In the first nine months of the year, Deutsche Telekom AG (ETR:DTE)’s revenue rose 8.8% to EUR79.9bn. On an organic basis, which excludes the effect of currency fluctuations, this was up 5.3%. There was particularly strong growth in the US.
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Operating profit rose 22.6% to EUR10.7bn, largely because of the merger with Sprint in the US.
The shares rose 2.2% following the announcement.
Deutsche Telekom's Stability
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown:
“As a telecoms giant, Deutsche Telekom’s biggest attraction is its stability. It’s not an industry renowned for heady growth, but does get thanked by shareholders for its reliable revenue streams. People still need a phone network, and their office – at home or otherwise – needs internet. To that end, Deutsche Telekom’s latest results show the apple cart is upright.
As ever, the biggest struggle for any telecom is competition. The merger with Sprint in the US should mean the group has the scale needed to take on Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) in the US 5G market, but there’s still some way to go before this beast of a merger can be called complete. While the fruits of Deutsche’s labour should be clear in the next couple of years, it’s sadly a waiting game to see who will come out on top.”
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