Shares of Deutsche Telekom AG (DTEGY.PK) were gaining around 4 percent in the morning trading after the German telecom giant reported Wednesday a profit in its fourth quarter, compared to last year's loss. The company also projects higher results in fiscal 2020.
For the new year, Deutsche Telekom expects another increase in revenue from fiscal 2019 revenue of 80.5 billion euros. The company also expects adjusted EBITDA AL to grow to about 25.5 billion euros, of which around 13.9 billion euros will be from business outside of the United States. The company projects growth in all operating segments.
For the fourth quarter, Deutsche Telekom's net profit was 654 million euros, compared to a loss of 431 million euros in the same quarter last year.
Adjusted net profit was 1.02 billion euros, up 27.6 percent from 796 million euros in the previous year.
EBITDA climbed 29.3 percent from last year to 6.64 billion euros, and adjusted EBITDA climbed 24.9 percent to 7.05 billion euros.
Adjusted EBITDA AL for the quarter rose 8.2 percent to 6.03 billion euros from 5.57 billion euros last year.
Net revenue grew 5.4 percent to 21.36 billion euros from 20.26 billion euros in the prior year. Revenues generated internationally was 69.8 percent of total revenues, higher than last year's 68.7 percent.
Total German revenue grew 1 percent year-over-year to 5.67 billion euros. German Mobile service revenues increased 1.4 percent.
In the U.S., total revenue increased 7.7 percent to 10.79 billion euros. T-Mobile US recorded more than a million net additions to branded postpaid phone customers in the fourth quarter.
In Germany, Deutsche Telekom shares were trading at 16.46 euros, up 3.57 percent.