By Supantha Mukherjee

STOCKHOLM, (Reuters) – Deutsche Telekom (OTC) has reported core profits above the market’s estimates and increased its full-year outlook. This was due to T-Mobile in the United States, as well as growth in European businesses.

The adjusted earnings before interest tax, deduction, amortisation and amortization after leases stood at 9.66 Billion Euros ($11.05 Billion), surpassing consensus estimates of 9.35Billion euros, according to a survey of analysts.

The adjusted EBITDA AL for the full year was increased to 38.4 billion Euros, a significant increase from 37.2 billion.

“Our businesses are performing even better than expected,” Chief Executive Officer Tim Höttges said in a statement. Following strong results in the first nine month, we have set the bar for 2021 slightly higher.

T-Mobile accounts for 3/5ths of all group sales and has seen a rise in subscribers since its merger with Sprint.

T-Mobile’s latest quarter saw an increase of 1.3 million subscribers who paid monthly their bills, bringing its total subscriber count to 106.9 millions. Deutsche Telekom boasts 52.2 million German customers and 46.4 millions in Europe.

Deutsche Telekom currently owns 48.4% T-Mobile US (NASDAQ;), which puts it within striking distance of major ownership of U.S. operations.

The third quarter revenues of the telecoms operator increased by 2% to 26.88 Billion Euros, however they fell short of consensus estimates at 27.15 Billion euros.

The company’s dividend increased to 64 euroscs, from 60 eurocs last year due to growth all around. A 30.5% share of the company is owned by Germany.

Other than an increase of subscribers, a rise in tourists to Europe due to relaxation of pandemic restrictions has led to a rebound in roaming revenue.

($1 = 0.8741 euros)