Deutsche Telekom Nudges Up Guidance After Profit Rise

By Adria Calatayud

Deutsche Telekom nudged up its adjusted earnings guidance for 2023, citing high expectations for its business in Germany and Europe, and reported a rise in net profit for the second quarter.

The German telecommunications company said Thursday that it now expects adjusted earnings before interest, taxes, depreciation and amortization after leases--a closely watched profitability metric--for the full year to be about 41 billion euros ($44.99 billion). It had previously expected an adjusted Ebitda after leases of more than EUR40.9 billion.

For the second quarter, adjusted Ebitda after leases grew 1.5% to EUR10.04 billion, with rises across its key markets.

Net profit for the quarter was EUR1.54 billion euros compared with EUR1.46 billion in the same period last year.

Revenue was down 2.4% at EUR27.22 billion, due to the planned withdrawal from the terminal-equipment business in the U.S. On an organic basis, revenue from telecom services grew 3.2%, the company said.

Analysts had expected Deutsche Telekom to report quarterly adjusted Ebitda after leases of EUR10.02 billion on revenue of EUR27.33 billion, according to consensus estimates provided by the company.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

August 10, 2023 01:41 ET (05:41 GMT)

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