Telekom raises annual targets slightly
Deutsche Telekom is once again confident that it can achieve a little more in small steps this year. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization including leasing costs (EBITDA AL) are now expected to increase to around 41.1 billion euros, as the DAX-listed company announced in Bonn on Thursday. The free cash inflow should be more than 16.1 billion euros. Previously, the Executive Board had forecast 100 million euros less for both key figures. While analysts had expected a cash inflow of this magnitude anyway, the new forecast for operating profit is above consensus.
In the third quarter, Group revenue slipped by almost five percent to just under 27.6 billion euros. In addition to a change in leasing with end devices, exchange rate effects had a negative impact. In organic terms, turnover increased slightly. The situation is similar for adjusted organic profit including leasing costs (EBITDA AL), which stagnated at around 10.5 billion euros. At constant exchange rates, the increase was 6.2 percent. Telekom's operating profit exceeded market estimates, while revenue was in line with expectations. On balance, Telekom earned 1.9 billion euros after just under 1.6 billion in the previous year.
On Wednesday, the competitor Telefonica Deutschland had given the starting signal among the German telecom providers. The best new customer result in a quarter since the end of 2021 faded somewhat into the background: the Spanish Telefonica Group wants to take over its German subsidiary completely. United Internet subsidiary 1&1 will present its figures on Friday, while UK-based Vodafone, with its most important market Germany, will take its turn next Tuesday.
Telekom's quarterly EBITDA AL figures, which stagnated at around 10.5 billion euros, were slightly above market estimates, despite a slight decrease in organic revenue. With the release of Telekom's annual targets, investors will be interested in the company's expected quarterly figures for the remaining periods of the year.
Source: www.dpa.com
