Deutsche Telekom Ag · XETR:DTE
Deutsche Telekom — Q1 2025 Earnings Presentation
40 slides from Deutsche Telekom's earnings presentation, May 15, 2025
Slide 1: Deutsche Telekom Q1 2025 results
Deutsche Telekom Q1 2025 results May 15, 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: Q1 2025 results: Group
Q1 2025 results Group
Slide 4: Q1/25 consistent reliable growth
Q1/25 consistent reliable growth Q1/2025 Highlights ▪ Market leading customer and financial growth continues: Q1 organic service revenues +3.5%, adj. EBITDA AL +5.3%, FCF AL +52.4%1, adj. EPS +10.8%1 ▪ DT ex US organic service revenue growth +2.5%, adj. EBITDA +3.8% ▪ Strong progress with network an
Slide 5: Financials Q1/25 organic: strong organic growth
Financials Q1/25 organic strong organic growth Q1/25 Adj. EBITDA AL US GAAP Core adj. Q1/25 Adj. EBITDA AL by segment1 Q1/25 Key Financials growth yoy, organic EBITDA growth of 8.4% € mn % growth yoy, organic TMUS 6.1% Group revenues 3.8% +€438 mn 2,634 GER Group service revenues 3.5% 2.2% +€58 mn 1
Slide 6: Networks extending our leadership
Networks extending our leadership FTTH 5G Coverage Fiber homes passed in mn % of POPs GER EU +3.3 20.9 +2pp 17.6 +11pp 97 98 10.4 79 9.4 68 EU 8.2 10.5 GER Q1/24 Q1/25 Q1/24 Q1/25 Q1/24 Q1/25 ▪ Continuing to lead German fiber build ▪ Undisputed German network leadership secured through ▪ 5.7 mn MDU
Slide 7: AI and Digital accelerating the digital transformation with AI
AI and Digital accelerating the digital transformation with AI Digital AI App ▪ Number of active app users: Network IT Sales & Service G&A >12.2 mn users HR: AI-powered chatbot Mobile network: AI RAN IT DevOps: AI coding Customer interaction: ▪ Magenta Moments (“Ask T”) to access to group Guardian A
Slide 8: Customer Growth stronger in mobile, weaker in fixed
Customer Growth stronger in mobile, weaker in fixed Mobile net adds Fixed line net adds2 000 000 1,337 1,220 US (postpaid) Strongest ever Q1 Broadband in postpaid Slowdown due to 95 Germany 61 Q1/24 Q1/25 Q1/24 Q1/25 466 Ex US (contract)1 397 TV Impacted by one- Growth in Germany off in Hungary stab
Slide 9: Society and Environment progress with our ESG ambitions
Society and Environment progress with our ESG ambitions Societal agenda Environment Environmental agenda Customer satisfaction1 NEW Q1 energy consumption ex US -1% yoy (group +3%) Energy consumption Tri*M NEW presentation of world’s first DSL router made from old mn MWh 76.2 77.6 smartphone comp
Slide 10: Guidance 2025 guidance raised for adj. EBITDA AL and FCF AL
Guidance 2025 guidance raised for adj. EBITDA AL and FCF AL Adj. EBITDA AL TM US DT Ex US FCF AL TM US DT Ex US € bn € bn 43.0 ~44.9 ~45.0 ~+4.5% 19.2 ~19.9 ~20.0 ~+4% 28.5 ~29.9 ~30.0 15.9 ~16.3 ~16.4 14.5 15.0 15.0 ~+3.5% 3.51 3.61 3.61 ~+3% FY 2024 pro Original 2025 New guidance FY 2024 pro Origi
Slide 11: Q1 2025 results: Review of segments and financials
Q1 2025 results Review of segments and financials
Slide 12: T-Mobile US industry leading financial growth
T-Mobile US industry leading financial growth Revenues (IFRS) Adj. EBITDA AL (IFRS)1 Impacted by yoy higher US$ bn US$ bn US GAAP IFRS bridge +6.6% +6.6% 19.6 20.8 7.5 8.0 Other revenues 3.5 3.9 Service revenues 16.1 16.9 Q1/24 Q1/25 Q1/24 Q1/25 Service revenue (US GAAP) Postpaid service Core adj. E
Slide 13: T-Mobile US industry leading customer growth
T-Mobile US industry leading customer growth 5G EXTENDED RANGE Total postpaid net additions Best ever Q1; 2025 guidance: Postpaid phone net additions mn +5.5 mn - 6.0 mn (unchanged) 000 1.9 865 903 1.6 777 1.2 1.3 1.3 532 495 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 High Speed Int
Slide 14: Germany 34th consecutive quarter of EBITDA growth
Germany 34th consecutive quarter of EBITDA growth Revenues (reported) Impacted by lower indirect Adj. EBITDA AL (reported) € mn handset revenues; total € mn -1.3% service revenue +1.4% +2.3% 6,298 6,219 2,576 2,634 Q1/24 Q1/25 Q1/24 Q1/25 Revenue growth (organic) Adj. EBITDA AL growth (organic) Impa
Slide 15: Germany service revenues impacted by phasing
Germany service revenues impacted by phasing Mobile service revenue growth (organic) % yoy 3.4% 3.7% 3.1% 2.1% 2.1% Total service revenue growth (organic) % yoy Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 2.2% 2.1% 1.8% 1.4% Fixed service revenue growth (organic) 0.9% Ongoing headwind from % yoy IT business phasi
Slide 16: Germany fixed revenues: steady growth in broadband and wholesale access
Germany fixed revenues: steady growth in broadband and wholesale access Broadband revenue growth (organic) Broadband (B2C) % yoy ARPA +3.0% yoy 4.2% 4.0% 3.3% 3.4% 3.2% Fixed service revenues (reported) Broadband € mn Wholesale Access +0.7% Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Other 3,870 3,896 1844 1903 +
Slide 17: Germany fixed KPIs: successful upselling continues
Germany fixed KPIs: successful upselling continues FTTH net adds Retail customers with ≥100 Mbit/s tariff 000 % of customer base 52 51 131 134 128 113 49 94 48 47 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Broadband net adds TV net adds (ex OTT) Additionally ~50k 000 000 OTT TV net
Slide 18: Germany mobile KPIs: strong customer growth in a competitive market
Germany mobile KPIs: strong customer growth in a competitive market Branded contract net adds1 000 311 327 281 261 274 Mobile service revenues (reported) € mn +3.0% Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 1.695 1.645 Churn2 Data usage2 % GB per month Q1/24 Q1/25 +20% yoy ▪ New tariff portfolio with focus on u
Slide 19: Europe 29th consecutive quarter of organic EBITDA growth
Europe 29th consecutive quarter of organic EBITDA growth Revenues (reported) Adj. EBITDA AL (reported) € mn +3.2% € mn 3,053 +6.7% 2,959 1,069 1,141 Q1/24 Q1/25 Q1/24 Q1/25 Revenue growth (organic) Adj. EBITDA AL growth (organic) % growth yoy % growth yoy 8.9% 8.1% 8.0% 6.8% 7.3% 7.2% 5.7% 4.2% 4.3%
Slide 20: Europe strong commercial performance continues
Europe strong commercial performance continues Mobile contract net adds1 Sequentially slower in Poland, Broadband net adds 000 Croatia and Austria 000 185 183 193 173 123 77 68 57 52 48 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 FMC net adds TV net adds Impacted by -28k SAT TV 000 0
Slide 21: Systems Solutions growth in order entry, revenue, and profitability
Systems Solutions growth in order entry, revenue, and profitability Order entry (LTM) Revenues (reported) Adj. EBITDA AL (reported) € bn € mn € mn +12.5% +1.7% 4.2 993 1,009 +4.4% 3.7 77 81 Q1/24 Q1/25 Q1/24 Q1/25 Q1/24 Q1/25 ▪ Good growth in order entry and revenue Revenue growth (organic) Adj. EBI
Slide 22: Financials Q1/25 reported: strong set of results across the board
Financials Q1/25 reported strong set of results across the board € mn Q1 2024 2025 Change Revenue 27,942 29,755 +6.5% Service revenues 23,485 24,957 +6.3% Adj. EBITDA AL 10,473 11,297 +7.9% Adj. EBITDA AL (excl. US) 3,541 3,674 +3.8% EPS additionally supported by lower share count. Non- recurring ad
Slide 23: FCF AL and adj. net profit
FCF AL and adj. net profit strong Q1 FCF AL reflecting EBITDA growth and seasonality in WC Free Cash Flow AL1 Adj. net profit € mn € mn +52.4% 5,650 +9.1% 318 -4 69 -164 -155 838 -120 2,442 1,558 -195 2,238 3,708 Lower Capex in US and Ex US driven by seasonality. Growth in EBITDA and FY expectation
Slide 24: Net debt: leverage back in corridor due to strong FCF and f/x
Net debt leverage back in corridor due to strong FCF and f/x Net debt excl. leases (AL) Leverage ratios € bn X Incl. leases -3.6 99.3 Excl. leases 2.82 2.78 0.8 -5.7 0.4 -2.1 2.63 95.7 2.4 2.31 2.31 0.1 0.4 2.18 Q4/24 FCF AL Spectrum Dividends SBB TM US DT SBB M&A F/X and Q1/25 2023 2024 Q1/25 other
Slide 25: Q1 2025 results: Main takeaways
Q1 2025 results Main takeaways
Slide 26: Q1/25 Key messages consistent reliable growth
Q1/25 Key messages consistent reliable growth ▪ Overall, a solid start into the year Adj. EPS in €/share ▪ Disciplined execution in competitive markets ▪ Strong progress with networks and A.I.-powered digitization ▪ On track for FY25 and CMD 2023–27 guidance in all operations ~2.5 ▪ Stake in TMUS at
Slide 27: Q1 2025 results: Appendix
Q1 2025 results Appendix
Slide 28: Organic growth rates
Organic growth rates In % Q1/25 over Q1/24 FY/24 over FY/23 Group revenues +3.8 +3.3 Group service revenue +3.5 +3.7 Service revenue DT ex US +2.5 +2.9 Group Adj. EBITDA AL +5.3 +6.0 Adj. EBITDA AL DT ex US +3.8 +3.3 Group Core adj. EBITDA AL1 +5.6 +6.5 1 Adj. EBITDA AL excl. TMUS handset leases. In
Slide 29: FCF AL excl. US well on track for FY guidance
FCF AL excl. US1 well on track for FY guidance € bn Q1 2024 Q1 2025 Adj. EBITDA 3.9 4.0 Leasing opex -0.4 -0.3 Adj. EBITDA AL 3.5 3.7 Cash Capex -2.2 -2.0 Proceeds from sale of fixed assets +0.0 +0.0 Special Factors Cash -0.3 -0.3 Interest ex leasing -0.2 -0.3 Cash Taxes -0.3 -0.1 Other (working cap
Slide 30: Guidance 2025 new guidance compared to consensus
Guidance 2025 new guidance compared to consensus € bn Guidance 2025 in € Guidance 2025 in € Consensus in € @ 1.08 @ 1.08 (Cons. f/x) @ 1.08 Adj. EBITDA AL Group ~45.0 ~45.0 45.2 US GAAP guidance is in line with consensus. thereof ex US 15.0 15.0 15.1 thereof TMUS ~30.0 ~30.0 30.2 FCF AL ~20.0 ~20.0
Slide 31: Balance sheet solid across the board
Balance sheet solid across the board € bn 31/03/2024 30/06/2024 30/09/2024 31/12/2024 31/03/2025 Balance sheet total 295.2 296.0 288.6 304.9 305.0 Shareholders’ equity 93.2 92.4 92.4 98.6 97.8 Net debt excl. leases (AL) 94.5 97.1 92.5 99.3 95.7 Net debt excl. leases (AL)/adj. EBITDA AL1 2.30 2.32 2.
Slide 32: TMUS EBITDA reconciliation
TMUS EBITDA reconciliation FY/24 Q1/25 US$ mn US$ mn +9.1% yoy +8.3% yoy +8.1% yoy 31,771 31,864 +8.4% yoy +7.9% yoy +6.6% yoy 93 -971 30,893 8,258 8,259 8,022 1 -237 Adj. Core Leasing Adj. EBITDA Bridge Adj. EBITDA Adj. Core Leasing Adj. EBITDA Bridge Adj. EBITDA EBITDA Revenues (US GAAP) AL (IFRS)
Slide 33: DT Group consistent financial growth over the last 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 34: DT Group ex US & TMUS financials
DT Group ex US & TMUS financials growth on both sides of the Atlantic Organic service revenue growth TMUS Organic core adj. 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 35: DT Group consistent customer growth over the last 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 0.7 0.7 1.3
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 17.7 3.6 3.6 12.0 2.2 Ø 2.73 1.8 5.5 1.5 2.2 5.7 1.5 Q2 - Q4 2025 2026 2027 2028 Liquidity Maturities Q2 Maturities Maturities Total reserve - Q4 2025 202
Slide 37: 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$) 81.3 Increase Increase Europe 12.3 Increase Increase Systems Solutions 4.0 Slight increase Slight increase Service Revs Grou
Slide 38: Outlook 2025/26 as per annual report 2024 (2/2)
Outlook 2025/26 as per annual report 2024 (2/2)1 € bn 2024 pro forma 2025e 2026e Cash Capex Group 16.0 ~17.1 Stable Germany 4.8 Stable Slight increase US (in US$) 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 39: Investor + Analyst Webcast with Q&A session
Investor + Analyst Webcast with Q&A session The conference call will be held on May15 at 14:00 CET, 13:00 GMT, 08:00 EST, 05:00 PST, 21:00 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 40: 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: investor.relations@telekom.de all IR representatives: www.telekom.com/investors www.telekom.com/ircontacts Investor relations on social media – Follow us to stay up to date! linkedin.co