Deutsche Telekom exceeded its financial guidance for 2021, with total revenue growing by 7.7 percent to 108.8 billion euros.
Service revenues rose by 6.5 percent to 84.1 billion euros. Adjusted EBITDA AL rose by 6.6 percent year-on-year to 37.3 billion euros.
“We won’t let up,” said Tim Höttges, CEO of Deutsche Telekom. “Profits are growing in all areas. The Group’s successful course continues.”
In 2021, Deutsche Telekom invested 18.0 billion euros worldwide, excluding expenses for mobile spectrum. 5.9 percent more than in the previous year. Adjusted net profit increased by 2.6 percent to 5.9 billion euros; on an unadjusted basis, it increased by 0.4 percent to 4.2 billion euros.
Some highlights:
- In its home market, Deutsche Telekom can look back on a year of substantial growth in customer numbers and of strong earnings. In the broadband business, the Company recorded 360,000 customer additions, thus significantly increasing its market share in 2021. At year-end, 17.2 million (retail and wholesale) customers were using a fiber-optic based line (FTTH, VDSL/vectoring), 1.2 million more than a year earlier.
- In mobile communications, Telekom recorded growth in branded contract customers of 666,000 for the full year. The clear market leadership in terms of mobile service revenues was reinforced. In the fourth quarter, this figure was up 2.3 percent against the prior-year period.
- The Germany operating segment increased total revenue by 1.6 percent year-on-year in the 2021 financial year to 24.2 billion euros. Growth in adjusted EBITDA AL was even stronger: up 3.6 percent to 9.5 billion euros.
- T-Mobile US ended the year with 108.7 million customers, an increase of 6.7 million within 12 months. More than 2.9 million of these additions related to the particularly profitable postpaid phone segment. Total revenue increased by 15.2 percent to 80.8 billion U.S. dollars. At the same time, adjusted EBITDA AL increased by 11.8 percent to 26.9 billion U.S. dollars. The business combination with Sprint is paying off. Last year, synergies leveraged in shared functions, sales, and networks amounted to 3.8 billion U.S. dollars. In 2022, this figure is expected to rise to between 5.0 and 5.3 billion U.S. dollars, thereby exceeding the integration costs of the merger on a full-year basis for the first time since the business combination with Sprint as of April 1, 2020.
- The Europe operating segment generated adjusted EBITDA AL of more than 4.0 billion euros within a year for the first time. In organic terms, i.e., adjusted for exchange rate effects and changes in the composition of the Group, this was 5.4 percent more than in the prior year. This indicator for earnings performance had increased organically year-on-year in every quarter of the last four years. Service revenues grew by 2.0 percent in organic terms in 2021 to 9.6 billion euros.
- Customer numbers increased in all areas in 2021. The European national companies won 770,000 new mobile contract customers in total. The number of broadband customers went up by 350,000. The number of users of convergent fixed-mobile product bundles increased by 842,000.