By Patrick Costello
Deutsche Telekom AG (DTE.XE) said Thursday that net profit rose sharply in the second quarter and confirmed its 2019 outlook.
The German telecommunications company booked a net profit of 944 million euros ($1.06 billion) in the second quarter, up 90.7% from EUR495 million the same period last year, when the company incurred a EUR600 million expense related to a settlement.
Revenue rose 7.1% to EUR19.66 billion from EUR18.37 billion. Mobile-service revenues in its home market of Germany were up 2.4% on year, Telekom said.
Adjusted earnings before interest, taxes, depreciation, amortization after leases, or Ebitdaal, was up 7.1% to EUR6.28 billion from EUR5.87 billion, giving the company an adjusted Ebitdaal margin of 32%, Telekom said.
Telekom said it began using Ebitdaal in January as a financial indicator to measure operating earnings performance to account for the adoption of the IFRS 16 accounting standard.
Telekom backed its 2019 outlook, including "slight increase" in revenue, an adjusted Ebitdaal of EUR23.9 billion and a free cash flow after leases of roughly EUR6.7 billion.
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