According to its own data, Deutsche Telekom achieved its objectives in the financial year 2023 and recorded an increase in its consolidated sales of 0.6 percent to 112 billion euros, at least from an organic perspective, that is, without the influence of the changes in exchange rates and scope. consolidation.
According to CEO Tim Höttges, Telekom will continue to operate “as reliably as usual in a very challenging world” in 2023. Due to growth on both sides of the Atlantic, the company plans to further increase its targets for 2024.
According to company information, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA AL) increased organically by 4.0 percent to 40.5 billion euros. The company's free cash flow increased by 40.7 percent in 2023 to €16.1 billion compared to the previous year.
Deutsche Telekom with a consolidated profit of 17.8 billion euros
Consolidated net profit was €17.8 billion, more than double the previous year, which was mainly due to the sale of most of the radio tower business in Germany and Austria. As “El Accionista” reports, analysts expected more. The forecast was a good 20 billion euros.
By 2024, Deutsche Telekom expects adjusted EBITDA AL to increase by around six percent to around €42.9 billion. Free cash flow is expected to increase by around 16 percent to around €18.9 billion. The company expects adjusted earnings per share to increase by around 10 percent to more than 1.75 euros.
Success in important American businesses
Deutsche Telekom recorded customer growth in all areas of its home market in 2023. The number of mobile contract customers grew by 1.2 million and revenue from mobile services also increased. The number of broadband customers on the fixed network increased by more than 300,000 to 15.0 million compared to the previous year. The company's key US business, T-Mobile US, posted the industry's highest customer growth rate in 2023.
T-Share with positive development
The share of Deutsche Telekom (DTE) has experienced a turbulent evolution since its IPO in 1996. After a brilliant start with a price increase to more than 100 euros in 2000, a long downward trend followed that pushed the price to less than 10 euros in 2013. However, in recent years the share has been able to recover again and is currently trading at 22.34 euros (as of February 23, 2024), so it is slightly up against the market.
However, in the last 52 weeks Deutsche Telekom shares have had a very positive evolution. The price has increased by around 23 percent, which is partly due to the group's good business development.
Analysts are very optimistic about the future of Deutsche Telekom shares. They expect the group to continue growing in the coming years and to be able to keep the dividend constant.
However, there are also some risks that investors should be aware of. These include the high level of competition in the telecommunications market, regulation by politicians and dependence on the development of the global economy.