German incumbent reports modest rise in Q3; net profit hit by T-Systems impairment

Deutsche Telekom on Thursday again raised its full-year EBITDA guidance thanks largely to another strong third quarter performance by its T-Mobile US unit.

However, the German incumbent’s group revenue growth was modest, and net profit was hit by an impairment at its T-Systems division.

For the three months to 30 September, Deutsche Telekom generated revenue of €18.25 billion, up just 0.8% from a year ago, while adjusted EBITDA was up 3.3% to €5.72 billion. Net profit fell 51.9% to €507 million, due to a €1.2 billion impairment at T-Systems, which struggled with low order entry.

As has become the norm, T-Mobile US was the highlight, with Deutsche Telekom booking revenue of €8.47 billion from T-Mobile US during the third quarter, compared to €8.28 billion a year earlier.

Revenue in Germany was flat at €5.49 billion, while in the rest of Europe, revenue grew 1.6% year-on-year to €2.95 billion.

"Deutsche Telekom continues to post strong growth, which is why we are upgrading our forecast for the second time this year," said Tim Höttges, CEO of Deutsche Telekom, in a statement. "This was made possible by our booming U.S. business, our strong performance in Germany, and the positive trends in our European subsidiaries."

In August, Deutsche Telekom raised its full-year adjusted EBITDA forecast to €22.3 billion from €22.2 billion. On Thursday, it raised the forecast to €22.4 billion-€22.5 billion.