- Deutsche Telekom forecasts full-year 2025 adjusted EBITDA after leases to be €45.3 billion, surpassing the initial expectation of over €45 billion and the analyst estimate of €44.19 billion.
- The company anticipates free cash flow after leases to reach €20.1 billion, exceeding both the previous projection of over €20 billion and the estimate of €19.15 billion.
- For the third quarter, the adjusted EBITDA after leases was reported at €11.12 billion, a slight increase of 0.2% year-over-year, but just under the estimate of €11.17 billion.
- In Germany, the adjusted EBITDA after leases matched last year’s figure at €2.73 billion, slightly missing the estimate of €2.75 billion.
- European operations showed a 4.7% year-over-year increase in adjusted EBITDA after leases, reaching €1.24 billion, surpassing the estimate of €1.23 billion.
- The US segment recorded a mild 0.7% year-over-year decline in adjusted EBITDA after leases to €7.20 billion, under the forecast of €7.26 billion.
- Systems Solutions achieved a substantial 25% year-over-year growth in adjusted EBITDA after leases, totaling €127 million, outperforming the estimate of €105.8 million.
- Adjusted net income soared 14% year-over-year, amounting to €2.67 billion, exceeding the expected €2.39 billion.
- Overall revenue for the third quarter was €28.94 billion, a 1.5% increase year-over-year, slightly above the estimate of €28.93 billion.
- Revenue in Germany declined 1.8% year-over-year to €6.35 billion, lower than the forecasted €6.42 billion.
- European revenue increased by 2.2% year-over-year, reaching €3.18 billion, just above the expectation of €3.17 billion.
- US revenue climbed 2.6% year-over-year to €18.76 billion, exceeding the estimate of €18.67 billion.
- Systems Solutions revenue grew 2.3% year-over-year, totaling €1.01 billion, in line with estimates.
- Free cash flow after leases decreased by 9.2% year-over-year, standing at €5.62 billion, but still surpassing the estimate of €5.36 billion.
- Net debt at the end of the period was reported at €132.78 billion, above the estimate of €130.25 billion.
- Deutsche Telekom plans to distribute a dividend of €1 per share for the financial year 2025, an increase from €0.9, pending approval.
- The company intends to buy back shares worth up to €2 billion in 2026.
- The full-year 2025 guidance has been raised, influenced by the positive trend in the US and particularly due to the consolidation of UScellular since August.
Deutsche Telekom on Smartkarma
Analysts on Smartkarma, like Baptista Research, have been closely covering Deutsche Telekom’s performance and outlook. In their report titled “Deutsche Telekom: An Insight Into Its Challenges & Market Dynamics in Fiber Optic Deployment!“, they highlighted the company’s mixed second-quarter 2025 results. Despite facing challenges in certain segments, Deutsche Telekom showed robust growth in others, such as a 3.7% organic service revenue growth and a 17.8% increase in free cash flow for the first half of the year. Baptista Research aims to assess various influencing factors on the company’s stock price in the near future and has conducted an independent valuation using a Discounted Cash Flow (DCF) methodology.
Furthermore, Baptista Research also initiated coverage on Deutsche Telekom with a report titled “Deutsche Telekom: Initiation of Coverage- Could Mobile ARPU Strategy Shield Profits in a Saturated Market?“. The report highlighted the company’s solid first quarter for 2025, showing a strong financial and strategic start to the year. Despite some challenges in the current business environment, Deutsche Telekom’s reaffirmed midterm targets and impressive financials signal significant growth prospects across various segments. This analysis sheds light on how Deutsche Telekom’s mobile Average Revenue Per User (ARPU) strategy could potentially protect profits in a saturated market, providing valuable insights for investors considering the telecommunications giant.
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 provider, shows a promising long-term outlook based on Smartkarma Smart Scores. With a solid score for Dividend and Growth, the company is expected to maintain healthy dividends and exhibit growth potential. Additionally, its Resilience score suggests a certain level of stability even in challenging times. Although value and Momentum scores are not the highest, the overall outlook is positive.
Deutsche Telekom AG, known for its telecommunications services, offers a range of fixed-line and mobile communication services, internet access, and IT solutions for businesses. The company’s strong performance in Dividend, Growth, and Resilience aspects indicate a favorable trajectory for long-term investors, positioning it well in the competitive 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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