DT Continues Growth and Once Again Raises Full-Year Guidance

Deutsche Telekom continued its stable growth course. Net revenue increased by 8.8 percent year-on-year in the third quarter of 2022 to €29 billion.

Even higher was the growth in service revenues, which increased by 12.5 percent to €23.6 billion. Adjusted EBITDA AL increased by 8.5 percent in the same period to €10.5 billion. The strong appreciation in the U.S. dollar of around 17 cents had a significant effect on the reported figures. This resulted in lower levels of growth on an organic basis: Excluding changes in exchange rates and the composition of the Group, net revenue was up 0.5 percent, service revenues 3.4 percent, and adjusted EBITDA AL 0.7 percent.

“We are once again proving to be an anchor of stability in difficult times,“ said Tim Höttges, CEO of Deutsche Telekom. “Our businesses continue to grow. That puts us in a position to raise not only our guidance - for the third time this year - but also our dividend.“

Free cash flow AL was down slightly year-on-year in the third quarter at €2.9 billion. During the same period, the capital expenditure of the Group excluding expenses for mobile spectrum totaled €5.6 billion worldwide, an increase of 28.0 percent against the prior-year period. At €1.6 billion, net profit was up 77.5 percent on the prior-year quarter. Adjusted for special factors, net profit even increased by 83.6 percent to €2.4 billion.

For the third time in the current financial year, DT has raised its guidance. In organic terms, adjusted EBITDA AL is now expected to come in at more than €37.0 billion, up from the previous guidance of around €37.0 billion. Adjusted core EBITDA AL, i.e., adjusted for the effects of the withdrawal from the terminal equipment lease business in the US, is now expected to total more than €35.9 billion, up from previously around €35.9 billion. Adjusted earnings per share are now expected to reach more than €1.50. The original guidance was over €1.25.

Against the background of the results of the first nine months of 2022, the Board of Management plans to pay out a dividend of €0.70 per share, subject to the approval of the Supervisory Board and the shareholders’ meeting. A dividend of €0.64 per share had been paid out for the 2021 financial year.