sheahan