Despite the corona pandemic, T-Mobile-US is gaining a huge advantage. The head of the company, Mike Sievert, sets the goals for the second half of the year even higher. That could also be an important signal for the Bonn parent company.
Bellevue / Bonn (dpa) – Deutsche Telekom’s subsidiary T-Mobile US continues to defy the Corona crisis after taking over its smaller rival Sprint. After the third quarter, T-Mobile US boss Mike Sievert raised goals for operating profit and customer growth, which Deutsche Telekom had often followed in the past.
In the third quarter, what is now the largest part of the Telekom group met its latest customer growth targets ahead of schedule. Sievert now wants to go a little further in the fourth quarter. After a contract growth of 689,000 phone clients in the months of July to September, another 600,000 to 700,000 should be added before the end of the year.
Profit rose in the third quarter year-on-year by 44 percent to $ 1.3 billion (€ 1.1 billion), as the company announced Thursday night in Bellevue after the US market closed. Revenue grew 74 percent to $ 19.3 billion, primarily thanks to the acquisition. The company also announced that the merger with Sprint, which took place on April 1 after a two-year antitrust battle, would lead to cost reductions faster than originally expected. This year, savings of $ 1.2 billion are expected.
After taking over Sprint, T-Mobile US had set a goal of generating between US $ 12.4 and 12.7 billion in earnings before interest, taxes, depreciation and amortization adjusted for special effects by the second half. of the year. After an operating profit of $ 7.13 billion in the third quarter, the target of $ 13.6 billion to $ 13.7 billion is now on target. Additional estimated costs of $ 0.8 to $ 1 billion for the merger will be deducted from operating profit.
The US is by far the most important market for Telekom: in the second quarter, nearly two-thirds of consolidated sales came from the US, and it accounted for an equally large share of operating result (Adjusted Ebitda).
Due to different accounting and currency effects, higher results in the US do not lead one-on-one to higher results even at Telekom, which has so far budgeted around € 34 billion in operating profit. at last year’s constant exchange rates, but the Bonn-based company has often followed suit in the recent past. even if not always in the same amount.