Deutsche Telekom AG · XETR:DTE
Deutsche Telekom — Q1 2024 Earnings Presentation
41 slides from Deutsche Telekom's earnings presentation, May 2024
Slide 1: Deutsche Telekom Investor presentation May 2024
Deutsche Telekom Investor presentation May 2024
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: Q1 2024 results Group
Q1 2024 results Group
Slide 4: Q1/24 consistent reliable growth
Q1/24 consistent reliable growth Q1/2024 Highlights Organic Growth: Group service revenues up 4.1%, Group adj. core EBITDA AL up 6.9%, all segments contributing. FCF AL up 3.6%, adj. EPS up 15.4%1 US/GER/EU: Strong customer momentum continues GER with 30th, EU with 25th consecutive quarter of
Slide 5: Financials Q1/24 organic: strong organic growth
Financials Q1/24 organic strong organic growth Q1/24 Adj. EBITDA AL Adj. Core EBITDA AL Q1/24 Adj. EBITDA AL by segment2 Q1/24 Key Financials growth yoy, organic growth of 7.9%1 € mn % growth yoy, organic TMUS 6.1% Group revenues 1.6% +€401 mn 2,576 Group service revenues 4.1% GER 3.0% +€75 mn ex US
Slide 6: Networks leading with 5G, FTTH on track
Networks leading with 5G, FTTH on track FTTH (1 Gbps) 5G TM US 5G ex US Fiber homes Ultra capacity 5G1 Germany mn +3.6 mn POPs % of POPs +2pp 17.5 275 >300 95 97 13.9 9.3 EU 8.2 GER 5.7 8.2 Q1/23 Q1/24 Q1/23 Q1/24 Q1/23 Q1/24 GER Network Leader GER • Fiber: On track for >10mn HHs by YE. • Ookla repo
Slide 7: Customers growing strongly
Customers growing strongly Mobile net adds Fixed line net adds2 000 1,293 000 1,220 US (postpaid) Broadband 157 95 Q1/23 Q1/24 Q1/23 Q1/24 465 Ex US (contract)1 378 TV 101 79 Q1/23 Q1/24 Q1/23 Q1/24 1 GER + EU. GER: own brand only 2 GER + EU 7
Slide 8: Customers strong growth throughout the years
Customers strong growth throughout the years Mobile net adds Fixed line net adds US (postpaid) Broadband '000 '000 6,419 5,486 5,495 5,650 4,515 655 704 611 419 545 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Ex US (contract)1 TV 1,978 1,590 1,720 1,323 1,436 306 358 339 356 234 2019 2020 2021
Slide 9: Society and Environment
Society and Environment strong ESG performance; energy consumption reduced again Societal agenda Environment Environmental agenda Customer satisfaction1 • NEW We published our initial transition plan with the Energy consumption Tri*M mn MWh new CR report as well as PAIs and GSMA indicators for 72.6
Slide 10: Guidance 2024
Guidance 2024 adj. EBITDA and Core EBITDA outlook raised for T-Mobile US Adj. EBITDA AL1 TM US DT Ex US FCF AL1 TM US DT Ex US ~+6% € bn € bn ~+16% 40.6 ~42.9 ~42.9 ~18.9 16.2 26.6 ~28.5 ~28.6 +0.05 12.9 ~15.4 +0.05 14.0 14.4 14.4 3.52 3.52 FY 2023 Guidance 2024 Guidance FY 2023 Guidance 2024 pro fo
Slide 11: Ex US Financials 2019 – 2023
Ex US Financials 2019 – 2023 multi-year growth in key financials Service revenues Adj. EBITDA AL FCF AL % growth yoy, organic % growth yoy, organic € bn 3.8% CAGR Impacted by de-consolidations: T-Mobile NL +2.2% CAGR 4.8% 4.8% 3.9 3.9 3.7% 3.7% 3.5 2.8% 3.3 2.9 2.0% 1.8% 1.0% 1.9% -0.4% 2019 2020 20
Slide 12: Group Financials 2019 – 2023
Group Financials 2019 – 2023 multi-year growth in key financials Service revenues Adj. EBITDA AL FCF AL % growth yoy, organic % growth yoy, organic € bn +€7.3 bn +7.2% CAGR +3.6% CAGR 7.9% 7.8%1 16.1 6.8%1 6.9%1 11.5 3.7% 3.5% 3.7% 3.6% 4.2% 8.8 7.0 6.3 1.6% 4.0% 1.9% 1.7% 2019 2020 2021 2022 2023 2
Slide 13: DT has unique growth opportunities
DT has unique growth opportunities United states Europe • Clear 5 G leader • Clear 5G leader • Unique SRMA* Market share SRMA ~40% 5G coverage YE/22 Growth with ~20% of the US speed upsell Low teens % 67% 96% 2020 2025 EU GER • Unique wireless high speed opportunity • Clear fiber leader HSI homes Ho
Slide 14: Q1 2024 results Review of segments and financials
Q1 2024 results Review of segments and financials
Slide 15: T-Mobile US strong financial growth
T-Mobile US strong financial growth Revenues (IFRS) Adj. EBITDA AL (IFRS)2 US$ bn US$ bn -0.2% +7.3% yoy decline in handset 19.6 19.6 Lower lease, lower 3.5 7.5 leasing revenues Other revenues 4.1 postpaid upgrades and 7.0 US$0.1 bn1 sale of wireline business Service revenues 15.5 16.1 Q1/23 Q1/24 Q
Slide 16: T-Mobile US consistent customer growth
T-Mobile US consistent customer growth 5G EXTENDED RANGE Total postpaid net additions Industry leading Postpaid phone net additions Industry leading mn 000 1.6 1.6 850 934 1.3 1.2 1.2 760 538 532 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 High Speed Internet net additions1 Total cus
Slide 17: Germany 30th consecutive quarter of EBITDA growth
Germany 30th consecutive quarter of EBITDA growth Revenues (reported) Adj. EBITDA AL (reported) € mn € mn +2.6% +3.5% 6,141 6,298 2,489 2,576 Q1/23 Q1/24 Q1/23 Q1/24 Revenue growth (organic) Adj. EBITDA AL (organic) % yoy % yoy 3.0% 3.1% 3.0% 3.1% 3.0% 3.0% 2.6% 2.3% 2.1% 1.1% Q1/23 Q2/23 Q3/23 Q4/2
Slide 18: Germany service revenues: growing across the board
Germany service revenues: growing across the board Total service revenue growth (organic) Mobile service revenue growth (organic) % yoy % yoy 2.4% 1.8% 1.8% 3.2% 3.4% 1.6% 1.6% 2.9% 1.7% 2.1% Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Revenue growth (reported) Fixed service revenue
Slide 19: Germany fixed revenues: steady development
Germany fixed revenues: steady development Retail fixed revenues (reported) Broadband revenue growth (organic) € mn % yoy +1.6% 3,177 3,228 4.7% 5.0% Broadband revenues 4.0% 4.0% 4.2% 1,770 1,844 +4.2% Single play and other revenues 1,407 1,384 -1.6% Q1/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Retail
Slide 20: Germany fixed KPIs: broadband slower, TV and FTTH faster
Germany fixed KPIs: broadband slower, TV and FTTH faster Broadband net adds TV net adds Additionally, 46k TV OTT 000 000 net additions, for ~350k total subs 96 74 67 66 68 73 50 51 39 36 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Retail customers with ≥100 Mbit/s tariff FTTH Custome
Slide 21: Germany mobile KPIs: strong customer intake
Germany mobile KPIs: strong customer intake in a competitive market Branded contract net adds1 Data usage2 000 350 GB per month 319 274 289 281 13.0 11.4 +14% yoy Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q1/24 Churn2 Magenta EINS share (mobile)3 % % 0.8% 0.8% 65% 63% Q1/23 Q1/24 Q1/23 Q1/24 1 Own branded
Slide 22: Europe 25th consecutive quarter of organic EBITDA growth
Europe 25th consecutive quarter of organic EBITDA growth Revenues (reported) Adj. EBITDA AL (reported) € mn € mn +6.3% +8.7% 2,784 2,959 983 1,069 Q1/23 Q1/24 Q1/23 Q1/24 Revenues (organic) Adj. EBITDA AL (organic) % growth yoy % growth yoy 5.6% 5.7% 4.9% 5.1% 8.1% 3.7% 4.1% 2.6% 3.3% 1.2% Q1/23 Q2/
Slide 23: Europe strong commercial performance
Europe strong commercial performance Mobile contract net adds Broadband net adds 000 000 246 223 173 184 83 76 76 72 104 57 Q1/231 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 FMC net adds2 Thereof >-100k due TV net adds 000 to contract changes 000 in Slovakia 184 195 152 167 52 34 37 29 28
Slide 24: Systems Solutions healthy revenue growth continues
Systems Solutions healthy revenue growth continues Order entry (LTM) Revenues (reported) Adj. EBITDA AL (reported) € bn € mn € mn +1.0% +5.0% 3.7 3.7 946 993 +2.7% 75 77 Q1/23 Q1/24 Q1/23 Q1/24 Q1/23 Q1/24 • Revenues driven by strong quarter in Cloud, Revenues (organic) Adj. EBITDA AL (organic) over
Slide 25: Financials Q1/2024 reported
Financials Q1/2024 reported adj. EPS growing 15%, reported financials impacted by f/x headwind € mn Q1 Impacted by currency and lower device revenues 2023 2024 Change Revenue 27,839 27,942 +0.4% Service revenues growing 4.1% organically Service revenues 22,814 23,485 +2.9% Adj. EBITDA AL 9,963 10,47
Slide 26: FCF AL and adj. net profit
FCF AL and adj. net profit FCF impacted by phasing, net profit by EBITDA Free Cash Flow AL1 Adj. net profit € mn € mn +3.6% +14.2% 3,579 3,708 56 -33 98 8 50 -39 -173 2,238 541 -100 1,959 Impacted by working Lower capex post merger capital phasing in the US, ex US capex impacted by front loading Q1/
Slide 27: Net debt leverage ratios slightly improved
Net debt leverage ratios slightly improved Net debt excl. leases (AL) Leverage ratios € bn X Incl. Leases +0.7 Excl. Leases 94.5 93.7 0.5 -1.7 2.0 3.07 2.87 2.82 2.81 -3.7 3.3 2.58 0.1 0.4 2.31 2.31 2.30 Q4/23 FCF AL Spectrum Dividends SBB TM US DT SBB TM US F/X and Q1/24 2022 Q1/23 2023 Q1/24 share
Slide 28: Q1 2024 results Main takeaways
Q1 2024 results Main takeaways
Slide 29: Q1/24 Key messages consistent reliable growth
Q1/24 Key messages consistent reliable growth Commercial performance continues unabated in all markets 2024 guidance/CMD targets 20241 Continued sustainable growth with revenue, service revenue, Adj. EPS in €/share EBITDA AL, FCF AL and adj. EPS 1.60 >1.75 >1.75 Ex US Service revenues growing
Slide 30: Q1 2024 results Appendix
Q1 2024 results Appendix
Slide 31: Organic growth rates
Organic growth rates In % Q1/24 over Q1/23 Group revenues +1.6 Group service revenue +4.1 Service revenue excl. US +3.6 Group Adj. EBITDA AL +5.8 Adj. EBITDA AL excl. US +5.2 Group adj. Core EBITDA AL1 +6.9 1 adj. EBITDA AL excl. TM US handset leases. In this presentation the Group in Q1/23 is prese
Slide 32: TM US EBITDA reconciliation
TM US EBITDA reconciliation FY/23 Q1/24 US$ mn US$ mn +5.8% yoy +10.3% yoy 29,428 +6.0% yoy +8.0% yoy +6.3% yoy +7.3% yoy 29,116 312 -861 28,567 7,617 7,652 7,525 35 -127 Adj. Core Leasing Adj. EBITDA Bridge Adj. EBITDA Adj. Core Leasing Adj. EBITDA Bridge Adj. EBITDA EBITDA Revenues (US GAAP) AL (I
Slide 33: FCF AL excl. US
FCF AL excl. US1 full year 2024 guidance of €3.5bn unchanged € bn Q1 2023 Q1 2024 Adj. EBITDA 3.7 3.9 Leasing opex -0.3 -0.4 Adj. EBITDA AL 3.4 3.5 Cash Capex -2.0 -2.2 Proceeds from sale of fixed assets +0.0 +0.0 Special Factors Cash -0.2 -0.3 Interest ex leasing -0.2 -0.2 Cash Taxes -0.2 -0.3 Othe
Slide 34: Financials maturity profile covered by strong liquidity reserve
Financials maturity profile covered by strong liquidity reserve Ex US bonds maturing Ex US liquidity position Credit lines € bn € bn Liquid assets 16.5 3.6 12.0 2.2 1.7 Ø 2.25 1.5 0.5 3.7 1.5 1.7 4.5 2024 2025 2026 2027 Liquidity Maturities Maturities Maturities Total reserve Q2 – Q4 2024 2025 Q1 20
Slide 35: Balance sheet deleveraging as promised
Balance sheet deleveraging as promised € bn 31/03/2023 30/06/2023 30/09/2023 31/12/2023 31/03/2024 Balance sheet total 303.8 299.7 302.5 290.3 295.2 Shareholders’ equity 98.7 94.4 96.6 91.2 93.2 Net debt excl. leases (AL) 93.0 97.2 96.9 93.7 94.5 Net debt excl. leases (AL)/adj. EBITDA AL1 2.31 2.40
Slide 36: Guidance 2024 compared to consensus
Guidance 2024 compared to consensus € bn Guidance 2024 in € Guidance 2024 in € Consensus in € @ 1.08 @ 1.08 (Cons. f/x) @ 1.08 Adj. EBITDA AL Group ~42.9 ~42.9 42.8 thereof ex US 14.4 14.4 14.5 thereof TM US ~28.6 ~28.6 28.4 FCF AL ~18.9 ~18.9 18.9 thereof ex US ~3.51 ~3.51 3.5 thereof TM US ~15.4 ~
Slide 37: Outlook 2024/25 as per annual report 2023 (1/2)
Outlook 2024/25 as per annual report 2023 (1/2)1 € bn 2023 pro forma 2024e 2025e Revenue Group 112.2 Increase Increase Germany 25.2 Slight increase Slight increase US (in US$) 78.6 Increase Increase Europe 11.8 Slight increase Slight increase Systems Solutions 3.9 Slight increase Stable Service Revs
Slide 38: Outlook 2024/25 as per annual report 2023 (2/2)
Outlook 2024/25 as per annual report 2023 (2/2)1 € bn 2023 pro forma 2024e 2025e Cash Capex Group 16.6 ~15.9 Stable Germany 4.6 Slight increase Slight increase US (in US$) 9.8 Decrease Stable Europe 1.8 Slight increase Slight increase Systems Solutions 0.2 Stable Stable FCF AL Group 16.2 ~18.9 Stron
Slide 39: Longer term TSR comparisons
Longer term TSR comparisons 1 Year Performance 3 Year Performance 5 Year Performance 10 Year Performance DT 7% DT 46% DT 76% DT 161% TEF 9% KPN 38% KPN 59% KPN 122% KPN 7% ORA 23% ORA 6% ORA 51% ORA (3%) TEF 23% TEF (20%) TEF (39%) VOD (17%) BT (30%) VOD (29%) VOD (42%) TI (19%) VOD (38%) BT (37%) B
Slide 40: Investor + Analyst Webcast with Q&A session
Investor + Analyst Webcast with Q&A session The conference call will be held on May16 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 IR) • Detailed time stamps in video description for slides + Q&A: • Live we
Slide 41: Further questions please contact the IR department
Further questions please contact the IR department +49 228 181 – 8 88 80 Individutal contact details for Homepage: all IR representatives: www.telekom.com/investors investor.relations@telekom.de www.telekom.com/ircontacts Investor relations on social media – Follow us to stay up to date! linkedin.co