BERLIN (Reuters) - Deutsche Telekom (DE:DTEGn) raised its profit outlook for the second time this year and posted second-quarter revenue and earnings on Thursday that beat analyst expectations, even as a weaker dollar weighed on its reported numbers.
The Bonn-based telecoms group, whose operations span the United States, Europe and its German home market, now expects adjusted core profit to reach 37.2 billion euros ($43.7 billion)this year, up by 200 million euros from its previous view.
“Every area of the group saw an increase in results in the first half of the year, thus continuing the group’s growth story," CEO Tim Hoettges said in a statement.
Reported group revenue declined by 1.7% in the quarter and adjusted EBITDA after leases declined by 4.2%, but after accounting for one-off factors such as exchange rate moves, they were up 6.8% and 1.1% respectively on an organic basis.
Revenue, core profit and adjusted net profit all comfortably beat consensus estimates in a poll of analysts published by the company.
Deutsche Telekom's group performance has been lifted by strength at its U.S. unit T-Mobile, which has already published forecast-busting results and raised its outlook for net new subscribers.
The outlook raise came relatively soon after Deutsche Telekom set new mid-term targets in May, seeking to achieve growth in core profits of 3-5% per year through 2024, and annual increases in revenue of 1-2%. ($1 = 0.8517 euros)