Deutsche Telekom lifts outlook after strong Q1 profit and revenue growth

Published 05/15/2025, 03:03 AM
© Reuters.

Investing.com -- Deutsche Telekom (ETR:DTEGn) on Thursday raised its full-year profit outlook after posting a 43.5% jump in first-quarter net profit and a 6.5% rise in revenue.

The Bonn-based telecommunications group reported net profit of €2.8 billion for the first three months of 2025, up from a year earlier. 

Adjusted for special factors, net profit rose 9.1% to €2.4 billion. Revenue climbed to €29.8 billion, with service revenues up 6.3% to €25 billion.

Adjusted earnings before interest, taxes, depreciation and amortization after leases, or EBITDA AL, rose 7.9% to €11.3 billion. 

Free cash flow AL increased 52.4% to €5.6 billion. The company said the results were supported by currency effects, including a stronger average U.S. dollar.

On an organic basis—excluding exchange rate and group composition changes—revenue rose 3.8%, service revenues 3.5%, and adjusted EBITDA AL 5.3%.

“Our figures speak a clear language: We remain on the right course,” chief executive Tim Höttges said in a statement.

Following the results, Deutsche Telekom raised its 2025 guidance. It now expects adjusted EBITDA AL of around €45 billion, up from €44.9 billion, and free cash flow AL of €20 billion, up from €19.9 billion. 

In 2024, those figures were €43 billion and €19.2 billion, respectively. The outlook assumes constant exchange rates.

In Germany, mobile service revenues rose 3%. The company added 274,000 branded mobile contract customers. 

FTTH customer numbers grew by 128,000 to 1.6 million, while broadband users fell by 7,000 amid competition. 

Adjusted EBITDA AL rose 2.3%, continuing a 34-quarter growth streak. Segment revenue declined 1.3% due to lower device sales; service revenue rose 1.4%.

T-Mobile US (NASDAQ:TMUS) added 1.3 million postpaid customers, including 495,000 phone users. High Speed Internet subscribers rose by 424,000 to 6.9 million. 

The unit’s total customer base reached 130.9 million. Adjusted EBITDA AL grew 6.6% to $8 billion, with revenue also up 6.6% to 20.8 billion dollars.

In Europe, adjusted EBITDA AL rose 7.2% organically to €1.1 billion. Revenue increased 3.7% to €3.1 billion; service revenue rose 5%. 

The segment added 123,000 mobile contracts and 68,000 broadband customers. TV customers declined by 1,000 following a planned satellite exit in Hungary.

T-Systems posted a 17% rise in order entry to €1 billion. Revenue rose 1.7%, and adjusted EBITDA AL increased 4.4% to €81 million.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.