Deutsche Telekom Lifts FY22 View Again After Higher Q3 Results; But Stock Down
Deutsche Telekom AG reported Thursday significantly higher profit in its third quarter with improved revenues. Further, the German telecom major lifted its dividend, and also raised fiscal 2022 guidance for the third time in the current financial year. Meanwhile, the shares were losing around 3 percent in the morning trading in Germany.
Tim Hรถttges, Chairman of the Board of Management, said, “We are once again proving to be an anchor of stability in difficult times. Our businesses continue to grow. That puts us in a position to raise not only our guidance – for the third time this year – but also our dividend.”
For the year 2022, the company now expects adjusted earnings per share to reach more than 1.50 euros. The original guidance was over 1.25 euros.
Adjusted EBITDA AL in organic terms is now expected to come in at more than 37.0 billion euros, up from the previous guidance of around 37.0 billion euros.
Adjusted core EBITDA AL is now expected to total more than 35.9 billion euros, up from previously around 35.9 billion euros.
Further, the Board of Management plans to pay out a dividend of 0.70 euros per share, 10 percent higher than last year, subject to the approval of the Supervisory Board and the shareholders’ meeting.
In its third quarter, Deutsche Telekom’s net profit climbed 77.5 percent to 1.58 billion euros from 889 million euros a year ago.
Adjusted net profit was 2.41 billion euros, compared to last year’s 1.31 billion euros.
Adjusted EBITDA grew 7.8 percent from last year to 12 billion euros. Adjusted EBITDA AL, i.e., adjusted for the withdrawal from the leasing business, went up 8.5 percent to 10.48 billion euros.
Net revenue increased 8.8 percent to 28.98 billion euros from 26.64 billion euros last year. Excluding changes in exchange rates and the composition of the Group, net revenue was up 0.5 percent.
Service revenues increased 12.5 percent year-over-year to 23.6 billion euros.
In Germany, revenue from Telekom Deutschland increased 2.8 percent to 6.1 billion euros, and adjusted EBITDA AL went up 3 percent to 2.5 billion euros.
Service revenues at T-Mobile US increased 4.2 percent to $15.3 billion. Adjusted EBITDA AL declined 0.9 percent to $6.7 billion, while adjusted core EBITDA AL grew 5.4 percent to $6.4 billion.
In Germany, Deutsche Telekom shares were trading at 19.18 euros, down 2.7 percent.
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