Deutsche Telekom says execution of U.S. merger going to plan

FILE PHOTO: A T-Mobile store is pictured in the Manhattan borough of New York, New York, U.S., May 20, 2019. REUTERS/Carlo Allegri

BERLIN (Reuters) - Deutsche Telekom DTEGn.DE said on Thursday that the implementation of the $23 billion takeover of Sprint by its U.S. unit T-Mobile TMUS.O was on track, and is still expected to generate $43 billion in synergies.

“Our stated goal is now to integrate Sprint as swiftly as possible,” CEO Tim Hoettges told reporters on a conference call. “The integration of Sprint is going to plan.”

Deutsche Telekom earlier reported second-quarter results that were buoyed by the consolidation of Sprint from April 1, raising its forecast for group profit for the year to 34 billion euros ($40 billion) to account for the U.S. deal.

Profit guidance for Deutsche Telekom’s non-U.S. businesses - in Germany, Europe and its IT services unit T-Systems - of 13.9 billion euros was unchanged, Hoettges said.

Chief Financial Officer Christian Illek said Deutsche Telekom’s leverage ratio, which rose to 2.9 times at mid-year on a pro-forma basis, should return to a target range of 2.25-2.75 times in the third year after the merger.

Reporting by Douglas Busvine; editing by Thomas Seythal