Digitalization is the key and an opportunity for Deutsche Telekom: Tim Höttges

Digital Transformation Innovation

Fit for the future. Deutsche Telekom commits to resolute action in globally difficult times. CEO Tim Höttges explained: “We are still in the middle of the pandemic. I hope once it is over we will take a good hard look. What did we do well? What did we do badly? And change it. The question cannot be: What have I got to lose? Rather it must be: What can we all gain? And exactly what contribution can I make? Digitalization at all levels is the key here. It is an obligation for Europe. And an opportunity for Deutsche Telekom.”

In his opinion, the Group had made it through 2020 with a clear position for its customers and for the network build-out. Not only did it generate revenue of more than 100 billion euros for the first time with growth of 25.4 percent and EBITDA AL of 35 billion euros with growth of 41.6 percent.

Deutsche Telekom

The company’s reliable networks also provided stability just as many people in Germany had to switch to working from home. And: “Deutsche Telekom managed to provide a sense of security through this period. Our hygiene concepts work. We hope that we will also be able to vaccinate in the near future. More than 70,000 employees within eight weeks. Our company medical service could handle that if permitted by the rules and vaccination prioritization plan.”

Under the motto “Get things done!” the CEO presented the Group’s network build-out endeavors. “We built out more, despite the coronavirus pandemic. I am an avowed ‘network investor’ and will remain so. In the past seven years, we have invested 36 billion euros in Germany alone.”

“Deutsche Telekom has always been leading in mobile communications. We are the best provider in Europe. We have the best network in 12 out of 13 markets,” stated Tim Höttges. Deutsche Telekom is now taking the next step in the fixed network: “Fiber to the home. By 2024, ten million households will get FTTH from us alone. But Deutsche Telekom will not create a new monopoly network. That is why we are working with hundreds of partners.”
Deutsche Telekom also takes a clear position when it comes to climate protection. “We want both things. We want the build-out. And we want it to be climate-neutral, i.e, with net zero emissions. To this end, we have invested tens of millions. We only buy electricity from renewable sources of energy. Deutsche Telekom’s network is 100 percent green.” But that is not enough for the Group. So the more far-reaching targets have been adjusted. “For 2030, we had committed to 90 percent less CO2. Now we have determined that we will reach 100 percent. And we will do this by 2025. Then our own business will be net zero. But we want more. The products that we buy and sell should also be net zero. So, everything, from our buildings, antennas and masts through to the devices at our customers. We will achieve this by 2040. This is being referred to as Scope 3.”

Deutsche Telekom confirmed its guidance for the current financial year. Adjusted EBITDA AL is expected to increase to around 37 billion euros in 2021. Free cash flow AL is expected to total some 8 billion euros. Revenue is also set to rise.