Deutsche Telekom (DTE) Q4 2024 earnings summary

Executive summary

• Achieved record year in 2024 with highest EBITDA, free cash flow, and adjusted earnings, and organic service revenues up 3.7%, adjusted EBITDA AL up 6.0%, and free cash flow AL up 18.7%.

• Celebrated 30th anniversary, highlighting strong operational and financial performance across all segments.

• Total Shareholder Return reached 38% in 2024, with shares hitting a 24-year high and a proposed €0.90 dividend and €2bn share buyback.

• Management stability reinforced with CEO contract extension to 2028 and key leadership changes, including CEO Germany moving to COO of T-Mobile US.

• Expanded fiber and 5G networks, surpassing 20 million European homes passed with fiber and maintaining 5G leadership in the US and Europe.

Financial highlights

• FY 2024 revenue rose 3.4% to €115.8bn; service revenues up 3.9% to €96.5bn year-over-year.

• Adjusted EBITDA AL increased 6.2% to €43.0bn; adjusted net profit up 18.3% to €9.4bn.

• Free cash flow AL grew 18.7% to €19.2bn; cash capex decreased 3.8% to €16.0bn.

• Adjusted EPS for 2024 was €1.90, including €0.07 of non-recurring earnings.

• Net debt (excl. leases) increased 5.9% to €99.3bn, mainly due to FX impacts; leverage ratio at 2.31x (excl. leases), slightly above the 2.75x target.

Outlook and guidance

• 2025 group guidance: adj. EBITDA AL ~€44.9bn (+4.5%), FCF AL ~€19.9bn, and adjusted EPS of ~€2.00 (+9%).

• Revenue, service revenue, and adj. EBITDA AL expected to increase across all segments in 2025 and 2026.

• Ex-U.S. EBITDA guidance for 2025 is €15bn; free cash flow €3.6bn.

• Net debt/adj. EBITDA targeted at ≤2.75x by end of 2025.

• No change to long-term mobile (2-2.5%) and broadband (3-4%) growth targets.