Deutsche Telekom is one of the largest telecommunications providers globally, with a major presence in Europe and the United States. The company offers a wide range of services, including fixed and mobile telephony, internet, and cloud services, and has played a pivotal role in modernizing communications infrastructure.
Q2 2024 Financial Results
Deutsche Telekom posted strong financial results for Q2 2024, with revenue growing by 4.9% to €24.1 billion. Adjusted EBITDA also saw significant growth, rising 7.8% to €10.8 billion. The company recorded a net profit of €2.1 billion, up by 35.6% compared to the same period in 2023.
Regional Performance and Strategic Growth
Deutsche Telekom experienced strong fiber optic subscriber growth in Germany, adding 113,000 new customers for fiber connections in Q2. Mobile service revenues increased by 3.7% year-over-year, although adjusted EBITDA grew by only 1%, partly due to a one-time employee payment.
The U.S. market, driven by Deutsche Telekom’s subsidiary T-Mobile US, has been a critical growth driver in recent years. After acquiring Sprint in 2020, T-Mobile US has solidified its position as one of the largest mobile operators in the country, surpassing 100 million postpaid customers by the end of Q2 2024. The company recorded 1.3 million new postpaid subscribers in Q2, with mobile service revenues increasing by 4.4% to $16.4 billion, and adjusted EBITDA growing by 9.1%.
Deutsche Telekom’s strategy in the U.S. is centered around 5G deployment, supported by massive infrastructure investments. T-Mobile US leads in 5G coverage compared to its competitors, offering the company a significant competitive edge in the rapidly expanding U.S. mobile market. This strong U.S. presence has been a major contributor to Deutsche Telekom’s overall growth.
In Europe, Deutsche Telekom delivered record profit growth, with adjusted EBITDA rising by 8.9% and revenue growing 6.8% organically. The company added 183,000 new mobile subscribers and 53,000 broadband customers across its European markets.
Sale of GD Towers in 2023
One of Deutsche Telekom’s strategic moves in 2023 was the sale of a 51% stake in GD Towers, its telecom infrastructure subsidiary, for €10.7 billion to a consortium consisting of Brookfield and DigitalBridge. This sale helped Deutsche Telekom reduce its debt while retaining a minority stake in this critical asset. The proceeds from the sale were reinvested in 5G and fiber optic networks, further enhancing the company’s long-term infrastructure.
Future Outlook and Strategy
Deutsche Telekom has increased its free cash flow guidance for 2024 to around €19 billion, reflecting its solid performance across all divisions. The company continues to strengthen its infrastructure, with significant investments in fiber optics and cloud services, while expanding its footprint in digital technologies.
Conclusion
Deutsche Telekom demonstrated resilience in Q2 2024, driven by strong performances in its core markets—particularly in Germany, the U.S., and Europe. The sale of GD Towers in 2023 provided significant capital for strategic investments, allowing the company to focus on growth and innovation. With a focus on 5G deployment and cloud services, Deutsche Telekom is well-positioned for continued expansion, particularly in the high-growth U.S. market.
You will find attached to this article the presentation file for Deutsche Telekom.
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