Highlights in the second quarter of 2023

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

For comprehensive information on the T-Share, please visit our Investor Relations website.

Guidance raised again for the 2023 financial year

In view of the overall sound business performance, we are raising our guidance for adjusted EBITDA AL of the Group for the 2023 financial year. Instead of around EUR 40.9 billion, we now expect to post adjusted EBITDA AL of around EUR 41.0 billion.

Transactions

Sale of the U.S. wireline business. On September 6, 2022, T-Mobile US reached an agreement with Cogent on the sale of T-Mobile US’ fiber-optic-based wireline business, under which Cogent will take over all shares in the entity. The transaction was closed on May 1, 2023.

Share buy-back program continued and majority stake in T-Mobile US secured. In the first half of 2023, T-Mobile US bought back around 58 million additional shares with a total volume of USD 8.3 billion (EUR 7.7 billion) under its share buy-back program. Taking the treasury shares held by T-Mobile US into account, Deutsche Telekom’s stake in T-Mobile US stood at 51.3 % as of June 30, 2023.

For further information on these corporate transactions, please refer to the section “Group organization, strategy, and management” in the interim Group management report and the section “Changes in the composition of the Group and other transactions” in the interim consolidated financial statements.

Rating

On May 19, 2023, the rating agency Standard & Poor’s (S&P) upgraded the long-term rating for Deutsche Telekom AG from BBB to BBB+ with a stable outlook. S&P also raised the rating for our subsidiary T‑Mobile US from its previous level of BBB- to BBB with a stable outlook. Both Moody’s and Fitch had already upgraded their ratings for T‑Mobile US in April 2023, the former from Baa3 to Baa2 with a stable outlook, and the latter from BBB- to BBB+ with a stable outlook.

Network build-out

Germany. As of the end of the first half of 2023, our 5G network was available to 95.3 % of the German population, and a total of around 6.2 million households have the option of a direct connection to our fiber-optic network.

United States. As of the end of the first half of 2023, T-Mobile US’ 5G network covered around 98 % of the U.S. population, with 285 million people already benefiting from Ultra Capacity 5G.

Europe. As of the end of the first half of 2023, our national companies covered on average 58.7 % of the population in our European footprint with 5G, and a total of around 8.5 million households can access our high-performance fiber-optic network offering gigabit speeds.

Cooperations, partnerships, and major deals

Fiber-optic cooperations. We continue to systematically execute on our strategy regarding the shared use of networks, and to this end, we agreed and finalized further cooperations on the fiber-optic build-out in the second quarter of 2023. In addition to our regional partnerships with the provider Städtische Werke Netz + Service for Kassel in North Hesse and with housing association Marzahner Tor in Berlin, we have also agreed framework conditions with the central association of the German housing industry for our fiber-optic build-out to properties managed by this sector. Furthermore, June 2023 marked the start of the implementation phase of the Saxon State Ministry of Education and Cultural Affairs’ broadband access initiative to connect schools across Saxony to our fiber-optic network.

Cooperation with Energy Web. Deutsche Telekom MMS has joined the Energy Web Foundation ecosystem and supports it with secure Web3 infrastructure. Energy Web’s members comprise energy groups and IT service providers who utilize blockchain technology to accelerate the transition to renewable energy. Solutions available on the platform are designed to unlock a more decentralized, digitalized, and decarbonized energy system.

For further information, please refer to our media report.

Business automation based on European standards. T-Systems and UiPath have entered into a partnership to deliver hyperautomation in the Open Telekom Cloud with an initial focus on the public, healthcare, and public transport sectors in the DACH region. UiPath’s AI-powered platform portfolio with applications such as Machine Learning, Process Mining, and Communication Mining empowers businesses to automate and digitalize entire processes from end to end. Data will be hosted in European data centers and accessed exclusively from Europe for maintenance and analytics.

For further information, please refer to our media report.

Network build-out along rail routes and freeways. In the two years since the start of the mobile network build-out cooperation with Deutsche Bahn, LTE coverage with speeds of 200 Mbit/s along Deutsche Bahn’s major routes has risen to 97 %. Germany’s freeways, too, are benefiting from nationwide simpler and faster mobile communications network build-out following an agreement reached with Autobahn GmbH in May 2023. Plans include the construction of around 400 new cell sites to increase network densification in the coming years.

Products, rate plans, and services

New B2B campus network solution. Our “Campus Network M with Industrial Frequencies” is a dual-slice campus network offering created specifically for the manufacturing industries. Based on the public 3.6 GHz frequency range in our 5G network, companies are able to additionally operate the solution as a virtual private network and benefit from the exclusivity of the local 5G spectrum in the 3.7 to 3.8 GHz range made available by the Bundesnetzagentur without the need to install their own 5G core network infrastructure. Critical applications thus run separately from the public 5G network – at high bandwidths and without being influenced by public data traffic.

For further information, please refer to our media report.

T-Mobile US launches Phone Freedom. T-Mobile US is making another Un-carrier move with Phone Freedom, including the Go5G Plus rate plan which guarantees that both new and existing customers always get the same device deals and are upgrade-ready every two years. Customers can also exchange their devices still locked into device contracts for a new one with The Easy Unlock option, and those who switch benefit from a Go Back Guarantee.

Awards

Networks. Deutsche Telekom is voted #1 in the Connect readers’ choice 2023 (German only) in the categories Mobile Network Operator, Network Operator Prepaid Cards, Fixed-Network Operator, and IPTV Services. Our secondary brand congstar wins in the category Mobile Communications Provider. The umlaut Audit Report 2023 once again ranks T‑Mobile US’ 5G network best in class for coverage, stability, and upload and download speeds.

Investor relations. Deutsche Telekom takes the top spot in the German investor relations association DIRK and WirtschaftsWoche magazine’s Investor Relations Ranking 2023 (German only) in the categories Investor Relations and Best Investor Relations Manager.

For information on awards for responsible corporate governance, please refer to our website.