Deutsche Telekom continued its growth path in the third quarter of 2025 and announced a record dividend.
The DAX group slightly raised its annual forecast for adjusted EBITDA AL and free cash flow AL for the third time this year. The Bonn-based group now sees adjusted EBITDA AL this year at around 45.3 billion euros. The last forecast was for more than 45 (previous year: 43.0) billion euros. The free cash flow AL is now expected to reach around 20.1 billion euros, compared to the last forecast of more than 20 (19.2) billion euros. The forecast, which represents a pass-on of the corresponding increase at the subsidiary T-Mobile US, is based on constant exchange rates. The forecast for adjusted earnings per share remains unchanged: it should be around 2.00 euros in 2025.
For the past quarter, the Bonn-based group reported slight sales growth of 1.5 percent to 28.9 billion euros. Organically, i.e. without the influence of exchange rate changes and the scope of consolidation, growth was 3.3 percent. Analysts had expected Deutsche Telekom to have an average turnover of 28.825 billion euros. In the home market, where sales had recently fallen for three quarters in a row, they fell by 1.8 percent. Analysts had assumed a sales decline of 1 percent in the German business.
Adjusted EBITDA AL increased marginally at group level by 0.2 percent to 11.1 billion euros. Analysts had estimated an average of 11.104 billion euros. Organically, adjusted EBITDA AL grew by 2.9 percent. The fact that the reported growth rates are lower is primarily due to the weaker US dollar compared to the previous year.
Adjusted consolidated earnings increased by 14.3 percent to 2.7 billion euros. The consensus estimate here was 2.477 billion euros. Free cash flow AL fell by 9.2 percent to 5.6 billion euros. Analysts had expected an average of 5.322 billion euros.
As the DAX group also announced, shareholders will also receive a higher dividend this year: it will rise to 1.00 euros per share from 0.90 euros in the previous year. In the coming year, Telekom also wants to buy back its own shares with a volume of up to 2 billion euros. A year ago, Telekom announced that it would buy back its own shares with a volume of up to 2 billion euros for the current year.
Telekom is focusing on fiber optic expansion in Germany
Deutsche Telekom wants to focus even more on fiber optic expansion in Germany. As the DAX group announced when presenting its third quarter figures, it wants to invest the tax relief from accelerated depreciation in an increased fiber optic expansion in addition to the funds already earmarked. In the third quarter of 2025, the number of new customers using a fiber-only connection increased by 155,000 – a quarterly record, according to CFO Christian Illek, and over 18 percent more new customers than in the period July to September 2024.
As CEO Tim Höttges said in the press conference, Telekom wants to connect a further 2.5 million households every year. “We will focus even more specifically on rural regions. And in doing so, accelerate our expansion of multi-family homes. In this way, we will strengthen our broadband business in the long term. Fiber optic is the technology of the future.” Telekom’s fiber optic network now reaches 11.8 million German households.
While the broadband business in Europe is growing solidly, Telekom lost 25,000 connections in Germany. According to CFO Illek, Telekom does not expect this trend to reverse in the short term. “The competition here is tough,” said CEO Höttges, “but I have outlined to you how we want to approach this with our changed approach to fiber optic expansion.”
Deutsche Telekom shares ultimately fell by 0.15 percent to 27.27 euros via XETRA on Thursday.
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