- Deutsche Telekom boosts guidance again as T-Mobile US adds 2.3 million postpaid customers
- German revenue softens, muting investor reaction despite record dividend plans
What happened: US strength lifts group results despite German drag
Deutsche Telekom has lifted its 2025 dividend to a new high and approved a $2.2 billion share buyback, after strong growth at T-Mobile US helped stabilise the group’s overall performance. The US division — now the company’s core profit driver — posted a 2.6% increase in revenue to roughly $20 billion, fuelled by 2.3 million net new postpaid customers and solid broadband demand.
That momentum pushed group revenue up 1.5%, even though net profit slipped 1.5% to around $2.6 billion, reflecting a weaker performance in Germany. Domestic revenue fell by 1.8%, as slower broadband additions and softer service revenue weighed on results.
Nevertheless, Deutsche Telekom’s expanding US footprint — supported by a recent network-sharing deal with UScellular — enabled the company to raise its full-year outlook for the third time this year. It now expects adjusted EBITDA after leases of approximately $49 billion, and free cash flow near $22 billion.
But despite the improved guidance and shareholder rewards, the company’s shares remained largely flat. Analysts warned that the continued weakness in Germany is still overshadowing the group’s broader gains.
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Why it’s important
The figures highlight Deutsche Telekom’s increasing dependence on its US operations to offset stagnation in its home market. T-Mobile US continues to outperform industry rivals, helped by its scale, sustained network investment and customer gains following consolidation in the American telecoms sector. This strength provides a crucial buffer at a time when Germany — once the firm’s anchor market — is struggling with fierce competition and slowing fixed-line growth.
For investors, the question now is whether Deutsche Telekom can revive its German business quickly enough to support its long-term ambitions. While the company’s international diversification provides stability, domestic underperformance remains a drag on sentiment.
Still, its decision to raise the dividend and launch buybacks signals clear confidence that its transatlantic balance — anchored by T-Mobile US — will continue to deliver solid returns in the year ahead.
