Deutsche Telekom AG: Solid numbers and re-assuring tone

Research evidence excerpt

Deutsche Telekom AG: Solid numbers and re-assuring tone

roll-out whilst altnets were losing steam, 4/Whilst the macro outlook had Price Performance Exchange-GER

deteriorated, B2C telecom spend was not very sensitive to this. Lastly, the company 52 Week range EUR 34.44-26.00

announced it will hold an Investor Update to discuss opportunities brought by AI in 2H26,

in terms of efficiencies but also revenues. As we flagged in Positioning for AI Disruption (EU

Edition): Impacts across 30+ industries - 20 April 2026, we do not see AI as a threat for

telecoms but instead, besides being an obvious driver of efficiencies, a source of potential

new revenues in the mid-term. Importantly, a small acceleration of top line in the industry

could drive a material re-rating in our view. We reiterate our Overweight: we acknowledge

the uncertainties (potentially corporate structure change, US competition) but believe the Source: IDC

Link to Barclays Live for interactive charting

strong operating trends and depressed valuation still make for an attractive investment

case.

European Telecom Services

1Q26 results review: Solid and clean quarter, guidance raised driven by US. DTE delivered Mathieu Robilliard

organic service revenue growth of 4.6% yoy, an acceleration from 4Q25 (+4.1%), and EBITDAaL +44 (0)20 3134 3288

adj. +7.5% yoy (vs +5.6% yoy in 4Q25). Group revenues came +0.6%/+1.1% ahead of company mathieu.robilliard@barclays.com

consensus/Barclays, driven by the US, which had already reported. EBITDAaL adj. came +1.6%/ BBI, Paris

+1.9% respectively, also driven by the US. Group FCFaL was materially ahead of estimates Maurice Patrick

+44 (0)20 3134 3622

Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companies maurice.patrick@barclays.com