Thanks to Sprint takeover: Telekom makes "historic" annual sales

Thanks to Sprint takeover
Telekom makes "historic" annual sales

For Telekom, the Corona year is not a year of crisis – on the contrary. Because business in the USA is booming in the wake of the takeover of a competitor, the group has exceeded the mark of 100 billion euros in annual sales for the first time in its history. CEO Höttges rejoices.

Europe's largest telecommunications group, Deutsche Telekom, has for the first time made more than 100 billion euros in annual sales thanks to the takeover of its competitor Sprint in the USA. Deutsche Telekom had "advanced into new dimensions," explained the group. Telekom had "achieved something historic," said CEO Tim Höttges. Earnings before taxes, interest, depreciation and amortization rose in 2020 by almost 42 percent year-on-year to 35 billion euros.

Deutsche Telekom 15.03

Revenue climbed year-on-year by more than 25 percent to 101.0 billion euros, as Telekom announced. The takeover of Sprint in the USA was decisive for the increase – but even without it, sales grew by 3.0 percent in 2020. T-Mobile US contributed more than a third to the profit in 2020 with 13.2 billion euros.

The Deutsche Telekom subsidiary T-Mobile US merged with Sprint in April 2020. The two companies had already announced the plans in 2018, but had to wait a long time for approval. Attorneys-general from around a dozen US states had tried to stop the merger. They argued, among other things, that the merger would lead to rising prices for mobile phone customers. Consumer advocates also expressed such concerns.

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