Deutsche Telekom's H1 results boosted by acquisitions, U.S. business

Source: Xinhua| 2019-08-08 20:33:31|Editor: Shi Yinglun
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BERLIN, Aug. 8 (Xinhua) -- Turnover of German network operator Deutsche Telekom increased by 3.2 percent to 39.2 billion euros (44.0 billion U.S. dollars) in the first half of 2019 (H1), the company revealed on Thursday.

Including acquisitions in Austria and the Netherlands as well as exchange rate effects from the exchange of U.S. dollars, the growth in Deutsche Telekom's turnover was more than twice as high at 7.9 percent in H1 2019, it stated.

"Our business performed well in all areas again in the first half of 2019," said Tim Hoettges, chief executive officer (CEO) of Deutsche Telekom.

Deutsche Telekom's business performance in H1 would put the German telecommunications company "in a position to deliver the results we promised", Hoettges said.

Net profits of Deutsche Telekom nearly doubled to 944 million euros in the second quarter of 2019 (Q2).

The increase in net profits was due to a negative one-off effect from the "settlement in the Toll Collect arbitration," which was not matched by "any comparable effect" in Q2.

Deutsche Telekom also profited from strong business in the U.S. market, as T-Mobile U.S. "set new records again" in Q2 2019, it said.

Turnover of Deutsche Telekom's U.S. subsidiary increased year-on-year by 5.1 percent to 11.0 billion U.S. dollars in Q2, according to Deutsche Telekom.

T-Mobile U.S. was planning to acquire its competitor Sprint, which would make the Deutsche Telekom subsidiary the third largest telecomm company in the U.S. market.

The deal obtained approval by the responsible U.S. authorities at the end of July but was still subject to a lawsuit filed by several U.S. states due to concerns over rising prices for consumers as a consequence of the deal.

T-Systems, Deutsche Telekom's IT service and consulting division, reported solid Q2 results as order intake increased year-on-year by 2.4 percent in the second quarter of 2019.

Turnover for the T-Systems division remained "more or less unchanged" at 1.7 billion euros, according to Deutsche Telekom.