Deutsche Telekom CEO Calls for Regulatory Overhaul Amid Strong Financial Performance

Deutsche Telekom CEO Höttges calls for fair digital competition in Europe as the company posts strong 2025 results, a record dividend, and advances its AI strategy.

At the company's Annual General Meeting in early April, Deutsche Telekom CEO Timotheus Höttges delivered more than just robust financial figures. He seized the platform to launch a fundamental critique of European regulatory policy, arguing that digital sovereignty cannot be achieved without allowing companies to achieve scale.

Financial Strength and Shareholder Returns

The telecommunications giant reported a successful 2025 fiscal year. Group revenue on an organic basis increased by 4.2 percent to over €119 billion. Adjusted EBITDA AL saw growth of 4.7 percent, reaching more than €44.2 billion. Looking ahead to 2026, management is forecasting further EBITDA growth to €47.4 billion and a ten percent rise in earnings per share to €2.20.

Shareholders approved a record dividend of €1.00 per share, an eleven percent increase from the prior year. This payout will be made tax-free from the company's contribution account for tax purposes. Concurrently, the second tranche of the 2026 share buyback program has commenced, with a volume of up to €550 million and a planned completion date by the end of June.

A Plea for Fair Competition

A central theme of Höttges’s address was the perceived uneven playing field in European digital markets. He criticized the regulatory disparity between traditional telecommunications providers and large platform services like WhatsApp or satellite operators. While telecom firms face stringent obligations, these competitors often operate with far fewer constraints.

"Today, hundreds of authorities already oversee Europe's digital industry. Yet Brussels is planning even more regulation," Höttges stated. He advocated for a "same services, same rules" principle to ensure fair competition. He also explicitly opposed plans to decommission Germany's copper network, highlighting its ongoing importance.

Strategic Focus on AI and Internal Shifts

As a strategic response to market challenges, Höttges highlighted the company's "AI Factory" in Munich. This initiative is explicitly targeted at small and medium-sized enterprises, offering full data control and a "Made in Germany" promise. According to Höttges, artificial intelligence is already being deployed group-wide, from network maintenance to legal advisory services.

The event also followed a recent management change. Chief Technology Officer Dr. Abdurazak Mudesir resigned with immediate effect to pursue a new role abroad. CFO Christian Illek will assume his responsibilities on an interim basis. Höttges himself was reappointed as CEO until the end of 2028.

Technical Stock Movement and Upcoming Catalyst

On the trading floor, Deutsche Telekom shares underwent the regular dividend adjustment on April 2. This technical adjustment pushed the share price visually lower by approximately five percent, placing it just below the 50-day moving average at around €31.58. Market observers view this as a standard reaction to the distribution.

The next significant milestone for investors will be the release of Q1 2026 figures on May 13. These results will provide an early indication of whether the company's growth guidance for the current year remains on track.