The head of the Dax group has focused the company heavily on business in the USA.
(Photo: Getty Images)
Dusseldorf In the third quarter of this year, Deutsche Telekom posted revenues of around EUR 26.9 billion. Analysts had expected 27.15 billion euros. The Dax group’s share rose by more than one percent before the IPO. The reason for this is the profit: The adjusted operating result excluding leasing expenses (Ebitda AL) rose only slightly to around 9.7 billion euros, but was above the analysts’ estimates of an average of 9.35 billion euros.
The fact that the forecast for the current year has been raised is also positive for the shareholders. The Ebitda AL should then amount to around 38 billion euros, previously at least 37.2 billion euros were expected. The free cash flow AL also increased in the first three quarters of 2021 from 5.3 billion euros in the same period of 2020 to 8.3 billion euros. The expectation for the free cash flow AL was raised from at least 8.0 billion euros to around 8.5 billion euros.
It is the third time this year that Telekom has raised its forecast. The Bonn-based group is also increasing its dividend for 2021 by four cents to 64 cents per share.
Deutsche Telekom is more dependent than ever on its US subsidiary T-Mobile. The Americans contribute more than half of the turnover and more than half of the operating result to the balance sheet of the Dax group.
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In the United States, things have recently been mixed for Telekom. Since July, T-Mobile US has lost around 14 percent of its valuation on the stock exchange. The net profit had slumped in the past quarter by almost 45 percent to 691 million dollars (597 million euros).
The merger with Sprint had cost $ 707 million
The main reason for this was a $ 707 million cost from the merger with rival Sprint. Analysts feared even higher costs. However, sales remained below Wall Street’s expectations with an increase of two percent to $ 19.6 billion.
Nevertheless, T-Mobile boss Mike Sievert had raised the forecast for the third time this year two weeks ago. The CEO now anticipates even higher adjusted operating profit and customer growth in 2021. In addition, T-Mobile expects potential cost reductions between 3.2 billion and 3.5 billion dollars in the current fiscal year through the merger with Sprint. Previously, the forecast was between $ 2.9 billion and $ 3.2 billion.
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