US business drives results: Telekom plans to pay record dividend to investors

Deutsche Telekom is continuing its record-breaking quest. Both revenue and adjusted profit are increasing significantly. Company CEO Höttges has a positive announcement in store for investors.

Driven by rising customer numbers, particularly in the USA, Deutsche Telekom continued to increase its revenue and profits last year. "Another record year for Deutsche Telekom," said Tim Höttges, CEO of the Bonn-based company. An increase in profits is also expected for the coming year.

After the Annual General Meeting in April, the group plans to pay out a record dividend of 90 cents per share for the past financial year. This would be the highest in the group's history, according to the information. The decision is subject to the necessary committee resolutions.

Deutsche Telekom 34.11

Deutsche Telekom's revenue rose by 3.4 percent to 115.8 billion euros in 2024, while adjusted operating profit climbed by 6.2 percent to 43 billion euros. "We are growing in all business areas. Our flywheel, the core of our strategy, is running and ensures that we will build on the successes of 2024 in 2025," explained Höttges.

The strong result was driven by the Telekom subsidiary T-Mobile US: 6.1 million new mobile phone customers were added in the USA in 2024. Similar figures are expected for the current year. Deutsche Telekom currently holds 51.5 percent of the shares in the US company.

Fiber optic expansion is progressing

The group reported profit growth for Europe for the seventh year in a row. "Customer numbers also increased significantly last year," Telekom explained. In mobile communications, there was an increase of 729,000 customers, and 234,000 people were added in the broadband area.

Deutsche Telekom is making progress in expanding fiber optic internet. By the end of 2024, 10.1 million households in Germany will have been reached, 2.2 million more than a year earlier, the Bonn-based company announced. "We are expanding fiber optics as much as we can," said company boss Höttges.

It's about fiber optic cables that are in the street and therefore within reach of the apartments ("Homes Passed"). Only some of them reach into the apartments. The other part doesn't because the residents don't want them or the construction project hasn't been implemented yet.

Competitor Deutsche Glasfaser increased its fiber optic expansion in Germany by 0.4 million to 2.4 million households last year. 40 percent of these households are already customers, said a Deutsche Glasfaser spokesman.