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To a third : Telecom: business volume rises by Sprint-purchasing power

A third
Telekom: business volume rises by Sprint-purchasing power

The Logo of Deutsche Telekom on the roof of the company headquarters in Bonn. Photo: Oliver Berg/dpa

© dpa-infocom GmbH

The Name is deceptive: in A purely national company, Deutsche Telekom is not a long time ago. Since the Acquisition of an American competitor business across the Atlantic is becoming more and more important for the former state monopolist from Bonn.

Deutsche Telekom has made thanks to the Acquisition of the US competitor Sprint to a jump in sales.

The group’s revenue climbed in the third quarter to almost a third (31.3 per cent) to 26.4 billion euros, as the company announced on Thursday in Bonn. Without the acquisition of the US competitor and without exchange rate effects, it would have been only two percent. For the equivalent of more than 24 billion Euro share deal, the Bonn-based company had, after a tough battle in February the green light, now the purchase of a float for the first time in the third-quarter Figures.

CEO Tim Höttges stressed the successes in America, where T-Mobile US won in the third quarter, two million customers and now has more than 100 million customers. “The merger with Sprint was the right step,” said the company boss. With a view to the local market leader Verizon, he added: “in the medium term, our goal, Verizon is displace from the top.”

But there were also dark sides in the figures: Although the operating result increased bottom line, but net profit dropped by 40.3 per cent to 817 million euros. Basic adjustments on the Romanian mobile business and on the long weakening of the major customer branch of T-Systems, the corona, the value of the goods due to the further sagged. Many companies are turning due to a shortage of funds in the pandemic, the cost of screw for your company IT is the service provider T-Systems.

Between July and September, the order intake of the division fell in the subsidiary in comparison to the prior year period by almost 25 percent to 0.7 billion euros. Chief financial officer Christian Illek indicated that the T-system, which is already ongoing austerity velvet restructuring will probably be exacerbated. “We will need to put a program on the program.”

On the home market of Germany, there was in other areas of the group of light and shadow: While the fixed-attracted revenues of private customers declined in the mobile Business. The latter was partly due to the fact that Smartphones came later than I thought on the market and as a result, less cash was made.

The corona crisis also hit other parts of the Group of Deutsche Telekom. An example: Since people are less traveled in the world, has the Telekom less Roaming revenue. But you have to be able to offset such a financial burden of more than, said Höttges and referred to the good fixed-line business. Overall, we had a strong quarter, the group could continue its growth strategy of “robust and sustainable” to continue. For the full year, the former state monopolist expects to have his now the world’s 228 000 employees, with a slightly higher operating profit than previously expected.

Matthew Velter
Matthew Velterhttps://etrendystock.com/
With 5 years of experience as an editor, Matthew has been a crucial part of eTrendy Stock since its inception. He looks after the editing of news content published on eTrendy Stock. Apart from investing his time in editing, he also provides well-researched news articles for the U.S. niche. Mathew studied at University of central Florida.

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