Deutsche Telekom Reveals Capex, ARPU, Subscribers, Revenue in 2023

Deutsche Telekom, a leading telecommunications company, has revealed its revenue, ARPU, subscribers and Capex during 2023.
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Deutsche Telekom has revealed a 2.1 percent decrease in revenue, totaling €111.985 billion for the fiscal year 2023. The decline continued into the fourth quarter of 2023, with revenue dropping by 1.4 percent to €29.369 billion.

Deutsche Telekom disclosed it achieved a significant reduction in capital expenditures (Capex), down by 25.9 percent to €17.866 billion for the year. In Q4 2023, Capex fell by 29.5 percent to €4.164 billion.

Deutsche Telekom reached its targets in 2023, which had been raised several times over the course of the year, Tim Hottges, CEO of Deutsche Telekom, said in its earnings report.

Revenue Breakdown by Region

Revenue from Germany showed a modest increase of 2.8 percent, reaching €25.187 billion. However, the United States market (T-Mobile US) experienced a 4 percent decrease in revenue, amounting to $72.436 billion. In Europe, revenue grew by 5.7 percent to €11.790 billion, while Systems Solutions saw a decline of 8.2 percent to €3.628 billion.

Germany Operations

Deutsche Telekom reported positive growth trends in Germany, its domestic market. The company noted an increase of 1.2 million mobile branded contract customers in 2023. Additionally, mobile service revenues saw a growth of 3.2 percent in Q4 compared to the same period in the previous year.

The fixed network segment also witnessed growth, with broadband customers surpassing 15.0 million and MagentaTV customers exceeding 4.3 million. Furthermore, Deutsche Telekom expanded its fiber network, reaching around 8 million households with pure fiber lines by the end of 2023.

United States Operations

T-Mobile US, a subsidiary of Deutsche Telekom, reported significant customer base expansion in 2023, recording postpaid customer additions of 5.7 million. The company’s service revenues increased by 3.4 percent to 63.3 billion U.S. dollars, with adjusted core EBITDA rising by 10.6 percent to 28.3 billion U.S. dollars.

For 2024, T-Mobile US anticipates further growth in postpaid customers, adjusted core EBITDA, and free cash flow.

European Operations

Deutsche Telekom’s Europe segment maintained organic profit growth for six consecutive years. In 2023, adjusted EBITDA AL increased by 2.8 percent to 4.1 billion euros, while revenue grew by 4.8 percent to 11.8 billion euros.

Customer growth continued across mobile contracts, broadband lines, and TV offers, reflecting the company’s sustained performance in the European market.

Deutsche Telekom’s stake in T-Mobile US stood at 50.7 percent as of January 31, 2024, indicating its significant presence in the American telecommunications landscape.

Deutsche Telekom agreed to sell a 51.0 percent stake in in the tower business companies in Germany and Austria (GD Towers) to DigitalBridge and Brookfield for 12.9 billion euros.