Statement by the Board of Management on the expected development of the Group
At our Capital Markets Day in October 2024, we proved our ability to successfully and unswervingly execute on our medium-term planning in a challenging geopolitical and macroeconomic environment. And we intend to maintain our present course. Our forward-looking medium-term strategy and the financial outlook continue to be based on a sustainable growth course. Key factors in this will be global economies of scale and the systematic use of artificial intelligence and data. Our customers are already reaping the rewards of our successful corporate policy in the form of multiple award-winning network quality and best-in-class service. Our shareholders benefit from our sustainable and attractive dividend policy alongside further shareholder remuneration measures. Going forward, we want to underpin this success with solid financial growth rates, further extend our technology leadership with the best state-of-the-art networks, and thereby contribute to realizing our Leading Digital Telco vision.
This ties in with our financial targets for the period through 2027, which we communicated at our 2024 Capital Markets Day. From 2024 through 2027, we aim to achieve the following compound annual growth rates (CAGR) or targets for our key financial performance indicators (U.S. dollar exchange rate of USD 1.08):
- Both revenue and service revenue are expected to grow on average by around 4 %.
- Adjusted EBITDA AL is expected to increase on average by 4 to 6 %.
- Free cash flow AL (before dividend payments and spectrum investment) is expected to increase steadily, to around EUR 21 billion in 2027.
- Earnings per share (adjusted for special factors) is expected to amount to around EUR 2.5 in 2027.
For 2025, we expect to post the following year-on-year trends, assuming a comparable consolidated group and constant exchange rates (U.S. dollar exchange rate of USD 1.08):
- Revenue is likely to increase in 2025. We also expect service revenue to increase.
- Adjusted EBITDA AL is expected to be around EUR 44.9 billion in 2025. In the reporting year, adjusted EBITDA AL totaled EUR 43.0 billion.
- Free cash flow AL is expected to amount to around EUR 19.9 billion in 2025. In 2024, free cash flow AL came in at EUR 19.2 billion.
- We are anticipating earnings per share (adjusted for special factors) of around EUR 2.00 in 2025.