Highlights in the third 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.

Shareholder remuneration

Against the background of the results expected for the 2023 financial year as well as the dividend policy communicated at the 2021 Capital Markets Day, the Board of Management plans to propose to the shareholders’ meeting to increase the dividend from EUR 0.70 per share for the 2022 financial year to EUR 0.77 per share for the 2023 financial year. The Supervisory Board will make its decision on the Board of Management’s dividend planning as soon as the definitive business figures for the 2023 financial year are available. In addition, the Board of Management plans to buy back shares of Deutsche Telekom AG in 2024 for up to EUR 2 billion.

For further information, please refer to our media report.

Guidance raised again for the 2023 financial year

In view of the sound business performance in our United States operating segment, we are raising our guidance for adjusted EBITDA AL and free cash flow AL of the Group for the 2023 financial year. Instead of around EUR 41.0 billion, we now expect to post adjusted EBITDA AL of around EUR 41.1 billion. For free cash flow AL, we are raising the guidance from previously over EUR 16 billion to now over EUR 16.1 billion.

T‑Mobile US

End of the share buy-back program from September 2022 and majority stake in T‑Mobile US secured. In the first three quarters of 2023, T‑Mobile US bought back around 77.5 million additional shares with a total volume of USD 11.0 billion (EUR 10.3 billion) under its share buy-back program. This puts the total number of shares that have been repurchased since the program’s inception in September 2022 at around 98.8 million at a price of USD 14.0 billion (EUR 13.2 billion). The budget for the share buy-back program was therefore fully exhausted by the end of September 2023. Taking the treasury shares held by T‑Mobile US into account, Deutsche Telekom’s stake in T‑Mobile US stood at 52.1 % as of September 30, 2023.

Deutsche Telekom has achieved its declared capital market objective from 2021 of securing the majority in T‑Mobile US. Beginning in early 2024, Deutsche Telekom plans to sell a portion of its T‑Mobile US share portfolio on the market, without jeopardizing its own majority ownership position in T‑Mobile US. The precise number of T‑Mobile US shares that Deutsche Telekom plans to sell is yet to be decided.

Shareholder return program from September 2023. On September 6, 2023, T‑Mobile US announced a shareholder return program of up to USD 19 billion that will run from October 1, 2023 through December 31, 2024. The program consists of further share buy-backs totaling around USD 15.25 billion, as well as dividends totaling around USD 3.75 billion to be paid out on a quarterly basis. The amount available for share buy-backs will be reduced by the amount of any dividends approved. On September 25, 2023, the T‑Mobile US Board of Directors declared an initial cash dividend of USD 0.65 per share for the fourth quarter of 2023, which will be paid out on December 15, 2023.

For further information, please refer to our media report.

Spectrum acquisition. On September 12, 2023, T‑Mobile US agreed with U.S. cable network operator Comcast to acquire spectrum in the 600 MHz band in exchange for total cash consideration of between USD 1.2 billion and USD 3.3 billion. The transaction is expected to close in the first half of 2028, pending approval from the U.S. regulatory authority, the Federal Communications Commission.

Network build-out

Germany. As of the end of the third quarter of 2023, our 5G network was available to 95.4 % of the German population, and a total of around 6.9 million households have the option of a direct connection to our fiber-optic network.

United States. As of the end of the third quarter of 2023, T‑Mobile US’ 5G network covered around 98 % of the U.S. population, with 300 million people already benefiting from Ultra Capacity 5G (5G UC). T‑Mobile US has thus already hit its 2023 year-end target for 5G UC coverage.

Europe. As of the end of the third quarter of 2023, our national companies covered on average 63.0 % of the population in our European footprint with 5G, and a total of around 8.7 million households can access our high-performance fiber-optic network.

Cooperations, partnerships, and major deals

World exhibition of digitalization: Digital X 2023. From September 20 to 21, 2023, Europe’s leading digitalization initiative provided a glimpse of how we might live and work in the future with showcases of trends and technical innovations covering topics from 5G, automation and process optimization, cloud computing and IoT, data rooms and blockchain, to artificial intelligence and the metaverse. Around 50 thousand visitors experienced the innovations of tomorrow live and up close as part of this year’s theme “Be digital. Stay human.”

For further information, please refer to our media report.

Official partner of UEFA EURO 2024. Deutsche Telekom is an official partner of UEFA EURO 2024 for telecommunication services, sponsorship, and media rights. On August 24, 2023, we presented details of this three-pillar partnership and announced extensive cooperation with RTL on the production and broadcasting of the matches.

For further information, please refer to our media report.

5G campus networks for EUROGATE. Europe’s leading shipping line-independent container terminal operator EUROGATE has commissioned us to implement three 5G campus networks. The “Campus network L” 5G B2B solution will improve mobile coverage at the container terminals for the ports in Hamburg, Bremerhaven, and Wilhelmshaven.

For further information, please refer to our media report.

Fiber-optic operator model and cooperations. A group of 47 municipalities in the Upper Palatinate region of Germany has ordered the connection of 50 thousand households and businesses to the fiber-optic network. The company Laber-Naab Infrastrukturgesellschaft will implement the network. Deutsche Telekom has been awarded the contract for active operation of the fiber-optic network. This is our first time taking on an operator model on such a large scale. We also entered into further cooperations and expanded existing partnerships – in Feuchtwangen, Wipperfürth, Ludwigsburg, and Bavarian Swabia, to name a few – from which several thousand households will benefit.

In Poland, T‑Mobile Polska has signed an agreement with Vectra Group on access to Vectra’s fiber-optic network. This transaction gives T‑Mobile Polska the option to offer its convergent services to around 4 million more households on an incremental basis.

Products, rate plans, and services

Fairphone 5: A sustainable smartphone. The Fairphone 5 has been available from Deutsche Telekom since September 14, 2023. Its improved longevity aims to set new standards for environmentally friendly technology. At the heart of the Fairphone 5 is an eight-core processor, which receives software updates for at least eight years to ensure long-lasting performance. A five-year warranty can be activated after purchase.

For further information, please refer to our media report.

Launch of the T Tablet. The launch of the T Tablet on August 24, 2023 marks another milestone in Deutsche Telekom’s commitment to provide Europe-wide 5G access. The tablet is a result of our ongoing partnership with software vendor Google, and seamlessly combines hardware, software, and network functionality. It is available at a price of EUR 1 with any Magenta mobile and data rate plan or at a one-time cost of EUR 219 without a rate plan.

For further information, please refer to our media report.

GÖNN: A new mobile rate plan for the under-28s. On September 5, 2023, we launched an online-only mobile rate plan for young people under 28 years of age available exclusively through the new GÖNN app. GÖNN includes 10 GB of data volume in our 5G network, unlimited voice calls and text messages in all German networks, as well as three days of unlimited surfing every month and exclusive deals for customers.

MagentaZuhause Flex: More flexibility with regard to contract terms. For the first time ever, starting September 5, 2023 we now also offer our MagentaZuhause rate plans as Flex versions with no minimum contract term. The Flex option is available for the MagentaZuhause M, L, and XL rate plans and can also be combined with a MagentaTV offering. Customers with a mobile contract from Telekom also benefit as Flex customers from the MagentaEINS advantage.

Go5G Next: T‑Mobile US’ new Un-carrier rate plan. On August 24, 2023, T‑Mobile US launched its new Go5G Next and Go5G Business Next rate plans offering access to the T‑Mobile US 5G network plus an optional device upgrade every year, with the same portfolio of devices available to both new and existing customers.

Awards

Networks. In September 2023, Deutsche Telekom’s broadband and fixed-network services score “very good” in the network tests of Funke Mediengruppe’s Imtest consumer magazine (German only). Magenta in Austria is ranked best overall B2B internet provider in the ÖGVS consumer study (German only). The industry magazine Connect rates Deutsche Telekom best-in-test for its fixed network in Germany (German only) and Austria (German only). In July 2023, T‑Mobile US’ network has once again been awarded #1 with regard to speeds in the Ookla Speedtest Global Index and the Umlaut Audit Report. Our national companies in Greece, Croatia, and Austria (German only), too, receive Ookla and Umlaut awards for both the fastest and best mobile networks.

Service. Deutsche Telekom’s customer service receives multiple awards in the third quarter of 2023: We are ranked #1 in both the Connect (German only) fixed-network hotline test and the Chip (German only) test for digital service offerings. Our MeinMagenta app wins outright in the Connect test for service apps – this is the first time Deutsche Telekom has won this test for the DACH region. Moreover, our shops win Focus Money magazine’s Service King award for the seventh time in the 2023 Deutschland Test study (German only).

Investors. Deutsche Telekom is the Investors’ Darling (German only) for the second year in succession: In 2023, HHL Leipzig Graduate School of Management’s Chair of Accounting and Auditing, led by Prof. Dr. Henning Zülch, in cooperation with Manager Magazin, has once again rated us higher than all other DAX, MDAX, and SDAX companies, awarding us the #1 spot in its overall ranking for best financial communication. Deutsche Telekom is the first company ever to receive this award three times in total. In the annual Institutional Investor survey, too, Deutsche Telekom received several first prizes, including for best CEO and best IR program among European telecommunications companies.

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