German telecoms giant Deutsche Telekom reported better-than-expected second-quarter earnings, with the company revising its full-year guidance for the second time, thanks to strong performance by its US T-Mobile unit and the development of its European activities.
In particular, adjusted earnings before interest, taxes, depreciation and amortization after leases (EBITDA AL) rose to €9.9 billion, beating analysts’ consensus estimates for EBITDA AL of €9.84 billion.
The German telco’s second-quarter revenue rose 5.9% to 28.2 billion euros, in line with analysts’ consensus estimates.
For the full year, the company now expects adjusted EBITDA AL of €37 billion, up from the €36.6 billion it previously expected.
In business developments, Deutsche Telekom, as part of its €136 billion debt reduction effort, announced the sale of its telecommunications tower business to free up funds for infrastructure investment and to strengthen its stake in the US T -Mobile.
In particular, last month it agreed to sell 51% of this activity to the Canadian Brookfield consortium of the American DigitalBridge, valuing the unit at 17.5 billion euros.
Meanwhile, earlier this year, the German company increased its stake in T-Mobile by buying additional shares from Japanese conglomerate SoftBank for $2.4 billion, taking its stake in the US company to 48.4 %.
T-Mobile, which accounts for three-fifths of the group’s revenue, has gained subscribers since its merger with Sprint and the launch of 5G service.
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