Deutsche Telekom eyes direct control over T-Mobile in medium term

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BERLIN (Reuters) – Deutsche Telekom confirmed its outlook for 2020 on Thursday ahead of its annual general meeting where investors are expected to call for a review of its dividend policy in light of last year’s strong results.

The Bonn-based telecoms group confirmed that it expected its adjusted core profit to rise to 37 billion euros ($43.4 billion)this year while cash flow would come in at 8 billion euros.

Deutsche Telekom is putting an unchanged dividend of 0.60 euros to the vote at its AGM, which is being held online for the second time due to the coronavirus pandemic.

That has irritated some investors, who are expected to call for a higher payout in light of last year’s improved results, driven by strength at U.S. unit T-Mobile following its takeover of smaller rival Sprint.

Group adjusted earnings before interest, taxation, appreciation and amortisation after leases (EBITDA AL) – the company’s preferred measure of operational profitibility – rose by 42% last year to 35 billion euros.

($1 = 0.8520 euros)

(Reporting by Douglas Busvine, editing by Thomas Escritt)