Deutsche Telekom’s full-year revenue climbs to £87.88 billion in 2020

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Feb 26, 2021
  • Deutsche Telekom’s full-year revenue climbs to £87.88 billion in 2020.
  • The telecommunications company reports £1.45 billion of net profit in Q4.
  • Deutsche forecasts £32.19 billion of adjusted EBITDA after leases in 2021.

Deutsche Telekom AG (ETR: DTE) said on Friday that its fourth-quarter net profit came in better than last year as revenue soared in recent months, despite the ongoing Coronavirus pandemic that weighed on roaming revenues. The COVID-19 crisis has so far infected more than 2.4 million people in Germany and caused over 70 thousand deaths.

Deutsche Telekom opened at a per-share price of £12.98 on Friday and is currently exchanging hands at £13.02 per share after touching an intraday high of £13.16 per share. The stock had started the year at £13.19 per share. The price action should come in handy if you are interested in investing in the stock market.

Deutsche Telekom reports £1.45 billion of net profit in Q4

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Deutsche Telekom said that its net profit in Q4 printed at £1.45 billion. In the same quarter last year, its net profit stood at a much lower £569.03 million. Chief Executive Tim Hoettges commented on the financial update on Friday and said:

“We made history in 2020. We added a substantial and important chapter to Deutsche Telekom’s story.”

The telecommunications company said that its earnings before interest, taxes, depreciation, and amortisation (EBITDA) on an adjusted basis after leases registered at £7.79 billion in the recent quarter versus the year-ago figure of £5.25 billion.

In separate news from Europe, Jupiter Fund Management said on Friday that its assets hit a record £58.70 billion in 2020, despite outflows.

Deutsche Telekom’s quarterly revenue comes in at £24.03 billion

Deutsche Telekom reported £24.03 billion of revenue in the fourth quarter. In Q4 of 2019, its revenue was capped at a lower £18.58 billion. For the full financial year, the German company recorded £87.88 billion of revenue versus £70.07 billion in 2019. Deutsche Telekom attributed the increase in its annual revenue to the acquisition of the U.S.-based Sprint Corporation.

For 2021, the Bonn-based firm now forecasts close to £32.19 billion of adjusted EBITDA after leases. Free cash flow after leases, as per Deutsche Telekom, is expected around £6.96 billion. In the prior quarter (Q3), the German telecommunications company had noted £23.76 billion of revenue, as per the report published in November.

Deutsche Telekom remained almost flat on average in the stock market last year with an annual gain of roughly 2.5%. At the time of writing, it is valued at £62 billion and has a price to earnings ratio of 22.59.

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