T-Mobile US: Deutsche Telekom future majority shareholder before 2024 – 08/11/2022 at 14:31

(AOF) – Deutsche Telekom, the largest shareholder of T-Mobile US with 48.5% of the capital, said it expected to become a majority shareholder well before 2024. The American operator, which represents three-fifths of the turnover of business of the German group, gained subscribers after its merger with Sprint and the roll-out of its 5G service. In the last quarter, T-Mobile acquired 1.7 million customers, bringing its total base to 110 million.

Deutsche Telekom chief executive Timotheus Hoettgas said the acquisition of a majority stake in T-Mobile US is the group’s most important strategic project at the moment.

Note also that Deutsche Telekom raised its annual outlook for the second time and posted operating profit above expectations in the second quarter, thanks to the good performance of its American subsidiary T-Mobile and the growth of its European activities.

Gross operating surplus after rents (Ebitdaal) reached 9.9 billion euros, beating analysts’ estimates of 9.84 billion euros, according to a consensus published by the company.


End of the price drop

Thanks to the price war, French consumers have benefited from internet prices that are among the lowest in Europe. But gradually, subscription prices are increasing. According to the telecoms authority (Arcep), in 2021 they increased by 3.1% for mobile and 5.1% for fixed. If the current inflationary context can explain this rise in prices, it is not the only reason. All players are indeed seeking to restore their margins. They have already succeeded in outsourcing part of their capital expenditure related to the deployment of their fiber and mobile infrastructures (4G and 5G). Now they have to increase their income. This is an important issue in order to benefit from the development of their performance. Generating a satisfactory level of available cash (free cash flow) also allows them to benefit from attractive financing conditions, in a sector that requires substantial investment. Investments in the sector almost reached 15 billion euros in 2021, a historic level. The increase has reached almost 50% since 2017.

Source link -86