• Bloomberg financial analyst
• Consolidated revenue up 1.3% in Q2 2025
• Adjusted EBITDA down 0.9%
• Net earnings up 6.6% to $644 million
• Adjusted net earnings down 19.2%
• Free cash flow up 5.0% to $1,152 million
• Wireless improvement: 94,479 mobile phone activations
• Postpaid churn down 0.12 points to 1.06%
• First quarter of year-over-year improvement since Q3 2022
• 26,583 consumer data revenue up 8.2%
Deutsche Telekom, a leading player in the diversified telecommunication services industry, reported its financial results for the second quarter of 2025, revealing a net revenue of €28.7 billion, which fell slightly short of the €28.76 billion forecast. The earnings announcement led to a 3.08% decline in the company’s stock price, closing at €31.16. Despite the revenue miss, the company showed strength in other areas, such as a 1.7% increase in adjusted EBITDA and robust performance from T-Mobile US [1].
Key Takeaways
- Deutsche Telekom’s Q2 2025 revenue slightly missed expectations.
- Stock price decreased by 3.08% following the earnings report.
- T-Mobile US service revenue increased by 6.1% YoY.
- Adjusted EBITDA rose by 1.7% YoY, indicating operational efficiency.
- The company launched several innovative products, including an AI smartphone.
Company Performance
Deutsche Telekom’s overall performance in Q2 2025 demonstrated resilience amid competitive pressures in the telecommunications industry. The company managed to grow its adjusted EBITDA by 1.7% year-over-year, reaching €11 billion. T-Mobile US continued to be a strong performer, with a notable 6.1% increase in service revenue, contributing significantly to the group’s financial health [1].
Financial Highlights
- Revenue: €28.7 billion (+1% YoY)
- Adjusted EBITDA: €11 billion (+1.7% YoY)
- Adjusted net profit: €2.5 billion (+1.1% YoY)
- Net debt: Decreased to €2.7 billion
- Leverage ratio: Improved from 2.31 to 2.11
Market Reaction
Deutsche Telekom’s stock price fell by 3.08% following the earnings release, closing at €31.16. This decline reflects investor concerns over the slight revenue miss and ongoing competitive challenges in the market. The stock remains within its 52-week range but is trending towards the lower end, indicating cautious investor sentiment [1].
Outlook & Guidance
Looking ahead, Deutsche Telekom expects its EBITDA to exceed €45 billion in 2025, with free cash flow surpassing €20 billion. The company plans to double its annual fiber buildout to 1 million lines by 2027, underscoring its commitment to enhancing digital infrastructure and innovation. According to InvestingPro data, analysts maintain a positive outlook with a consensus recommendation of 2.06 (Buy), with price targets ranging from €125 to €158. The company’s low beta of 0.42 suggests relatively stable stock performance compared to the broader market [1].
References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-deutsche-telekom-q2-2025-sees-slight-revenue-miss-stock-dips-93CH-4175648
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