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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:

  • Core profit of approximately 45 billion (up from €44.9 billion)

  • 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:

  • United States: Continued strength from T-Mobile US, which recently raised its own profit forecast despite lagging in wireless subscriber growth.

  • 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.

  • 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.