Deutsche Telekom Cuts Dividend Despite Higher Profits

German communications giant Deutsche Telekom reported a jump in quarterly profits Thursday but cut its dividend for 2019, partly blaming "unexpectedly high" costs in the rollout of Germany's 5G network

Bonn, (UrduPoint / Pakistan Point News - 7th Nov, 2019 ) :German communications giant Deutsche Telekom reported a jump in quarterly profits Thursday but cut its dividend for 2019, partly blaming "unexpectedly high" costs in the rollout of Germany's 5G network.

The Bonn-based network operator said net profit from July to September jumped 23 percent to 1.37 billion Euros ($1.5 billion) compared with a year earlier.

Quarterly revenues were up 4.8 percent, allowing the group to breach to 20-billion-euro mark "for the first time in the company's history".

"Earnings increased in all areas of the group in the first nine months of this year -- with some of that growth in the double digits," CEO Tim Hoettges said in a statement.

Nevertheless, the group announced it would lower its dividend payouts this year to 0.60 euros per share, down from 0.70 euros last year.

The decision came as a result of "unexpectedly high costs for the mobile spectrum auction in Germany", said the company, which is investing billions in super-fast 5G mobile networks.