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T-Mobile US profit boost means sale dilemma for Deutsche Telekom


T-Mobile US profit boost means sale dilemma for Deutsche Telekom


Deutsche Telekom did better than expected in quarterly profit terms as improved earnings in the United States offset heavy investments in its German networks.

Second-quarter earnings before interest, tax, depreciation and amortization (EBITDA), excluding special items, rose to 4.43 billion euros.

That comes as its American offshoot – T-Mobile US – reported its first net profit in a year and raised its forecasts for subscriber growth there.

Deutsche Telekom now has a tough decision on whether to stay in the United States.

It had planned to sell T-Mobile US, but potential buyer Sprint has pulled out because competition regulators indicated they would not approve such a merger.

However there is interest from French telecoms firm Iliad – which trades as Free – and perhaps from the second largest US satellite operator Dish Network.

Iliad has made a low-ball offer for the business and the chairman of Dish has said it now makes sense to consider bidding for T-Mobile US, with Sprint out of the picture.

with Reuters

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