- Deutsche Telekom projects its full-year adjusted EBITDA AL to surpass €45 billion, exceeding previous estimates of €44.23 billion.
- Full-year free cash flow after leases is expected to be above €20 billion, surpassing the previous estimate of €19.23 billion.
- For the second quarter, the company reported an adjusted EBITDA after leases of €11.00 billion, a 1.7% increase year over year, above the estimate of €10.91 billion.
- In Germany, adjusted EBITDA after leases was €2.61 billion, a 2% increase year over year, slightly below the estimate of €2.63 billion.
- European operations recorded an adjusted EBITDA after leases of €1.17 billion, up 5.6% year over year, slightly above the estimate of €1.16 billion.
- The US division showed an adjusted EBITDA after leases of €7.30 billion, a 0.9% increase year over year, surpassing the estimate of €7.2 billion despite currency translation impacts.
- Systems Solutions achieved an adjusted EBITDA after leases of €96 million, marking a 10% year-over-year increase, outperforming the estimate of €90.5 million.
- Adjusted net income reached €2.50 billion, 1.1% higher than the previous year and above the estimate of €2.39 billion.
- Total revenue for the second quarter was €28.67 billion, a 1% rise year over year, aligned with the estimate of €28.66 billion.
- In Germany, revenue slightly decreased by 1.3% year over year to €6.29 billion, not meeting the estimate of €6.35 billion.
- Europe saw a revenue increase of 1.4% year over year to €3.12 billion, just below the estimate of €3.14 billion.
- US revenue rose by 1.7% year over year to €18.60 billion, exceeding the estimate of €18.36 billion.
- Systems Solutions revenue increased by 3.3% year over year to €1.01 billion, surpassing the estimate of €995.3 million.
- Free cash flow after leases was reported at €4.88 billion, a 6.7% decrease year over year, slightly missing the estimate of €4.93 billion.
- Net debt at the end of the period was €126.54 billion, a 4.1% decrease quarter over quarter, better than the estimate of €127.75 billion.
- The translation of US earnings into euros was negatively impacted by a weaker dollar, affecting revenue and EBITDA results in the US business.
- The discrepancy between the group guidance for 2025 and capital market expectations is largely due to the different US dollar exchange rates used in translating T-Mobile US’s earnings.
Deutsche Telekom on Smartkarma
Analysts on Smartkarma, like Baptista Research, are delving into Deutsche Telekom, with a focus on the company’s mobile ARPU strategy and its potential to safeguard profits in a saturated market. The initiation of coverage by Baptista Research provides insights into Deutsche Telekom’s solid first quarter of 2025, showcasing a robust financial and strategic performance. Despite the positive start to the year, the analysis also highlights both favorable and challenging aspects of the company’s current business landscape.
A look at Deutsche Telekom Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
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 positioned for a steady long-term outlook based on its Smartkarma Smart Scores. With above-average ratings in Dividend and Growth, as well as solid scores in Resilience and Momentum, the company demonstrates a strong overall outlook. While the Value score is moderate, the company’s performance in other key factors suggests promising prospects for investors seeking stability and potential growth in the telecommunications sector.
Deutsche Telekom AG provides a comprehensive range of telecommunications services, catering to both individual and business customers. With a focus on innovation and reliability, the company’s Smartkarma Smart Scores indicate a favorable long-term outlook, making it an attractive investment option for those looking for a company with solid dividend returns, growth potential, and resilience in the face of market fluctuations.
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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