November 7, 2019 / 2:36 PM / 13 days ago

Deutsche Telekom dismisses talk of trouble at T-Systems

FILE PHOTO: Brochures with the logo of Deutsche Telekom AG are pictured at the shop in the headquarters of German telecommunications giant in Bonn, Germany, February 19, 2019. REUTERS/Wolfgang Rattay

BERLIN (Reuters) - Deutsche Telekom (DTEGn.DE) dismissed reports of operating problems at its IT services unit T-Systems, saying the business was on track and that it had recently extended CEO Adel Al-Saleh’s contract.

“We’re happy that we have an increasing order entry. We’re progressing on the transformation at T-Systems, to be honest,” CFO Christian Illek told analysts on a conference call. “There is nothing behind this.”

Illek declined to comment on what he called speculation regarding possible asset sales to curb an increase in Deutsche Telekom’s leverage - one factor behind its decision on Thursday to reduce its proposed dividend for 2019.

Reporting by Douglas Busvine; Editing by Ludwig Burger

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