n Q1 2025, Deutsche Telekom’s revenue rose to €29.8 billion (~$32.18 billion), a 6.5% increase over the same period last year
Deutsche Telekom kicked off 2025 with strong momentum, reporting growth across revenue, profitability and customer additions, while also accelerating its AI transformation. The group raised its full-year guidance following solid performance from T-Mobile US (T-Mo US), ongoing digitization across its European operations and improving free cash flow.
In Q1 2025, Deutsche Telekom’s revenue rose to €29.8 billion (~$32.18 billion), a 6.5% increase over the same period last year. Adjusted EBITDA after leases (adj. EBITDA AL) climbed to €11.3 billion (~$12.20 billion), up 7.9% year-over-year, while adjusted net profit rose 9.1% to €2.44 billion (~$2.64 billion). Free cash flow after leases (FCF AL) surged 52.4% to €5.65 billion (~$6.10 billion), supported by seasonal working capital gains and lower capex.
T-Mobile US remains a growth engine
T-Mobile US continues to be the group’s financial powerhouse. The segment posted €7.6 billion (~$8.2 billion) in adj. EBITDA AL (IFRS), a 6.6% increase, while its core adjusted EBITDA under US GAAP rose 8.4%. Revenue was also up 6.6 percent amounting to 20.8 billion U.S. dollars.
T-Mo US added 903,000 postpaid customers, marking its best-ever Q1 for postpaid growth. Churn remained low at 0.91%, and high-speed internet net adds came in at 495,000. With +8.4% YoY service revenue growth, T-Mo US led the industry in subscriber retention and ARPU strength.
Deutsche Telekom has increased its ownership stake in T-Mo US to 51.8%, reaffirming its long-term investment in the U.S. market.
In Germany — Infrastructure and mobile data growth
While revenue growth in Germany was modest at +0.7%, adj. EBITDA AL rose +2.2% as the company focused on infrastructure expansion. Deutsche Telekom passed 20.9 million homes with fiber and secured in-house wiring for 5.7 million multi-dwelling unit (MDU) households.
The number of fixed-network customers with fiber-to-the-home (FTTH) connections grew by 128,000, bringing the total to 1.6 million. In the broadband segment, competitive pressure contributed to a net loss of 7,000 customers.
The company reported a 3.0% year-over-year increase in mobile service revenue for the first quarter, along with 274,000 net additions in branded mobile contract customers. Network performance remains a strategic priority: Mobile data usage increased 20% YoY, while churn remained low at 0.8%.
AI drives efficiencies
A standout theme in Q1 was Deutsche Telekom’s rapid rollout of AI across its operations. The company highlighted several key initiatives:
- AI RAN Guardian Agent detects and remediates radio network issues up to 95% faster, currently in MVP phase.
- A chatbot for civil engineering sped up fiber rollout planning by 90%, with ~10% productivity gains.
- The “FragMagenta” chatbot resolves over 50% of customer issues without human help, while new internal tools have improved agent productivity by up to 90%.
- AI DevOps assistants boosted software development efficiency by 12%, with a 16% reduction in mean time to resolution (MTTR).
In an earnings call, Deutsche Telekom CEO Tim Höttges underscored this AI-driven transformation, stating: “We leverage AI to accelerate our digital transformation and… we are one of the leading companies with regard to… AI implementation already… We estimate the financial benefit of around €800 million [~$864 million] in cost savings by 2027.”
With continued strength in the U.S., steady execution in Europe and AI efficiencies taking root, Deutsche Telekom enters the second quarter of 2025 with renewed confidence and strategic clarity.
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