Deutsche Telekom (DTE) Q3 2024 earnings summary

Executive summary

• Achieved strong commercial and financial growth in Q3 and the first nine months of 2024, with organic service revenues up 4.0%, adjusted EBITDA AL up 6.3%, and free cash flow AL up 28.3% year-over-year.

• Upgraded full-year guidance for both US and European operations, reflecting continued momentum and robust performance across all segments.

• Proposed 2025 shareholder returns include a €0.90 dividend and up to €2bn share buyback.

• Leverage ratio including leases at 2.64x, below the 2.75x guardrail, with Moody's upgrading outlook to positive.

• Continued network expansion, especially in FTTH and 5G, and strong mobile leadership across markets.

Financial highlights

• Q3 2024 revenue rose 3.4% year-over-year to €28.5bn; 9M revenue up 2.7% to €84.8bn.

• Adjusted EBITDA AL increased 6.2% to €32.4bn, with margin improving to 38.2%.

• Free cash flow AL surged 32.0% in Q3 to €6.2bn; 9M up 28.3% to €15.1bn.

• Adjusted net profit up 15.3% to €7.1bn; adjusted EPS up 16.0% to €1.43.

• Net debt including leases decreased 6.1% year-over-year to €128.7bn.

Outlook and guidance

• FY24 guidance raised: Group adjusted EBITDA AL ~€43.0bn, FCF AL ~€19.0bn, adjusted EPS >€1.75.

• 2027 targets: ~4% service revenue CAGR, 4–6% adjusted EBITDA AL CAGR, ~€21bn FCF AL, ~€2.5 adjusted EPS.

• Dividend for 2024 expected to rise to €0.90 per share; shareholder remuneration for 2025 planned up to €6.4bn, including up to €2bn in buybacks.

• US postpaid customer guidance increased to 5.6–5.8 million for the year.

• European segment EBITDA growth guidance set at 4–5% for coming years.