Deutsche Telekom announced it plans to significantly accelerate its business growth and investment in the coming years.
Deutsche Telekom – at its Capital Markets Day — announced its targets for the period to 2024. It aims to achieve Adjusted EBITDA AL of 3-5 percent and revenue of 1-2 percent. Free cash flow AL is expected to reach more than 18 billion euros by 2024. In the past financial year, it stood at 6.3 billion euros.
“We want to outperform the strong development of the last few years and lead the Group into the future with sustainable growth,” Deutsche Telekom CEO Tim Hottges said.
Deutsche Telekom has identified five key action areas and defined targets for them:
Turning customers into fans
Deutsche Telekom wants to be a leader in terms of customer experience – in mobile communications, in the fixed network, and in convergent product packages.
Deutsche Telekom wants 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 over 10 million. In the United States, T-Mobile US is set to continue industry-leading customer growth.
Lead in B2B in Europe
Deutsche Telekom aims to be the leading digital enabler in the B2B market with integrated software-based solutions. Revenues with business customers in the Germany and Europe operating segments are to rise by an average annual growth rate of around 2 percent to 2024. In the United States, T-Mobile US wants to double its share of the business customer market.
Number one in fiber and 5G
Deutsche Telekom invests massively in the network build-out. The percentage of customers in Germany who can book a pure fiber line (FTTH) from Deutsche Telekom is to increase from the current level of around 5 percent to more than 60 percent by 2030. From 2024, more than 2.5 million FTTH lines are to be added per year. The 5G mobile communications standard is to cover 97 percent of the population in Germany by 2024.
Deutsche Telekom will digitize its business at all levels. This will transform areas such as network technology, IT, and operations, increase agility and productivity, and cut costs. “We expect 30 percent of purchases by customers in Germany to go via our electronic channels by 2024,” Deutsche Telekom CEO said.