DT CEO said it’s a company ‘duty’ to seek partner for T-Mobile US
T-Mobile US parent company Deutsche Telekom continues to look for outside investors in the U.S. carrier, with DT CEO Tim Hoettges stating that despite improved performance it is open to partnerships though is not under any pressure to do so.
Speaking during DT’s annual shareholders meeting, Hoettges explained that despite recent improvements across its U.S. operations, DT has a “duty to go on improving the return on T-Mobile US,” adding that “if we can find a partner who will help us to do so, we will obviously consider it.”
The sentiment is nothing new for T-Mobile US, which, despite posting industry leading customer growth, continues to struggle for profitability. The carrier managed to trim net losses during the first quarter, and has yet to show a financial return on its customer growth.
DT has been looking for ways to monetize its investment in T-Mobile US, which initially cost the company more than $50 billion when it acquired VoiceStream Wireless in 2001. In 2013, DT managed to dilute its stake in T-Mobile US through a complicated acquisition of MetroPCS, and last year nearly sold all of its stake to Softbank and in a separate deal a portion to France’s Iliad.
Hoettges late last year named a number of potential acquirers of T-Mobile US, including Comcast, Dish Network and América Móvil. Analysts have recently heightened the potential between T-Mobile US and Dish.
DT last week released Q1 operating results that exceeded expectations. Revenue rose 13.1% to $18.84 billion, and adjusted earnings before interest, taxes, depreciation and amortization increased 11% to $5.16 billion, beating predictions.
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