Deutsche Telekom AG (OTCQX: DTEGY), Europe’s largest telecommunications operator according to Inside Towers Intelligence, increased profitability in 3Q24 through cost control and a strong operational performance in the U.S. and Germany, Bloomberg reported. For the company as a whole, Adjusted EBITDA after leases (EBITDAaL) rose 5.8 percent year-over-year to $11.7 billion in the quarter.
The Bonn, Germany-based telecom is outperforming its peers in Europe, according to Bloomberg. Contributions largely provided by its majority holding in T-Mobile US (NASDAQ: TMUS) which earlier presented strong subscriber growth in its 3Q24 results and raised its full year 2024 earnings guidance, Inside Towers reported. T-Mobile reported 3Q24 wireless service revenue of $16.7 billion, up 5.1 percent YoY.
DT CFO Christian Illek claimed its growth momentum “continues unabated on both sides of the Atlantic,” adding it had also reduced its debt ratio to 2.64x, below its target value in the period. DT’s stake in T-Mobile, along with cost-reduction initiatives, enabled the company to improve its cash flow, increase its dividend and invest in fiber network deployment, customer service and emerging technologies such as artificial intelligence.
In Germany, the carrier added 131,000 new fiber connections in the quarter, compared to 77,000 in 3Q23. Its mobile service revenue increased 2.1 percent YoY. For its operating segment covering the rest of Europe, DT highlighted increased momentum on converged plans along with high TV net adds in Greece, with the latter attributed to an “attractive portfolio of sports broadcasting rights.”
Across the Group, DT’s service revenue was up 3.7 percent YoY to $24.4 billion with net profit up 53.7 percent to $3.2 billion. “In view of the positive development of business both at T-Mobile US and in business outside of the United States, the group has raised its full-year guidance,” the company noted.
DT now expects its 2024 Adjusted EBITDAaL to come in at $45 billion and anticipates the same metric to grow by 4 percent to 6 percent a year through 2027, DT CEO Tim Höttges told investors at its capital markets day last month, Mobile World Live reported.
By John Celentano, Inside Towers Business Editor
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