Deutsche Telekom AG (DTE.XE) said Thursday that its third-quarter net profit fell 52%, largely due to an impairment of goodwill at unit T-Systems.
Deutsche Telekom said net profit for the three months ended Sep. 30 was 507 million euros ($587.9 million,) compared with EUR1.05 billion during the same period last year.
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Revenue was EUR18.25 billion compared with EUR18.11 billion, while adjusted earnings before interest, taxes, depreciation, and amortization was up 3.3% at EUR5.72 billion.
Analysts had expected Deutsche Telekom's third-quarter net income to be EUR959 million, according to a consensus forecast provided by the company.
The German telecommunications company said the impairment loss of EUR1.2 billion at corporate customer unit T-Systems had a negative impact on profit but didn't affect cash flow. The loss resulted from an impairment test carried out because order entry had remained below estimates throughout the year.
The trend in customer growth in the U.S. continues, with brand T-Mobile US gaining 13 million new customers in the quarter, Bonn-based Deutsche Telekom said.
The company raised its full-year profit forecast for the second time this year, noting an upward trend in adjusted Ebitda. It now expects to post adjusted Ebitda of around EUR22.4 billion to EUR22.5 billion in 2017 compared with a previous forecast of EUR22.2 billion.
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(END) Dow Jones Newswires
November 09, 2017 01:52 ET (06:52 GMT)