Berlin Deutsche Telekom is not afraid of the global economic slowdown and is raising its outlook again. “We are continuing to grow in a difficult economic environment,” company CEO Tim Höttges said on Thursday, adding: “Our investments are paying off.“ The Bonn-based Dax Group now expects an adjusted operating result (Ebitda AL) of around EUR 37 billion for 2022. So far, it has been more than 36.6 billion euros.
This is the second time this year that Deutsche Telekom has raised the bar in its forecast. This follows the US subsidiary T-Mobile US, which is extremely important for the business and has already increased its outlook.
In the second quarter, Ebitda AL from Bonn climbed by five percent to EUR 9.9 billion. Sales increased by 5.9 percent to 28.2 billion euros, but stagnated organically due to the strong dollar and consolidation effects. This was in line with the expectations of analysts, who had expected an average of 28.23 billion euros. The company slightly exceeded estimates in adjusted Ebitda AL.
In July, Deutsche Telekom announced the sale of the majority of its radio tower business for 10.7 billion euros to the two North American investors Brookfield Asset Management from Canada and DigitalBridge from Florida. The transaction is expected to close in 2022. At the end of the quarter, GD Towers’ radio tower business comprised 40,700 locations and generated EUR 285 million from April to June.
Adjusted Ebitda AL increased by 7.2 percent to EUR 174 million. Deutsche Telekom also intends to use the proceeds from the sale to finance the acquisition of the majority stake in T-Mobile US. It is expected that the people of Bonn will soon buy more shares from the Japanese technology investor Softbank in order to finally achieve this goal.