Deutsche Telekom Forecasts Growth in Adjusted Earnings for 2024
Deutsche Telekom Forecasts Growth in Adjusted Earnings for 2024
Deutsche Telekom is optimistic about the growth of its adjusted earnings for the year, with expectations that it will be supported by both its U.S. and European operations. Despite reporting a decrease in net profit for the fourth quarter, the German telecommunications giant anticipates positive developments in the coming months.
Financial Outlook for 2024
- Adjusted earnings before interest, taxes, depreciation and amortization after leases are projected to reach around 42.9 billion euros ($46.44 billion), reflecting a 6% increase from the previous year.
- Free cash flow after leases is forecasted to rise by 16% to EUR18.9 billion.
- Adjusted earnings per share are estimated to grow by 10% to over EUR1.75.
Fourth Quarter Performance
In the fourth quarter, Deutsche Telekom recorded a net profit of EUR1.83 billion, down from EUR1.99 billion in the corresponding period last year. While overall revenue saw a decline of 1.3% to EUR29.37 billion, service revenue experienced a 0.7% increase, driven by strong performance in Germany and other European markets that offset a decrease in the U.S.
Quarterly adjusted Ebitda after leases inched up by 0.5% to EUR10.01 billion.
Analyst Expectations
Analysts had predicted Deutsche Telekom's net profit to be EUR1.63 billion, adjusted Ebitda after leases at EUR10.07 billion, and revenue of EUR28.49 billion, according to consensus estimates provided by the company.
Despite challenges, Deutsche Telekom remains poised for growth and success in the evolving telecommunications landscape.
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