Deutsche Telekom steps up to 1-2% revenue growth target

Deutsche Telekom steps up to 1-2% revenue growth target

Deutsche Telekom AG Timotheus Höttges.jpg

Deutsche Telekom has announced its financial targets to 2024, with CEO Tim Höttges saying that the firm will "step up" its efforts.

Announcing a revenue growth rate target of 1-2% and a target of 3-5% growth for EBITDA AL, the telco is aiming for free cash flow of more than €18 billion by 2024, up from €6.3 billion in the past financial year.

Adjusted earnings per share are expected to rise to more than €1.75 euros by 2024 and a minimum dividend of €0.60 cents per share has been set, amounting to 40-60% of adjusted earnings per share.

“We step up our efforts,” said Höttges. “We want to outperform the strong development of the last few years and lead the group into the future with sustainable growth.”

The company has set out five "key action areas", from turning customers into fans to enabling digitalisation.

On customer growth the target is to increase the number of households using product packages that combine fixed network and mobile communications in Germany, the Europe segment, and the Netherlands to more than 10 million. In the United States, T-Mobile US is "set to continue industry-leading customer growth".

On B2B growth, in Germany and Europe the target is for a 2% increase in revenue to 2024, while in the US T-Mobile US wants to double its share of the business customer market.

Fibre and 5G

Network builds, particularly in Germany are a primary focus.

The target for FTTH is expected to increase from the current level of around 5% to more than 60% by 2030. To achieve that target, more than 2.5 million FTTH lines are to be added per year from 2024.

The 5G mobile communications standard will cover 97% of the population of Germany by 2024.

Network technology, IT, and operations will also be enhanced by ongoing digitalisation and it is expected that 30% of purchases by customers in Germany will go via our electronic channels by 2024.

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