BERLIN (Reuters) -Deutsche Telekom on Thursday raised its medium-term core profit outlook to 3%-5% growth per year through 2024, while maintaining an annual revenue forecast of 1%-2% increase.
Adjusted earnings per share are expected to rise to more than 1.75 euros ($2.13) by 2024, compared to 1.20 euros in 2020, the Bonn-based telecoms group, with operations in Europe and the United States, said ahead of a two-day strategy presentation.
Management would propose a divided of 40-60% of adjusted earnings per share, subject to a floor of 0.60 euros that was introduced in November 2019, after U.S. unit T-Mobile agreed to take over smaller rival Sprint.
"We step up our efforts," said Chief Executive Officer Tim Hoettges, after raising the target for profit growth from a range of 2-4% set at Deutsche Telekom (DE:DTEGn)'s last strategy update in 2018.
"We want to outperform the strong development of the last few years and lead the Group into the future with sustainable growth."
At the mid point, Deutsche Telekom's forecast for adjusted earnings before interest, tax, depreciation and ammortisation (EBITDA) after leases comes to 41 billion euros in 2024, according a Reuters calculation, compared to consensus forecasts of 42.3 billion euros in a company poll https://www.telekom.com/de/investor-relations/finanzpublikationen/consensus of analysts.
The company forecast free cash flow after leases of more than 18 billion euros in 2024, compared to a consensus view of 16.8 billion euros.
Setting out its priorities, Deutsche Telekom said it would increase the number of households in its European markets using 'converged' product packages, spanning fixed and mobile to more than 10 million over the next three years.
It would also increase its pure fibre-optic network coverage in Germany to 60% by 2030 from the current 5%, while its 5G mobile network would cover 97% of the population by 2030.
($1 = 0.8210 euros)