Deutsche Telekom beats Q4 forecasts, Germany strong

Deutsche Telekom
Hannelore Foerster | Bloomberg | Getty Images

Deutsche Telekom said it increased its mobile market share in Germany in the fourth quarter and added more fibre-optic lines in its home market than in any other single quarter.

Mobile service revenue in Germany slipped 0.4 percent to 1.7 billion euros ($1.9 billion), while the German mobile market declined by 1 percent. The slight decline was due to discounts for customers taking combined fixed-line and mobile packages.

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Core profit in Germany beat expectations with a 4 percent rise to 2.09 billion euros, compared with the average estimate of 2.07 billion euros in a Reuters poll.

Helped by strong results from its U.S. mobile unit T-Mobile US, which reported earlier this month, total adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose 16 percent to 5.14 billion euros.

"Deutsche Telekom was extremely successful on both sides of the Atlantic," Chief Executive Tim Hoettges said in a statement on Thursday. The group also has operations in several central and eastern European countries and in Britain.

Deutsche Telekom said adjusted EBITDA should grow by more than 6 percent this year, helped by an offer introduced for its U.S. customers to lease mobile devices instead of buying them, meaning that the company books its own costs of buying the handsets as capital expenditure instead of an expense and depreciates them over time.

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