Mobile communications: "The stock price does not reflect our strength": Telekom expands buyback to five billion euros
The Deutsche Telekom is under pressure on the stock exchange. With a significantly larger share buyback, CEO Höttges wants to set a positive signal - and the price is actually reacting.
Deutsche Telekom aims to bolster its share price through an expanded share buyback program, increasing the volume from two billion euros to up to five billion euros. The telecommunications giant's CEO, Tim Höttges, expressed that while the company's numbers are strong, its stock does not accurately reflect this strength. Despite strong operational growth in the second quarter, with revenue up 4.4% to 29.9 billion euros and Ebitda AL up 7.5% to 11.8 billion euros, the free cash flow, a key indicator for dividend capacity, increased by 3.1% to five billion euros.
The company has raised its forecast for free cash flow to around 20 billion euros, previously aiming for over 19.8 billion euros. T-Mobile US, a subsidiary, had already raised its outlook two weeks ago.
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