Deutsche Telekom core profit, revenue beat estimates

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FILE PHOTO: The logo of German telecoms giant Deutsche Telekom and GSM antennas are seen atop the company's headquarters in Bonn

STOCKHOLM/BERLIN – Deutsche Telekom reported quarterly core profit and revenue above market estimates on Thursday, boosted by its U.S. unit, T-Mobile along with growth in European business.

Adjusted earnings before interest, tax, depreciation and amortisation after leases (EBITDA AL) stood at 9 billion euros ($10.1 billion), beating consensus estimates of 8.83 billion euros in a poll of analysts published by the company.

The telecoms operator’s fourth-quarter revenue increased by 4.7% to 28.9 billion euros, just above consensus estimates of 28.76 billion euros.

T-Mobile, which accounts for three-fifths of group revenue, has been gaining subscribers following its merger with Sprint and as it rolls out its 5G service.

In the latest quarter T-Mobile added 1.8 million customers who pay their bills monthly, lifting its subscriber base to 109 million customers. Deutsche Telekom reported 53.2 million customers in Germany and 45.8 million in rest of Europe.

($1 = 0.8902 euros)

(Reporting by Supantha Mukherjee in Stockholm and Nadine Schimroszik in Berlin; Editing by Kenneth Maxwell)

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