Deutsche Telekom’s 30th year: on to new records with a constant will to change

• Tim Höttges: “We want today’s records to be tomorrow’s standard.”
• Deutsche Telekom CEO speaks at the shareholders’ meeting in Bonn about the future of networks, service, products, and digitalization
• Highest dividend in the Company’s history with 90 eurocents per share

Following a record year, Deutsche Telekom plans to pay out more than ever before to its shareholders: a dividend of 90 eurocents per share. And the success story of Europe’s leading telecommunications company is set to continue: “We want today’s records to be tomorrow’s standard,” said CEO Tim Höttges at the shareholders’ meeting in Bonn, which marked the Company’s 30th anniversary. 

The constant will to change is critical for this. “We are the backbone of digital society. Simply maintaining the status quo isn’t enough. We need change,” said Höttges. To this end, Deutsche Telekom plans to use artificial intelligence throughout the entire Company and to exploit its global strength. 

At the same time, Höttges emphasized the stability of Telekom. This is a “safe haven in turbulent times”. Telekom is not dependent on any one market. “If it slows down somewhere, we compensate for it somewhere else”. Höttges also emphasized the company’s high cash flow and solid financing. This means that Telekom can continue to invest in the future and is also a “reliable employer”. Telekom is a global company but always produces locally. “That’s why tariffs affect us less,” said Höttges.

With an eye to the future, he said: “We’re building the first network that becomes smarter the longer it runs. A network that repairs itself and detects problems before customers even notice them.” It will work everywhere by connecting different technologies like fiber, mobile communications, and satellites with each other. “A network of networks from the cloud, managed using artificial intelligence.”

Höttges argued that the build-out of mobile communications and optical fiber in Germany should be of “overriding public interest.” This would significantly accelerate approval processes. He also supports the initiative for an effective state initiated by the former Federal Minister of the Interior and Chairman of Deutsche Telekom Stiftung, Thomas de Maizière, among others. The goal of this initiative is to make public administration more efficient. 

In the United States, Höttges sees opportunities for further growth through the acquisition of the fiber-optic companies Metronet and Lumos in partnership with investors. The target in the U.S. is for a good 12 to 15 million fiber-optic households by 2030. 

The CEO pointed to the successes in service. Last year, the number of complaints fell by another 28 percent against the previous year. And 74 percent of issues are now resolved on first contact. A new record. 

New products will enable growth beyond the core business. One example is the digital payment service Payzy from Greece, which is now being launched in other countries. The individual users of the app save money when they pay, “because one percent of all payments made using the app is paid back into their account at the end of the month. Many banks charge their customers for credit cards. Payzy users get money back.”

To finish, Höttges had the following to say on the business customer segment: “T-Systems is particularly important here. I’m happy we have T-Systems. Because digitalization is not a trend. It is a necessity.” He declared T-Systems’ core competencies to be: digital solutions as key to the competitiveness of companies and administrations, protection of systems against attacks, and data centers for artificial intelligence. 

“The current buzzwords here are: Sovereignty. Independence. We have been offering for years what others just talk about: the sovereign cloud. The data remains in Europe. The operation of the technical solutions remains in Europe. And we also offer solutions from a wide range of providers, meaning you’re not dependent on single companies. This is also sovereignty,” said Höttges.

With regard to the current discussion, he explained: “What was right for Deutsche Telekom is also important for Europe. We need the will to perform. I believe that we’ve gotten too comfortable. We trusted that our business model would just keep on working. But many things aren’t working anymore. So we have to change it.”

For the industry of the future, we need data, artificial intelligence, chipsets, data centers, and inexpensive energy. “What’s more, I believe we also need an efficient state. A state that accelerates rather than stalls. A state that advises rather than restricts. Where the citizens are customers rather than applicants. But complaining doesn’t achieve anything. Nor does always pointing fingers at politicians or regulators. Calling for action takes silver. But action itself takes the gold.”
 
In the last financial year, Deutsche Telekom generated total revenue of 115.8 billion euros. That is 3.4 percent more than in the previous year. Adjusted EBITDA AL increased by 6.2 percent to 43.0 billion euros. At 19.2 billion euros, free cash flow was up 18.7 percent on the same period in the prior year. Adjusted net profit increased by 18.3 percent in 2024 to 9.4 billion euros.

Based on these record figures, Deutsche Telekom is planning the highest dividend payment in the history of the Company. The dividend is set to amount to 90 eurocents per share, an increase of almost 17 percent against the prior year. 

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