DT Plans to Accelerate Growth over the Coming Years

DT Plans to Accelerate Growth over the Coming Years

Deutsche Telekom plans to significantly accelerate its growth in the coming years. At its Capital Markets Day, the Group announced its targets for the period to 2024. Adjusted EBITDA AL is to achieve an average annual growth rate of 3-5 percent, revenue of 1-2 percent. Free cash flow AL is to reach more than 18 billion euros by 2024. In the past financial year, it stood at 6.3 billion euros.

“We step up our efforts,” said CEO Tim Höttges. “We want to outperform the strong development of the last few years and lead the Group into the future with sustainable growth.” Shareholders are to take part in this success. Adjusted earnings per share is to remain the guideline for the dividend. This figure is set to rise from last year’s level of 1.20 euros to more than 1.75 euros by 2024. Subject to approval by the relevant bodies, 40-60 percent of earnings per share is to be paid out. The lower limit for the dividend remains at 60 cents per share. Deutsche Telekom raised the minimum dividend to this level in November 2019.

To achieve its targets, the company said it wanted to become the number one player in fibre and 5G, with an expectation the latter will cover 97 percent of Germany’s population in three years time. Another objective is to boost the number of households in Germany and its European segment on combined fixed and mobile packages. It is also targeting leadership in B2B, increasing sustainability efforts by becoming climate neutral on emissions by 2025, and driving digitalisation to transform network, technology, IT and operations.

More from category

Telefonica Posts Record Profit on Tower Sale

Telefonica Posts Record Profit on Tower Sale

31 Jul 2021 comment

Spanish based operator Telefonica raised its full year outlook after posting an all-time record net income.

Strong First Half for Nokia, 2021 Outlook Revised Upwards

Strong First Half for Nokia, 2021 Outlook Revised Upwards

31 Jul 2021 comment

Nokia's net sales grew 9 percent on constant currency in the second quarter of 2021.

Samsung's Revenue Went Up 20 Percent in the Last Quarter

Samsung's Revenue Went Up 20 Percent in the Last Quarter

30 Jul 2021 comment

During the second quarter of 2021, Samsung made a net profit of KRW9.6 trillion ($8.4 billion), up from KRW5.6 trillion in the same period last year.