Deutsche Telekom cheered investors today as it forecast double-digit growth in cash operating profits for the year thanks to improvements in its mobile business and reported first-quarter losses in line with market expectations.
The stock was 3.82 per cent higher at euro 29.90, outperforming a rise of 1.8 per cent on Germany's blue-chip DAX index, and a gain of 0.58 percent on the Eurostoxx telecoms index.
The German telecoms giant said net earnings this year would rise by a double-digit percentage, thanks largely to a better performance at its T-Mobile mobile phone division.
Telekom, which ranks among the top three operators in Europe by market value, said its first-quarter net loss came in at euro 400 million euros, narrower than in the previous quarter due to an improving mobile business.
The result was exactly at the median of forecasts by seven analysts in a wide range between a 361 million euro profit and a 690 million loss.
Telekom saw its loss narrow as it switches from acquiring new mobile customers -- many of whom receive heavily-subsidised handsets - to improving profits.