Deutsche Telekom Considers Spin-off of Data Center Business Amid Growth in Cloud Services
Deutsche Telekom is contemplating a separation of its data center operations into a standalone unit, according to CEO Tim Höttges. He emphasized the need for more government commitment to advance data center and cloud services, referencing an unaddressed €20 billion funding from Brussels. T-Systems showed a 4.2% increase in order intake to €4.2 billion, with an adjusted EBITDA of €427 million. Despite challenges in the domestic broadband market, the company expects a 6% earnings increase to €47.4 billion for the coming year.
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Deutsche Telekom is considering the spin-off of its data center business into a separate entity, as stated by CEO Tim Höttges. He called for increased government support for the data center and cloud sector, citing a lack of updates on a €20 billion funding initiative from Brussels.
T-Systems reported a 4.2% rise in order intake to €4.2 billion and an adjusted EBITDA of €427 million. The company indicated that while the European market is gaining importance, the domestic broadband sector underperformed. Deutsche Telekom anticipates a 6% rise in earnings to €47.4 billion next year, with a modest increase in free cash flow expected.
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