Deutsche Telekom has emerged as the latest European telecommunications giant to report robust financial results for the first quarter of 2024. The German incumbent witnessed notable increases in revenue, earnings, and net profit, propelled by a surge in its European operations. The company’s performance underscores a positive growth trajectory amidst a competitive telecom landscape.
Group CEO Tim Höttges expressed optimism regarding the company’s growth prospects, highlighting the success of its national subsidiaries across Europe. The European division, encompassing operations in 10 markets beyond Germany, achieved record growth in earnings before interest, taxes, depreciation, and amortization (EBITDAaL), with earnings rising by 8.1% year-on-year to €1.1 billion. Revenue also exhibited a commendable increase, climbing by 5.7% organically to €3 billion.
While Deutsche Telekom’s €27.9 billion top-line revenue saw a modest 0.4% rise in Q1, or 1.6% organically, the company’s core markets in Germany and the United States remained primary drivers of growth. In Germany, revenue surged by 2.6% to €6.3 billion, fueled by high-value revenue growth and operational efficiencies. The company particularly noted growth in mobile service revenue and a significant increase in net additions among branded mobile customers.
Moreover, Deutsche Telekom reported robust growth in its TV and fiber businesses, with fiber-to-the-home (FTTH) net additions reaching 93,000 in the first quarter, surpassing the 1 million milestone. The company aims to add 450,000 FTTH customers over the full year, indicating a strong commitment to expanding its high-speed broadband services.
Across the Atlantic, T-Mobile US reported a slight revenue decline but demonstrated resilience in service revenue, which increased by 3.6% to $16.1 billion. Notably, the company achieved industry-leading mobile customer additions, with net adds totaling 1.2 million, nearing the 100 million mark. T-Mobile US also experienced significant growth in its fixed wireless access (FWA) service, adding 405,000 new customers in Q1.
Bolstered by its Q1 performance, T-Mobile US raised its adjusted EBITDAaL outlook for the full year to $28.6 billion, reflecting a 6% increase from 2023. The company’s solid financial results align with a broader positive trend observed among European telecom operators, signaling potential recovery and growth opportunities in the sector.
