T-Mobile US plans to invest significant amounts in dividend payments and share buybacks in the coming years. By 2027, up to 50 billion USD (approximately 44.9 billion Euros) will be allocated for distributions and the repurchase of its own shares, as announced by CEO Mike Sievert on Wednesday at an investor event in San Francisco.
The dividends especially benefit the parent company Deutsche Telekom, which recently held about 50.4 percent of T-Mobile US. The second-largest shareholder is the Japanese SoftBank Group with a stake of around 7.3 percent.
Furthermore, T-Mobile US plans to increase revenue from services such as data plans by an average of five percent annually by 2027. In 2023, the company already raised its service revenue by 3.1 percent to 63.2 billion US dollars. Service revenue is considered particularly valuable in the telecommunications industry as it promises higher margins than the sale of devices.
The operating profit is also expected to increase: T-Mobile US aims to raise the adjusted core EBITDA to $38 to $39 billion by 2027. Last year, this figure was still at $29.1 billion.
Despite ambitious growth plans, T-Mobile US shares recorded a decline of 2.06 percent to $198.53 in NASDAQ trading.
