Deutsche Telekom has raised its full-year free cash flow guidance following the release of its latest quarterly results, mirroring a similar move made by its U.S. subsidiary, T-Mobile. The German telecom giant highlighted strong performance across all its business segments in the second quarter, however, its U.S. operations took the lead once again.
The company anticipates free cash flow after leases to reach approximately EUR 19 billion in 2024, up from the previous forecast of EUR 18.9 billion. This adjustment, while significant, was somewhat expected, especially given that just a week prior, T-Mobile U.S. had increased its free cash flow AL forecast to between USD 16.6 billion and USD 17 billion, up from the previous range of USD 16.4 billion to USD 16.9 billion.
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T-Mobile U.S. delivered an impressive Q2, reporting a record adjusted free cash flow of USD 4.4 billion, a 54% increase from last year. This robust performance substantially impacted the group level, with Deutsche Telekom reporting a free cash flow AL of EUR 5.2 billion, representing a 48.5% year-over-year (YoY) increase. With the U.S. market contributing nearly two-thirds of the group’s revenue and an even higher share of earnings in Q2, its strong results significantly influenced the overall financial picture.
Growth in the U.S. outpaced that in Germany, with the U.S. unit reporting a notable double-digit percentage increase in EBITDA in euro terms. However, Deutsche Telekom’s domestic business also showed solid progress. Revenue in Germany rose 3.6% to EUR 6.4 billion, while EBITDA increased by 1% to EUR 2.6 billion, placing the company on par with its European counterparts. The broader European operations, though a smaller portion of the business, also saw healthy growth in both revenue and earnings.
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Timotheus Höttges, CEO of Deutsche Telekom, stated, “All our operations are performing well. Quarter by quarter, we are seeing our strategy pay off.” His brief comments suggested a clear preference for letting the numbers speak for themselves.
At the group level, Deutsche Telekom reported an adjusted net profit of EUR 2.5 billion, a 31.3% increase compared to Q2 last year. Operational highlights in Germany included 113,000 new full-fiber customers, bringing the total to 1.2 million—a modest figure by European incumbent standards but a step in the right direction. Additionally, the German unit added 311,000 branded contract customers during the April-June period, contributing to a 3.7% year-over-year increase in mobile service revenues.
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