Shares in Deutsche Telekom shot up on Thursday after the company grew its customer base in the U.S. - where it owns T-Mobile – substantially more than expected.
The German company said it had added 688,000 postpaid customers in the U.S. in the second quarter, helped by a simplification of its tariffs and strong sales of Apple's iPhone. It followed a loss of 557,000 customers over the same period last year.
Shares were 7 percent higher in lunchtime trading in Europe.
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The company revealed plans to boost its marketing spend in the U.S. in an attempt to further boost its customer acquisitions. As a result, it cut its forecast for full-year free cash flow from 5 billion euros ($6.68 billion) to around 4.5 billion euros.
"We are in the middle of a massive turnaround in the United States and we want to carry on along this successful course," said Rene Obermann, Deutsche Telekom's outgoing CEO, in a statement. "We are prepared to spend more on high-value growth this year than previously planned."
The company aims to increase the number of branded postpaid customers by another 500,0000-700,000 in the second half of the year, it said. Previously, it had aimed to keep its customer base stable.