BONN (dpa-AFX) - Shares of Deutsche Telekom AG were gaining around 6 percent in German trading after the telecom major reported Thursday higher adjusted EBITDA AL in its second quarter with revenue growth, even as net profit declined from last year. Further, the firm maintained fiscal 2026 outlook for adjusted earnings, but raised Free cash flow AL view.
Separately, Deutsche Telekom announced that it is increasing its current 2026 share buy-back program by up to another 3 billion euros by the end of 2026. The share buy-backs could now reach up to 5 billion euros by the end of the year, including the ongoing share buy-back program of up to 2 billion euros.
Looking ahead for fiscal 2026, Deutsche Telekom continues to expect adjusted earnings per share at around 2.20 euros, and adjusted EBITDA AL of around 47.5 billion euros.
Free cash flow AL is now projected to be around 20.0 billion euros, adjusted from previous view of more than 19.8 billion euros, reflecting the adjustment announced by T-Mobile US.
T-Mobile US raised the midpoint of its guidance for free cash flow by 200 million U.S. dollars.
For the full year, T-Mobile US continues to expect postpaid net account additions of between 950 thousand and 1.05 million.
In the second quarter, Deutsche Telekom's attributable net income dropped 6.3 percent to 2.450 billion euros from 2.615 billion euros in the same period last year. Earnings per share fell 5 percent to 0.51 euro from 0.54 euro a year earlier.
Adjusted income was 2.784 billion euros or 0.58 euro per share, compared to 2.504 billion euros, or EUR 0.51 per share a year ago.
Adjusted EBITDA grew 6.8 percent year-over-year to 13.377 billion euros, and adjusted EBITDA AL increased 7.5 percent to 11.821 billion euros. Adjusted EBITDA AL went up 7.3 percent in organic terms.
Net revenue was up 4.4 percent to 29.933 billion euros from 28.671 billion euros a year ago. Net revenue grew 3.3 percent in organic terms.
Service revenue increased 4.8 percent from last year to 25.406 billion euros.
Total revenue in the Germany operating segment increased 3.7 percent year-on-year in organic terms to 6.5 billion euros in the second quarter, including a positive effect from the FIFA World Cup. In Germany, Mobile customers grew 1.9 percent.
Total U.S revenues grew 7.9 percent to $22.75 billion. T-Mobile US generated service revenue of $19.0 billion, 8.9 percent more than in the previous year.
In Europe, total revenue increased 1.5 percent.
On the XETRA in Germany, the shares were gaining around 6.24 percent, trading at 29.13 euros.
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