Published Published on November 2, 2023 at 1:15 pm (CET).
The Board of Management of Deutsche Telekom AG plans to propose to the annual shareholder meeting to increase the dividend for the 2023 financial year to 0.77 euros per dividend-bearing share, up from 0.70 euros per share for the 2022 financial year.
In addition, the Board of Management plans to buy back shares of Deutsche Telekom in 2024 for up to 2 billion euros.
The Board of Management’s plans for this shareholder remuneration are based on business performance in 2023. On November 9, 2023, Deutsche Telekom will report the Group’s financial figures for the first nine months of 2023.
The Supervisory Board will make its decision on the Board of Management’s dividend planning as soon as the definitive business figures for full-year 2023 are available.
A dividend payment based on the final dividend proposal by the Board of Management and the Supervisory Board for the 2023 financial year is subject to approval by the shareholders’ meeting and to fulfillment of other legal conditions.
Information and explanations from the issuer about this ad hoc notification:
Deutsche Telekom’s dividend policy published at the Capital Markets Day 2021 provides for distribution of between 40 and 60 percent of recurring adjusted earnings per share, with payment of a minimum dividend of 0.60 euros per share. When publishing its financial figures for the first half of the year on August 10, 2023, Deutsche Telekom set a guidance for recurring adjusted earnings per share of over 1.60 euros per share for the 2023 financial year. This guidance is based on the assumption that exchange rates will remain at the same level as in 2022. A dividend of 0.77 euros per share is thus in the middle of the intended payout range. Shareholders eligible for tax credits in Germany will not have to pay tax on their dividends.
At the Capital Markets Day 2021, Deutsche Telekom’s Board of Management had also announced that it would take share buy-backs into consideration in the future. The planned share buy-backs in the coming year amounting to up to 2 billion euros are intended to recoup part of the dilution effect from Deutsche Telekom’s 2021 capital increase. In September 2021, Deutsche Telekom had issued 225 million new shares to Softbank Corp., Japan, by way of a capital increase against contributions in kind, for which it received 45 million shares of its subsidiary T-Mobile US Inc. in return. This takes Deutsche Telekom one step closer to achieving its strategic goal of a long-term majority shareholding in T-Mobile US. As of September 30, 2023, it held a 52.1 percent stake in T-Mobile US.
IMPORTANT INFORMATION: This media information has been prepared solely for information purposes and does not constitute an offer of or a solicitation by or on behalf of Deutsche Telekom AG to subscribe for or purchase securities of Deutsche Telekom AG or as described herein. Any statements and information herein, including forward-looking statements, are not binding and are subject to change without notice at any time. The documents and information contained on this page are not an offer of securities in the United States of America. Securities may not be offered or sold in the United States of America or to "U.S. person" as defined in the U.S. Securities Act of 1933, as amended (the "Securities Act") or for the account of "U.S. persons" absent registration or an exemption from registration under the U.S. Securities Act. The securities are not and will not be registered as per the U.S. Securities Act.
This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. They are generally identified by the words “expect,” “anticipate,” “believe,” “intend,” “estimate,” “aim,” “goal,” “plan,” “will,” “seek,” “outlook,” or similar expressions and include generally any information that relates to expectations or targets for revenue, adjusted EBITDA, or other performance measures. Forward-looking statements are based on current plans, estimates, and projections, and should therefore be considered with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom's control. They include, for instance, the progress of Deutsche Telekom's staff-related restructuring measures and the impact of other significant strategic or business initiatives, including acquisitions, dispositions, and business combinations. In addition, movements in exchange rates and interest rates, regulatory rulings, stronger than expected competition, technological change, litigation and regulatory developments, among other factors, may have a material adverse effect on costs and revenue development. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, Deutsche Telekom's actual results may be materially different from those expressed or implied by such statements. Deutsche Telekom can offer no assurance that its expectations or targets will be achieved. Without prejudice to existing obligations under capital market law, Deutsche Telekom does not assume any obligation to update forward-looking statements to account for new information or future events or anything else. In addition to figures prepared in accordance with IFRS, Deutsche Telekom presents alternative performance measures, e.g., EBITDA, EBITDA AL, EBITDA margin, adjusted EBITDA, adjusted EBITDA AL, adjusted EBITDA margin, Core EBITDA, adjusted EBIT, adjusted EBIT margin, adjusted net profit/loss, adjusted earnings per share, free cash flow, free cash flow AL, gross debt, and net debt. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.