FRANKFURT (Reuters) – Deutsche Telekom <DTEGn.DE> on Thursday raised its outlook for the third time this year on the back of a strong performance at its U.S. unit T-Mobile <TMUS.O>, which is seeking the green light from regulators to take over Sprint Corp <S.N>.
Europe’s largest telecoms firm said it expected adjusted core profits to reach 23.6 billion euros (20.56 billion pounds) in 2018, up from 23.4 billion previously, and it nudged up its forecast for free cash flow to 6.3 billion euros.
“Things are looking up in all areas of the group,” said CEO Tim Hoettges. “That enables us to set the bar a fraction higher – it sends a very optimistic signal.”
Group revenues rose by 4.7 percent in the third quarter to 19.10 billion euros, beating average expectations of 18.85 billion euros in a poll of analysts commissioned by the company itself.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 8.5 percent to 6.21 billion euros, in line with market expectations. Performance on an organic basis was broadly similar as currency headwinds dropped out of the equation.
T-Mobile U.S., which accounts for nearly half of group revenues, led the way with revenue growth of 9 percent in the quarter. Its management said last week it still expects approval for the $26 billion deal with Sprint in the first half of 2019.
(Reporting by Douglas Busvine, editing by Riham Alkousaa and Maria Sheahan)