Deutsche Telekom $DTE (+3.04%) has published its profit forecast for 2025 and clearly missed analysts' expectations. The reason for this is the intense price wars in the European markets, which slowed growth last year. 📉
The company expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to increase by around 4.5% to EUR 44.9 billion (USD 47.1 billion) this year. Analysts, however, had expected an Ebitdaal of 46.9 billion euros.
Deutsche Telekom, Europe's largest mobile communications provider, is heavily dependent on its share in the US operator T-Mobile US $TMUS (+0.71%) operator. While T-Mobile's financial figures have recently been positive, analysts expect slower growth in Germany and the rest of Europe, which will be impacted by tough competition and price wars.
On the Frankfurt Stock Exchange, Deutsche Telekom shares fell by 3.6% to 33.71 euros. Despite these declines, the shares have gained 53% in the last 12 months. In the fourth quarter, adjusted Ebitdaal in Germany rose by 2.8% to 2.66 billion euros, exceeding analysts' estimates of 2.65 billion euros.