Deutsche Telekom raised its outlook for the second time this year following a second quarter in which net profit surged, although a weaker dollar weighed on its group revenue.
In an earnings statement, the operator predicted core profit would hit more than €37.2 billion for the full year, €200 million higher than forecast in May when it first raised its guidance.
Its forecast for free cash flow remained unchanged at more than €8 billion.
For Q2, net profit rose 65.3 per cent year-on-year to €2.1 billion, with the company boosted by a familiar story of strong growth in the US, along with gains in Europe. Group revenue fell 1.7 per cent to €26.6 billion, mainly due to currency fluctuations, specifically a weaker US dollar.
Its T-Mobile US unit, which reported its results separately, was again a standout, with Deutsche Telekom stating it “continues to set the benchmark” in North America, as its customer base increased 6.5 million and revenue rose 10 per cent per cent to $20 billion.
Sales in Germany were flat at €5.9 billion, though it highlighted growth in broadband and mobile service revenue, and a gradual roaming improvement improving.
Its wider Europe segment “accelerated”, with 4 per cent revenue growth to €2.8 billion, put down to a slight increase in travel activity and moderate recovery in roaming revenue.
T-Mobile Netherlands, which was this week rumoured to be an acquisition target for India’s Reliance Industries, reported revenue of €506 million, up 2.7 per cent.
Deutsche Telekom CEO Timotheus Hottges said “every area of the group saw an increase in results in the first half of the year, thus continuing the group’s growth story”.Subscribe to our daily newsletter Back