Brexit write-down hits Deutsche Telekom's annual profit

AP News
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Posted: Mar 02, 2017 5:41 AM

BERLIN (AP) — Deutsche Telekom says a hefty write-down due to the impact of Britain's vote to leave the European Union has weighed on its 2016 profits.

The German telecoms giant says net profit declined 17.8 percent to 2.7 billion euros ($2.84 billion) last year, compared with 3.3 billion euros in 2015.

Deutsche Telekom said Thursday that the drop was largely due to "an impairment loss recognized in the fourth quarter on the financial stake of 12 percent of the shares in the BT Group" whose value fell, along with the pound, following the Brexit referendum.

The company said the losses amounted to 2.2 billion euros.

T-Mobile US, in which Deutsche Telekom has a majority stake, saw a 16.3 percent increase in revenue to $37.3 billion last year.