Deutsche Telekom (DTE) Q2 2025 (Media) earnings summary

Executive summary

• Achieved consistent, reliable growth in H1 2025, with net revenue up 3.7% to €58.4 billion and strong momentum across all segments, especially in the US.

• Net profit increased 34.1% year-over-year to €5.5 billion, with adjusted EPS up 6.4% to €1.01.

• Raised full-year 2025 guidance for adjusted EBITDA AL to over €45 billion and free cash flow AL to over €20 billion, reflecting robust US performance and recent M&A.

• Record postpaid customer growth in the US; German broadband market remains challenging but with a long-term value focus.

• Strong progress in AI-driven efficiency and digitization, targeting €800 million in cost savings by 2027.

Financial highlights

• Net revenue: €58.4 billion (+3.7% YoY); service revenue: €49.3 billion (+3.7%); adjusted EBITDA AL: €22.3 billion (+4.7%).

• Net profit: €5.5 billion (+34.1% YoY); adjusted EPS: €1.01 (+6.4% YoY); free cash flow AL: €10.5 billion (+17.8%).

• T-Mobile US Q2 revenues up 7.1% to $21.1bn, adj. EBITDA AL up 6.2% to $8.3bn, record postpaid net adds.

• Net debt decreased by €10.8 billion to €126.5 billion; leverage ratio at 2.51 (including leases), 2.11 (excluding leases).

• Equity ratio at 31.9%; liquidity reserve covers next 24 months of redemptions.

Outlook and guidance

• 2025 guidance raised: adjusted EBITDA AL >€45.0 billion, free cash flow AL >€20.0 billion, adjusted EPS ~€2.00.

• TMUS 2025 guidance: US$33.3–33.7bn core adj. EBITDA and US$17.6–18.0bn FCF.

• DT ex-U.S. EBITDA guidance remains €15B, absorbing a €50M one-off headwind in Germany.

• Confirmed mid-term targets, including 1 million annual fiber net adds in Germany by 2027.

• Expect Q3 EBITDA below current run rate due to wage increases, with Q4 above run rate.