During its second quarter 2022, Deutsche Telekom raised its guidance for the second time this year. The company’s EBITDA is now expected to reach around $38 billion (€37 billion), up from the previous guidance of more than $37.8 billion (€36.6 billion). DT attributed the rise to the positive development of business at T-Mobile US as well as strong performance outside the U.S.
DT executives praised the record subscriber growth at T-Mobile in the second quarter 2022, noting that mobile postpaid net additions were the best-ever customer growth in a second quarter and more than AT&T’s and Verizon’s sub growth combined.
DT said that thanks to the fact the integration of Sprint has continued to progress well and rapidly, T-Mobile US is raising its guidance for the synergies from the business combination to between $5.4 billion - $5.6 billion in 2022, up from the previous range of between $5.2 billion - $5.4 billion.
It predicts the number of postpaid customers at T-Mobile US to increase by 6 million - 6.3 million, around 600,000 net additions more than were expected after the end of the first quarter.
DT Chief Executive Timotheus Hoettgas said buying the majority stake in T-Mobile US was the group's most important strategic project at present, according to Reuters. He said that stake should top 50% much sooner than its previous projection of 2024.
Earlier this year, DT paid $2.4 billion to SoftBank Group to increase its stake in T-Mobile US to 48.4%.
Towers
During the quarter, Deutsche Telekom also announced the sale of a 51% stake in GD Towers — its cell tower business in Germany and Austria — to DigitalBridge and Brookfield. DT said today that GD Towers has 40,700 cell sites.
DT has previously said that the tower portfolio is valued at $17.5 billion. It expects to receive $10.7 billion in cash, including debt of $4.1 billion from the deal with DigitalBridge and Brookfield. Deutsche Telekom will retain its 49% stake in GD Towers, maintaining exposure to future value upside.