Deutsche Telekom bullish after a solid Q1

German telecoms group DT tweaked up its guidance after posting better than expected numbers for the first quarter of the year.

Revenues were up six percent to €28 billion, which was slightly above consensus expectations. As a consequence DT upgraded its guidance for the full year, although not by much. It now reckons it post EBITDA AL of more than 36.6 billion euros in 2022, up from the previous guidance of 36.5 billion euros. “This was a strong start to the new year,” said CFO Christian Illek. “We are continuing to grow on an organic basis and are therefore in a position to raise our guidance for 2022.”

As you can see from the slides below, there was an exceptional spike in net profit, much of which is accounted for by the sale of half of FTTH company GlasfaserPlus and the completion of the sale of T-Mobile Netherlands. But even with that accounted for earnings per share were up 80%.

So all the indicators are positive for DT which experienced a minor bump in share price as a consequence. Investors might have been more gleeful if it wasn’t for the carnage currently going on among tech stocks and in the crypto currency markets. On the other hand they might be looking at boring old telco stocks with renewed affection in these volatile times.

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