Deutsche Telekom AG, Europe’s largest telecommunications operator, beat first quarter earnings estimates, as it expanded in its home market of Germany and posted record profit growth in Europe.
Adjusted earnings before interest, taxes, depreciation and amortization after leases rose 5.8% to €10.5 billion ($11.4 billion) in the first quarter, the carrier said in a statement on Thursday. That compared to an average €10.25 billion analyst consensus provided by Deutsche Telekom.
The Bonn-based mobile operator is benefiting from a strong position in its two main markets, Germany and the US, both of which are growing. In the US, Deutsche Telekom controls T-Mobile US Inc., which last month reported higher earnings per share in the first quarter than expected.
In Germany, total revenue rose to €6.3 billion in the period, while adjusted Ebitdaal grew 3.5% to €2.6 billion, as growth in branded mobile contract customers picked up and its MagentaTV service added users.
Deutsche Telekom’s Europe segment continued to grow, with organic adjusted Ebitdaal of €1.1 billion, up a record 8.1% in the period.
The company confirmed previous guidance that Ebitdaal will be around €42.9 billion in 2024.
Deutsche Telekom this week was bolstered by a German court victory against Meta Platforms Inc. that found the social media company needs to pay for data sent over the operator’s network. Deutsche Telekom has been at the forefront of a fight in the European Union to that argues Big Tech should help pay for internet infrastructure.
The company’s shares have risen 1.7% so far this year as of close on Wednesday in Frankfurt.