The US subsidiary of Deutsche Telekom is raising its outlook again.
(Photo: dpa)
Bellevue / Berlin The Telekom subsidiary T-Mobile US earned significantly less in the third quarter, but increased its annual targets nonetheless. Net profit fell compared to the previous year by almost 45 percent to 691 million dollars (597 million euros), as T-Mobile announced on Tuesday after the US market closed in Bellevue. The main reason for the decline were charges of $ 707 million in connection with the merger with rival Sprint.
Analysts had expected a worse result on average. In return, the revenues remained with an increase of almost two percent to 19.6 billion dollars below the expectations of Wall Street. In the three months to the end of September, T-Mobile recorded a bottom line of 673,000 new telephone contracts under its own brand, around two percent less than a year ago. CEO Mike Sievert was nevertheless satisfied and spoke of “unbelievable” results.
T-Mobile raised its annual targets for the third time in a row and now expects an even higher adjusted operating profit and customer growth for 2021. In addition, T-Mobile expects potential cost reductions of between 3.2 billion and 3.5 billion dollars through the merger with Sprint in the current fiscal year. Previously, the forecast was between $ 2.9 billion and $ 3.2 billion. The share reacted to the quarterly report with price gains after the trading day.
The company from Bellevue, Washington state, has been hunting down its two competitors AT&T and Verizon for years with an aggressive pricing policy, investments and marketing. T-Mobile US is now also benefiting from the faster than expected merger of the business with Sprint.
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