Deutsche Telekom on track to become 100 billion euro business: CEO

Deutsche Telekom DTEGn.DE is on course to become a 100 billion euro business, Chief Executive Tim Hoettges said after the transatlantic telecoms group posted forecast-beating quarterly results boosted by its recently-merged U.S. unit.

Although results in its core telecoms operations on both sides of the Atlantic were strong, Hoettges said that IT services unit T-Systems was underperforming as the coronavirus pandemic hit orders and revenue.

“The transformation of our systems solutions business … is not progressing as we would like,” Hoettges said in remarks prepared for delivery to reporters.

CFO Christian Illek said that group leverage was on still track to return to a target range of 2.25 to 2.75 times within three years after it was pumped up by the prolongation of a leasing deal with American Tower AMT.N in the third quarter.

Group net debt including leases grew by 3.6 billion euros to 124.5 billion euros in the quarter, putting the leverage ratio based on that metric at 2.9 times.