(Reuters) – Deutsche Telekom reported quarterly core profit and revenue above market estimates on Friday, boosted by its U.S. unit, T-Mobile, along with growth in its European business, and lifted its full-year outlook.
Adjusted earnings before interest, tax, depreciation and amortisation after leases (EBITDA AL) stood at 9.87 billion euros ($10.26 billion), beating consensus estimates of 9.55 billion euros in a poll of analysts published consensus by the company.
The telecoms operator’s first-quarter revenue increased by 6.2% to 28 billion euros, just above consensus estimates of 27.87 billion euros.
“This was a strong start to the new year,” CFO Christian Illek said in a statement. “We are continuing to grow on an organic basis and are therefore in a position to raise our guidance for 2022.”
The company now expects to post adjusted EBITDA AL of more than 36.6 billion euros in 2022, up from the previous guidance of around 36.5 billion euros.
Last month, Deutsche Telekom bought additional shares in T-Mobile from SoftBank for $2.4 billion, raising its stake in the U.S. company to 48.4% and within touching distance of a majority stake.
T-Mobile, which accounts for three-fifths of group revenue, has been gaining subscribers following its merger with Sprint and as it rolls out its 5G service.
In the latest quarter, T-Mobile added 1.3 million customers who pay their bills monthly, lifting its subscriber base to 109.5 million customers.
Deutsche Telekom reported 54 million mobile customers in Germany and 45.6 million in rest of Europe.
($1 = 0.9623 euros)
(Reporing by Supantha Mukherjee and Paul Carrel, editing by Kirsti Knolle and Uttaresh.V)