Deutsche Telekom (DTE) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with group revenue up 6.5% and adjusted EBITDA AL up 7.9% year-over-year; free cash flow AL surged 52.4% due to EBITDA growth and working capital seasonality.

• Net profit jumped 43.5% year-over-year to €2.8 billion, with EPS at €0.58, up from €0.40.

• Confirmed and raised 2025 guidance for adjusted EBITDA AL and free cash flow AL, reflecting robust US performance and new TMUS outlook.

• Continued network leadership in Germany and US, with significant progress in fiber and 5G coverage, and accelerated AI-driven digital transformation.

• Stake in T-Mobile US increased to 51.8% as of April 2025; ongoing share buyback and major acquisitions completed, including Lumos, Vistar Media, and Blis.

Financial highlights

• Q1 2025 revenue: €29,755m (+6.5% YoY); service revenue: €24,957m (+6.3% YoY); adjusted EBITDA AL: €11,297m (+7.9% YoY); net profit: €2,845m (+43.5% YoY).

• Free cash flow AL: €5,650m (+52.4% YoY); cash capex: €4,343m (-6.8% YoY); net debt excl. leases: €95.7bn; leverage ratio (excl. leases): 2.18x.

• Adjusted EPS: €0.50 (+10.8% YoY); non-recurring adjusted EPS growth: 13.4%.

• T-Mobile US: Q1 revenue US$20.8bn (+6.6% YoY), adjusted EBITDA AL US$8.0bn (+6.6% YoY), best-ever Q1 postpaid net adds (1.3m), postpaid phone churn 0.91%.

• Germany: 34th consecutive quarter of EBITDA growth; Q1 revenue €6,219m (-1.3% reported, +2.6% organic), adjusted EBITDA AL €2,634m (+2.2% organic).

Outlook and guidance

• 2025 adjusted EBITDA AL guidance raised to €45.0 billion and free cash flow AL to €20.0 billion, mainly due to stronger US segment performance.

• T-Mobile US 2025 guidance: US$33.2–33.7bn core adjusted EBITDA, US$17.5–18.0bn FCF.

• Group expects continued revenue and EBITDA growth in 2025 and 2026, with stable or slightly increasing capex.

• Guidance based on 2024 average exchange rate; all other guidance unchanged.

• Committed to delivering 2025 and midterm targets.