- Deutsche Telekom expects adjusted EBITDA after leases to be about €44.9 billion in 2025, slightly below the estimate of €46.93 billion.
- The company projects free cash flow after leases to reach approximately €19.9 billion, surpassing the estimate of €18.08 billion.
- Deutsche Telekom anticipates an adjusted EPS (earnings per share) close to €2.00, just under the estimate of €2.04.
- In the fourth quarter:
- Adjusted EBITDA after leases rose by 6.2% year-over-year to €10.63 billion, slightly missing the estimate of €10.78 billion.
- Germany’s adjusted EBITDA after leases increased by 2.8% year-over-year to €2.66 billion, aligning with the estimate.
- Europe’s adjusted EBITDA after leases improved by 6.2% year-over-year to €1.07 billion, surpassing the estimate.
- US adjusted EBITDA after leases rose by 9.2% year-over-year to €7.13 billion, meeting the estimate.
- Systems Solutions saw a substantial 34% increase in adjusted EBITDA after leases, amounting to €102 million, outperforming the estimate of €78.9 million.
- Revenue increased by 5.3% year-over-year to €30.93 billion, ahead of the estimate of €30.52 billion.
- Germany’s revenue slightly declined by 0.2% year-over-year to €6.58 billion, below the estimate of €6.71 billion.
- Europe’s revenue grew by 3% year-over-year to €3.21 billion, in line with the estimate.
- US revenue experienced a 7.8% increase year-over-year to €20.46 billion, exceeding the estimate of €19.81 billion.
- Systems Solutions revenue rose by 0.8% year-over-year to €1.04 billion, matching the estimate.
- Free cash flow after leases was down by 7.4% year-over-year to €4.03 billion, narrowly beating the estimate of €4.02 billion.
- Net debt at the end of the period was €137.33 billion, which is above the estimate of €135.79 billion.
- For the full year 2024, the dividend per share was confirmed at €0.9, meeting the estimate.
- Deutsche Telekom plans to conduct up to €2 billion in share buybacks in 2025.
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A look at Deutsche Telekom Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Deutsche Telekom AG, a telecommunications company, is poised for a promising long-term outlook based on the Smartkarma Smart Scores. With a strong Momentum score of 5, indicating positive market traction, the company is positioned to maintain its growth trajectory. Additionally, scoring a 4 in Growth reflects the company’s potential for expansion and development in the industry. A respectable Dividend score of 3 suggests a stable payout to investors. However, Deutsche Telekom falls slightly short in Value and Resilience, with scores of 2 in both areas. Despite this, the company’s overall outlook appears favorable, especially considering its notable strengths in growth and momentum.
Deutsche Telekom AG is a telecommunications service provider known for offering a wide range of services that cater to both consumer and business needs. From fixed-line telephone services to mobile communications and Internet access, the company provides comprehensive solutions in the telecommunications sector. With a strategic focus on combining information technology with telecommunications services for businesses, Deutsche Telekom plays a vital role in facilitating connectivity and communication on a global scale. The Smartkarma Smart Scores indicate positive momentum and growth potential for the company, positioning it well for long-term success in the ever-evolving telecommunications industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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