Deutsche Telekom raised its guidance for the third time in 2023 as it reported a year-on-year net income increase of more than 20 per cent in Q3, largely due to a reduction in integration costs incurred from its US unit’s tie-up with Sprint.

For the full year, the company predicts adjusted EBITDA-AL of around €41.1 billion and free cash flow of more than €16.1 billion, an increase of €100 million in both cases from its forecast in mid-2023.

Last week, it also announced plans to invest €2 billion in a share buyback scheme and raise its annual dividend to €0.77 per share, from €0.70 in 2022.

Net income rose 21.9 per cent to €1.9 billion in Q3, reflecting “positive development of earnings from operations” and the T-Mobile US, Sprint factor, Deutsche Telekom stated.

Revenue fell 4.9 per cent to €27.6 billion, mainly because of currency headwinds.

In Germany, it booked a 2.7 per cent revenue increase to €6.3 billion and Europe was up 5.2 per cent to €3 billion.

IT services division T-Systems’ revenue rose 3.6 per cent to €960 million.

US revenue fell 8.7 per cent to €17.6 billion (1.2 per cent in local currency to $19.2 billion), although T-Mobile US did beat rivals in net post-paid phone additions, which amounted to 850,000.

Deutsche Telekom CEO Timotheus Hoettges said it continues to grow “unabated on both sides of the Atlantic”, despite uncertain times.