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Deutsche Telekom’s subsidiary T-Mobile US and Sprint stop merger talks

Following this year’s spectrum auction in the US, T-Mobile US and Sprint Corp., together with their majority shareholders Deutsche Telekom AG and Softbank Corp., talked about a potential combination of their businesses. An agreement about the general framework of such a merger could not be reached. Therefore, the talks were now put to an end.

 T-Mobile US, of which Deutsche Telekom holds 64 percent of the shares, plans to continue its successful growth strategy.

Tim Höttges, CEO of Deutsche Telekom: „We have always said, that – given suitable conditions – a merger of T-Mobile US with another company could offer additional benefits to customers and the perspective of an increase in value to shareholders. These conditions could not be achieved here. In recent years, T-Mobile US with its high-performing management team has established itself as an innovative provider of mobile services, offering the best network quality. This way, the company has generated remarkable growth. As Deutsche Telekom, we supported our American subsidiary to invest more than 40 billion Dollar over the last years, thus building a strong basis for growth in the upcoming years.”

T-Mobile operates the fastest LTE network in the US covering over 316 million Americans. The various Un-carrier moves in recent years, such as „BingeOn“ and „Netflix-on-us”, are the basis for T-Mobile’s great success in the American mobile market.

For 18 quarters in a row, T-Mobile has gained more than one million new customers net per quarter. Also, the company has seen the strongest revenue growth of all national mobile operators for several quarters. In Q3 2017 revenue grew by 7,7 percent to 10 billion Dollar (US-Gaap). The forecast for the operational result was raised for the second time this year to now 10,8 to 11,0 billion Dollar (US-Gaap) for the financial year 2017.

With the new 600 MHz frequencies and the A-Block spectrum acquired earlier, the company continues to expand its network, boosting capacity and quality again clearly. The new lowband spectrum allows a profitable network expansion even to rural parts of the country. The distribution network is expanding, too: in 2017, some 3000 new shops will be opened. The company plans to profit from these investments by future growth.

 

About Deutsche Telekom: https://www.telekom.com/companyprofile

Dislcaimer 
This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These also include statements on market potential, statements on finance guidance, as well as on the dividend outlook. They are generally identified by the terms "expect," "anticipate," "believe," "intend," "estimate," "aim for," "goal," "plan," "will," "strive for," "outlook," or similar expressions and often include information that relates to net revenue expectations or targets for adjusted EBITDA, profit or loss, earnings performance, and other indicators, as well as personnel-related measures and workforce adjustments. Forward-looking statements are based on current plans, estimates, and projections. They should therefore be considered with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom's control, including those described in the sections "Forward-Looking Statements" and "Risk Factors" of the Company's Form 20-F annual report filed with the U.S. Securities and Exchange Commission. Among the relevant factors are the progress of Deutsche Telekom's workforce reduction initiative, the restructuring of operating activities in Germany, and the impact of other significant strategic or business initiatives, including acquisitions, dispositions, business combinations, and cost reduction measures. In addition, regulatory decisions, stronger than expected competition, technological change, litigation, and regulatory developments, among other factors, may have a material adverse effect on costs and revenue development. Furthermore, changes in the economic and business environments – for example, the current economic slump – in markets where we, our subsidiaries, and affiliates operate, the enduring instability and volatility on the global financial markets, as well as exchange rate and interest rate fluctuations can also adversely affect our business development and the availability of capital at favorable terms. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, Deutsche Telekom's actual results may be materially different from those expressed or implied by such statements. Deutsche Telekom can offer no assurance that its expectations or targets will be met. Deutsche Telekom does not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise. Deutsche Telekom does not reconcile its adjusted EBITDA guidance to a GAAP measure because it would require unreasonable effort to do so. As a rule, Deutsche Telekom does not predict the net effect of future special factors due to their uncertainty. Special factors and interest, taxes, depreciation and amortization (including impairment losses) can have a significant effect on Deutsche Telekom's results. 
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Ad hoc notification: T-Mobile US and Sprint end discussions about potential merger

An agreement could not be reached, and as a result the discussions have been terminated.

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