Deutsche Telekom has again raised its full-year outlook, after reporting solid growth in Q3 results, led by its activities in the US. Revenues rose 0.8 percent to EUR 18.3 billion, and adjusted EBITDA was up 3.3 percent to EUR 5.7 billion. On an organic basis, excluding notably the impact of the weaker dollar, revenues increased 3.3 percent and EBITDA 5.7 percent.
The company's revenue growth notably slowed compared to around 6 percent in the first half. The German operations grew by just 0.1 percent to EUR 5.5 billion, the US was up 2.2 percent to EUR 8.5 billion, and the rest of Europe grew by 1.6 percent to EUR 2.9 billion.
For the full year, the German operator now expects adjusted EBITDA of EUR 22.4-22.5 billion, versus EUR 21.4 billion in 2016. That compares to a forecast at the start of the year of EUR 22.2 billion and an outlook in August of EUR 22.3 billion. The guidance for free cash flow is unchanged at around EUR 5.5 billion.
In the past quarter, free cash flow was up 1.6 percent to EUR 1.9 billion. Cash capital expenditure increased 9.6 percent to over EUR 3 billion.
Net profit fell 51.9 percent to EUR 0.5 billion, hurt by an impairment on goodwill at T-Systems of EUR 1.2 billion. The company also booked a one-time valuation gain of EUR 0.7 billion on its US mobile spectrum licences. Excluding the one-time items, adjusted net profit rose 19.6 percent to EUR 1.2 billion.
