Deutsche Telekom hits targets, points to further growth in 2024

Deutsche Telekom met guidance with its results for 2023 and forecast an slight acceleration in profit growth this year.

The German telecoms giant, which works across Europe and owns a majority share in T-Mobile in the US, said net revenues were up 0.6% on an organic basis last year at €112bn, with services revenues gaining 3.6% to €92.9bn.

The company said it saw customer growth in all areas across Germany and the wider Europe region, while T-Mobile's US customer base recorded the largest growth in the industry.

Organic adjusted EBITDA after leases increased by 4% to €40.5bn, while net profit more than doubled to €17.8bn, helped by proceeds from the sale of the majority stake in the cell tower business in Germany and Austria, GD Towers.

However, the company booked significant interest rate-based impairment losses on the remaining shareholding in GD Towers, resulting in a loss of €1.0bn in the fourth quarter, compared with a profit of €1.0bn a year earlier.

Free cash flow after leases rose by 40% year-on-year to €16.1bn.

“In a world with many challenges, we again delivered with our usual reliability in 2023,” said Tim Höttges, chief executive. “Thanks to our growing businesses on both sides of the Atlantic, we are confident we will up the ante yet again in 2024.”

Accordingly, adjusted EBITDA after leases is expected to grow by 6% to €42.9bn this year, while free cash flow after leases should rise 16% to €18.9bn.

The stock was down nearly 2% at €21.91 by 0951 CET.