Deutsche Telekom Q1 Results: Key Details

Deutsche Telekom recently released its results for the first quarter. Here are the important points you should know:

Revenue

• Net revenue for the second quarter totaled 27.22 billion euros ($29.87 billion).
• Consensus estimates provided by the company had expected revenue to reach EUR27.33 billion.
• This figure is slightly lower than the net revenue of EUR27.89 billion achieved in the same period last year.

Adjusted EBITDA

• Deutsche Telekom's adjusted earnings before interest, taxes, depreciation, and amortization after leases (EBITDA) for the quarter amounted to EUR10.04 billion.
• Analysts had anticipated adjusted EBITDA to be EUR10.02 billion, according to the company-provided consensus.
• In comparison, adjusted EBITDA after leases in the year-earlier period stood at EUR9.89 billion.

Key Factors to Watch

Guidance

• Deutsche Telekom has revised its guidance for 2023 adjusted EBITDA after leases for the second time this year.
• The company now expects adjusted EBITDA after leases to be approximately EUR41 billion, up from the previous forecast of EUR40.9 billion.
• The upgrade in guidance is based on improved expectations for the company's operations in Germany and Europe.

U.S. Plans

• There is currently no update on whether Deutsche Telekom intends to participate in T-Mobile US's buyback program by selling its shares in the U.S. business.
• According to analysts from Citi, it is expected that Deutsche Telekom will participate in T-Mobile US's buyback program starting from October.
• Participation in the program would enable Deutsche Telekom to repatriate cash flows from the U.S. and reduce debt in the coming years.