n Q1 2025, Deutsche Telekom’s income rose to €29.8 billion (~$32.18 billion), a 6.5% enhance over the identical interval final yr
Deutsche Telekom kicked off 2025 with sturdy momentum, reporting development throughout income, profitability and buyer additions, whereas additionally accelerating its AI transformation. The group raised its full-year steerage following strong efficiency from T-Cell US (T-Mo US), ongoing digitization throughout its European operations and enhancing free money stream.
In Q1 2025, Deutsche Telekom’s income rose to €29.8 billion (~$32.18 billion), a 6.5% enhance over the identical interval final yr. Adjusted EBITDA after leases (adj. EBITDA AL) climbed to €11.3 billion (~$12.20 billion), up 7.9% year-over-year, whereas adjusted web revenue rose 9.1% to €2.44 billion (~$2.64 billion). Free money stream after leases (FCF AL) surged 52.4% to €5.65 billion (~$6.10 billion), supported by seasonal working capital features and decrease capex.
T-Cell US stays a development engine
T-Cell US continues to be the group’s monetary powerhouse. The phase posted €7.6 billion (~$8.2 billion) in adj. EBITDA AL (IFRS), a 6.6% enhance, whereas its core adjusted EBITDA underneath US GAAP rose 8.4%. Income was additionally up 6.6 p.c amounting to twenty.8 billion U.S. {dollars}.
T-Mo US added 903,000 postpaid prospects, marking its best-ever Q1 for postpaid development. Churn remained low at 0.91%, and high-speed web web provides got here in at 495,000. With +8.4% YoY service income development, T-Mo US led the business in subscriber retention and ARPU energy.
Deutsche Telekom has elevated its possession stake in T-Mo US to 51.8%, reaffirming its long-term funding within the U.S. market.
In Germany — Infrastructure and cell knowledge development
Whereas income development in Germany was modest at +0.7%, adj. EBITDA AL rose +2.2% as the corporate targeted on infrastructure growth. Deutsche Telekom handed 20.9 million properties with fiber and secured in-house wiring for five.7 million multi-dwelling unit (MDU) households.
The variety of fixed-network prospects with fiber-to-the-home (FTTH) connections grew by 128,000, bringing the full to 1.6 million. Within the broadband phase, aggressive strain contributed to a web lack of 7,000 prospects.
The corporate reported a 3.0% year-over-year enhance in cell service income for the primary quarter, together with 274,000 web additions in branded cell contract prospects. Community efficiency stays a strategic precedence: Cell knowledge utilization elevated 20% YoY, whereas churn remained low at 0.8%.
AI drives efficiencies
A standout theme in Q1 was Deutsche Telekom’s fast rollout of AI throughout its operations. The corporate highlighted a number of key initiatives:
- AI RAN Guardian Agent detects and remediates radio community points as much as 95% sooner, at the moment in MVP part.
- A chatbot for civil engineering sped up fiber rollout planning by 90%, with ~10% productiveness features.
- The “FragMagenta” chatbot resolves over 50% of buyer points with out human assist, whereas new inside instruments have improved agent productiveness by as much as 90%.
- AI DevOps assistants boosted software program growth effectivity by 12%, with a 16% discount in imply time to decision (MTTR).
In an earnings name, Deutsche Telekom CEO Tim Höttges underscored this AI-driven transformation, stating: “We leverage AI to speed up our digital transformation and… we’re one of many main firms with regard to… AI implementation already… We estimate the monetary good thing about round €800 million [~$864 million] in value financial savings by 2027.”
With continued energy within the U.S., regular execution in Europe and AI efficiencies taking root, Deutsche Telekom enters the second quarter of 2025 with renewed confidence and strategic readability.