Deutsche Telekom’s quarterly results beat estimates on boost from T-Mobile.

FILE PHOTO: Brochures with the logo of Deutsche Telekom AG are pictured at the shop in the headquarters of German telecommunications giant in Bonn

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA AL) after leasing reached €9.9 billion ($10.19 billion), beating consensus estimates of €9.84 billion in an analyst survey published by the company.

According to consensus estimates, the telecom operator’s turnover rose 5.9% to 28.2 billion euros in the second quarter.

The company now expects to post adjusted EBITDA AL of around 37 billion euros in 2022, compared to a previous outlook of more than 36.6 billion euros.

Struggling to reduce nearly 136 billion euros in debt, Deutsche Telekom is selling its tower business to free up funds to invest in infrastructure and take control of its US arm T-Mobile.

Last month it agreed to sell 51% of its tower business to a consortium of Canadian firm Brookfield and US private equity firm Digital Bridge, valuing the unit at 17.5 billion euros.

Earlier this year, Deutsche Telekom bought an additional stake in T-Mobile from Japanese conglomerate SoftBank for $2.4 billion, bringing its stake in the US company to 48.4%.

T-Mobile, which accounts for three-fifths of the group’s turnover, has gained subscribers since its merger with Sprint and the rollout of its 5G service.

Last quarter, T-Mobile added 1.7 million customers who pay their bills monthly, bringing its customer base to 110 million.

Deutsche Telekom reported 54.6 million mobile customers in Germany and 46.5 million in the rest of Europe.

($1 = 0.9720 euros)

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