Highlights

For further information on these and other events, please refer to our media information.

Shareholder remuneration

Deutsche Telekom AG’s shareholder remuneration. On the basis of the results for the 2024 financial year and the dividend policy confirmed at the Capital Markets Day in October 2024, the Board of Management of Deutsche Telekom AG will propose to the Shareholders’ Meeting a dividend of EUR 0.90 per dividend-bearing share for the 2024 financial year. At the Capital Markets Day, we additionally announced plans to buy back Deutsche Telekom AG shares up to a total purchase price of EUR 2 billion in the 2025 financial year as part of a new share buy-back program. The buy-back commenced on January 3, 2025 and will be carried out in several tranches through December 31, 2025.

For detailed information on the 2025 share buy-back program, please refer to our Investor Relations website.

In the 2024 financial year, Deutsche Telekom AG bought back around 81 million shares in several tranches as part of a buy-back program, with a total volume of EUR 2.0 billion. This equates to around 1.6 % of Deutsche Telekom AG’s share capital. The 2024 share buy-back program was completed on December 18, 2024. The cancellation of the repurchased shares is expected to begin in April 2025.

For detailed information on the 2024 share buy-back program, please refer to our Investor Relations website.

T‑Mobile US’ shareholder return. In the 2024 financial year, T‑Mobile US bought back around 59 million shares as part of the 2023/2024 shareholder return program with a total volume of USD 11.1 billion (EUR 10.3 billion) in several tranches, and paid out cash dividends in the amount of USD 3.3 billion (EUR 3.1 billion).

On December 13, 2024, T‑Mobile US announced a new shareholder return program of up to USD 14 billion for 2025, comprising additional share buy-backs and dividends to be paid out, due to run through December 31, 2025.

For further information on the shareholder return programs, please refer to the section “Development of business in the Group” in the combined management report and the section “Other transactions that had no effect on the composition of the Group” in the notes to the consolidated financial statements.

Events

Capital Markets Day 2024. On October 10 and 11, 2024, we presented our medium-term strategy and the financial outlook at our Capital Markets Day. With an enhanced strategy, we are aiming for a new phase of growth up to 2027, driven by further customer and revenue growth, and the evolution of the business model. Key factors in this will be global economies of scale and the systematic use of artificial intelligence (AI) and data. The dividend will continue to track the development in adjusted earnings per share. This figure is expected to rise to around EUR 2.5 by 2027, with 40 to 60 % of adjusted earnings per share to be paid out. For 2025, we are planning a total of up to EUR 6.4 billion in shareholder remuneration, including the announced share buy-backs.

For further information, please refer to our media special.

T‑Mobile US’ Capital Markets Day. T‑Mobile US unveiled its growth strategy and financial targets through 2027 at its Capital Markets Day on September 18, 2024. Our U.S. subsidiary expects to see accelerating growth in its key financial metrics, while also aiming to grow the 5G broadband customer base and to gain profitable market shares. This will be underpinned by measures that include ongoing investments in the network and in digitalization, e.g., AI. T‑Mobile US plans to extend its network leadership position by innovative technologies like AI-RAN and 5G Advanced, to deliver AI-powered, transformative customer experiences. It will do this by drawing on the strengths of partnerships with OpenAI, as well as Nvidia, Ericsson, and Nokia. T‑Mobile US also announced it plans to increase the cash dividend by around 35 % starting the fourth quarter of 2024. Up to USD 50 billion is expected to be made available for dividends and share buy-backs by 2027.

Digitalization exhibition: Digital X 2024. Under the headline “Ready for impact,” Europe’s leading digitalization initiative – hosted by Deutsche Telekom – took place on September 18 and 19, 2024, presenting innovations and technologies covering the topics of AI, digital literacy, and digital sovereignty. Some 50 thousand visitors attended the event in Cologne to experience the latest developments in digitalization and learn about the megatrends of sustainability and responsibility, security, connected business, and future of work.

For further information, please refer to our media special.

Mobile World Congress (MWC) 2024. Under our brand claim “Connecting your world,” the technologies and innovations we presented at the MWC in Barcelona from February 26 to 29, 2024 mainly related to artificial intelligence. With Magenta AI, we offered a look into the future: on the basis of three design studies, Concept T showed how new technologies can be melded with a traditional router. Together with Qualcomm and Brain.ai, we presented an innovative phone concept: a smartphone without apps, which instead uses an AI-based assistant. For the showcase, real use cases were integrated into our already available T Phone.

For further information, please refer to our media report.

Transactions

Sale of T‑Mobile US shares by Deutsche Telekom. In the reporting period, Deutsche Telekom sold a portion of its T‑Mobile US share portfolio on the market, without jeopardizing its own majority ownership position in T‑Mobile US. In the course of this process, Deutsche Telekom sold around 23 million T‑Mobile US shares with a total volume of EUR 3.6 billion. The sales plan was concluded on September 24, 2024.

Acquisition of T‑Mobile US shares by Deutsche Telekom. On June 7, 2024, Deutsche Telekom exercised its fixed-price options on shares held by SoftBank to acquire around 7 million T‑Mobile US shares for a total purchase price of USD 0.7 billion (EUR 0.6 billion). Deutsche Telekom acquired the shares at an exercise price (adjusted for T‑Mobile US dividend payments) of USD 99.51 per share, significantly below the market price.

Acquisition of Ka’ena in the United States. On May 1, 2024, T‑Mobile US consummated the acquisition of mobile provider Ka’ena. All necessary regulatory approvals had been duly granted and all other closing conditions met.

Agreement on the acquisition of Lumos in the United States. On April 24, 2024, T‑Mobile US entered into an agreement with the investment fund EQT on the acquisition of the fiber-to-the-home platform Lumos. The transaction is subject to regulatory approvals as well as other customary closing conditions and is expected to close in the first half of 2025.

Agreement on the acquisition of UScellular in the United States. On May 24, 2024, T‑Mobile US entered into an agreement on the acquisition of UScellular’s wireless operations and specific spectrum licenses. The transaction is subject to regulatory approvals as well as other customary closing conditions and is expected to close in mid-2025.

Agreement on the acquisition of Metronet in the United States. On July 18, 2024, T‑Mobile US entered into an agreement with KKR on the acquisition of the fiber-to-the-home platform Metronet and some of its subsidiaries. The transaction is subject to regulatory approvals as well as other customary closing conditions and is expected to close in 2025.

Agreement on the acquisition of Vistar Media in the United States. On December 20, 2024, T‑Mobile US entered into an agreement on the acquisition of 100 % of the outstanding capital stock of Vistar Media, a provider of technology solutions for digital-out-of-home advertisements. The transaction was consummated on February 3, 2025. All necessary regulatory approvals had been duly granted and all other closing conditions met.

For further information on the business and other transactions mentioned, please refer to the sections “Group organization” and “Development of business in the Group” in the combined management report and the sections “Changes in the composition of the Group and other transactions” and “Other transactions that had no effect on the composition of the Group” in the notes to the consolidated financial statements.

Rating

On October 23, 2024, the rating agency Moody’s raised our rating outlook to Baa1 with a positive outlook.

Network build-out

Germany. We continued to build out our network infrastructure in Germany throughout the reporting year. At the end of 2024, our 5G network covered 98.0 % of the population. In the fixed network build-out, optical fiber continued to take center stage. In 2024, we made 2.5 million more fiber-optic lines available in Germany, bringing the total number of households and businesses with the option to subscribe to a fiber-optic line with us to 10.1 million.

For further information, please refer to our media report on our 2024 Networks Day (German only).

United States. T‑Mobile US expanded its 5G network leadership in the reporting year, with the highest 5G availability according to independent network testing and more 5G coverage than its peers. In addition, T‑Mobile US completed the transfers of the first tranches of the 600 MHz spectrum licenses from Channel 51 with purchase price payments totaling USD 2.9 billion (EUR 2.7 billion).

Europe. In the countries of our Europe segment, too, we intensified the network build-out in the reporting year. As of the end of 2024, our national companies covered on average 77.2 % of the population in our European footprint with 5G. We also made good progress with the build-out of our fixed network in our European national companies in 2024. At the end of the reporting year, a total of around 10.1 million households, which means around 1 million additional households compared with the prior year, had access to our fiber-optic network offering gigabit speeds.

For further information on investments in our networks, please refer to the section “Group strategy” in the combined management report.

Environment, Social, and Governance

Good, Green, Magenta. For almost 30 years, Deutsche Telekom has been taking responsibility for the environment, society, and people. 2024 was another busy year: for example, we drew up a Group-wide, CSRD-compliant sustainability statement, confirmed our sustainability-related goals together with the operating segments at the Capital Markets Day, and were once again very active in strengthening democratic principles and against online hate speech.

For further information on our ESG engagement, please refer to the section “Combined sustainability statement” in the combined management report.

Green AI. The use of artificial intelligence can be used to make a contribution to climate protection, for example, by helping to make production more energy efficient or to distribute energy as it is needed. At the same time, the technology consumes a lot of energy, raw materials for the hardware, and water to manufacture the chips or cool the data centers. As such, Deutsche Telekom takes a holistic view of AI: For the Company, it is about exploiting the benefits while at the same time minimizing the use of energy and resources as far as possible. We are introducing principles for green AI to support the sustainable development and use of the technology. We already use AI in our data centers and networks to improve energy efficiency. In addition, we promote AI solutions that foster greater sustainability.

For further information, please refer to our media report.

Collective agreement. Deutsche Telekom and the trade union ver.di reached a collective agreement in May 2024 for some 58 thousand employees covered by collective agreements, apprentices, and dual students across Germany. Key points agreed were a 6.0 % wage increase effective October 1, 2024 and a monthly salary increase of EUR 190 (employees) or EUR 95 (apprentices and dual students) from August 1, 2025. A one-time premium of EUR 1,550 (EUR 775 for apprentices and dual students) to compensate for inflation was additionally paid in July 2024.

For further information, please refer to our media report.

Innovation

20 years of T-Labs. Telekom Innovation Laboratories (T-Labs), our central research and development unit, celebrated its 20th anniversary in 2024. The innovations developed here have influenced not only our products and networks, but also the future of telecommunications: from 5G and intelligent campus networks, through to AI applications to protect our networks. T-Labs have generated 1, 600patents for Deutsche Telekom in Germany, the EU, and the United States. That is around a third of all of Deutsche Telekom’s patents, and they are proof, among other factors, of the success of our intensive research work, e.g., on quantum networks and quantum communication or digital identities.

For further information, please refer to our media report.

Cooperations, partnerships, and major deals

Optical fiber. In the reporting year, in addition to Germany-wide cooperations (e.g., with ANTEC Servicepool and the German real estate association Verband der Immobilienverwalter Deutschland e.V.), we also entered into regional partnerships (e.g., with R-Kom in Regensburg, Energie Südbayern, or Allgäuer Überlandwerk). We entered into a partnership agreement with communications provider Kabel + Sat Bergen concerning the fiber-optic network – which was built with public funds – of the utilities association Zweckverband Wasserversorgung und Abwasserbehandlung Rügen. And in Westallgäu, we have joined forces with several municipalities to create a fiber-optic funding project. The joint goal is to accelerate the fiber-optic build-out in Germany in order to extend fiber-optic coverage to as many households and companies as possible.

In April 2024, we secured a major network build-out deal with Lidl to deliver broadband to a large portion of their stores across Germany in the coming years, many of which via fiber-optic technology.

5G campus networks. Deutsche Telekom’s private 5G campus network for Merseburg University of Applied Sciences went live in August 2024. It enables the university to research 5G applications, such as autonomous driving, applications for logistics, industry, and the healthcare sector, or augmented reality. Deutsche Telekom’s private 5G campus network for RTL Deutschland went live in June 2024. That makes the broadcaster one of the first in Germany to roll out an independent 5G standalone network for its production studios. Paper manufacturer Hamburger Containerboard is now also operating a 5G campus network from Deutsche Telekom at its Spremberg site in the Lusatia region, with mobile coverage for the entire plant provided by 5G standalone.

TV offering expanded in Greece. In the third quarter of 2024, our Greek national company reached an agreement with competitor Nova in Greece that enables us to offer the Nova sports channels on our TV platform. In return, Nova broadcasts our sports channels. For customers, this means they have almost every sports event broadcast in the Greek market available on one platform.

T‑Systems. In October 2024, the IT service provider for the German Armed Forces and the Federal Republic, BWI, announced T‑Systems as operating and sales partner for their secure messaging solution, BundesMessenger. In the future, T‑Systems will offer it to customers as a service from its own data center. In June 2024, the health insurance provider AOK awarded T‑Systems a contract to provide and manage secure digital identities (health IDs) for AOK’s members. The health ID will be the key to accessing all digital solutions offered by AOK.

T‑Mobile US. The City of New York has closed a deal with T‑Mobile US in service of public safety. At its Capital Markets Day in September 2024, T‑Mobile US announced that the City of New York will be the anchor customer for T-Priority, a new network slice-based solution for first responders. Network slicing is built on 5G Standalone (5G SA), and T‑Mobile US is the first U.S. provider to offer this technology nationwide. In June 2024, T‑Mobile US concluded a ten-year framework agreement with the U.S. Navy to supply wireless communication technology for maritime operations. The contract includes voice, data, fixed wireless access (FWA), Internet of Things, and mobility management solutions. It will help ensure robust and reliable connectivity for government activities.

Products, rate plans, and services

New mobile communication offerings. On August 1, 2024, in Germany, we upgraded our existing MagentaMobil S to XL rate plans by including additional features. We also added the new MagentaMobil Basic plan positioned at an entry price point. On August 21, 2024, we expanded our range of offerings with new prepaid plans, upping the data allowance on our MagentaMobil Prepaid M to XL plans and the pay-yearly plan Jahrestarif. For the first time ever, we now also roll over unused data allowance on these prepaid plans to the following billing period.

New fiber-optic services. We launched our new fiber rate plans in Germany on July 2, 2024, which offer, as a rule, upload speeds at half that of the download speeds. For instance, the mid-level plan offers a maximum of 600 Mbit/s for download and a maximum of 300 Mbit/s for upload. Faster uploading rates are advantageous for data-intensive applications like video conferencing and online gaming.

UEFA EURO 2024™. The European soccer championships in Germany in summer 2024 were a huge success for us as the official national partner for telecommunications services and media rights. Over this period, more than 70 million people watched the matches on MagentaTV, the only platform to broadcast all 51 games live in Germany. Our mobile network remained stable under high pressure, handling a total of around 260 million gigabytes of data Germany-wide throughout the month of matches. This was helped by the around 750 new 5G antennas we had installed in all ten stadiums to significantly enhance our network capacities. Our mobile customers were able to activate unlimited data via the MeinMagenta app for the entire tournament and benefit permanently from our 5G network at no cost.

For further information, please refer to our media report (German only).

New 5G smartphone generation. The new T Phone 2 and T Phone 2 Pro smartphones have been available to buy since May 23, 2024 in ten countries across Europe including Germany, as well as at T‑Mobile US under the REVVL brand. The new models were developed in partnership with Google and offer major enhancements including a powerful processor, alongside a strong emphasis on sustainability.

For further information, please refer to our media report.

MagentaTV 2.0. Since February 15, 2024, our refined MagentaTV in Germany has combined all relevant TV content and streaming services on one platform. The new features include a clearer design, a customizable user interface, a significantly faster platform, and a search function that also supports voice commands.

IoT rate plans for satellite connectivity. Since the end of February 2024, we have been offering connectivity via satellite commercially for the first time, together with our partners Intelsat and Skylo. Customers can choose from two plan packages, each combining terrestrial and satellite-based connectivity. The interaction of all mobile services takes place on the T IoT Hub platform. With its new rate plan Satellite NB-IoT, Magenta Telekom brings the Internet of Things (IoT) to regions of Austria with no terrestrial wireless communications coverage, e.g., to mountainous areas. Full availability and connectivity for reliable M2M communications is ensured via satellite connection. This is made possible using a hybrid solution that switches seamlessly to the Skylo satellite network when there is no mobile communications connection or no roaming agreement.

For further information, please refer to our media report.

New internet rate plans from T‑Mobile US. Since December 11, 2024, T‑Mobile US has offered three new 5G internet rate plans for consumers and business customers: Rely, Amplified, and All-In. These rate plans include new benefits such as included access to the streaming service Hulu or to Microsoft 365, extended cybersecurity features, improved performance in T‑Mobile US’ outstanding 5G network, and the “price lock” price guarantee.

Awards

In the reporting year, we won numerous accolades for our networks and our service, as well as our HR, CR, and IR work, and more besides. The illustration below shows a selection of the awards received.