Deutsche Telekom stands as a powerhouse in the telecommunications industry, driving connectivity and digital transformation on a global scale. With a robust portfolio that spans mobile, fixed-line, and broadband services, the company serves millions of customers across multiple continents. In the 2024 financial year, Deutsche Telekom achieved net revenue of 115.8 billion euros, reflecting a growth of 3.4 percent. This performance underscores the company’s ability to navigate economic challenges while investing heavily in network infrastructure. Service revenue reached 96.5 billion euros, up 3.9 percent, highlighting the strength in core operations.
The adjusted EBITDA AL stood at 43.0 billion euros, a 6.2 percent increase, with a margin of 37.2 percent, demonstrating efficient cost management and operational leverage. Adjusted net profit was 9.4 billion euros, contributing to a ROCE of 8.5 percent. The equity ratio improved to 51.0 percent, signaling a solid financial foundation. Cash flow from operating activities amounted to 27.0 billion euros, while capital expenditure totaled 16.0 billion euros, focused on expanding 5G and fiber networks. Free cash flow AL was 9.8 billion euros, supporting a proposed dividend of 0.90 euros per share. These figures connect directly to business performance by showing how revenue growth fuels investments, which in turn enhance customer satisfaction and market share.
The company employs 198 thousand people worldwide, fostering a culture of innovation and sustainability. Mobile customers numbered 261.4 million, fixed-line customers 25.2 million, and broadband lines 22.4 million, illustrating broad market penetration. Domestic revenue contributed 23.7 percent to total net revenue, while international operations accounted for 76.3 percent, emphasizing the global footprint. This balance allows Deutsche Telekom to leverage economies of scale in international markets while maintaining a strong home base in Germany.
Company overview
Deutsche Telekom AG operates as a leading integrated telecommunications company, focusing on delivering high-quality connectivity solutions. The company’s strategy centers on becoming the Leading Digital Telco, leveraging technology to create value for customers, employees, and shareholders. In 2024, the group reported total net revenue of 115.8 billion euros, with service revenue making up the majority at 96.5 billion euros. This revenue mix reflects a shift toward recurring service income, which grew by 3.9 percent year-over-year, providing stability amid fluctuating equipment sales.
Key performance indicators highlight operational excellence. Adjusted EBITDA AL increased to 43.0 billion euros, representing 37.2 percent of net revenue, up from previous years due to cost efficiencies and higher-margin services. Profit from operations (EBIT) was 12.3 billion euros, while adjusted net profit reached 9.4 billion euros, translating to adjusted earnings per share of 1.90 euros. The return on capital employed (ROCE) stood at 8.5 percent, indicating effective use of assets to generate returns.
Financial position remains strong, with equity of 51.0 percent of total assets, up from prior periods, supported by retained earnings and prudent debt management. Net debt was 128.3 billion euros, with a net debt to adjusted EBITDA AL ratio of 3.0, showing manageable leverage. Cash generation was robust, with cash flow from operating activities at 27.0 billion euros, after spectrum investments at 24.1 billion euros. Investing cash flow net was -18.7 billion euros, primarily driven by the 16.0 billion euros in property, plant, and equipment (capex). Financing cash flow was -9.2 billion euros, including dividend payments and share buybacks.
Customer metrics further illustrate growth. The mobile customer base expanded to 261.4 million, a 3.6 percent increase, driven by postpaid additions in key markets. Fixed-network lines totaled 25.2 million, down slightly, but broadband lines grew to 22.4 million, reflecting migration to high-speed services. These numbers connect to performance by showing how network investments translate into customer loyalty and revenue growth.
- Mobile contract customers: 134.1 million, up 3.1 percent, contributing to higher average revenue per user (ARPU).
- Broadband revenue in Germany: Strong growth from fiber expansions.
- Energy consumption: 11,926 GWh, with CO2 equivalents at 2,583 kt CO2e, monitored for sustainability.
The company’s flywheel strategy—encompassing data, AI, investments, global scale, efficiencies, customers, and financials—drives sustainable growth. This integrated approach ensures that investments in networks, such as 16.0 billion euros in 2024, yield higher profitability, enabling further scaling.
Business segments and revenue breakup %
Deutsche Telekom organizes its operations into five key segments: Germany, T-Mobile US, Europe, Systems Solutions, and Group Development. Each segment contributes uniquely to the overall revenue, with international operations dominating at 76.3 percent of net revenue. This diversification mitigates risks and captures growth in high-potential markets.
Germany segment
The Germany segment focuses on fixed-network and mobile communications within the domestic market. It generated service revenue of 21.8 billion euros in 2024, representing 22.6 percent of group service revenue. Net revenue was 23.7 billion euros, or 20.5 percent of total group net revenue. Operational scope includes broadband, TV, and mobile services, with a strong emphasis on fiber rollout.
- Fiber customers: Added 470 thousand new subscribers, reaching over 3 million premises.
- Mobile customers: 54.2 million, with postpaid growth.
- Broadband lines: 12.6 million, up due to fiber migrations.
This segment’s performance connects to group results by providing stable domestic cash flow, funding international expansions.
T-Mobile US segment
T-Mobile US is the largest segment, driving international growth with service revenue of 50.3 billion euros, 52.1 percent of group service revenue. Net revenue was 59.3 billion euros, 51.2 percent of total. The scope encompasses mobile services, 5G networks, and consumer entertainment, positioning it as the U.S. market leader.
- Postpaid customers: Added 6.1 million net, total 112.3 million.
- Ultra-capacity 5G coverage: Serving over 300 million people.
- ARPU: Increased due to premium plans.
The segment’s high margins, with adjusted EBITDA AL of 24.5 billion euros, significantly boost group profitability.
Europe segment
Europe delivers fixed and mobile services across multiple countries, with service revenue of 13.2 billion euros, 13.7 percent of group. Net revenue was 15.0 billion euros, 12.9 percent of total. Scope includes wholesale and retail operations in 12 markets.
- Mobile customers: 104.6 million.
- Fixed broadband: 7.8 million lines.
- Revenue growth: 3.2 percent in service revenue.
This segment enhances geographic diversification, with stable growth in Central and Eastern Europe.
Systems Solutions segment
Systems Solutions provides IT and cloud services, with service revenue of 4.1 billion euros, 4.2 percent of group. Net revenue was 4.5 billion euros, 3.9 percent of total. Scope covers digital transformation for enterprises, including cloud and security.
- Order intake: Strong in cloud migrations.
- Customers: Focus on large corporations.
It contributes to group innovation, with adjusted EBITDA AL of 0.6 billion euros.
Group Development segment
Group Development includes emerging businesses like IoT and fintech, with service revenue of 7.1 billion euros, 7.4 percent of group. Net revenue was 13.3 billion euros, 11.5 percent of total. Scope involves ventures in digital services and partnerships.
- Key areas: T-Mobile Money, MagentaTV.
- Growth: Driven by digital adjacencies.
This segment explores future revenue streams, with investments in AI and data.
The revenue breakup shows T-Mobile US as the growth engine, while Germany provides stability, collectively driving the 3.4 percent net revenue increase.
History and evolution
Deutsche Telekom’s journey began as the telecommunications arm of the former Deutsche Bundespost, transitioning to a stock corporation in 1995. The company marked its 30th anniversary in 2025, evolving from a national provider to a global leader. Key milestones include the privatization in 1996, expansion into Europe in the late 1990s, and the acquisition of T-Mobile US in 2013, which transformed it into an international powerhouse.
Over the years, the company has invested in technological leaps, from 3G to 5G networks. In the 2000s, it focused on broadband rollout, achieving widespread DSL coverage. The 2010s saw strategic acquisitions, including the full takeover of T-Mobile Netherlands and entry into U.S. 5G leadership. By 2024, Deutsche Telekom had connected over 261.4 million mobile customers, reflecting continuous evolution toward digital services.
The evolution is evident in financial trends: Net revenue grew from 100.4 billion euros in 2020 to 115.8 billion euros in 2024, a compound annual growth rate of 3.6 percent. Adjusted EBITDA AL rose from 30.6 billion euros to 43.0 billion euros, margin expanding from 30.5 percent to 37.2 percent, driven by efficiency gains and customer growth.
- 1995: Incorporation as Deutsche Telekom AG.
- 2002: Launch of T-Mobile brand globally.
- 2013: Majority stake in T-Mobile US.
- 2020: Accelerated 5G rollout amid pandemic.
- 2024: Fiber expansion to 3 million premises in Germany.
This progression connects historical investments to current performance, with capex averaging 15-16 billion euros annually, yielding higher ARPU and customer retention.
Products and services with revenue breakup %
Deutsche Telekom offers a comprehensive suite of products and services, categorized into mobile, fixed, and digital offerings. Service revenue from these totaled 96.5 billion euros in 2024, up 3.9 percent, comprising 83.3 percent of net revenue. Equipment sales contributed the remaining 19.3 billion euros.
Mobile services
Mobile services form the core, with revenue of 62.4 billion euros, 64.7 percent of service revenue. This includes postpaid and prepaid plans, with focus on 5G unlimited data.
- Postpaid phone net adds: 5.0 million group-wide.
- 5G subscribers: Over 100 million in T-Mobile US.
- ARPU growth: 2.1 percent in Germany.
These services drive recurring revenue, with high retention rates supporting margin expansion.
Fixed-line and broadband
Fixed services generated 24.8 billion euros, 25.7 percent of service revenue. Broadband and TV bundles are key, with fiber contributing to growth.
- Fiber broadband: 470 thousand adds in Germany.
- TV customers: 7.5 million.
- Speed upgrades: Average 100 Mbps+.
The shift to fiber reduces churn and increases revenue per line by 5 percent.
Digital and IT services
Digital services, including cloud and IoT, added 9.3 billion euros, 9.6 percent of service revenue. Systems Solutions leads here, with enterprise solutions.
- Cloud revenue: Up 15 percent.
- IoT connections: 50 million.
These high-margin services, at 40 percent EBITDA margin, enhance overall profitability.
The breakup shows mobile as the largest contributor, connecting product innovation to the 3.9 percent service revenue growth.
Brand portfolio with revenue %
Deutsche Telekom’s brand portfolio features the master brand T and regional brands like T-Mobile, O2, and Magenta. The master brand “Connecting your world” holds a global value of USD 85.3 billion, ranking #1 in Germany and among the top 5 worldwide.
- T-Mobile: Associated with 76.3 percent of revenue (international), positioned as innovative 5G leader.
- Telekom/Magenta in Germany: 23.7 percent of revenue, focused on reliable home connectivity.
- O2 in Europe: Contributes to 13.7 percent service revenue, targeting youth with affordable plans.
- Other brands (e.g., Congstar): Niche, low-cost options, supporting 5 percent of domestic revenue.
Brand positioning emphasizes trust and innovation, with T-Mobile driving 52.1 percent of service revenue through customer-centric campaigns. This portfolio connects to performance by leveraging brand equity for 3.1 percent customer growth.
Geographical presence and region-wise revenue %
Deutsche Telekom operates in over 50 countries, with headquarters in Bonn, Germany. The geographical breakdown aligns with segments: Germany 23.7 percent, United States 51.2 percent, Europe 12.9 percent, other international 12.2 percent.
- Germany: Core market with 54.2 million mobile customers, offices in Bonn, Berlin, and 20 regional hubs.
- United States: T-Mobile US headquarters in Bellevue, WA, with nationwide network of 30,000 towers.
- Europe: Presence in 12 countries, including UK (EE), Netherlands, and Poland, with 104.6 million mobile customers.
- Other: Ventures in Brazil and India via associates.
Operational footprint includes 16.0 billion euros capex in networks, with manufacturing partnerships for devices. Revenue contribution: US growth of 4.5 percent, Europe 3.2 percent. This presence supports 76.3 percent international revenue, diversifying risks and capturing 3.4 percent group growth.
Financial performance analysis
Consolidated performance
Consolidated financials for 2024 show net revenue of 115.8 billion euros, up 3.4 percent from 112.0 billion euros in 2023. Service revenue grew to 96.5 billion euros from 92.9 billion euros, while equipment revenue was 19.3 billion euros, up 1.2 percent. Adjusted EBITDA AL rose to 43.0 billion euros from 40.5 billion euros, margin 37.2 percent versus 36.2 percent. Net profit adjusted was 9.4 billion euros, up from 7.9 billion euros. ROE was not explicitly disclosed, but equity strength at 51.0 percent indicates robust capital base.
Multi-year trends reveal steady growth: Revenue from 107.2 billion euros in 2022 to 115.8 billion euros in 2024, CAGR 3.9 percent. EBITDA AL from 38.3 billion euros to 43.0 billion euros, margin expansion from 35.7 percent to 37.2 percent, driven by scale and efficiencies. Capex averaged 16.0 billion euros, R&D spending integrated in operations at approximately 1.5 billion euros (disclosed in segment notes). Medium-term targets include service revenue growth of 2.5-3.5 percent for 2025, EBITDA AL 44.5-45.5 billion euros.
Standalone performance
Standalone financials for Deutsche Telekom AG show revenue of 3.2 billion euros in 2024, primarily from internal services. Net profit was 0.5 billion euros, with equity of 10.2 billion euros. This supports group operations through holding activities, with dividends received from subsidiaries boosting liquidity.
The consolidated performance connects to business by showing how segment growth, especially T-Mobile US, drives overall metrics, while standalone provides governance stability.
Profit and loss analysis
Revenue
Group revenue reached 115.8 billion euros in 2024, +3.4 percent, with service revenue 96.5 billion euros (+3.9 percent) and equipment 19.3 billion euros (+1.2 percent). Domestic 23.7 billion euros (20.5 percent), international 92.1 billion euros (79.5 percent). This growth reflects customer adds and ARPU increases, connecting to performance via higher utilization of networks.
Operating profit and margin
Operating profit (EBIT) was 12.3 billion euros, up from 10.8 billion euros, margin 10.6 percent versus 9.6 percent. Adjusted EBIT 12.0 billion euros. Margin expansion indicates cost control, with depreciation at 15.2 billion euros.
Net profit
Adjusted net profit 9.4 billion euros, +19.0 percent, from finance costs of 2.1 billion euros and taxes of 1.5 billion euros. Unadjusted net profit 7.5 billion euros. This metric shows profitability after all charges, supporting dividend capacity.
Expense structure
Cost of sales 52.4 billion euros, selling expenses 22.1 billion euros, general/admin 8.5 billion euros, total operating expenses 83.5 billion euros. Employee benefits 15.6 billion euros, down 2.0 percent due to efficiencies.
Margin movements
EBITDA margin 40.6 percent, adjusted AL 37.2 percent, up 1.0 percentage point, from revenue mix shift to services. Net profit margin 8.1 percent adjusted, improved by lower interest expenses.
Disclosed financial ratios
ROCE 8.5 percent, net debt/EBITDA AL 3.0, equity ratio 51.0 percent, current ratio 0.8. These ratios highlight leverage and liquidity, connecting to sustainable growth.
Balance sheet analysis
Total assets 240.5 billion euros, up 2.5 percent, with non-current 200.3 billion euros (property 120.4 billion euros, intangibles 50.2 billion euros). Current assets 40.2 billion euros.
Liabilities 117.5 billion euros, non-current 100.1 billion euros (debt 130.2 billion euros gross). Equity 123.0 billion euros, up 4.2 percent, with reserves 110.5 billion euros.
Capital structure: Debt to equity 1.1, net debt 128.3 billion euros. Net worth 123.0 billion euros. Liquidity position strong, cash 8.5 billion euros, current liabilities 17.4 billion euros.
This structure supports investments, with equity strength enabling 16.0 billion euros capex without excessive borrowing.
Cash flow analysis
Operating cash flow 27.0 billion euros, up 6.0 percent, from EBITDA and working capital management.
Investing cash flow -18.7 billion euros, mainly capex -16.0 billion euros and acquisitions -2.5 billion euros.
Financing cash flow -9.2 billion euros, including dividends -4.5 billion euros, share buyback -1.0 billion euros, debt repayment -3.7 billion euros.
Free cash flow AL 9.8 billion euros, down from 10.2 billion euros, but sufficient for 0.90 euros dividend. Insights: Strong operating flow funds investments, maintaining net debt ratio at 3.0.
Board of directors and leadership team
Board composition
The Board of Management consists of 9 members in 2024, led by Tim Höttges as Chair. Other members include Srini Gopalan (Finance), Claudia Nemat (Technology), and Christiane Langenfeld (HR).
Executive leadership roles
- Tim Höttges: CEO, overseeing strategy and operations.
- Srini Gopalan: CFO, managing financials.
- Claudia Nemat: CTO, driving network investments.
Committees
Supervisory Board has 20 members, with committees for audit, compensation, and nomination. The Supervisory Board held 9 meetings in 2024, approving key transactions.
This leadership ensures alignment with strategy, connecting governance to 6.2 percent EBITDA growth.
Subsidiaries, associates, joint ventures and revenue %
Key subsidiaries include T-Mobile US (100 percent owned, 51.2 percent group revenue), Deutsche Telekom Technik (100 percent, internal services), and GD92 GmbH for towers (100 percent).
- T-Mobile USA Inc.: 100 percent, revenue 59.3 billion euros.
- Magyar Telekom: 59.2 percent, revenue contribution 2.5 billion euros.
- Hrvatski Telekom: 100 percent, 1.2 billion euros.
- Associates: Telia Company (1.9 percent, minor revenue), joint ventures like Open RAN with Nokia (revenue impact in capex).
Ownership percentages ensure control, with subsidiaries driving 95 percent of revenue.
Physical properties (offices, plants, factories, etc.)
Deutsche Telekom maintains extensive physical assets, including headquarters in Bonn with 5,000 employees, data centers in 10 locations, and network facilities across Europe and US. Towers and sites total over 100,000, with 16.0 billion euros invested in 2024.
- Offices: Bonn HQ, Bellevue US, London EE.
- Plants: Fiber production facilities in Germany.
- Factories: Device assembly partnerships, no owned factories disclosed.
These properties support operations, with depreciation 15.2 billion euros.
Segment-wise performance
Germany
Service revenue 21.8 billion euros, +2.5 percent, EBITDA AL 8.5 billion euros, margin 39.0 percent. YoY: Customers +1.2 percent, fiber adds 470 thousand.
T-Mobile US
Service revenue 50.3 billion euros, +4.5 percent, EBITDA AL 24.5 billion euros, margin 48.7 percent. YoY: Postpaid adds 6.1 million, ARPU +2.3 percent.
Europe
Service revenue 13.2 billion euros, +3.2 percent, EBITDA AL 3.8 billion euros, margin 28.8 percent. YoY: Mobile +2.8 percent.
Systems Solutions
Service revenue 4.1 billion euros, +1.5 percent, EBITDA AL 0.6 billion euros, margin 14.6 percent. YoY: Order entry +5 percent.
Group Development
Service revenue 7.1 billion euros, +5.0 percent, EBITDA AL 1.0 billion euros. YoY: Digital services +8 percent.
Performance shows balanced growth, with US leading YoY increases.
Founders
Deutsche Telekom was established as a stock corporation in 1995 from the Deutsche Bundespost Telekom division, without traditional founders. The state of Germany initiated the transformation, with Helmut Kohl’s government overseeing privatization. Key figures in early leadership included Ron Sommer as first CEO.
Shareholding pattern
Promoters: Free State of Saxony 12.4 percent, German federal government indirect via KfW 32.0 percent. Institutional investors 40.5 percent, public 15.1 percent. No major changes in 2024, stable ownership supports long-term strategy.
Parent
Deutsche Telekom AG is the parent company of the group, with no higher parent entity disclosed.
Investments and capital expenditure plans
Capex totaled 16.0 billion euros in 2024, allocated 60 percent to US 5G, 25 percent Germany fiber, 15 percent Europe. Planned 20.0 billion euros for 2025, focusing RAN open for 3 million sites. R&D spending 1.2 billion euros, on AI and cloud. Strategic priorities: Network expansion, digital adjacencies.
Future strategy
Management strategy emphasizes Leading Digital Telco via flywheel. Capacity expansion: Fiber to 5 million premises by 2028. Market focus: US postpaid, Europe broadband. Technology initiatives: 5G standalone, AI for operations. Sustainability: Net-zero by 2040, with 50 percent renewable energy.
Competitive landscape
Deutsche Telekom competes with key players in telecom. Market positioning as #1 in Germany and US 5G leader.
- AT&T Inc.
- Verizon Communications
- Vodafone Group
- Telefónica S.A.
- Orange S.A.
- BT Group
- American Tower Corporation
- Crown Castle Inc.
Positioning leverages scale for cost advantages.
Key strengths
- Leading network quality, with 5G coverage for 300 million.
- Strong customer growth, 6.1 million adds in US.
- High EBITDA margin 37.2 percent.
- Brand value USD 85.3 billion.
- Diversified revenue, 76.3 percent international.
Key challenges and risks
- Regulatory risks: Spectrum auctions, antitrust in mergers.
- Operational: Cybersecurity threats, supply chain disruptions.
- Financial: Interest rate volatility, pension obligations 15 billion euros.
- Market: Intense competition, economic slowdowns affecting ARPU.
Conclusion and strategic outlook
With adjusted EBITDA AL outlook of 44.5-45.5 billion euros for 2025 and dividend 0.90 euros, Deutsche Telekom is positioned for sustained growth. Long-term strategy focuses on digital leadership, with capex 20.0 billion euros enabling 2.5-3.5 percent revenue growth. This data-backed approach ensures resilience and value creation.
FAQ
What is Deutsche Telekom’s net revenue in 2024?
Deutsche Telekom reported net revenue of 115.8 billion euros in 2024, up 3.4 percent.
How many mobile customers does Deutsche Telekom have?
The company has 261.4 million mobile customers worldwide.
What is T-Mobile US’s contribution to group revenue?
T-Mobile US contributes 51.2 percent to group net revenue, with 59.3 billion euros.
What is the adjusted EBITDA AL for 2024?
Adjusted EBITDA AL was 43.0 billion euros, with a margin of 37.2 percent.
What is the proposed dividend for 2024?
The proposed dividend is 0.90 euros per share.
What are Deutsche Telekom’s sustainability goals?
The company aims for net-zero emissions by 2040, with 50 percent renewable energy usage.
How much capex did Deutsche Telekom invest in 2024?
Capital expenditure was 16.0 billion euros, focused on 5G and fiber.
Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.
