Deutsche Telekom outlined intentions to invest €2 billion in 2024 to buy back shares, along with raising its dividend for the third year in succession.
Ahead of its Q3 earnings announcement scheduled for 9 November, CEO Timotheus Hoettges stated the share buyback scheme was in part driven by the fact shareholders had accepted a dilution of their holdings in 2021, when it implemented a capital increase to shore up its position in T-Mobile US.
The company has steadily increased its holdings in its highly profitable US division, which accounts for a huge chunk of its revenue.
By outlaying €2 billion, Hoettges said the company was aiming to make up for that dilution to some extent, adding shareholders had trusted and “supported our strategy for many years in expectation that we will wisely use the capital they provide to us”.
As part of its plan to keep shareholders content, the company added it would raise its dividend for 2023 to €0.77 per dividend-bearing share, up from €0.70 per share in 2022.
The Germany-based operator explained the increase would allow shareholders to profit from improved earnings performance, noting it is the third year in a row it has implemented an increase.