Deutsche Telekom (DTE) Q4 2024 earnings summary

Executive summary

• Achieved record financial results in 2024, with highest EBITDA, free cash flow, and adjusted earnings in company history, and organic service revenue up 3.7%.

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

• Increased stake in T-Mobile US to 51.5% and announced further U.S. investments and acquisitions.

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

• Leadership changes include CEO contract extension to 2028 and new appointments in Germany and the U.S.

Financial highlights

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

• Adjusted EBITDA AL increased 6.2% to €43.0bn; free cash flow AL up 18.7% to €19.2bn.

• Adjusted net profit grew 18.3% to €9.4bn; adjusted EPS reached €1.90, up 19.3% year-over-year, including €0.07 non-recurring earnings.

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

• Cash capex rose 7.3% to €19.2bn; liquidity reserve covers maturities for the next 24 months.

Outlook and guidance

• 2025 guidance: adjusted EBITDA AL of ~€44.9bn (+4.5%), free cash flow AL of ~€19.9bn (+4.0%), adjusted EPS of ~€2.00 (+9%).

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

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

• Continued focus on fiber build-out, aiming for 2.5 million new homes in Germany and further monetization.