US mobile market drives growth at Deutsche Telekom

US mobile market drives growth at Deutsche Telekom

FRANKFURT, Germany (AFP/APP): Europe’s largest telecommunications group Deutsche Telekom on Thursday reported improved annual results on the back of strong growth in the US market, following its 2020 takeover of provider Sprint.

The German group’s adjusted net profit rose 2.6 percent to 5.9 billion euros ($6.6 billion), while its operating profit, a measure closely watched by investors, progressed by 6.6 percent to 37.3 billion euros.

“Profits are growing in all areas,” Deutsche Telekom CEO Tim Hoettges said in a statement, describing a “successful” year.

The strong figures were carried by Deutsche Telekom’s American subsidiary T-Mobile, whose adjusted operating profit increased 8.1 percent to 22.6 billion euros.
After its takeover of the rival Sprint network in 2020, T-Mobile became the second largest mobile group in the United States behind Verizon.

In the region, T-Mobile added 6.7 million clients to take the total to 108.7 million.
Deutsche Telekom saw its operating profit in its domestic German market increase by a more modest 3.6 percent to 9.5 billion euros.

It said it expected the group’s net profit to dip slightly in 2022 to 36.5 billion euros.
The downwards trajectory was partly accounted for by the sale of T-Mobile Netherlands, the group said.

Deutsche Telekom announced the sale of its Dutch subsidiary in September last year, handing control to private equity investors.

The deal freed up funds for Deutsche Telekom to exercise options for the purchase of further shares in the US business, currently held by the Softbank group.

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