Deutsche Telekom Raises 2020 Guidance; 2Q Revenue Boosted by Sprint

By Ian Walker

Deutsche Telekom AG on Thursday raised its guidance for the year as it reported a fall in second-quarter net income due to higher costs, and despite revenue rising thanks to the inclusion of Sprint.

The German telecommunications company said it now expects to report adjusted earnings before earnings before interest, taxes, depreciation and amortization after leases of about 34 billion euros ($40.1 billion) compared with previous guidance of EUR25.5 billion. The increase is to reflect the merger of T-Mobile and Sprint, which was concluded April 1.

Quarterly net profit fell to EUR754 million from EUR944 million for the second quarter of 2019.

Adjusted Ebitda after leases--a metric that measures operating earnings performance accounting for the adoption of IFRS 16--rose to EUR9.83 billion from EUR6.28 billion and compared with forecasts of EUR8.92 billion, taken from the company's website and based on 15 analysts' estimates.

Revenue for the period was EUR27.04 billion compared with EUR19.66 billion for the second quarter of 2019.

The company said the coronavirus pandemic continued to have a limited impact on the business during the quarter, and was mainly felt in the corporate customer business and mobile-roaming revenues due to travel restrictions.

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(END) Dow Jones Newswires

August 13, 2020 01:37 ET (05:37 GMT)

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