On Thursday, in a statement Deutsche Telekom said, it is revising its earnings guidance following an upbeat forecast in its third-quarter results, with its U.S. unit T-Mobile outperforming analysts’s average estimate.
The news of Deutsche Telekom upping the guidance of its core profit to $41.2 billion (35 billion euros) for this year comes ahead of a plan towards network integration in the United States.
“We are raising our guidance thanks to strong business on both sides of the Atlantic,” said CEO Tim Hoettges. “We are able to do this despite feeling the effects of the (coronavirus) pandemic in some areas.”
Bonn-based Deutsche Telekom said, it has raised its forecast for earnings before interest, taxation, depreciation and amortization after leases (EBITDA AL) for the year by 1 billion euros; it has tapered down its forecast for free cash flow by half a billion to 6 billion.
It reported a rise of 31.9% to 26.4 billion euros in its third quarter results, which beat an average forecast in a company poll of 17 analysts of 25.8 billion euros. Its EBITDA AL gained 49.6% to 9.7 billion euros.
After adjusting for the impact of T-Mobile’s $23 billion takeover of Sprint, which closed on April 1, organic revenue was up 2% and EBITDA AL by 10%.
($1 = 0.8496 euros)