Deutsche Telekom Q4 2023 Overview

by Warren Seah

Deutsche Telekom is set to release its fourth-quarter results, providing insights into the company’s performance and future outlook. Here are the key details to watch out for:

Sales Forecast

The German telecommunications giant is expected to announce fourth-quarter revenue of 28.49 billion euros ($30.82 billion), as per consensus estimates. This figure compares to the EUR29.75 billion revenue reported in the same quarter of 2022.

Adjusted Earnings Forecast

Analysts predict that Deutsche Telekom’s adjusted earnings before interest, taxes, depreciation, and amortization after leases will reach EUR10.07 billion. This important metric in the telecoms industry surpasses the EUR9.96 billion reported in the fourth quarter of 2022.

Stock Performance

During the fourth quarter of 2023, Deutsche Telekom’s shares experienced a notable 9.5% increase. This period also marked the company’s announcement of a EUR2 billion share buyback program and a raise in its 2023 dividend.

Stay tuned for Deutsche Telekom’s earnings report to gain valuable insights into its financial performance and strategic plans moving forward.

Outlook for Deutsche Telekom

Deutsche Telekom is anticipated to provide guidance for the upcoming year alongside its fourth-quarter results. Analysts are currently forecasting a 2024 revenue of EUR113.93 billion and adjusted Ebitda after leases of EUR42.83 billion, compared to the estimated 2023 results of EUR111.11 billion and EUR40.55 billion, respectively, according to the company-compiled consensus. The company is scheduled to host a capital-markets day later this year, potentially using the event to bolster investors’ confidence in its growth outlook. JPMorgan analysts highlighted this in a recent research note.

Focus on Germany

Following T-Mobile US’s recent results, investors will likely be monitoring how Deutsche Telekom is performing on other fronts, specifically in Germany. UBS analyst Polo Tang noted that in Germany, the company’s quarterly revenue is expected to decrease by 0.9% to EUR6.36 billion, while adjusted Ebitda after leases is predicted to increase by 3.5% to EUR2.57 billion, according to consensus estimates. Despite uncertainty surrounding potential increased competition in the German mobile market, Deutsche Telekom’s exposure to this sector is relatively limited, with approximately 70% of its German business focused on fixed-line services, which are demonstrating strong growth, as highlighted by the UBS analyst.

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