Deutsche Telekom is planning to accelerate its growth through the strategic use of artificial intelligence (AI) and leveraging global economies of scale. At its Capital Markets Day, the company revealed updated financial targets through 2027, expecting to see annual revenue growth of around 4% and adjusted EBITDA AL growth of 4-6% per year. Key drivers will include enhanced use of AI in customer service, network automation, and a more data-driven business model. The company plans to build on its strong position in Europe and the US to generate long-term shareholder value.
By 2027, Deutsche Telekom aims to reach a free cash flow AL of approximately €21 billion, with adjusted earnings per share rising to around €2.50. Shareholders can expect ongoing dividends, with the payout ratio maintained at 40-60% of adjusted earnings per share. For the 2024 financial year, Deutsche Telekom intends to increase its dividend to €0.90 per share, with additional share buybacks of up to €2 billion planned. Capital investments will focus on expanding 5G and fiber networks, particularly in Germany and across European markets, aiming to improve service quality and reach.
Deutsche Telekom also plans to increase its use of AI to improve operational efficiency and customer service. AI-driven solutions will reduce call volumes, streamline network management, and automate key processes. By 2027, the company expects to connect over 17.5 million homes to fiber in Germany and achieve 99% 5G network coverage. Expansion will also focus on B2B services and public sector contracts, with an emphasis on cloud, IoT, and AI solutions.
• Revenue growth of 4% annually, EBITDA AL growth of 4-6% through 2027
• Free cash flow AL expected to reach €21 billion by 2027
• Dividend set to rise to €0.90 per share in 2025 for the 2024 financial year
• 5G coverage to reach 99% in Germany and 95% across Europe by 2027
• Fiber rollout to connect 17.5 million homes in Germany by 2027
“We are initiating the next stage,” said Tim Höttges, CEO of Deutsche Telekom. “Our strategy has made us the undisputed number one in Europe, and we will build on this position by further intensifying the use of artificial intelligence.”
