The Italian incumbent's third-quarter results on Thursday received a positive response from the markets, despite the fact that it continues to face challenges in its home country. In essence, TIM's operational numbers indicate domestic improvements while its Brazilian operations are generating top-line growth. While all was going on, Deutsche Telekom, which is located further north, made news by once again increasing its full-year guidance due to robust revenue growth. The German operator's stats are a lot more reliable, even though they didn't match the increase in TIM's share price. Adjusted EBITDA AL increased 8.5 percent to €10.48 billion, while net revenue increased 8.5 percent to €28.98 billion for the three months ending in September.
Additional Information Regarding Upward Trend for European Telcos
According to chief executive Tim Höttges, their company continues to grow, which helps them to increase both their outlook and dividend for the third time this year. That increase in guidance, as is often the case, is really a matter of semantics: the telco is now anticipating full-year adjusted EBITDAaL of more than €37 billion, as opposed to its earlier objective of roughly €37 billion. But its adjusted EPS projection is more definite; adjusted earnings per share are now anticipated to be over €1.50 rather than over €1.25. In addition, the telco expects to pay a €0.70 per share dividend this year, up from a €0.64 per share payout in 2021, subject to clearance.
T-Mobile US, as usual, had a significant impact on Deutsche Telekom's overall results, but its German division is also doing well, with sales and profitability up by 2.8 percent and 3 percent, respectively. But the leading telco in Germany is not the only one doing well. While Telefonica's topline in Spain barely budged above flat, the company's third-quarter revenue in Germany increased by 6%; the company announced late last week. However, despite the fact that all companies have recently been affected by a severe competitive environment, growth of 0.2 percent in the domestic market still represents a promising trend.
However, TIM, which recorded a 5.3 percent fall in domestic revenues in the same quarter, cannot quite claim the same. However, there are signs of hope. While fixed attrition also improved, the telco's mobile churn rate dropped to 3.1% in the third quarter, its lowest level in 16 years. TIM increased its mobile client base by 88,000, bringing its total to 30.5 million. This marked the beginning of a trend of continued stabilisation for mobile number portability, despite persistent competition at the low end of the market.