Deutsche Telekom’s share price slumps despite staying on target for full year numbers
A strong performance in the US has failed to prop up German carrier Deutsche Telekom's share price this morning.
Revenue and profits managed to beat estimates, with adjusted earnings climbing to €5.16bn (£4.1bn), against analyst expectations of €5.1bn and up 12.9 per cent year-on-year.
Sales rose by 4.7 per cent to €17.6bn, versus analysts’ estimates of €17.5bn. The company also said it was on track for its full-year targets.
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In the US however Deutsche's T-Mobile brand adjusted earnings before interest, taxes, depreciation and amortisation rose to $2.1bn, up 53.5 per cent year-on-year.
Investors were unimpressed though, sending the company's share price down by 1.6 per cent by mid-morning trading in Frankfurt.
Quarterly net profit rose to €3.13bn from €787m the year before. Note that figure includes a one-time gain of €2.5bn from the EE sale to BT.
In the US T-Mobile added more than one million monthly users over the last quarter, its seventh straight quarterly increase and increased growth expectations.
In Europe sales slumped by 2.4 per cent however to €3.1bn. The company’s European segment lost 529,000 mobile customers, weighed down by the struggling T-Mobile Netherlands unit.
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In Germany Deutsche Telekom added 660,000 fiber-optic lines, 363,000 of which were for branded customers and 297,000 for its wholesale business.
Sales in its core German market fell 2.5 per cent on the back of sliding mobile service revenue.
Back in January Deutsche Telekom picked up a 12 per cent stake in BT following the sale if its joint venture with French Orange SA, EE.