Deutsche Telekom raised its annual targets on Thursday after posting a sharp rise in second-quarter profits stemming from its US subsidiary.
The German operator is now expecting an adjusted operating profit of “more than 37.2 billion euros” instead of “more than 37 billion euros”.
The German operator expects an adjusted operating profit of “more than 37.2 billion euros” as opposed to “more than 37 billion euros” previously. In a statement released Thursday, he said the company is now targeting an adjusted operating profit of “more than 37.2 billion euros”, up from “more than 37 billion euros” previously. The group has raised its targets a second time this year.
The strong growth in its results in the second quarter contributed to this increase. Deutsche Telekom has seen a significant increase in its net profit, up nearly 150% to 1.9 billion euros. Adjusted operating profit (EBITDA AL) rose to 9.4 billion euros (+1.1%). Lastly, its turnover increased by 6.8% year over year.
“All of the group’s sectors have seen an increase in results in the first half of the year,” said Tim Höttges, CEO of the group.
T-Mobile, the American subsidiary of Deutsche Telekom, contributed particularly well to these results. Adjusted operating profit (EBITDA) of this division increased by 7.7%. Its sales have been boosted for several months by the acquisition of Sprint in 2020.
5G and fiber optics
The group, thanks to this transaction last year, surpassed €100 billion in annual revenue for the first time. As of June 31, T-Mobile US had 104.8 million customers, up 6.5 million from the same period last year, the company reports.
Despite the massive adverse impact of last year’s Covid-19 that negatively affected roaming in Germany, the group’s revenues have grown by 2% thanks to a base effect. Additionally, Deutsche Telekom has been investing heavily in the construction of 5G networks and the expansion of fiber optics across the country.
The number of fiber connections stood at 16.6 million at the end of June, up 291,000 from the previous quarter, the report said.