Deutsche Telekom Net Profit Rises as Revenue Beats Market Expectations

By Najat Kantouar

Deutsche Telekom said second-quarter net profit rose on revenue that beat market expectations after strong growth in its core markets.

The German telecommunications said Thursday that net profit for the period jumped to 2.09 billion euros ($2.28 billion) from EUR1.54 billion for the same period a year earlier.

Adjusted earnings before interest, taxes, depreciation and amortization after leases--a closely watched profitability metric--rose to EUR10.82 billion from EUR10.04 billion, ahead of a company-provided consensus estimate of EUR10.77 billion.

Revenue rose 4.3% on organic basis to EUR28.39 billion, beating consensus of EUR27.94 billion. Group service revenue rose 4.9% to EUR24.09 billion.

Germany revenue increased 3.6% to EUR6.37 billion, driven by strong customer growth. U.S. revenue rose 4.1% to EUR18.28 billion, with the region reaching a milestone of more than 100 million postpaid customers, Deutsche Telekom said. Europe revenue grew 6% to EUR3.07 billion, with profit growth at a record level.

Deutsche Telekom raised its full-year guidance for free cash flow after leases to EUR19.0 billion, up from its previous target of around EUR18.9 billion. The group maintained its 2024 outlook for adjusted Ebitdaal of around EUR42.9 billion, and adjusted earnings per share to be more than EUR1.75.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

August 08, 2024 01:36 ET (05:36 GMT)

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