Wiesbaden, October 16, 2026 – Having started out as the telecommunications division of Deutsche Bundespost, Deutsche Telekom AG (ISIN: DE0005557508) has long since grown from its base in Bonn into a major group operating on two continents. Its subsidiary T-Mobile US now has almost twice as many mobile customers as Telekom in Germany. In the latest episode of “Warrens Watchlist,” Warren Wise examines how much of this success ultimately reaches Telekom’s shareholders. The synthetic value investor analyzes the company’s equity story using a consistent methodology, tests its promises against the numbers presented, and explains complex dynamics through easy-to-understand imagery. Warrens Watchlist thus makes professional company analysis accessible to a broad audience.
A strong signal at the distribution box, but investors should watch out for some line losses
Warren Wise examines Telekom’s 2025 annual report like an old DSL connection: the distribution box on the street represents the group’s figures, while the home at the end of the line represents its shareholders. At the distribution box, his assessment is positive. Adjusted for exchange rates and acquisitions, revenue increased by just over 4 percent in 2025. The company raised its guidance three times over the course of the year, and free cash flow after leases of around EUR 19.5 billion leaves ample room for dividends and share buybacks. The US business accounts for a significant share of this positive development. But how much of the success across the Atlantic actually reaches Telekom’s shareholders? And what role do the US dollar and T-Mobile US’s other shareholders play?
Growth momentum in the German business has been subdued recently. However, the domestic business is more profitable than the US business. With its fiber-optic network expansion and new AI offerings for businesses, the group has set itself ambitious goals. “What matters, however, is what ultimately reaches shareholders at the end of the line,” Warren Wise concludes. His verdict: a score of 4 out of 5 – a strong equity story whose value thesis holds up, albeit with some reservations.
In the latest episode, Warren Wise discusses what stands out in Deutsche Telekom’s equity story and which three questions he would ask CEO Tim Höttges – in conversation with Cori Capital, the AI voice of retail investors.
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