Deutsche Telekom (DTEGY)  's third-quarter revenue, bolstered by the strength of its U.S. T-Mobile (TMUS) operation, beat analysts' estimates Thursday as the company confirmed its full-year outlook.

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.

Deutsche Telekom also saw success in its home market with the number of fiber-optic customers and mobile revenues up.

"The key upside surprise is strong German mobile service revenue growth, related to an improvement in B2B trends. The sustainability of this will likely be a key debating point," Jefferies analyst Ulrich Rathe said in a statement.

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