- Deutsche Telekom has raised its full-year forecast for free cash flow after leases to approximately €19 billion, up from around €18.9 billion. The estimate was €17.4 billion.
- Adjusted EBITDA after leases is expected to remain around €42.9 billion, close to the estimate of €43.02 billion.
- Adjusted EPS is projected to be above €1.75, slightly above the estimate of €1.81.
- Second Quarter Results:
- Adjusted EBITDA after leases for Q2 stood at €10.82 billion, a 7.8% year-over-year increase, surpassing the estimate of €10.74 billion.
- In Germany, adjusted EBITDA after leases was €2.55 billion, a 1% year-over-year increase, matching the estimate of €2.55 billion.
- Europe’s adjusted EBITDA after leases hit €1.11 billion, an 8.2% year-over-year rise, exceeding the estimate of €1.08 billion.
- In the US, adjusted EBITDA after leases was €7.24 billion, a 10% year-over-year increase, higher than the estimate of €7.2 billion.
- Systems Solutions’ adjusted EBITDA after leases reached €87 million, a 3.6% year-over-year rise, exceeding the estimate of €82.6 million.
- Adjusted net income for Q2 was €2.48 billion, a significant 31% year-over-year increase, above the estimate of €2.19 billion.
- Total revenue for Q2 was €28.39 billion, up 4.3% year-over-year, surpassing the estimate of €27.94 billion.
- Germany’s revenue was €6.37 billion, a 3.6% year-over-year increase, higher than the estimate of €6.27 billion.
- Europe’s revenue was €3.07 billion, a 6% year-over-year rise, beating the estimate of €2.99 billion.
- US revenue hit €18.28 billion, up 4.1% year-over-year, exceeding the estimate of €18.05 billion.
- Systems Solutions’ revenue stood at €981 million, a 2.3% year-over-year rise, above the estimate of €973.3 million.
- Free cash flow after leases for Q2 was an impressive €5.23 billion, a 48% year-over-year increase.
- Net debt at the end of the period was €135.13 billion, a modest 1.5% quarter-over-quarter increase, lower than the estimate of €136.96 billion (based on two estimates).
- The full-year guidance increase for free cash flow after leases follows similar moves by T-Mobile US, a subsidiary of Deutsche Telekom.
A look at Deutsche Telekom Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Deutsche Telekom, a company providing telecommunications services, has been assigned Smartkarma Smart Scores across key factors. With a strong momentum score of 5, the company is showing positive movement in the market. This, coupled with solid scores for dividend and growth at 4 each, indicates a promising outlook for investors looking for income and potential expansion. However, the company’s resilience score of 2 suggests some vulnerability in certain areas. Overall, Deutsche Telekom appears well-positioned for growth and income generation in the long term.
Deutsche Telekom AG, a telecommunications service provider, stands out for its solid dividend and growth prospects, as well as a high momentum score. Despite facing some challenges in resilience, the company’s value, dividend, and growth scores point towards a positive long-term trajectory. Investors eyeing a company with growth potential and income generation may find Deutsche Telekom an attractive option in the telecommunications sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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