Telecom

Telekom’s profit makers under pressure – Tough competition weighs on T-Mobile US

The Telekom subsidiary has recently made less sales and expects fewer new customers for 2023. Analysts are hoping for a turnaround.

New York  The Telekom subsidiary T-Mobile US is feeling the effects of the fierce competition on the American market. The number of new contract customers rose by 927,000 in the fourth quarter, as the Deutsche Telekom subsidiary announced on Wednesday. But sales shrank by 2.5 percent and fell short of the market expectation of $20.6 billion at $20.27 billion. Adjusted operating profit (Ebitda) increased by around eight percent to $6.8 billion in the fourth quarter.

The US subsidiary has repeatedly proven to be a growth driver for the Bonn-based group and recently raised its forecasts twice in a row. But T-Mobile US is facing competition from larger rivals AT&T and Verizon , who are luring customers with deep discounts. This gave T-Mobile a 0.92 percent monthly churn rate, one of the highest in the industry. The two competitors achieve values ​​of 0.84 and 0.89 percent, respectively.

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