Deutsche Telekom says its revenue climbed to £23.76 billion in fiscal Q3
- Deutsche Telekom says its revenue climbed to £23.76 billion in the third quarter.
- The telecommunications company reports £735.43 million of net profit in Q3.
- Deutsche now forecasts £31.51 billion of adjusted EBITDA after leases in fiscal 2020.
In a report on Thursday, Deutsche Telekom AG (ETR: DTE) said that its revenue in the fiscal third quarter came in higher than last year. The company attributed its hawkish performance to a successful merger of T-Mobile US and Sprint Corporation. Deutsche also said that growth remained robust in Europe as it raised its annual guidance on Thursday.
Shares of the company closed flat on Thursday. Deutsche Telekom is now exchanging hands at £13.54 per share versus a slightly lower £13.15 per share at the start of the year. In March, the COVID-19 disruptions had pushed the stock down to £9.75 per share. Learn more about the financial analysis of a company.
Deutsche Telekom reports £735.43 million of net profit
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The telecommunications company reported £23.76 billion of revenue in the third quarter. In comparison, its revenue was capped at a much lower £18.02 billion in the same quarter last year. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), Deutsche added, jumped to £8.72 billion in the recent quarter versus the year-ago figure of £5.83 billion.
The German firm said that its net profit in the fiscal third quarter stood at £735.43 million. In the comparable quarter of last year, it had registered £1.23 billion of net profit. Germany’s E.ON also said earlier this week that its profit slid to £550.86 million in the fiscal third quarter.
For the full fiscal 2020, Deutsche now forecasts £31.51 billion of adjusted EBITDA after leases. In its previous estimate, it had estimated a lower £30.61 billion of adjusted EBITDA instead.
CEO Tim Hoettges’ remarks on Thursday
CEO Tim Hoettges commented on the financial report on Thursday and said:
“We are raising our guidance thanks to strong business on both sides of the Atlantic. And we are able to do this despite feeling the effects of the pandemic in some areas.”
The COVID-19 crisis has so far infected a little under 0.75 million people in Germany and caused nearly 22 thousand deaths. In separate news from Germany, science and technology company, The Merck Group, also raised its full-year guidance on Thursday on the back of strong sales of new drugs.
Deutsche Telekom closed almost flat on average in the stock market last year. At the time of writing, the German telecommunications company has a market cap of £64.16 billion and a price to earnings ratio of 19.32.