Deutsche Telekom (DTE) Q4 2024 earnings summary

Executive summary

• Achieved record year in 2024 with highest EBITDA, free cash flow, and adjusted earnings, driven by organic service revenue up 3.7%, EBITDA up 6%, and free cash flow and adjusted EPS both up 19% year-over-year.

• 2024 guidance was met, and 2025 guidance confirms continued growth ambitions, including adj. EBITDA AL +4.5% and FCF AL ~€19.9bn.

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

• Significant M&A activity in the U.S. with over EUR 10 billion invested, T-Mobile US stake increased to 51.5%, and further acquisitions announced.

• Leadership changes include CEO contract extension to 2028, new appointments in Germany and the U.S., and CEO Germany to become COO of TMUS.

Financial highlights

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

• Group EBITDA grew 6.5% year-over-year; excluding U.S., growth was 6%.

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

• Free cash flow up 19% year-over-year to €19.2bn; net debt increased by EUR 5-6.8 billion, mainly due to FX impacts.

• Net debt/EBITDA ex-lease at 2.78, slightly above the 2.75 target; leverage ratio at 2.31x (excl. leases).

Outlook and guidance

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

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

• DT ex-U.S. EBITDA guidance for 2025 is EUR 15 billion; free cash flow EUR 3.6 billion.

• No change to long-term growth targets: 2-2.5% for mobile, 3-4% for broadband.

• Continued focus on fiber build-out, aiming for 2.5 million new homes in Germany and surpassing 20 million European homes passed.