# Deutsche Telekom lifts profit view, aims for T-Mobile majority soon
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-11
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Deutsche Telekom Raises Earnings Forecast After Strong
Meta Description: Deutsche Telekom boosts annual earnings projection after strong quarterly performance, eyes majority stake in T-Mobile sooner than expected.
URL: https://financedigest.com/deutsche-telekom-lifts-profit-view-aims-for-t-mobile-majority-soonhtml

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By Supantha Mukherjee

STOCKHOLM (Reuters) -Deutsche Telekom on Thursday raised its annual earnings forecast for the second time after beating quarterly estimates, and said it could achieve its goal of a majority stake in U.S. unit T-Mobile much sooner than 2024.

The company has said it wants to own a majority of T-Mobile, which led much of the group’s subscriber growth in the second quarter, over the [medium term](https://www.financedigest.com/ubisoft-vows-to-get-back-to-operating-margin-above-20-in-medium-term.html "Ubisoft vows to get back to operating margin above 20% in medium term").

[Deutsche Telekom now expects to post](https://www.financedigest.com/deutsche-post-raises-annual-dividend-warns-of-challenging-2023.html "Deutsche Post raises annual dividend; warns of challenging 2023") adjusted earnings before interest, tax, depreciation and amortisation after leases (EBITDA AL) of around 37 billion euros ($38 billion) in 2022, up from previous guidance of more than 36.6 billion euros.

Chief Executive Timotheus Hoettgas said buying the [majority stake in T-Mobile](https://www.financedigest.com/deutsche-telekom-reaches-majority-stake-in-t-mobile-u-s-ceo.html "Deutsche Telekom reaches majority stake in T-Mobile U.S. – CEO") U.S. was the [group’s most important strategic](https://www.financedigest.com/incentive-fm-group-announces-latest-strategic-me-acquisition.html "INCENTIVE FM GROUP ANNOUNCES LATEST STRATEGIC M&E ACQUISITION") project at present.

Deutsche Telekom, which has been trying to cut a debt pile of almost 136 billion euros, last month agreed to [sell 51% of its towers business to free up funds](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount") to invest in infrastructure and its U.S. business.

The [group bought more shares](https://www.financedigest.com/saipem-shares-drop-group-says-cannot-explain-why.html "Saipem shares drop, group says cannot explain why") earlier this year in T-Mobile from Japanese conglomerate SoftBank for $2.4 billion, raising its stake in the U.S. company to 48.4%.

Hoettgas said that [stake should top 50%](https://www.financedigest.com/kkr-sells-50-stake-in-spains-x-elio-to-partner-brookfield.html "KKR sells 50% stake in Spain’s X-elio to partner Brookfield") in the medium term, and the group could achieve it much sooner than 2024.

T-Mobile, which [accounts for three-fifths of group](https://www.financedigest.com/arctic-trucks-ditches-horrible-consolidation-spreadsheets-after-choosing-cloud-cfo-to-produce-group-management-accounts.html "Arctic Trucks ‘Ditches Horrible Consolidation Spreadsheets’ After Choosing Cloud CFO to Produce Group Management Accounts") revenue, has been gaining subscribers following its merger with Sprint and as it rolls out its 5G service.

In the latest quarter, T-Mobile added 1.7 [million customers who pay](https://www.financedigest.com/sainsburys-pays-524-million-for-full-ownership-of-store-investment-vehicles.html "Sainsbury’s pays 4 million for full ownership of store investment vehicles") their bills monthly, increasing its customer base to 110 million.

Deutsche Telekom reported 54.6 million [mobile](https://www.financedigest.com/mobile-games-developer-huuuge-says-has-24-2-million-at-svb.html "Mobile games developer Huuuge says has .2 million at SVB") customers in Germany and 46.5 million in the rest of Europe.

Adjusted EBITDA AL rose to 9.9 [billion euros](https://www.financedigest.com/mercedes-benz-to-buy-back-up-to-4-billion-euros-in-shares-by-2025.html "Mercedes-Benz to buy back up to 4 billion euros in shares by 2025"), beating analysts’ consensus forecast of 9.84 billion.

Second-quarter revenue rose 5.9% to 28.2 [billion euros](https://www.financedigest.com/unicredit-gets-ecbs-green-light-for-second-1-billion-euro-share-buyback.html "UniCredit gets ECB’s green light for second 1 billion euro share buyback"), in line with estimates.

($1 = 0.9720 euros)

(Reporting by Supantha Mukherjee in Stockholm and Nadine Schimroszik in Berlin; Editing by Sherry Jacob-Phillips and Mark Potter)


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