Deutsche Telekom to Get Cash Inflows From T-Mobile US's Payout Program

By Adria Calatayud

Deutsche Telekom expects to receive dividends from T-Mobile US for the first time starting in the fourth quarter and further cash inflows next year from selling shares in its U.S. subsidiary on the market.

The German telecommunications group said late Wednesday that it intends to sell a portion of its T-Mobile US shares from next year while maintaining its majority ownership in the U.S. business.

The decision came as T-Mobile US outlined a plan to return up to $19 billion to shareholders through dividend payments and share buybacks from the fourth quarter of 2023 to the end of 2024, joining peers like AT&T and Verizon Communications in paying out regular dividends.

Deutsche Telekom expects to receive around $1.8 billion in dividend payments, after taxes, over the next five quarters, it said.

The exact number of T‑Mobile US shares that will be sold by Deutsche Telekom has yet to be decided, the German company said. As of mid-July, Deutsche Telekom held an equity interest of 51.4% in T-Mobile US, a stake that increased in recent months because the German parent abstained from participating in the first phase of a buyback program launched by its U.S. subsidiary last year.

Deutsche Telekom said a secure, sustainable majority in T-Mobile US remains a strategic goal for the group.

T-Mobile US's shareholder-return program doesn't change Deutsche Telekom's own dividend policy or debt-reduction targets, the German company said.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

September 07, 2023 01:59 ET (05:59 GMT)

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