Deutsche Telekom can be counted on: Promise kept as dividend rises to record level

• Company proposes highest-ever dividend in its history: 1 euro per share
• CEO confirms the Group’s guidance
• Tim Höttges: “In a world where we can no longer rely on many things, dependability genuinely makes a difference.”
  
  

Deutsche Telekom is an anchor of dependability in an uncertain world. This was the key message delivered by CEO Tim Höttges speaking to the Shareholders’ Meeting in Bonn. In line with his promise from one year earlier, he cited the example of the proposed dividend increase to its highest-ever level in the Company’s history: 1 euro per share. “This success is down to our strategy which has been stable for years; even that is dependable.”

“We believe dependability is more important now than ever. Because the world is not what it used to be. It is more unpredictable. More confusing. And even feels: more out of control. In a world where we can no longer rely on so many things, dependability genuinely makes a difference,” he said.

Höttges pointed to the financial figures from the year just ended, in which revenue grew by 4.2 percent in organic terms to more than 119 billion euros, and adjusted EBITDA AL increased by 4.7 percent in organic terms to more than 44.2 billion euros. He said further growth was planned for 2026, and confirmed the guidance presented at the Group’s press conference. Speaking about Deutsche Telekom’s unique growth profile, Höttges said: “We draw strength from two continents: Europe and the United States. This is no accident of geography, but a strategic advantage. We unite stability and dynamism like no other telco globally. We are growing on both sides of the Atlantic.”

Höttges was critical of regulatory intervention on the market. “We already have hundreds of authorities watching over Europe’s digital industry. And yet Brussels is planning further regulation. I believe that Europe wants the right thing. But there can be no European sovereignty without economies of scale. That is why we must not continue down the path of microregulation.”

He addressed the huge and rapid rise of artificial intelligence, saying: “AI is the biggest gift our economy has ever been given. AI accelerates many tasks in Germany that were previously slow. AI safeguards quality and reduces mistakes. And AI helps where specialists are in short supply. We already use it across our entire company: AI not only finds faults in the network – it repairs them. It codes. It analyzes markets. It provides legal advice.”

Tim Höttges gave the real-world example of Deutsche Telekom’s AI assistant, which was first previewed at the Mobile World Congress in Barcelona. “We are turning cables into capabilities. By building an AI assistant directly into the network. You only have to say ‘Hey, Magenta’ – and the assistant is there. The network translates conversations in real time. Meaning no more language barriers! It finds restaurants. Arranges appointments. And best of all: It works in fixed and mobile networks. On any device. Even on an old Nokia 3310.”

However, Höttges was quick to point out that, “Security and data privacy have top priority. The assistant only responds when called. And no data is stored.”

From the stage, Höttges presented a model of the company’s AI factory in Munich. “Every company in Europe can use the factory. In particular SMEs. With full control over the data, the different applications, and the technology. ‘Made in Germany’ and ‘Made for Germany.’ It is a contribution to sovereignty for Germany. Powered by Telekom.”

This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. They are generally identified by the words “expect,” “anticipate,” “believe,” “intend,” “estimate,” “aim,” “goal,” “plan,” “will,” “seek,” “outlook,” or similar expressions and include generally any information that relates to expectations or targets for revenue, adjusted EBITDA AL, or other performance measures. Forward-looking statements are based on current plans, estimates, and projections, and should therefore be considered with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. They include, for instance, the progress of Deutsche Telekom’s staff-related restructuring measures and the impact of other significant strategic or business initiatives, including acquisitions, dispositions, and business combinations. In addition, movements in exchange rates and interest rates, regulatory rulings, stronger than expected competition, technological change, litigation and regulatory developments, among other factors, may have a material adverse effect on costs and revenue development. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, Deutsche Telekom’s actual results may be materially different from those expressed or implied by such statements. Deutsche Telekom can offer no assurance that its expectations or targets will be achieved. Without prejudice to existing obligations under capital market law, Deutsche Telekom does not assume any obligation to update forward-looking statements to account for new information or future events or anything else. In addition to figures prepared in accordance with IFRS, Deutsche Telekom presents alternative non-GAAP performance measures, e.g., service revenue, EBITDA, EBITDA AL, adjusted EBITDA, adjusted EBITDA AL, adjusted EBITDA AL margin, EBIT margin, adjusted net profit/loss, adjusted earnings per share, free cash flow, free cash flow AL, gross and net debt, and net debt AL. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.

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