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Investing.com -- Deutsche Telekom (ETR:DTEGn) on Thursday raised its full-year earnings guidance for the third time in 2025 after posting higher third-quarter profits, citing continued strength in its U.S. and European operations.
The telecommunications group reported gains in key financial measures and announced plans for a record dividend and share buyback program.
The Bonn-based company said net revenue rose 3.3% in organic terms from a year earlier to €28.9 billion, while service revenue increased 3.6% organically.
Adjusted EBITDA after leases (AL) grew 2.9% organically to €11.1 billion. Weaker exchange rates, particularly the U.S. dollar, reduced the reported growth rates by 1.5% for revenue, 2.2% for service revenue, and 0.2% for adjusted EBITDA AL.
“We reliably deliver strong figures in spite of all the challenges in our markets,” said chief executive Tim Höttges in a statement. “And we want our shareholders to profit from this strength, too, in the form of an attractive dividend.”
Adjusted net profit rose 14.3% to €2.7 billion in the third quarter. Excluding special factors, net profit declined 17.9% to €2.4 billion because the prior-year quarter included positive one-time changes at two subsidiaries.
Free cash flow AL fell 9.2% year over year to €5.6 billion but climbed 6.8% in the first nine months to €16.1 billion.
The company raised its forecast for adjusted EBITDA AL to around €45.3 billion for 2025, compared with a previous outlook of more than €45 billion.
Free cash flow AL is now expected to reach about €20.1 billion, up from more than €20 billion. The guidance for operations outside the United States remains unchanged.
Deutsche Telekom plans to increase its dividend for the 2025 financial year from €0.90 to €1 per share, subject to approval, and to buy back up to €2 billion in shares in 2026.
In Germany, fiber-to-the-home (FTTH) demand strengthened, with 155,000 net customer additions between July and September, the company’s best quarter for pure fiber users. Its fiber network now reaches 11.8 million households.
Mobile service revenue rose 1.8% in organic terms, and branded contract customer additions totaled 314,000. Adjusted EBITDA AL in Germany rose 0.1% to €2.7 billion, while total revenue declined 1.8% to €6.3 billion.
In the United States, subsidiary T-Mobile US recorded 2.3 million postpaid customer additions, including 1 million postpaid phone customers.
The unit lifted its full-year postpaid net addition forecast to between 7.2 million and 7.4 million, up from 6.1 million to 6.4 million. Service revenue increased 9% to $18.2 billion, and adjusted EBITDA AL rose 5.5% to $8.4 billion.
The Europe segment reported adjusted EBITDA AL growth of 4.6% to €1.2 billion in organic terms, with total revenue up 2.2% to €3.2 billion.
Service revenue grew 3.3%. The company finalized the sale of its Romanian mobile operations on Oct. 1, completing its exit from the country.
T-Systems, the company’s IT services arm, posted adjusted EBITDA AL of €127 million, up 22.8% year over year, with organic revenue growth of 3% to €1 billion.
Deutsche Telekom reported 201,336 employees at the end of the quarter, up 0.7% from a year earlier, and net debt including leases of €132.8 billion, an increase of 3.2%.