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    T-Mobile US profit boost means sale dilemma for Deutsche Telekom

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    euronews (in English)

    by euronews (in English)

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    Deutsche Telekom did better than expected in quarterly profit terms as improved earnings in the United States offset heavy investments in its German networks.

    Second-quarter earnings before interest, tax, depreciation and amortization (EBITDA), excluding special items, rose to 4.43 billion euros.

    That comes as its American offshoot – T-Mobile US – reported its first net profit in a year and raised its forecasts for subscriber growth there.

    Deutsche Telekom now has a tough decision on whether to stay in the United States.

    It had planned to sell T-Mobile US, but potential buyer Sprint has pulled out because competition regulators indicated they would not approve such a merger.

    However there is interest from French telecoms firm Iliad – which trades as Free – and perhaps from the second largest US satellite operator Dish Network.

    Iliad has made a low-ball offer for the business and the chairman of Dish has said it now makes sense to consider bidding for T-Mobile US, with Sprint out of the picture.

    The German telecoms operator did not make any comments about the process in its earnings statement.

    with Reuters