Deutsche Telekom just exceeded forecasts on Thursday (May 16), reporting first-quarter adjusted core earnings of 10.5 billion euros (S$15.35 billion), with European growth a stand-out.
The result was slightly above a company compiled consensus forecast of 10.25 billion euros, with the German telecoms operator pointing to growth in all of its operating segments.
It said it had achieved a record growth in earnings before interest, taxes, depreciation and amortisation after leases (Ebitda al) of 8.1 per cent in Europe, while the US was up 6.1 per cent and Germany up 3.5 per cent from the same period last year.
Telekom said its European business grew for the 25th consecutive quarter and was supported by strong service revenues in both its fixed network and mobile networks.
Telekom’s MagentaTV, which will be streaming all Euro 2024 soccer games as its official partner, increased its customer base by 73,000 to 4.4 million, supporting revenues in the company’s German operating segment.
This comes ahead of a German regulation that will prevent landlords from including TV services in housing rental contracts from July. Vodafone expects to lose about half of its 8.5 million households affected by the change, benefiting competitors such as Telekom.
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The German company confirmed its forecast for 2024 outside the United States. Its US subsidiary T-Mobile US, which brings in about two-thirds of Telekom’s revenue, had raised its forecast in April. REUTERS
