Deutsche Telekom Beats Q1 Profit Forecast, Raises 2025 Outlook
Deutsche Telekom reported a stronger-than-expected performance in the first quarter of 2025, with its core profit (EBITDA AL) rising to €11.3 billion, slightly above the €11.1 billion expected by analysts. The results were boosted in part by a stronger U.S. dollar and solid contributions from its American unit, T-Mobile US.
The German telecom giant also slightly raised its full-year 2025 guidance, now projecting:
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Core profit of approximately €45 billion (up from €44.9 billion)
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Free cash flow after leases of €20 billion (previously €19.9 billion)
CEO Tim Höttges emphasized the group’s resilience amid economic challenges, noting that free cash flow for Q1 jumped 52.4% year-on-year, beating expectations by over €1 billion.
Highlights by Region:
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United States: Continued strength from T-Mobile US, which recently raised its own profit forecast despite lagging in wireless subscriber growth.
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Germany: Faced pressure, losing 7,000 broadband customers amid intense competition in a slowing broadband market. Analysts suggest platforms like Check24 may be aiding competitors like Vodafone.
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Europe (excluding Germany): Performed well, with an organic revenue increase of 3.7%, supporting the company’s overall growth momentum.
Despite the positive results, Deutsche Telekom shares were down 0.2% at 07:20 GMT. However, they remain up about 9% year-to-date, reflecting continued investor confidence in the group’s long-term strategy and international diversification.
