DTEGY - Deutsche Telekom AG (DTEGY) Q1 2024 Earnings Call Transcript
2024-05-16 15:09:10 ET
Deutsche Telekom AG [DTEGY]
Q1 2024 Earnings Conference Call
May 16, 2024, 8:00 a.m. ET
Company Participants
Tim Höttges - CEO
Christian Illek - CFO
Hannes Wittig - IR
Conference Call Participants
Adam Fox-Rumley - HSBC
Georgios Ierodiaconou - Citi
Josh Mills - Exane BNP Paribas
Polo Tang - UBS
Andrei Dragolici - Kepler Cheuvreux
Steve Malcolm - Redburn
David Wright - Bank of America
James Ratzer - New Street Research
Robert Grindle - Deutsche Bank
Usman Ghazi - Berenberg Bank
Andrew Lee - Goldman Sachs
Ottavio Adorisio - Bernstein
Presentation
Hannes Wittig
Good afternoon and welcome to Deutsche Telekom’s Q1 quarter 2024 conference call. As you can see, with me today are our CEO, Tim Höttges, and our CFO, Christian Illek.
As usual, Tim will first go through a few highlights, followed by Christian, who will talk through the quarter in more detail. After this, we have time for Q&A. Before I hand over to Tim, please pay attention to our usual disclaimer, which you’ll find in the presentation. And please also note that this conference will be recorded and uploaded to the internet. And now it's my pleasure to hand over to Tim.
Tim Höttges
Yes, thank you, Hannes, and welcome everybody to the first quarter 2024. And if you have seen it, it was a very good start into the year, very predictable and reliable numbers from all the businesses we are having. We are very happy on the track of our stated targets. Our first quarter financial results are very consistent with the multi-year trends that we showed. And there was what, a 4% service revenue growth, a 7% organic EBITDA growth, and a 15% growth in adjusted earnings per share. So, I really like that. T-Mobile was able to raise its full-year guidance, and we are reflecting this in our group guidance today. T-Mobile announced the creation of a fiber joint venture with EQT, which targets 3.5 million households in the US by 2028. And T-Mobile received the necessary approvals for the min transaction, and finally received the 2.5 gigahertz spectrum from the auction 108. The German regulator made a proposal on the spectrum extension, which is now being consulted upon. So, I think everything is working in direction which we were foreseeing, and we are coming along very happily with these topics.
Let's take a closer look at our financials on Page 5. First, all segments are contributing to our growth. Second, organic growth, service revenues grew up by 4.1% in the first quarter, which is even a bit faster than last year's growth of 3.6%. Organic ex-US service revenues grew by 3.6% in Q1, again marking the acceleration. And as mentioned, organic group growth EBITDA increased by 6.9% in Q1, which is the same as it was one year ago. The foundation of our growth is our network leadership. In the last quarter, we passed another 500 million additional European homes with FTTH and now reach 17.5 million. This is up 3.6 million year-over-year. And in Germany, we now pass 8.2 million homes with fiber, and Europe 9.3 million. In the US, our 5G leadership is confirmed by all tests. And in Europe, our 5G cover stands at 68%. And in German mobile, our network leadership remains beyond any doubt. Our strong customer growth continues both in the US and in Europe. T-Mobile added nearly as many postpaid customers as last year. Over in Europe, we managed an acceleration in mobile net adds and TV net adds also accelerated, but the broadband net adds were slower than last year. Christian then we will talk about that one later on in a bit more detail. ...
Deutsche Telekom AG (DTEGY) Q1 2024 Earnings Call Transcript