Deutsche Telekom (DTE) raises guidance, ups dividend
By Jenni Reid
Deutsche Telekom (DTE) stock was given a boost on Friday morning as the company hiked its full-year earnings guidance for the third time this year, and announced plans to raise its dividend.
In its third-quarter results, Deutsche Telekom said it now expected full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) of €38bn and free cash flow of €8.5bn, up from the forecasts of €37.2bn and €8bn it made in August.
It added that, subject to approval, the board planned a dividend of €0.64 per share, up from €0.60 in the 2020 financial year.
The company was among the top performers on the DAX index Friday morning, with its share price up 2.41% to €17.10 at 11:30 CEST.
Third-quarter net revenue was up by 2.15 in organic terms to €26.9bn, though net profit adjusted for special factors fell 13% to €1.3bn.
Growth was partly driven by T-Mobile US, in which the company has a 48.4% stake. The business added 1.3 million customers between July and September, more than any other US network, putting its customer base six million higher than a year earlier.
Adjusted EBITDA at Telekom Deutschland was up 3.9% year-on-year to €2.5bn, with 90,000 broadband customers added over the period and increased revenue from mobile communications.
Meanwhile an increase in travel over the summer meant revenue from roaming increased 1.2% to €2.9bn.
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“Our businesses are performing even better than expected,” said Deutsche Telekom chief executive Timotheus Höttges.
“Following strong figures in the first nine months, we are setting the bar for 2021 a little higher.”
Revenue and adjusted EBITDA were also higher at T-Mobile Netherlands, which Deutsche Telekom is in the process of selling to two private equity firms for €5.1bn.