Deutsche Telekom, the German telecommunications company, has increased its adjusted earnings guidance for 2023, citing strong prospects for its business in Germany and Europe. The company also announced a rise in net profit for the second quarter.
Deutsche Telekom now expects its adjusted earnings before interest, taxes, depreciation, and amortization after leases (a key profitability metric) for the full year to be around €41 billion. This is slightly higher than its previous projection of over €40.9 billion.
In the second quarter, the company’s adjusted Ebitda after leases increased by 1.5% to €10.04 billion, with growth seen across its major markets. Net profit for the quarter stood at €1.54 billion, compared to €1.46 billion in the same period last year.
While revenue decreased by 2.4% to €27.22 billion, primarily due to the planned exit from the terminal-equipment business in the U.S., organic revenue from telecom services saw a growth of 3.2%.
Analysts had anticipated Deutsche Telekom to report quarterly adjusted Ebitda after leases of €10.02 billion on revenue of €27.33 billion, according to consensus estimates.