n Q1 2025, Deutsche Telekom’s income rose to €29.8 billion (~$32.18 billion), a 6.5% improve over the identical interval final 12 months
Deutsche Telekom kicked off 2025 with robust momentum, reporting progress throughout income, profitability and buyer additions, whereas additionally accelerating its AI transformation. The group raised its full-year steerage following stable efficiency from T-Cell US (T-Mo US), ongoing digitization throughout its European operations and bettering free money movement.
In Q1 2025, Deutsche Telekom’s income rose to €29.8 billion (~$32.18 billion), a 6.5% improve over the identical interval final 12 months. 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 movement after leases (FCF AL) surged 52.4% to €5.65 billion (~$6.10 billion), supported by seasonal working capital beneficial properties and decrease capex.
T-Cell US stays a progress 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% improve, whereas its core adjusted EBITDA beneath US GAAP rose 8.4%. Income was additionally up 6.6 % amounting to twenty.8 billion U.S. {dollars}.
T-Mo US added 903,000 postpaid prospects, marking its best-ever Q1 for postpaid progress. Churn remained low at 0.91%, and high-speed web web provides got here in at 495,000. With +8.4% YoY service income progress, T-Mo US led the trade 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 cellular information progress
Whereas income progress in Germany was modest at +0.7%, adj. EBITDA AL rose +2.2% as the corporate targeted on infrastructure enlargement. Deutsche Telekom handed 20.9 million houses 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 whole to 1.6 million. Within the broadband phase, aggressive stress contributed to a web lack of 7,000 prospects.
The corporate reported a 3.0% year-over-year improve in cellular service income for the primary quarter, together with 274,000 web additions in branded cellular contract prospects. Community efficiency stays a strategic precedence: Cell information 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% quicker, at present in MVP part.
- A chatbot for civil engineering sped up fiber rollout planning by 90%, with ~10% productiveness beneficial properties.
- 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 improvement 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 corporations with regard to… AI implementation already… We estimate the monetary advantage of round €800 million [~$864 million] in price 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.
