Deutsche Telekom's Staggered Pay Rises Deliver Industrial Peace as Stock Slips to Oversold Levels

Deutsche Telekom's MagentaTV drew 36M World Cup viewers, union approves wage deal through 2028, but shares fell 6% on week. Focus on Q2 results Aug 6.

Deutsche Telekom’s MagentaTV streaming service drew a staggering 36 million viewers in the first seven days of the World Cup, with an exclusive match peaking at 6.5 million. The viewer numbers underscore the telecom group’s ability to monetise live sports, but the stock has been heading in the opposite direction.

That operational success has been matched by a resolution on the industrial relations front. On Friday, the ver.di union officially accepted a multi-year wage deal, with more than 80% of members voting in favour. The agreement covers roughly 60,000 employees and runs through the end of 2028, removing a major source of uncertainty for management.

Under the terms, employees will see staggered salary increases. An additional monthly payment of up to €340 kicks in from August 2026, rising to €480 a year later. A further 2.4% increase follows in June 2028, bringing the total rise for an average earner to 8.5%, with lower pay bands benefiting even more. The package also includes one-time payments of €440 for union members and an extra bonus for continued membership. In exchange, Deutsche Telekom has ruled out compulsory redundancies until the end of 2028.

Meanwhile, the US subsidiary T-Mobile US continues to generate reliable cash flows. It declared a quarterly dividend of $1.02 per share, payable on 10 September 2026. The US unit accounts for roughly two-thirds of group revenue. On the technology front, T-Systems is deepening its partnership with SupplyOn to automate European industrial supply chains using artificial intelligence, with data processing handled in a secure Munich data centre.

Domestically, the fibre roll-out presses ahead, with new projects in Herten, Lohmar and the district of Cuxhaven set to connect thousands of households to high-speed broadband.

Yet none of this has translated into stock market momentum. The shares closed Friday at €26.72, down roughly 6% on the week and 8% on a monthly basis. The price has slipped below its 50-day moving average and sits just 3% above the 52-week low of €25.99. The relative strength index stands at 33.3, a level that typically signals oversold conditions and could attract bargain hunters.

The next catalyst comes on 6 August, when management publishes second-quarter results. Analysts will be watching closely to see how higher personnel costs and the continuing investment in fibre and AI impact profitability. The TV viewership and US dividend flows will also come under scrutiny as the market tries to reconcile operational momentum with the stock’s persistent weakness.