Germany's biggest carrier, which owns 65% of T-Mobile, said net revenue rose 6% in the three months ending in September to €18.1 billion ($19.77 billion), in-line with consensus estimates compiled by FactSet, amid a net profit rise of 30.2% to €1.1 billion from the same period last year.
Shares rose more than 2% in early Frankfurt trading before paring gains and sliding 1% to €14.42 by 10:00 am CET, extending its 52 week decline past 11%.
Deutsche Telekom confirmed its full-year targets of a 6% rise in adjusted earnings to €21.2 billion and rising revenues in both 2016 and 2017.
T-Mobile remained the "star of the mobile market" in the U.S., the company said, adding 2 million customers in the third quarter. Almost a million of these were in the postpaid customer segment, which is more profitable. Quarterly net income at the U.S. group more than doubled from the same period last year to $366 million, Deutsche Telekom said.
T-Mobile also succeeded at fending off rivals with the churn rate of postpaid customers falling to 1.32% from 1.46% in the third quarter of 2015.
"These figures show once again that we are on the right track in our markets," said Tim Höttges, CEO of Deutsche Telekom in a statement. "We are working on the technologies and products of the near and more distant future - on the basis of a convincing strategy.