Q2 2025 Deutsche Telekom AG Earnings Call Transcript
Key Points
- Deutsche Telekom AG (DTEGF) reported strong EBITDA growth across all segments, with DT ex-US growing by 3.6% year-over-year.
- The company successfully closed several M&A transactions, including the sale of its Romanian Mobile business and acquisitions in the US, which are expected to drive incremental growth.
- Deutsche Telekom AG (DTEGF) continues to expand its fiber network, passing 3.4 million additional European homes with FTTH in the last 12 months.
- The company is making significant progress in AI-powered digitization, with initiatives like the AI-based employee knowledge tool and AI-driven network monitoring showing promising results.
- T-Mobile US achieved record customer growth, leading to a substantial raise in full-year guidance for postpaid customer net additions and financial growth.
- The German broadband market is experiencing challenges, with a slowdown in customer growth due to increased competition and a low-margin enterprise contract loss.
- Deutsche Telekom AG (DTEGF) faced a EUR50 million one-off headwind in Germany due to a court ruling affecting handset revenue accounting.
- The company is dealing with increased competitive intensity in the German broadband market, impacting net additions and requiring strategic adjustments.
- Energy cost headwinds and increased grid fees are expected to impact financials, rolling over into next year's results.
- The fixed service revenue growth remains subdued, impacted by lower IT service revenues and lagging government demand for specialty telco services.
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(technical difficulty) Including upside from M&A, T-Mobile spectrum disposals and from fiscal relief on both sides of the Atlantic. I'm especially happy with our progress on the M&A front. In Europe, we got clearance for the sale of our Romanian Mobile business. This win-win transaction brings much needed in-market consolidation while improving the growth profile for our European segment.
In the US we closed the MetroNet and the U.Scellular transaction. This comes after the Lumos fiber joint venture and the two out-of-home advertising companies, Vista and Bliss. We are now looking forward to the incremental growth that these transactions will bring. T-Mobile also sold part of their 3.45 gigahertz spectrum for EUR2 billion and agreed to sell our 800 megahertz spectrum in exchange for cash and some valuable 600 megahertz spectrum.
As you can see on the next page, all our segments are contributing to our EBITDA growth. DT ex-US grew by 3.6% year-over-year. Moving
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