• Deutsche Telekom’s Q1 adjusted EBITDA after leases was EU10.47 billion, a 5.1% increase year on year, although it fell short of the estimated EU10.61 billion.
• Germany’s adjusted EBITDA after leases was slightly better than the estimated EU2.55 billion, at EU2.58 billion, marking a 3.5% annual increase.
• The adjusted EBITDA after leases in Europe was EU1.07 billion, surpassing the estimate of EU1.01 billion, and marking an 8.7% year on year growth.
• The US operations of Deutsche Telekom reported a YOY increase of 6.1%, with an adjusted EBITDA after leases of EU6.93 billion, surpassing the estimate of EU6.78 billion.
• Systems Solutions’ adjusted EBITDA after leases came in at EU77 million, 2.7% more than the previous year and surpassing the EU74.7 million estimate.
• The adjusted net income stood at EU2.24 billion, a significant increase of 14% year on year, and much higher than the estimate of EU1.85 billion.
• Total revenue was EU27.94 billion, a modest 0.4% increase year over year, almost matching the estimated EU27.95 billion.
• Deutsche Telekom’s German operations generated revenue of EU6.30 billion, exceeding the estimate of EU6.26 billion by 2.6%.
• The European operations revenue was EU2.96 billion, a significant 6.3% increase year on year, surpassing the estimate of EU2.88 billion.
• In contrast, the US operations reported a decrease in revenue by 1.4% to EU18.01 billion, lower than the EU18.32 billion estimate.
• Systems Solutions reported a revenue of EU993 million, a 5% increase from the previous year, and well over the estimate of EU953.6 million.
• Free cash flow after leases was EU3.71 billion, marking a 3.6% annual increase.
• Net debt at the end of the period was slightly higher than the estimated EU131.53 billion, at EU133.12 billion, down 0.3% from the previous quarter.
• For annual forecasts, Deutsche Telekom still projects an adjusted EBITDA after leases of about EU42.9 billion, free cash flow after leases of about EU18.9 billion, and adjusted EPS above EU1.75.
A look at Deutsche Telekom Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| 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 AG, a telecommunications giant, is poised for strong long-term growth supported by its impressive Smartkarma Smart Scores. With high scores in Growth and Dividend, the company is set to expand its market presence while providing healthy returns to investors. The strong Momentum score indicates positive market sentiment, further supporting Deutsche Telekom’s upward trajectory. Despite a slightly lower score in Resilience, the company’s diversified portfolio and innovative strategies position it well to navigate challenges and sustain growth.
Investors eyeing Deutsche Telekom can be optimistic about its future prospects based on its solid Smartkarma Smart Scores. The company’s focus on value, coupled with a strong dividend policy, underscores its commitment to shareholder value. With a leading position in telecommunications services, including fixed-line, mobile, and internet offerings, Deutsche Telekom is well-positioned to capitalize on evolving market trends and technological advancements. Overall, Deutsche Telekom presents an attractive investment opportunity for those seeking exposure to a dynamic and resilient 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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