DT's 2020 Revenue Tops €100 Billion

Deutsche Telekom broke new ground in the 2020 financial year. Net revenue increased by 25.4 percent to 101.0 billion euros.

This significant growth was mainly driven by the takeover of the competitor Sprint in the United States. But even in organic terms, excluding the change in the composition of the Group and exchange rate effects, revenue grew by 3.0 percent in the year just ended compared to 2019.

Adjusted EBITDA AL saw an even more pronounced increase, rising by 41.6 percent to 35.0 billion euros, and by 7.9 percent in organic terms. Free cash flow AL amounted to 6.3 billion euros. DT thereby exceeded its guidance for the year, which had just been raised in November. The Group achieved this despite the negative effects of the coronavirus pandemic, which included lower roaming revenues due to travel restrictions, shop closures, and impeded business with corporate customers.

“We made history in 2020. We added a substantial and important chapter to Deutsche Telekom’s story,“ said CEO Tim Höttges. “We closed a groundbreaking deal in the United States, improved our market position in Europe and at the same time made an important contribution to managing the impact of the coronavirus pandemic with our stable networks.“

With almost 17 billion euros, DT invested nearly 30 percent more in terms of cash capex than in the prior year, with most of it going into networks on both sides of the Atlantic. T-Mobile US achieved the highest population coverage in the country with its 5G network. In Germany too, DT is well ahead of the competition in terms of the availability of its 5G network.

Adjusted net profit increased 15.5 percent year-on-year to 5.7 billion euros, whereas unadjusted net profit was up 7.5 percent to 4.2 billion euros. The Group expects adjusted EBITDA AL of around 37 billion euros for 2021. Free cash flow AL is expected to total some 8.0 billion euros.