Deutsche Telekom Ag · XETR:DTE
Deutsche Telekom — Q4 2024 Earnings Presentation
42 slides from Deutsche Telekom's earnings presentation, Feb 26, 2025
Slide 1: Deutsche Telekom Q4 2024 results
Deutsche Telekom Q4 2024 results February 26, 2025 Connecting your world
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, dep
Slide 3: FY 2024 results Group
FY 2024 results Group
Slide 4: FY/24 consistent reliable growth
FY/24 consistent reliable growth FY/2024 Highlights< ▪ Market leading customer and financial growth continues: FY organic service revenues +3.7%, adj. EBITDA AL +6.0%, FCF AL +18.7%1, adj. EPS +19.3%1. ▪ Good progress with key CMD ambitions (fiber, mobile technology leadership, customer experience ,
Slide 5: Financials FY/24 organic strong organic growth
Financials FY/24 organic strong organic growth FY/24 Adj. EBITDA AL Adj. Core EBITDA AL FY/24 Adj. EBITDA AL by segment2 FY/24 Key Financials growth yoy, organic growth of 8.3%1 € mn % growth yoy, organic TMUS 7.4% Group revenues 3.3% +€1,979 mn 10,516 Group service revenues 3.7% GER 2.6% +€265 mn D
Slide 6: Networks leading with 5G, >20 mn European homes passed with FTTH
Networks leading with 5G, >20 mn European homes passed with FTTH FTTH (1 Gbps) 5G TMUS 5G DT ex US Fiber homes passed Ultra capacity 5G1 Germany mn +3.2 mn POPs % of POPs +2pp 20.2 300 >300 96 98 17.0 10.1 EU 9.1 GER 7.9 10.1 Q4/23 Q4/24 Q4/23 Q4/24 Q4/23 Q4/24 GER Network Leader GER • Fiber: target
Slide 7: Customers growing strongly, broadband slower
Customers growing strongly, broadband slower Mobile net adds Fixed line net adds2 000 000 6,066 5,650 US (postpaid) Broadband 611 368 FY/23 FY/24 FY/23 FY/24 1,978 1,909 Ex US (contract)1 TV 437 356 FY/23 FY/24 FY/23 FY/24 1 GER + EU. GER: own brand only. 2 GER + EU 7
Slide 8: Society and Environment making progress with ESG
Society and Environment making progress with ESG Societal agenda Environment Environmental agenda Customer satisfaction1 • Climate targets are well on track Energy consumption Tri*M • Launch of Green AI Principles mn MWh 76.0 76.2 77.6 • New Circularity blueprint 13.3 12.2 11.9 • For 9th time in a r
Slide 9: Guidance 2024 raised guidance delivered
Guidance 2024 raised guidance delivered Adj. EBITDA AL TM US DT Ex US FCF AL TM US DT Ex US € bn € bn ~42.9 ~43.0 43.0 ~18.9 ~19.0 19.2 ~28.5 ~28.6 28.5 ~15.4 ~15.6 15.9 14.4 14.5 14.5 3.51 3.51 3.51 Original 2024 Guidance 2024 Actual result 2024 Original 2024 Guidance 2024 Actual result 2024 guidan
Slide 10: Our agenda for 2025 building on the ambitions of the 2024 CMD
Our agenda for 2025 building on the ambitions of the 2024 CMD Deliver attractive returns Deliver on fiber build while for shareholders stepping up monetization Step up leverage Extend and monetize 5G of group’s unique scale advantages network lead in all markets Aggressively seize A.I. opportunities
Slide 11: Guidance 2025 on track for CMD financial targets
Guidance 2025 on track for CMD financial targets Adj. EBITDA AL TM US DT Ex US FCF AL TM US DT Ex US € bn € bn 43.0 43.0 ~44.9 ~+4.5% 19.2 19.2 ~19.9 ~+4% 28.5 28.5 ~29.9 15.9 15.9 ~16.3 14.5 14.5 15.0 ~+3.5% ~+3% 3.51 3.51 3.61 FY 2024 FY 2024 Guidance 2025 FY 2024 FY 2024 Guidance Results pro form
Slide 12: Q4 2024 results Review of segments and financials
Q4 2024 results Review of segments and financials
Slide 13: T-Mobile US industry leading financial growth
T-Mobile US industry leading financial growth Revenues (IFRS) Adj. EBITDA AL (IFRS)1 US$ bn US$ bn +6.8% +8.4% 20.4 21.8 4.9 7.0 7.6 Other revenues 4.3 Service revenues 16.2 16.9 Q4/23 Q4/24 Q4/23 Q4/24 Service revenue (US GAAP) Postpaid service revenue +8.3% yoy Core adj. EBITDA (US GAAP) % yoy % y
Slide 14: T-Mobile US industry leading customer growth
T-Mobile US industry leading customer growth 5G EXTENDED RANGE Total postpaid net additions Industry leading, 2025 Postpaid phone net additions Industry leading mn guidance: +5.5 mn - 6.0 mn 000 1.9 934 865 903 1.6 1.6 777 1.2 1.3 532 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 High
Slide 15: Germany 33rd consecutive quarter of EBITDA growth
Germany 33rd consecutive quarter of EBITDA growth Revenues (reported) Impacted by lower Adj. EBITDA AL (reported) € mn handset revenues; € mn -0.2% TSR +0.9% +2.8% 6,589 6,579 2,583 2,656 Q4/23 Q4/24 Q4/23 Q4/24 Revenue growth (organic) Adj. EBITDA AL growth (organic) % yoy 3.6% % yoy 3.0% 3.5% 2.6%
Slide 16: Germany total service revenues impacted by phasing
Germany total service revenues impacted by phasing Total service revenue growth (organic) Improvement Mobile service revenue growth (organic) % yoy expected for Q1/25 % yoy 3.7% 3.2% 3.4% 2.2% 2.1% 2.1% 2.1% 1.8% 1.8% 0.9% Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Revenue growth (r
Slide 17: Germany fixed revenues: steady growth in broadband and wholesale access
Germany fixed revenues: steady growth in broadband and wholesale access Retail fixed revenues (reported) Broadband revenue growth (organic) € mn % yoy +0.3% 4.2% 4.0% 4.0% 3,354 3,365 3.3% 3.4% Broadband revenues +3.4% 1,828 1,891 Single play and other revenues 1,526 1,474 -3.4% Q4/23 Q4/24 Q4/23 Q1
Slide 18: Germany fixed KPIs: successful upselling continues
Germany fixed KPIs: successful upselling continues FTTH net adds FY FTTH net adds Retail customers with ≥100 Mbit/s tariff 000 +472k, up 61% mn/% of customer base 131 134 51% 113 48% 49% 94 46% 47% 88 6.9 7.0 7.2 7.4 7.6 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Broadband net adds
Slide 19: Germany mobile KPIs: strong customer growth in a competitive market
Germany mobile KPIs: strong customer growth in a competitive market Branded contract net adds1 Data usage2 000 GB per month 311 327 289 281 14.8 261 12.4 +19% yoy Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q4/24 Churn2 Magenta EINS share (mobile)2 % % 0.9% 64% 64% 0.8% Q4/23 Q4/24 Q4/23 Q4/24 1 Own branded
Slide 20: Europe 28th consecutive quarter of organic EBITDA growth
Europe 28th consecutive quarter of organic EBITDA growth Revenues (reported) Adj. EBITDA AL (reported) € mn +3.0% € mn 3,205 +6.2% 3,112 1,011 1,074 Q4/23 Q4/24 Q4/23 Q4/24 Revenue growth (organic) Adj. EBITDA AL growth (organic) % growth yoy % growth yoy 8.9% 8.1% 8.0% 6.8% 7.3% 5.6% 5.7% 4.2% 4.3%
Slide 21: Europe strong commercial performance continues
Europe strong commercial performance continues Mobile contract net adds Broadband net adds 000 246 000 184 183 176 186 76 77 57 53 47 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 FMC net adds TV net adds 000 000 195 170 152 143 37 41 35 28 23 36 Q4/23 Q1/241 Q2/24 Q3/24 Q4/24 Q4/23 Q1
Slide 22: Systems Solutions growth in order entry, revenue, and profitability
Systems Solutions growth in order entry, revenue, and profitability Order entry Revenues (reported) Adj. EBITDA AL (reported) € bn € mn € mn +10.8% +0.8% 4.0 1,031 1,039 +34.1% 3.6 102 76 FY/23 FY/24 Q4/23 Q4/24 Q4/23 Q4/24 • Good growth in order entry and revenue Revenue growth (organic) Adj. EBITD
Slide 23: Financials Q4/24 reported strong set of results across the board
Financials Q4/24 reported strong set of results across the board € mn Q4 FY 2023 2024 Change 2023 2024 Change FY/23 benefitted from Revenue 29,369 30,932 +5.3% 111,985 115,769 +3.4% gains in asset sales e.g. Service revenues 23,894 24,837 +3.9% 92,919 96,537 +3.9% Towers Adj. EBITDA AL 10,009 10,632
Slide 24: FCF AL and adj. net profit Q4
FCF AL and adj. net profit Q4 FCF AL reflecting growth in adj. EBITDA and higher capex in the US Free Cash Flow AL1 Adj. net profit € mn € mn -7.4% +28.5% 4,352 -55 429 -236 -668 4,030 440 -28 -1 -329 2,346 646 1,826 Higher capex in the US Impacted by discounting gain Growth in EBITDA on the Civil S
Slide 25: Net debt leverage slightly above 2.75x guardrail due to f/x
Net debt leverage slightly above 2.75x guardrail due to f/x Net debt excl. leases (AL) Leverage ratios € bn X +6.8 Incl. Leases 99.3 Excl. Leases 4.7 3.07 0.5 0.0 2.82 92.5 2.78 4.4 2.58 -4.0 0.8 0.5 US$ strengthened from 1.12 as 2.31 2.31 of September 30 to 1.04 as of December 31 Q3/24 FCF AL Spect
Slide 26: Q4 2024 results Main takeaways
Q4 2024 results Main takeaways
Slide 27: FY/24 Key messages consistent reliable growth
FY/24 Key messages consistent reliable growth ▪ Ongoing strong commercial and financial performance Adj. EPS in €/share ▪ >20 mn European homes passed with fiber ▪ Raised 2024 guidance achieved ▪ 2025 guidance consistent with CMD growth ambitions at all levels ~2.5 ▪ Management continuity and evolut
Slide 28: Q4 2024 results Appendix
Q4 2024 results Appendix
Slide 29: Organic growth rates
Organic growth rates In % Q4/24 over Q4/23 FY/24 over FY/23 Group revenues +4.3 +3.3 Group service revenue +2.8 +3.7 Service revenue DT ex US +1.3 +2.9 Group Adj. EBITDA AL +5.2 +6.0 Adj. EBITDA AL DT ex US +0.7 +3.3 Group adj. Core EBITDA AL1 +5.4 +6.5 1 adj. EBITDA AL excl. TMUS handset leases. In
Slide 30: FCF AL and adj. net profit FY
FCF AL and adj. net profit FY FCF AL reflecting growth in adj. EBITDA and lower capex in the US Free Cash Flow AL1 Adj. net profit € mn € mn +18.7% +18.3% 19,156 -176 629 -15 443 -597 -16 16,141 2,577 -964 9,397 2,592 7,940 Lower capex in the US Impacted by discounting gain Growth in EBITDA AL on th
Slide 31: TMUS EBITDA reconciliation
TMUS EBITDA reconciliation FY/24 Q4/24 US$ mn US$ mn +9.1% yoy +8.3% yoy +8.1% yoy 31,771 31,864 +10.1% yoy +9.6% yoy +8.4% yoy 93 -971 30,893 7,905 7,916 7,614 11 -302 Adj. Core Leasing Adj. EBITDA Bridge Adj. EBITDA Adj. Core Leasing Adj. EBITDA Bridge Adj. EBITDA EBITDA Revenues (US GAAP) AL (IFR
Slide 32: DT Group consistent financial growth over the last 5 years
DT Group consistent financial growth over the last 5 years Service revenue growth (organic) Adj. Core EBITDA growth (organic) in % yoy in % yoy 7.9% 7.8% 3.7% 3.6% 3.7% 6.8% 6.9% 6.5% 3.5% 1.6% 2020 2021 2022 2023 2024 20201 2021 2022 2023 2024 FCF AL Adj. EPS € bn € 1.83 1.90 19.2 1.60 16.1 1.20 1.
Slide 33: DT Group ex US & TMUS financials growth on both sides of the Atlantic
DT Group ex US & TMUS financials growth on both sides of the Atlantic Organic service revenue growth TMUS Organic adj. core EBITDA growth TMUS in % yoy in % yoy 10.8% 10.1% 9.8% 4.6% 4.9% 8.0% 8.3% 4.1% 4.2% 3.5% 2020 2021 2022 2023 2024 20201 2021 2022 2023 2024 Organic service revenue growth DT ex
Slide 34: DT Group consistent customer growth over the last 5 years
DT Group consistent customer growth over the last 5 years TMUS mobile postpaid net adds TMUS broadband net adds mn mn 6.4 6.1 5.5 5.5 5.7 2.0 2.1 1.7 0.5 0.1 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 DT ex US mobile postpaid net adds DT ex US broadband net adds mn mn 2.0 1.9 1.7 1.3 1.4 0.7
Slide 35: FCF AL excl. US delivered on guidance
FCF AL excl. US1 delivered on guidance € bn FY 2023 FY 2024 Adj. EBITDA 15.5 16.0 Leasing opex -1.3 -1.5 Adj. EBITDA AL 14.1 14.5 Cash Capex -7.5 -7.7 Proceeds from sale of fixed assets +0.1 +0.1 Special Factors Cash -0.9 -1.0 Interest ex leasing -0.7 -0.9 Cash Taxes -1.2 -1.3 Other (working capital
Slide 36: Financials maturity profile covered by strong liquidity reserve
Financials maturity profile covered by strong liquidity reserve Ex US debt maturing Ex US liquidity position Credit lines € bn € bn Liquid assets 15.0 3.6 3.6 12.0 2.2 Ø 2.73 2.2 3.7 1.5 1.5 3.0 2025 2026 2027 2028 Liquidity Maturities Maturities Total reserve 2025 2026 maturities next 31.12.2024 24
Slide 37: Balance sheet solid across the board
Balance sheet solid across the board € bn 31/12/2023 31/03/2024 30/06/2024 30/09/2024 31/12/2024 Balance sheet total 290.3 295.2 296.0 288.6 304.9 Shareholders’ equity 91.2 93.2 92.4 92.4 98.6 Net debt excl. leases (AL) 93.7 94.5 97.1 92.5 99.3 Net debt excl. leases (AL)/adj. EBITDA AL1 2.31 2.30 2.
Slide 38: Guidance 2025 compared to consensus
Guidance 2025 compared to consensus € bn Guidance 2025 in € Guidance 2025 in € Consensus in € @ 1.08 @ 1.06 (Cons. f/x) @ 1.06 Adj. EBITDA AL Group ~44.9 ~45.5 46.0 US GAAP guidance is in line with consensus. thereof ex US 15.0 15.0 15.0 thereof TMUS ~29.9 ~30.5 31.0 FCF AL ~19.9 ~20.3 20.4 thereof
Slide 39: Outlook 2025/26 as per annual report 2024 (1/2)
Outlook 2025/26 as per annual report 2024 (1/2)1 € bn 2024 pro forma 2025e 2026e Revenue Group 115.9 Increase Increase Germany 25.7 Slight increase Slight increase US (in US$) 81.3 Increase Increase Europe 12.3 Increase Increase Systems Solutions 4.0 Slight increase Slight increase Service Revs Grou
Slide 40: Outlook 2025/26 as per annual report 2024 (2/2)
Outlook 2025/26 as per annual report 2024 (2/2)1 € bn 2024 pro forma 2025e 2026e Cash Capex Group 16.0 ~17.1 Stable Germany 4.8 Stable Slight increase US (in US$) 8.9 Increase Stable Europe 1.9 Slight increase Slight increase Systems Solutions 0.2 Stable Stable FCF AL Group 19.2 ~19.9 Increase Adj.
Slide 41: Investor + Analyst Webcast with Q&A session
Investor + Analyst Webcast with Q&A session The conference call will be held on February 26 at 14:00 CET, 13:00 GMT, 08:00 EST, 05:00 PST, 22:00 JST DT Participants: Tim Höttges (CEO), Christian Illek (CFO), Hannes Wittig (Head of Investor Relations) • Detailed time stamps in video description for s
Slide 42: Further questions please contact the IR department
Further questions please contact the IR department Homepage: +49 228 181 – 8 88 80 Individual contact details for www.telekom.com/investors all IR representatives: investor.relations@telekom.de www.telekom.com/ircontacts Investor relations on social media – Follow us to stay up to date! linkedin.com