Deutsche Telekom AG (DE: DTE), one of Europe’s largest telecommunications operators, reported increased profitability in the second quarter of 2024, driven by robust subscriber growth in the U.S. and steady performance in Germany. The company announced that its adjusted earnings before interest, taxes, depreciation, and amortization after leases (EBITDAal) rose by 7.8 percent from the previous year, reaching $11.8 billion, surpassing analysts’ expectations of $11.6 billion.
The Bonn, Germany-based company has outperformed its European peers, largely due to its majority stake in T-Mobile US (NASDAQ: TMUS), which reported stronger-than-expected subscriber growth in the second quarter. While many European telecom operators are focused on cost-cutting and exiting underperforming markets, Deutsche Telekom has continued to show resilience and growth.
In Germany, the company’s adjusted EBITDAal increased by one percent to $2.8 billion, despite a one-time inflation-related payment to employees, which had a negative impact. However, this was partially offset by an increase in mobile and fiber optic subscribers. According to CFO Christian Illek, without the one-off payment, the company’s growth would have been around three percent for the quarter.
Following the earnings report, Deutsche Telekom’s shares rose by 2.5 percent to $26.75 in Frankfurt, continuing an upward trend that has seen the stock gain approximately 10 percent this year.
Reader Interactions