Deutsche Telekom raised its full-year profit forecast for the second time this year as strong customer growth pushed up revenues and earnings in the third quarter.
Adjusted EBITDA increased 3.3 percent year-on-year to €5.72 billion in the three months to 30 September. The Germany-based operator is now predicting adjusted EBITDA of up to €22.5 billion, up from the €22.3 billion it predicted in August, across 2017.
Growth was helped by the performance of Germany and the US in particular.
In the US, where talks about merging its opco with Sprint failed last weekend, sales grew 2.2 percent to €8.47 billion and adjusted EBITDA rose 6.1 percent to €2.29 billion.
T-Mobile US made it an 18th successive quarter in which it acquired over one million subscribers.
In Germany, sales were up 0.1 percent to €5.49 billion thanks to the addition of 523,000 mobile customers 70,000 broadband customers and 65,000 TV customers.
Adjusted EBITDA grew 4.5 percent to €2.19 billion as a result.
Strong customer acquisition was evident in the rest of Europe, where revenues rose 1.6 percent to €2.94 billion.
Across a range of markets from Poland to Greece, Deutsche Telekom added 265,000 mobile customers, 49,000 broadband subscribers and 44,000 TV customers.
There was also good news at the operator’s enterprise arm, T-Systems, which saw revenues rise two percent to €1.7 billion as sales of the likes of cloud and security offset declines in IT services.
However, order entry remained lower than last year and the operator said this trend would continue throughout Q4.
In total, group revenues rose by a 0.8 percent to €18.25 billion on a reported basis in Q3.
But despite the growth in sales and EBITDA, net profit dropped by 52 percent to €507 million due to a number of one-off factors, including a €1.2 billion writedown at T-Systems.
Deutsche Telekom CEO Tim Höttges said: "Deutsche Telekom continues to post strong growth, which is why we are upgrading our forecast for the second time this year.
"This was made possible by our booming US business, our strong performance in Germany, and the positive trends in our European subsidiaries."