Q3-2026: Deutsche Telekom Live-Webcast für Privatanlegende - DEUTSCHE TELEKOM AG

Financial Performance:

• Achieved record Q3 2026 results with two-digit growth in result per share (12% increase to €2.20 expected for 2026).
• First nine months showed organic growth across all segments: T-Mobile USA +10%, Germany +4%, Europe +4%, T-Systems +5%.
• Purified EBITDA grew 8% organically for the first nine months; expected to exceed €15.4 billion for 2026 due to favorable exchange rates.
• Net financial liabilities increased slightly due to exchange rates and interest developments but remain well within the target corridor of 2.75x purified EBITDA (currently ~2.6x).
• Service sales grew 4% organically over the nine-month period, outpacing hardware sales growth.

Guidance and Future Outlook:

• Revised 2026 outlook upwards; confirmed 2026 result per share target of €2.20, with expectations for continued double-digit growth.
• Confirmed alignment with long-term goals set at the 2024 Capital Market Day for the 2023–2027 period.
• Projected EBITDA growth for 2026 is on track to exceed the 15.4 billion target.
• Management intends to maintain a dividend policy of 40–60% of clean results per share, with a 50% payout target historically maintained.

Business Segments and Product Lines:

• Germany: Recorded 190,000 new glass fiber connections in Q3 (record high, +20% YoY); returned to broadband customer growth with 11,000 new customers; mobile customer base grew by 282,000; achieved 40 consecutive quarters of organic EBITDA growth.
• T-Mobile USA: Acquired US Cellular for ~$4 billion; anticipated €1.2 billion in synergies; two glass fiber joint ventures now active, expected to be profitable long-term.
• Europe: Strong performance driven by Poland, Hungary, Greece, and the Czech Republic; Austria currently facing challenges.
• T-Systems: Order entry growing tendentially; organic results and service sales showing positive momentum.
• New Products: Expanding AI computing center in Munich with NVIDIA; forecasting €250 million in AI-related sales for ex-US business; smart glasses identified as a potential future market requiring low latency.

Market and Competitive Landscape:

• Possesses the best mobile network coverage in all of Europe; fiber penetration growing with 26.4 million accessible households in Germany and Europe (target: 25 million by 2030).
• US Competition: T-Mobile USA faces increased aggression from Verizon following a change in ownership; market concerned about potential competition from SpaceX's satellite network plans.
• Satellite Market: Satellite communication deemed less critical in Europe due to near-complete terrestrial 5G coverage (90% surface, full population); US rural coverage remains a potential differentiator for satellite entrants.
• Maintains market leadership in fixed networks in Germany, aggressively migrating DSL customers to glass fiber where available.

Risks and Challenges:

• US Regulatory/Market: Potential spectrum auctions in 2027 requiring significant capital; aggressive pricing strategies from competitors like Verizon.
• Satellite Disruption: SpaceX's potential entry into mobile telecommunications in the US poses a long-term strategic challenge, though immediate impact is viewed as limited.
• Financial: Debt levels linked to EBITDA fluctuations; exchange rate volatility impacting net liabilities.
• Execution: Integration costs from US Cellular acquisition and glass fiber JV shareholder structure changes impacting short-term free cash flow and results.
• Cost Structure: Ongoing need to align workforce with digitization and AI efficiency gains without compromising customer experience.

Management Commentary and Tone:

• Tone was highly confident, citing steady growth, successful strategy execution, and strong market positioning.
• Management emphasized consistency in capital allocation, defending network leadership, and balancing shareholder returns with strategic investments.
• Tim Höttges highlighted the success of the AI Investor Day and the strategic integration of AI into operations and customer service.
• Reiterated commitment to sustainable growth and infrastructure leadership, noting the "flywheel" strategy is on track.

Analyst Questions and Answers:

• Dividend & Share Return: Proposed €1.10 dividend for 2027 (potentially tax-free) and up to €2 billion in share buybacks (totaling ~€7 billion shareholding return); buybacks intended to capitalize on stock volatility.
• SpaceX/Satellites: No confirmed link between SpaceX and a potential merger of Telekom and T-Mobile USA; satellite threat viewed as manageable given terrestrial network dominance.
• Acquisitions: US Cellular deal (€4bn cost, €1.2bn synergies) and glass fiber JVs are being integrated; EdTech acquisitions are small but performing as expected.
• Corporate Governance: No changes to the Chairman's (Tim Höttges) contract (until 2028); successor announcement expected ~1 year in advance following historical norms.
• Post Office: Telekom clarified no supervisory responsibility or care duty regarding the Post Office's private health insurance fund.

Other Key Points:

• Sustainability: Energy consumption continues to decline despite higher data volumes; expansion of sovereign AI and cybersecurity services.
• Subcontracting: AI tools deployed to monitor and ensure the quality of subcontractors in network expansion.
• Tariffs: Unlimited tariffs are a core strength; volume-limited tariffs remain for specific customer segments but are not being universally lifted.
• Network Quality: Celebrated 10 years of uninterrupted organic EBITDA growth in Germany, surviving major global shocks (pandemic, war).