FRANKFURT, Feb 24 — Europe’s largest telecommunications group Deutsche Telekom today 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 per cent to €5.9 billion (RM27 billion), while its operating profit, a measure closely watched by investors, progressed by 6.6 per cent to €37.3 billion.
“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 per cent to €22.6 billion.
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 per cent to €9.5 billion.
It said it expected the group’s net profit to dip slightly in 2022 to €36.5 billion.
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. — AFP