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May 12, 2021, 1:05 a.m. EDT

Deutsche Telekom lifts guidance as revenue rises

By Mauro Orru

Deutsche Telekom AG said Wednesday that revenue and adjusted earnings climbed for the first quarter, supported by the merger of T-Mobile US Inc. and Sprint.

The German telecommunications company said quarterly revenue climbed to 26.39 billion euros ($32.07 billion) from EUR19.94 billion in the first quarter of 2020.

Adjusted earnings before interest, taxes, depreciation and amortization after leases --a metric that measures operating earnings performance accounting for the adoption of IFRS 16-- rose to EUR9.25 billion from EUR6.54 billion.

Quarterly net profit increased to EUR936 million from EUR916 million.

"We are sustaining momentum and continuing our successful growth story," Chief Financial Officer Christian Illek said.

"Our customer numbers and key financial metrics are on track on both sides of the Atlantic," he added.

Deutsche Telekom raised guidance for the year, including its T-Mobile business in the U.S. It now expects adjusted Ebitda after leases to exceed EUR37 billion, up from previous guidance of around EUR37 billion. Free cash flow after leases should exceed EUR8 billion, up from around EUR8 billion as previously expected.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

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