Deutsche Telekom to Receive Dividends from T-Mobile US, Plans Share Sales
Deutsche Telekom expects to receive approximately $1.8 billion in dividends from its U.S. subsidiary T-Mobile US over the next five quarters and plans to sell some of its T-Mobile US shares starting in 2024.
Deutsche Telekom is set to receive its first dividend payments from its U.S. subsidiary, T-Mobile US. The company anticipates a total inflow of approximately $1.8 billion after taxes from dividends over the next five quarterly periods.
T-Mobile US announced a shareholder return program valued at up to $19 billion, spanning from Q4 2023 through the end of 2024. Within this program, approximately $3.75 billion is designated for dividend payouts on a quarterly basis. Deutsche Telekom also reaffirmed its commitment to its dividend policy and deleveraging targets.
Starting in 2024, Deutsche Telekom intends to sell a portion of its T-Mobile US shares on the open market. However, the company stated that these sales will not jeopardize its majority ownership stake in the U.S. subsidiary, with the precise number of shares to be sold yet to be determined.
As of mid-July 2023, Deutsche Telekom held a 51.4 percent equity interest in T-Mobile US. The stake has grown in recent quarters as Deutsche Telekom did not sell shares during T-Mobile US's previous $14 billion share buyback program. The company aims to maintain a secure and stable majority control over its U.S. operations.