DT Plans to Accelerate Growth with AI

Deutsche Telekom refined its strategy to introduce a new phase of growth. The company wants to grow even faster over the next few years.

Global economies of scale and the systematic use of AI play key roles, as well as a data-driven business model. Specifically, based on the financial figures for 2023, the Group expects an average annual growth of around 4% in both net revenue and service revenues through 2027. Adjusted EBITDA AL is set to grow by an average of 4% to 6% per year.

DT says that growth will come from the businesses on both sides of the Atlantic. For the Group excluding the United States, DT expects service revenues to grow by an average of 2.5% to 3% annually and adjusted EBITDA AL by between 3% and 4%. At the same time, adjusted earnings per share are expected to rise by an average of more than 11% per year, reaching around 2.50 euros in 2027. Free cash flow AL is expected to increase to around 21 billion euros by that time.

“We are initiating the next stage,” said Tim Höttges, CEO of Deutsche Telekom. “In recent years, our strategy has made us the undisputed number one in Europe. We have achieved or even exceeded nearly all of our targets and are now worth more than all our peers on our domestic continent combined. We will build on this position in the future, for example, by further intensifying the use of artificial intelligence.”

At its Capital Markets Day in Bonn, the Group confirmed its attractive shareholder remuneration. 40% to 60% of the recurring adjusted earnings per share is to continue to be paid out as dividends in the future. For the 2024 financial year, DT announced dividend payments of 90 cents per share, to be paid out in 2025. This is subject to approval by the relevant bodies. Added to this, share buy-backs amounting to up to €2 billion will be carried out in 2025.