Deutsche Telekom wants to buy the majority of T-Mobile USA and lay more fiber


Deutsche Telekom wants to take over the majority of its US offshoot T-Mobile US. “Yes, we want to secure the majority in T-Mobile,” said Telekom boss Tim Höttges at the Group’s capital market day in Bonn on Thursday. When he will exercise the call options on further shares of the US company, which expire in June 2024, the manager left open. Meanwhile, the board is looking at the rest of the group and setting new goals for the period up to 2024.

The Bonn-based group currently holds 43 percent of T-Mobile US, but already has control through a voting rights agreement with the Japanese Softbank group and includes the US subsidiary fully in its own group figures. In June of last year, Deutsche Telekom secured the option in negotiations with Softbank to take over the majority of shares in T-Mobile US.

Together with the Americans, the Bonners want theirs Increase group sales by one to two percent annually until 2024. Adjusted operating earnings before interest, taxes, depreciation and amortization after leasing costs (EBITDA AL) are expected to grow by an average of three to five percent per year. “We want to exceed the strong development of the past few years and lead the group into the future with sustainable growth,” said Höttges.

The shareholders should benefit from the Group’s development. The group wants to increase its adjusted earnings per share (adjusted EPS) from 1.20 euros in the past year to more than 1.75 euros by 2024. Of this, 40 to 60 percent are to be distributed, which corresponds to at least a dividend of 70 cents to 1.05 euros per share. The minimum remains at 60 cents per share.

Despite the planned business expansion in the USA, Höttges does not want to ignore the old continent. He said he wanted to see Europe as one region in the future. With an app and a platform for all of Telekom’s European markets, he wants to create “significant corporate value”. In addition, Höttges wants to check what is happening to the group’s cell phone towers: “Now we’ll go into the market and see how we handle the towers.”

In Germany, the board of directors also promised its customers to offer more than 2.5 million new fiber optic connections to the home (FTTH, fiber to the home) every year from 2024. With the new 5G mobile communications standard, population coverage in Germany is to increase to 97 percent by 2024.

In the medium term, Telekom wants to achieve that 30 percent of its customers in Germany buy from it via electronic channels. Höttges assured that he did not want to reduce the number of Telekom shops: “Telekom will always be present on site.”


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