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Tailwind from T-Mobile US: Deutsche Telekom has more confidence

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Status: 05/13/2022 11:06 AM

High profits and increased sales – Deutsche Telekom is satisfied with the start of the year. The group is more upbeat than before about the coming months – also due to important business in the US.

Deutsche Telekom expects business to be better this year. Already at the beginning of the year, the group managed to increase sales by six percent, from January to March, they grew to about 28 billion euros. Europe’s largest telecom group benefited from revenue from its services, which increased at a disproportionately high rate.

At €3.9 billion, profits were four times higher than in the previous year, as a result of the partial sale of the stake in fiber optics as well as the split from T-Mobile Netherlands. But even adjusting for that, the €2.2 billion profit was almost double what it was a year ago.

Nearly two-thirds of sales are in the US business

T-Mobile US remains the mainstay in Boone’s business. About 64 percent of the group’s sales are generated in the US market, which is highly competitive with competitors such as AT&T and Verizon.

Meanwhile, the Bonn-based company raised its stake in T-Mobile US to 48.4% and bought shares of Softbank for $2.4 billion.

Radio towers before the sale?

This move can be financed by selling the cell tower business. According to a news agency report Reuters The group is currently accepting bids. Vodafone’s Vantage Towers, an investor-led consortium KKR and Global Infrastructure Partners (GIP) fund, are potential interested parties.

After T-Mobile US, Telekom has now also increased its annual targets. Adjusted for special effects, EBITDA including rental costs should be more than €36.6 billion and therefore slightly higher than previously expected.

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