Deutsche Telekom raises EBITDA, cash flow targets after return to growth in Q3

News General Germany 8 NOV 2018
Deutsche Telekom raises EBITDA, cash flow targets after return to growth in Q3

Deutsche Telekom reported a return to revenue growth in the third quarter and increased its outlook for full-year EBITDA and free cash flow. Revenues in Q3 rose 4.7 percent to EUR 19.1 billion, and adjusted EBITDA was up 8.5 percent to EUR 6.2 billion. 

CEO Tim Hoettges said "things are looking up in all areas of the group", allowing the company to "set the bar a bit higher". The German operator now targets annual adjusted EBITDA of EUR 23.6 billion, up from its forecast in August of EUR 23.4 billion, and a free cash flow of EUR 6.3 billion, versus previous guidance of EUR 6.2 billion. The improved outlook follows a similar increase in guidance at T-Mobile US. 

Free cash flow at Telekom was up 0.5 percent year-on-year to EUR 1.9 billion in Q3 and rose by 8.5 percent in the first nine months of the year to EUR 4.8 billion. Capex rose slightly in Q3 to EUR 3.1 billion in Q3, but was down 43.5 percent in the nine months to EUR 9.4 billion. Telekom's adjusted net profit reached EUR 1.3 billion in Q3, up 6.2 percent, and the result more than doubled on a reported basis after one-time charges in Q3 2017. 

The growth in Q3 came largely from T-Mobile US, where revenues rose 9.0 percent and adjusted EBITDA was up 16.5 percent in euros. The European activities also showed growth, with revenues increasing 3.4 percent and 5.5 percent growth in adjusted EBITDA. Only Germany posted weaker results, with a fall in revenue of 0.9 percent and adjusted EBITDA up just 2.1 percent. 

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