Telecom giant Deutsche Telekom reveals detailed financial information
Deutsche Telekom and its subsidiary, T-Mobile US, have reported impressive financial performances for the second quarter of 2025. The German telecommunications giant's revenue for the quarter reached €28.7 billion, marking a 1% increase year-on-year.
T-Mobile US, trading under the WKN A1T7LU, has notably raised its full-year postpaid customer growth forecast. The company now expects to add between 6.1 and 6.4 million new contract customers, 500,000 more than previously anticipated. This upward revision is attributed to record-breaking Q2 customer intake and strong financial results, including a 6.2% rise in adjusted EBITDA and 6.3% growth in service revenues.
Deutsche Telekom's overall service revenues rose by 3.7% in the first half of 2025, despite a 1.3% decline in revenue in the Germany segment. This decline was partly due to one-off impacts. However, the company showed growth in high-margin service revenues and maintained EBITDA growth, supported by favourable development in its U.S. segment, where T-Mobile US is now a majority-owned subsidiary (52.1% stake as of mid-2025).
CEO Tim Höttges expects Deutsche Telekom's operating result to exceed €45 billion, based on constant exchange rates of €1.08 per €1. Adjusted operating profit (Ebitda AL) for Deutsche Telekom rose by 1.7% to €11.0 billion in the second quarter. Net profit for the company more than doubled to €2.6 billion in the second quarter, thanks to positive one-off effects.
T-Mobile US has slightly revised its expectations upwards, now expecting to gain an average of 500,000 more new contract customers than the previous forecast by the end of 2025. The company anticipates stronger customer growth along with higher EBITDA and free cash flow than initially forecasted for 2025. This indicates upward revisions to their annual financial targets following Q2 success.
Deutsche Telekom expects continued organic service revenue growth, especially from the U.S. market. The company's free cash flow (Free Cashflow AL) is expected to exceed €20 billion. Deutsche Telekom, as the pace-setter in the industry, is poised for further growth in the second half of 2025.
It's worth noting that T-Mobile US, while a promising investment, may be considered a more speculative alternative to Deutsche Telekom. The shareholder of the publisher Boersenmedien AG, Mr. Bernd Förtsch, holds positions in the financial instruments of Deutsche Telekom and T-Mobile US.
[1] Deutsche Telekom AG Quarterly Results Q2 2025 [2] T-Mobile US Q2 2025 Earnings Release [4] Boersenmedien AG Press Release on T-Mobile US Q2 2025 Results [5] Deutsche Telekom AG Half-Year Results 2025
Business growth in the telecommunications sector can be observed in the impressive financial results Deutsche Telekom and its subsidiary, T-Mobile US, have reported for Q2 2025. Investors looking to delve into this industry might find opportunities in these companies, given their commitment to service revenue growth, particularly in the U.S. market, as shown by their rising EBITDA, revenue, and customer intake.
