Deutsche Telekom AG (DTE), Europe’s second- largest telephone company, reported earnings that beat analysts’ estimates as a decline in European revenue slowed and the T- Mobile USA unit boosted profitability.
Earnings before interest, taxes, depreciation and amortization excluding some items slipped 0.1 percent to 4.48 billion euros ($5.8 billion) in the first quarter, the Bonn- based company said today. The profit compares with the 4.4 billion-euro average estimate of 21 analysts compiled by Bloomberg. Revenue dropped by a smaller-than-projected 1.1 percent to 14.4 billion euros.
The Deutsche Telekom AG company logo is seen outside the company's headquarters in Bonn. Photographer: Hannelore Foerster/Bloomberg T-Mobile USA, the unit that’s trying to hold onto its subscribers after a botched sale to AT&T Inc. (T) last year, increased profit as prepaid clients helped offset the loss of 510,000 contract customers in the quarter. Deutsche Telekom is discussing a merger of the division with MetroPCS Communications Inc. (PCS) as it reviews options for the business, people familiar with the matter said.