Deutsche Telekom raised its 2021 outlook once again following a stellar third quarter, as it was boosted by its ever-consistent T-Mobile US business and growth in Europe.
In an earnings statement, the company said it had raised its guidance for the third time, now expecting to report adjusted core profit of around €38 billion, up from its previous guidance of €37.2 billion.
Free cash flow is also expected to increase, up by €500 million from a previous forecast of €8 billion.
The Germany-based operator said both T-Mobile US and its wider business contributed to the raised guidance, as the company saw strength across its most recent quarter.
Revenue increased 1.8 per cent year-on-year to €28.9 billion, with net profit up 8.8 per cent to €889 million for the period, with CEO Timotheus Hoettges stating its businesses were “performing even better than expected”.
“Following strong figures in the first nine months, we are setting the bar for 2021 a little higher,” he added.
Breaking out revenue, home market Germany increased 2.5 per cent to €6 billion, which it put down to “sustained customer growth”, with increases in broadband customers and a rise in mobile service numbers.
Roaming across Europe also picked up, with revenue up 1.2 per cent to €2.9 billion, due to “revitalised tourist traffic” following a relaxation of pandemic related restrictions.
In the US, revenue increased 2.3 per cent to $19.8 billion, following another quarter of customer growth of 1.3 million.
The company said it was also still reporting on the development of its business in the Netherlands until its deal to sell off the unit to a consortium of private equity funds closed. Revenue for the unit increased 3.9 per cent to €515 million.Subscribe to our daily newsletter Back