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 revenue 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 segment performance.

• Moody’s upgraded the long-term rating outlook to positive, and shares reached a 23-year high.

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

• Net profit fell to €7.0bn from €18.8bn due to the prior year's GD Towers sale gain; adjusted net profit up 15.3% to €7.1bn.

Financial highlights

• Revenue for the first nine months rose 2.7% year-over-year to €84.8bn; service revenue up 3.9% to €71.7bn.

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

• Free cash flow AL surged 28.3% to €15.1bn for the first nine months; Q3 free cash flow AL up 32.0% to €6.2bn.

• Net debt (including leases) at €128.7bn, down 6.1% year-over-year.

• Adjusted EPS after nine months up 16% to €1.43.

Outlook and guidance

• Full-year 2024 adjusted EBITDA AL guidance raised to ~€43.0bn; free cash flow AL guidance at ~€19.0bn.

• Dividend for 2024 expected to rise to €0.90 per share; share buybacks of up to €2bn planned for 2025.

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

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