Deutsche Telekom lifts 2023 guidance slightly again

August 15, 2023

By Maria Sheahan

BERLIN (Reuters) – Deutsche Telekom slightly lifted its 2023 operating profit target a second time on Thursday, boosted by its U.S. business T-Mobile US, which raised its outlook for customer growth two weeks ago.

The U.S. wireless carrier has been benefiting from cost-conscious customers flocking to its cheaper plans and superior 5G services in a highly competitive market, helping it top Wall Street expectations for quarterly wireless subscriber additions.

Bonn-based parent Telekom said it now expects adjusted earnings before interest, taxes, depreciation and amortization after leases (EBITDA AL) to reach around 41 billion euros ($45.03 billion) this year, compared with previous guidance for about 40.9 billion.

Deutsche Telekom lifts 2023 guidance slightly again — The logo of Deutsche Telekom is pictured at the GSMA’s 2023 Mobile World Congress (MWC) in Barcelona, Spain February 28, 2023. REUTERS/Nacho Doce/File Photo

The group reported second-quarter EBITDA AL that rose 1.5% year-on-year to 10.04 billion euros, a tad above analyst consensus for 10.02 billion.

Revenues slipped by 2.4% to 27.2 billion euros, slightly below consensus for 27.3 billion, as it withdrew from the terminal equipment business in the U.S. following its takeover of rival Sprint in 2020.

($1 = 0.9106 euros)