Trends
Deutsche Telekom lifts dividend on strong US gains
Europe’s telecoms group raises its 2025 payout and sharpens its outlook, buoyed by T-Mobile US’s continued growth despite weaker trends.
Headline
Europe’s telecoms group raises its 2025 payout and sharpens its outlook, buoyed by T-Mobile US’s continued growth despite weaker trends.
Context
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.
Evidence
Pending intelligence enrichment.
Analysis
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. Also Read: Google expands in Germany with €5.5B cloud build-out Also Read: Nebius launches advanced NVIDIA-powered AI cloud in the UK 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.
Key Points
- 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
Actions
Pending intelligence enrichment.
