Frankfurt (AFP) - German telecoms giant Deutsche Telekom said Wednesday it is sticking to its full-year profit targets after recording "strong" growth in the first quarter.
"Deutsche Telekom confirms its guidance for the full year," the group said in a statement.
In the first three months of 2015, Deutsche Telekom said it recorded "strong organic growth", with revenues rising by 13.1 percent to 16.842 billion euros and operating profit up 11 percent at 4.574 billion euros. Net profit, on the other hand, fell by 56.7 percent to 787 million euros. But that was because the year-earlier figure had been boosted by windfall gains from the sale of a stake in its subsidiary Scout.
"It has been some time since we have seen positive indications for revenue and earnings in our industry. Our clear strategy with strong investment is paying off," said chief executive Timotheus Hoettges.
"We started the financial year 2015 with substantial growth in revenue" and operating profit, it said.
Based on an exchange rate of $1.33 per euro, underlying or operating profit was expected to reach around 18.3 billion euros ($24.3 billion). And based on the average dollar/euro exchange rate in the first quarter of $1.13 per euro, operating profit for the full year 2015 would stand at around 19.3 billion euros ($21.8 billion), the statement said.
"Exchange rate fluctuations merely have a mathematical effect on Deutsche Telekom's income statement, but no impact in substance," Hoettges added.
Deutsche Telekom has recently invested massively in relaunching its US unit, T-Mobile USA, which reported 1.8 million new customers in the first quarter and an 11.7-percent rise in revenues to $7.7 billion.