US Merger Helps Deutsche Telekom To Record Revenues In 2020

(@FahadShabbir)

US merger helps Deutsche Telekom to record revenues in 2020

Berlin, (UrduPoint / Pakistan Point News - 26th Feb, 2021 ) :German telecoms operator Deutsche Telekom said Friday it had defied the coronavirus pandemic to post record revenues last year thanks to its acquisition of US rival Sprint.

The Bonn-based company said revenue jumped 25.4 percent to 101 billion Euros ($122 billion) in 2020, surpassing the 100-billion-euro mark for the first time in the company's history.

"We made history in 2020," said CEO Tim Hoettges in a statement, adding that Deutsche Telekom had "closed a groundbreaking deal in the United States" and "improved our market position in Europe".

The $26-billion merger between Deutsche Telekom's US unit T-Mobile and Sprint was completed in April.

Adjusted operating profit (EBITDA) soared 41.6 percent to 35 billion euros in 2020, with the group expecting a further rise to 37 billion euros this year.

Meanwhile, adjusted net profit increased 15.5 percent to 5.7 billion euros.

Boosted by the acquisition of Sprint, Telekom's US arm T-Mobile was the driving force behind the strong performance, with a 93 percent increase in adjusted operating profit to $24 billion.

Yet the group was hit by the coronavirus pandemic in Europe, where it said "business was impeded by shop closures and travel restrictions".