Status: 05/13/2022 11:06 a.m
High profits, increasing sales – Deutsche Telekom is satisfied with the start of the year. The group is more optimistic than before about the coming months – also because of the important US business.
Deutsche Telekom expects business to be even better this year. Already at the beginning of the year, the group was able to increase sales by six percent, from January to March it grew to around 28 billion euros. Europe’s largest telecom group benefited from its service revenues, which increased at a disproportionately high rate.
At 3.9 billion euros, the profit was more than four times as high as in the previous year, a result of the partial sale of the stake in fiber optics plus and the separation from T-Mobile Netherlands. But even adjusted for this, the profit of 2.2 billion euros was almost twice as high as a year ago.
Almost two-thirds of sales in the US business
The most important pillar in Bonn’s business is still the US subsidiary T-Mobile US. Around 64 percent of the group’s sales were generated in the highly competitive US market with competitors such as AT&T and Verizon.
In the meantime, the Bonn-based company has increased its stake in T-Mobile US to 48.4 percent and bought shares from Softbank for 2.4 billion dollars.
Radio towers before sale?
This move could be funded by selling the cell tower business. According to a news agency report Reuters the group is currently accepting bids. Possible interested parties are the Vodafone subsidiary Vantage Towers, a consortium led by the investor KKR and the infrastructure fund Global Infrastructure Partners (GIP).
After T-Mobile US, Telekom has now also increased its annual targets. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization including leasing costs should be more than 36.6 billion euros and thus slightly higher than previously forecast.