Development of business in the Group
This section provides important additional information and explains recent changes in the significant events and their effects on the development of business in the Group compared to those described in the 2023 combined management report (2023 Annual Report).
For further information on significant events in the 2023 financial year, please refer to the sections “Group organization,” “Management of the Group,” and “Development of business in the Group” in the 2023 combined management report (2023 Annual Report).
Deutsche Telekom AG’s share buy-back program. In November 2023, we announced that we will buy back shares in Deutsche Telekom AG in 2024 up to a total purchase price of EUR 2 billion under a share buy-back program. The buy-back commenced on January 3, 2024 and will be carried out in several tranches through December 31, 2024. As of June 30, 2024, Deutsche Telekom AG had bought back around 43 million shares with a total volume of EUR 0.9 billion.
Sale of T‑Mobile US shares by Deutsche Telekom. In the first half of 2024, Deutsche Telekom sold a portion of its T‑Mobile US share portfolio on the market, without jeopardizing its own majority ownership position in T‑Mobile US. As of June 30, 2024, Deutsche Telekom had sold around 23 million T‑Mobile US shares with a total volume of EUR 3.5 billion. Deutsche Telekom announced on July 2, 2024 that it was suspending share sales initially until September 26, 2024.
Acquisition of T‑Mobile US shares by Deutsche Telekom. On June 7, 2024, Deutsche Telekom exercised fixed-price options agreed in June 2020 on shares in T‑Mobile US held by SoftBank to acquire around 7 million additional T‑Mobile US shares for a total purchase price of USD 0.7 billion (EUR 0.6 billion). The fixed exercise price originally agreed of USD 101.46 per share was adjusted to USD 99.51 to account for the dividend payments made by T‑Mobile US. The agreement allowed Deutsche Telekom to acquire the shares at a discount of around 45 % compared to the closing share price on the exercise date of USD 179.82. Upon completion of the transaction, Deutsche Telekom had exercised all fixed-price options received from SoftBank. The remaining floating options were not exercised and expired in the second quarter of 2024.
T‑Mobile US’ shareholder return program from September 2023 continued. On September 6, 2023, T‑Mobile US announced a shareholder return program of up to USD 19 billion that will run from October 1, 2023 through December 31, 2024. The program comprises share buy-backs and dividends to be paid out. The amount available for share buy-backs will be reduced by the amount of any dividends approved.
On January 24, 2024, the T‑Mobile US Board of Directors declared a cash dividend of USD 0.65 per share, which was paid out on March 14, 2024 to the shareholders registered as of close of business on March 1, 2024. EUR 0.4 billion of the cash dividend was attributable to Deutsche Telekom’s stake and EUR 0.4 billion to non-controlling interests in T‑Mobile US. On March 15, 2024, the T‑Mobile US Board of Directors declared a further cash dividend of USD 0.65 per share, which was paid out on June 13, 2024 to the shareholders registered as of close of business on May 31, 2024. EUR 0.3 billion of the cash dividend was attributable to Deutsche Telekom’s stake and EUR 0.3 billion to non-controlling interests in T‑Mobile US. On June 13, 2024, the T‑Mobile US Board of Directors declared a further cash dividend of USD 0.65 per share, which will be paid out on September 12, 2024 to the shareholders registered as of close of business on August 30, 2024. Furthermore, T‑Mobile US bought back around 36 million shares with a total volume of USD 5.8 billion (EUR 5.5 billion) in the first half of 2024.
As of June 30, 2024, USD 8.7 billion (EUR 8.1 billion) remained available to T‑Mobile US under the program.