Deutsche Telekom reported solid first-quarter results on Thursday, driven by both Europe and its US subsidiary T-Mobile US, and confirmed its full-year targets.

Earnings before interest, taxes, depreciation and amortization (Ebitda) for Europe's leading telecom operator rose by 5.8% on an organic basis to 10.5 billion euros in the first three months of the year.

The Bonn-based group - which stressed that it had posted "record" profits in Europe in the quarter - saw its sales rise by 1.6% on an organic basis to 27.9 billion euros.

It also confirmed that it was targeting Ebitda of 42.9 billion euros for the full year, i.e. 6% growth compared with 2023.

In a reaction note, however, analysts at Oddo BHF highlighted a "slow" start to free cash flow (FCF), which rose by just 3.6% in the first quarter.

At UBS, they said they expected the share price to be penalized by uncertainties surrounding a possible placement of German government securities, auctions for new frequencies in Germany, wage discussions and plans to redistribute capital to shareholders.

On the Frankfurt Stock Exchange, DT shares lost 0.5% in the wake of this publication.

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