Deutsche Telekom reports that its businesses are “performing well”. Following a solid start to the year, the telco continued to grow steadily in Q2 2025. In organic terms, i.e., excluding the effects of changes in the composition of the Group and in exchange rates, the Group’s revenue was up in the second quarter by 4 per cent year-on-year to €28.7 billion. Service revenues likewise grew by 4 per cent to €24.4 billion. Adjusted EBITDA AL increased in the same period by 5 per cent in organic terms to €11 billion.

The average dollar exchange rate was $1.13 per euro in the second quarter of 2025. This reflects a significant weakening of the dollar from the average exchange rate of $1.08 against the euro one year ago. The resulting influence on the Group’s reported figures relates purely to currency translation effects. Reported total revenue was up by 1 per cent and service revenues were up by 1.2 per cent. Reported adjusted EBITDA AL grew 1.7 per cent.

“We are again seeing sustained strong growth on both sides of the Atlantic throughout the second quarter,” said Tim Höttges, CEO of Deutsche Telekom. “Deutsche Telekom continues to set the pace in the industry.”

Reported net profit increased by 25.2 per cent year-on-year to €2.6 billion between April and June. Adjusted for special factors, net profit increased by 1.1 per cent to €2.5 billion. Over the first half of the year, net profit increased by 4.9 per cent overall to €4.9 billion.

Deutsche Telekom has raised its guidance for the 2025 full year for the second time this year. Adjusted EBITDA AL is now expected to total more than €45 billion, up from the previous guidance of around €45 billion. Free cash flow AL is now expected to come in at over €20 billion, adjusted from around €20 billion.

Germany: Deutsche Telekom remains on track

The mobile communications business on Deutsche Telekom’s domestic market continued trending positively. With mobile services revenues up by 1.9 per cent in the second quarter, Deutsche Telekom underpinned its strong market leadership in terms of this key metric. At 185,000, branded mobile contract customer additions were down on the prior quarters, mainly due to a corporate customer switching to a competitor. By contrast, the launch of the new Unlimited rate plans in April had a very positive impact on the customer base.

The number of FTTH customers continued to grow, with 137,000 additions in the second quarter. The build-out of the fibre-optic network progressed according to plan and now reaches 11.1 million households. The broadband market is characterised by low growth as well as ongoing intense competition, with Deutsche Telekom losing 20,000 lines in the second quarter.

Regarding the financial performance indicators, adjusted EBITDA AL increased by 2 per cent year-on-year to €2.6 billion in the second quarter of 2025. Total revenue declined 1.3 per cent to €6.3 billion, primarily due to a decline in business with mobile terminal equipment. By contrast, high-margin service revenues grew by 1.1 per cent in organic terms.

United States: customer forecast raised

T-Mobile US posted year-on-year growth in its financial performance indicators again in the second quarter of 2025. Adjusted EBITDA AL increased by 6.2 per cent to $8.3 billion. Service revenues were up by 6.3 per cent to $17.4 billion.

The company recorded 1.7 million postpaid customer net additions in the quarter, including 830,000 postpaid phone customers. T-Mobile US has raised its customer forecast for the full year and now expects to add between 6.1 and 6.4 million postpaid customers in 2025. This figure is 500,000 higher at the midpoint than the previous forecast.

After the end of the quarter, T-Mobile US closed the acquisitions of the fibre-to-the-home platform Metronet and the wireless carrier UScellular. As of July 18th 2025, Deutsche Telekom’s stake in T‑Mobile US amounted to 52.1 per cent.

Europe: earnings growth for 30 successive quarters

The national companies in the Europe operating segment posted quarter-on-quarter earnings growth on an organic basis for the 30th successive quarter. Adjusted EBITDA AL increased by 6.3 per cent in organic terms to €1.2 billion. Revenue for the same period increased by 2.1 per cent in organic terms to €3.1 billion.

Mobile contract customer additions of 209,000 between April and June increased the customer base, with particularly strong growth in Poland. The number of broadband customers grew by 65,000. TV customer additions amounted to 15,000.

Systems Solutions: consistently positive trends

T-Systems delivered again in the second quarter with encouraging trends across key metrics. Order entry rose by 20.5 per cent to €1.2 billion compared with the same period in the prior year. Strong growth was recorded in the Road Charging and Digital areas. Over the last twelve months, order entry has grown by 11.5 per cent overall.

The financial performance indicators also continued to develop positively. Revenue in the segment increased by 3.3 per cent to €1 billion. Adjusted EBITDA AL rose by 10.2 per t-mobilecent to a total of €96 million.

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Categories: Articles, Business, Results, Telco

Tags: Deutsche Telekom, T-Mobile