Deutsche Telekom reported third-quarter revenues up 0.8 percent year-on-year to EUR 15.6 billion, helped by a strong performance at T-Mobile US. Revenue in the US rose 8.7 percent, while Germany was down 1.5 percent and the rest of Europe fell 3.6 percent. The group’s adjusted EBITDA fell 1.8 percent to EUR 4.6 billion due to higher spending for customer growth in Germany and the US. Adjusted net profit was down 2.8 percent to EUR 800 million and fell 13.9 percent on a reported basis due to proceeds from the sale of the Bulgarian subsidiary in the year-earlier period.
CEO Tim Hoettges said the operator still faced some regional challenges but the group had a very successful quarter, with for the first time over 60 percent of revenue generated outside Germany. The group increased capital expenditure 10.3 percent to EUR 2.5 billion excluding licences and spectrum. Free cash flow subsequently fell 21.2 percent to EUR 1.1 billion. This is still in line with Deutsche Telekom’s guidance for EUR 4.2 billion in cash flow over the full year, after EUR 3.2 billion in the first nine months. The company also maintained its EBITDA guidance at EUR 17.6 billion.