US merger helps Deutsche Telekom to record revenues in 2020

German telecoms operator Deutsche Telekom said Friday it had defied the coronavirus pandemic to post record revenues last year thanks to its acquisition of US rival Sprint.

The Bonn-based company said revenue jumped 25.4 percent to 101 billion euros ($122 billion) in 2020, surpassing the 100-billion-euro mark for the first time in the company’s history.

“We made history in 2020,” said CEO Tim Hoettges in a statement, adding that Deutsche Telekom had “closed a groundbreaking deal in the United States” and “improved our market position in Europe”. 

The $26-billion merger between Deutsche Telekom’s US unit T-Mobile and Sprint was completed in April.

Adjusted operating profit (EBITDA) soared 41.6 percent to 35 billion euros in 2020, with the group expecting a further rise to 37 billion euros this year. 

Meanwhile, adjusted net profit increased 15.5 percent to 5.7 billion euros. 

Boosted by the acquisition of Sprint, Telekom’s US arm T-Mobile was the driving force behind the strong performance, with a 93 percent increase in adjusted operating profit to $24 billion.

Yet the group was hit by the coronavirus pandemic in Europe, where it said “business was impeded by shop closures and travel restrictions”.