Telekom announced fourth-quarter growth and expects slightly higher profits in 2023.
(Reuters) – Berlin On Thursday, Deutsche Telekom posted better-than-expected fourth-quarter earnings, noting good performance from T-Mobile US (NASDAQ:TMUS) and forecasting a slight increase in profits this year.
Earnings before interest, tax, depreciation, and amortisation after leases (EBITDA AL) of 9.96 billion euros ($10.58 billion) for the quarter marginally exceeded average expectations of 9.9 billion euros in a company-published survey of experts.
The telecom operator’s quarterly income rose by 4.0% to 29.8 billion euros, just shy of the 30.0 billion euro consensus forecast.
“The world’s upheavals and their repercussions are not without ramifications for Deutsche Telekom (OTC:DTEGY),” said CEO Tim Hoettges. “However, by sticking to our plan, we were able to achieve all of our targets in 2022.”
The business stated that this was accomplished despite current headwinds such as increasing energy costs and Hungary’s supplementary telecommunications levy.
Telekom recorded sales of 114.4 billion euros for the fiscal year 2022, up 6.1% from the previous year, and adjusted EBITDA AL of 40.2 billion euros, up 7.7%. The company now expects adjusted EBITDA of around 40.8 billion euros in the fiscal year 2023.
Deutsche Telekom said its U.S. subsidiary T-Mobile anticipated realising $7.2 billion to $7.5 billion in synergies from its 2020 acquisition of Sprint, at least 20% more than the previous year, while integration expenses in the current year were not expected to surpass $1 billion.
($1 equals 0.9417 euros).