Deutsche Telekom said it is on track to meet its reduced targets for 2006 and confirmed its 2007 outlook this morning, though analysts called the forecast for next year uninspiring.
Deutsche Telekom was forced to slash its earnings and sales forecast for 2006 and 2007 in August after a weak second quarter showed that it was no longer growing in its German home market.
In the third quarter, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 7 per cent to a slightly better-than-expected €5.10 billion.
Sales in the three months to the end of September rose close to 3 per cent to €15.48 billion, compared with the average of analysts' estimates of €15.34 billion.
Deutsche Telekom's mobile phone business in the United States, T-Mobile USA, once again was a key driver of revenues in the third quarter and saw sales increase 10 per cent.
"After the first nine months of 2006, we are clearly on track to meeting our targets for the full year," Chief Executive Kai-Uwe Ricke said in a statement.
Shares in Deutsche Telekom were indicated flat before the market opening at 8am.
The stock has dropped 4.5 per cent since the beginning of the year, based on yesterday's closing price, while the DJ Stoxx European telecoms index has risen 12 per cent.
The group's third-quarter results were slightly above expectations, but analysts said that was not surprising given the dramatic cut of this year's forecast in August.
Deutsche Telekom confirmed its outlook for 2007, saying it expected modest revenue growth and adjusted core profit of €19.7 to €20.2 billion, including Polish mobile phone operator PTC, which will have been consolidated for the first time.
It also announced plans to save €2 billion next year.