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Deutsche Telekom dismisses talk of trouble at T-Systems

Brochures with the logo of Deutsche Telekom AG are pictured at the shop in the headquarters of German telecommunications giant in Bonn

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)