Weak t-share disappoints telekom shareholders

Weak t-share disappoints telekom shareholders

"No one can be satisfied with a share price of less than nine euros," said the CEO at the annual shareholder meeting in koln. And he called for more equal opportunities in competition in view of the tough regulation.

The fact that the share price has not been going up for years now is causing displeasure among some investors. "Telekom urgently needs a perspective to prevent it from being bled dry and to defend its revenue and market share," said klaus kaldemorgen of DSW, germany’s largest investment fund company. In a difficult market, the bonn-based group has done better than its comparable european competitors, counters obermann. On the stock exchange, the T-share was up slightly in the afternoon at 8.77 euros.

It is also unclear at present whether shareholders can expect a fixed dividend beyond 2012. For the current fiscal year, shareholders will receive a further payout of at least 70 cents as part of a three-year program. At the beginning of next year, the board of management will decide on the future financial strategy, said chief financial officer tim hottges.

Obermann wants to compensate for the faltering core business by increasing sales in the growth areas in the future. Revenue from mobile internet, cloud and online services for consumers, and the connected home is expected to increase to a volume of 29 billion euros. However, the business fields must be given time to develop. Last year, telekom lost about six percent in revenue. At the same time, obermann stressed that the company would fight for every customer relationship in its core business. The company also aims to regain the mobile communications market leadership that vodafone had taken from the bonn-based company.

The telekom boss criticized the tough regulation in germany and the preferential treatment of cable network operators. In the meantime, interventions to lower the so-called termination fees are also being made in mobile communications. This took away the incentive to invest. Obermann: "we need less regulation instead of more". He stressed that the priority of market solutions and stable network fees to finance the new networks were crucial.

In the U.S., telekom continues to look for a solution for its ailing subsidiary T-mobile. "A full-scale sale like the one to AT&T is unlikely; we have to go other ways," emphasized obermann. All options are open.

Last year, the planned sale of T-mobile USA to competitor AT&T failed due to resistance from the regulatory authorities. With just over 33 million customers, the group subsidiary is only number four in the country and has come under considerable pressure in recent years. Customers are also turning their backs on the company because of the top-selling iphone, which telekom is not allowed to market in the u.S.

Leave a Reply

Your email address will not be published.