Deutsche Telekom is benefiting from strong business in the USA and a favorable dollar exchange rate. The group has increased its forecast for the third time. The shareholders should also benefit from this.

The ongoing boom at the subsidiary T-Mobile US makes Deutsche Telekom more optimistic. “All businesses are growing, all businesses are developing positively,” said Group CEO Tim Höttges. “We are therefore in a position not only to raise our forecast for the current year for the third time, but also to increase our dividend.” The Bonn-based telecom group is now targeting an adjusted operating result of more than 37 billion euros for 2022. The net result will probably be more than 1.50 euros per share instead of more than 1.25 euros. Therefore, the dividend should be raised to 0.70 from 0.64 dollars per share.

“All the figures mentioned assume constant exchange rates of 1.18 US dollars per euro, so that the actual targets based on current exchange rates are significantly higher,” commented DZ Bank analyst Karsten Oblinger. One euro currently costs just under one dollar.

In the summer, the group earned 29 billion euros, almost nine percent more than a year ago. Service revenues increased by an above-average 12.5 percent to EUR 23.6 billion. The adjusted operating result increased by 8.5 percent to 10.5 billion euros and the net result even by 80 percent to 2.4 billion euros. If you calculate out the positive dollar effects, total and service sales would have increased by only 0.5 and 3.4 percent, respectively, and the operating result by only 0.7 percent. The net profit was also positively influenced by the financial result.

The growth driver for the Bonn group was once again the US business. The subsidiary T-Mobile US was able to gain 854,000 customers in the third quarter, more than twice as many as the parent company. The US mobile operator also raised its full-year targets at the end of October. Höttges therefore confirmed its goal of acquiring a majority stake in T-Mobile in the medium term. The company is currently worth around $184 billion on the stock exchange – more than its US rival AT

Thanks to the rapid growth at T-Mobile US and the appreciation of the dollar, Deutsche Telekom’s US revenue increased by 15.9 percent, while in Europe it was down 1.1 percent. According to the information, the loss of business in Romania and negative exchange rate effects made themselves felt here. The development of service revenues diverged even further with plus 24.6 percent and minus 4.4 percent. The operating result in the US business also increased by 15.9 percent, while it shrank by 5.3 percent in Europe.

Telekom shares fell on the stock exchange. “The numbers are solid, but the third forecast increase is not a surprise,” said a broker. Some investors would have hoped for more and therefore cashed in.