DT 1Q08 results

Publié le par Jean Arnal

DT said its 1Q08 adjusted net profit rose 33% to €750m, with EBITDA at €4.7bn (almost flat) and revenues down 3% to €15bn. Revenues and EBITDA fell short of expectations, but net profit was better than expected. DT lost 120k fixed line users in the quarter, but won €10bn in its mobile unit. Free cash flow amounted to €1.6bn. DT confirmed its outlook for 2008, with €19.4bn in EBITDA and €6.6bn in cash flow. Its T-Mobile USA reported €1bn in OIBDA (+18%). DT has agreed to buy 20% in Greek incumbent OTE in the quarter and is rumored to make a bid for Sprint Nextel. But the value to buy Sprint would be around $22bn, about 25% of DT' s market value. The operation would mean either an increase in debt, or selling some assets to finance the deal. In addition, DT would have to pass antitrust approval, as the number of operators in the US market decreases. But it is surely an opportunity for DT, given the weak dollar, Sprint' s problems, and the possibility for DT to become the largest mobile operator in the USA. The deal is not yet done.

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