Deutsche Telekom lifts guidance on strong results
Deutsche Telekom AG (DTE.XE) raised its pretax earnings and cash-flow guidance for 2018 on Thursday, citing customer growth and higher earnings across all its operating segments in the third quarter.
The German telecommunications company booked a net profit of 1.11 billion euros ($1.37 billion) in the quarter, up from EUR507 million in the same period last year, when it incurred an impairment loss at its T-Systems corporate unit.
Analysts had expected Deutsche Telekom to book a net profit of EUR1.37 billion, according to a FactSet-compiled consensus.
Revenue rose 4.7% on year to EUR19.10 billion, while adjusted earnings before interest, taxes, depreciation and amortization rose 8.5% to EUR6.21 billion.
Growth in mobile service revenue of 3.1% in Germany enabled Telekom to reaffirm its leadership role in its home mobile market, the Bonn-based company said. Its fiber-optic customer base likewise rose 30% on year to 11.6 million at the end of September.
Telekom raised its 2018 outlook on the back of the results, saying it now expects to generate adjusted Ebitda of EUR23.6 billion, up from an earlier forecast of EUR23.2 billion. The group now forecasts free cashflow of around EUR6.3 billion, up from about EUR6.2 billion.
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