Deutsche Telekom Exceeds Annual Guidance for 2022

Deutsche Telekom exceeded its guidance for 2022, which it raised multiple times throughout the year. Total revenue increased by 6.1 percent compared with 2021 to €114.4 billion. Service revenue increased by 10.6 percent to €91.9 billion. Adjusted EBITDA AL was up by 7.7 percent to €40.2 billion. DT posted strong growth in free cash flow AL of 30.2 percent to reach €11.5 billion.

Exchange rate effects, mainly from the stronger U.S. dollar year-on-year, had a positive impact on the reported figures. Adjusted for these effects and changes in the composition of the Group, total revenue remained stable on an organic basis. The service revenue relevant to the operating result increased by 3.7 percent in organic terms. Adjusted EBITDA AL was up by 1.7 percent on an organic basis.

“The upheavals in the world, and their consequences, are not without their effects on Deutsche Telekom,“ said Tim Höttges, Chairman of the Board of Management. “But by continuing to execute our strategy, we were nevertheless able to meet all of our targets in 2022.“

Net profit almost doubled to €8.0 billion. Adjusted for special factors, net profit increased by 54.9 percent year-on-year to €9.1 billion. As announced in November, the dividend is expected to increase to 70 cents per share. Under the guidance for 2023, adjusted EBITDA AL is set to grow by 4 percent to reach around €40.8 billion. The pro forma figure for 2022 based on the current Group structure was €39.3 billion. Free cash flow AL is expected to increase from the pro forma figure of €11.2 billion by at least 40 percent to over €16 billion.

Deutsche Telekom is thus successfully continuing its growth strategy. At Capital Markets Day in 2021, the Group set an average annual growth target for adjusted EBITDA AL in the period 2020 through 2024 of 3 to 5 percent. Adjusted for the effects of scaling back the terminal equipment lease business in the United States, the Group exceeded this growth ambition in the first two years.