Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

Deutsche Telekom lifts profit view, aims for T-Mobile majority soon

Published On :

By Supantha Mukherjee

STOCKHOLM (Reuters) -Deutsche Telekom on Thursday raised its annual earnings forecast for the second time after beating quarterly estimates, and said it could achieve its goal of a majority stake in U.S. unit T-Mobile much sooner than 2024.

The company has said it wants to own a majority of T-Mobile, which led much of the group’s subscriber growth in the second quarter, over the medium term.

Deutsche Telekom now expects to post adjusted earnings before interest, tax, depreciation and amortisation after leases (EBITDA AL) of around 37 billion euros ($38 billion) in 2022, up from previous guidance of more than 36.6 billion euros.

Chief Executive Timotheus Hoettgas said buying the majority stake in T-Mobile U.S. was the group’s most important strategic project at present.

Deutsche Telekom, which has been trying to cut a debt pile of almost 136 billion euros, last month agreed to sell 51% of its towers business to free up funds to invest in infrastructure and its U.S. business.

The group bought more shares earlier this year in T-Mobile from Japanese conglomerate SoftBank for $2.4 billion, raising its stake in the U.S. company to 48.4%.

Hoettgas said that stake should top 50% in the medium term, and the group could achieve it much sooner than 2024.

T-Mobile, which accounts for three-fifths of group revenue, has been gaining subscribers following its merger with Sprint and as it rolls out its 5G service.

In the latest quarter, T-Mobile added 1.7 million customers who pay their bills monthly, increasing its customer base to 110 million.

Deutsche Telekom reported 54.6 million mobile customers in Germany and 46.5 million in the rest of Europe.

Adjusted EBITDA AL rose to 9.9 billion euros, beating analysts’ consensus forecast of 9.84 billion.

Second-quarter revenue rose 5.9% to 28.2 billion euros, in line with estimates.

($1 = 0.9720 euros)

(Reporting by Supantha Mukherjee in Stockholm and Nadine Schimroszik in Berlin; Editing by Sherry Jacob-Phillips and Mark Potter)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts