Deutsche Telekom beats Q4 core profit expectations

[BONN] Deutsche Telekom reported fourth-quarter core profit slightly above analyst expectations on Thursday (Feb 26), despite the impact of a weaker US dollar on its US earnings.

The Germany-based telecoms operator reported fourth-quarter adjusted earnings before interest, taxes and amortisation after leases (Ebitda al) of 10.8 billion euros (S$16.1 billion), compared with 10.6 billion euros in the same quarter of 2024.

A company-provided analyst consensus forecast a fourth-quarter Ebitda al of 10.7 billion euros.

On a yearly basis, Deutsche Telekom’s key growth driver was its US subsidiary T-Mobile, which saw a 4.1 per cent revenue increase in 2025. Revenue in its home market of Germany declined by 0.4 per cent compared with 2024.

Rising demand for premium plans and bundles boosted T-Mobile’s quarterly revenue above estimates earlier in February, prompting it to raise its 2027 revenue and free cash flow forecasts, although it missed consensus for new monthly-paying phone customers.

The Bonn-headquartered operator presented a mixed outlook for 2026, guiding for a core profit of 47.4 billion euros but for free cash flow after leases of 19.8 billion euros, slightly below analyst consensus.

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The German telecoms group is accelerating its AI push as it launched earlier in February one of Europe’s largest AI factories in cooperation with Nvidia and is in talks with unlisted retailer Schwarz to submit a joint application for the 20 billion euros EU funding for the construction of AI gigafactories. REUTERS