By Marleen Kaesebier and Maria Rugamer
-Deutsche Telekom reported second quarter core profit in line with analyst expectations on Thursday, citing continued growth in both Germany and the U.S., and edged up its full-year profit guidance.
The Germany-based telecoms giant reported second quarter adjusted earnings before interest, taxes and amortization after leases (EBITDA AL) of 11 billion euros ($13 billion), compared with the 10.95 billion euros expected by analysts in a company provided poll.
“We are again seeing sustained strong growth on both sides of the Atlantic throughout the second quarter,” Chief Executive Tim Hoettges said in a statement.
Telekom’s IT service provider unit, T-Systems, meanwhile saw an order entry increase of 20.5% from last year, particularly in road charging and digital areas, the company said.
The unit is at the forefront of a collaboration with Nvidia announced in June to establish an artificial intelligence cloud for European manufacturers in Germany.
Deutsche Telekom is also in the process of seeking European Union support to build an AI data processing centre in Germany.
The group slightly raised its core profit guidance for 2025 on Thursday, now expecting more than 45 billion euros, adjusted from around 45 billion euros expected before.
It also adjusted its free cash flow AL expectations for 2025, now expecting over 20 billion euros from around 20 billion euros.
The new guidance comes after its New York listed subsidiary T-Mobile US in July raised its annual forecast for postpaid net customer additions after adding more wireless subscribers than expected in the second quarter.
A local trader said that performance in the German home market, which saw revenues decline 1.3% from last year, was mixed, in part due to stronger competition.
Competitor Vodafone in July said it is close to returning to growth in Germany, its biggest market, after struggling with a German regulation change for selling cable television to apartments that seemed to benefit Deutsche Telekom.
Deutsche Telekom shares were seen down 0.7% in early Frankfurt trade at 0607 GMT.
($1 = 0.8566 euros)
(Reporting by Marleen Kaesebier and Maria Rugamer in Gdansk and Hakan Ersen in Frankfurt; Editing by Matt Scuffham)
