See which bonds we like and why

How we select bonds

Heidelberg Materials Fin

4,88% Nov 2033

Yield: 3,74% EUR

Bayer

4% Aug 2026

Yield: 2,63% EUR

Deutsche Telekom Int Fin

7,5% Jan 2033

Yield: 3,23% EUR

Brown & Brown

4,2% Mar 2032

Yield: 5,13% USD

DICK'S Sporting

3,15% Jan 2032

Yield: 5,06% USD

Orange

8,13% Jan 2033

Yield: 3,22% EUR

Sixt

5,13% Oct 2027

Yield: 2,66% EUR

Hochtief

4,25% May 2030

Yield: 3,41% EUR

Want to see more highlights?

Unlock insignts about 4,000 bonds

Switch to Premium

Deutsche Telekom Int Fin 7.5% Jan 2033

High Coupon

Short Term Buy

Loading bond...

ISIN

XS0161488498

Currency

EUR

Country

Germany

Industry

Telecommunications Services

Yield

3,23 %

Term

7,82 years

Brokers

Min. amount

1000 EUR

Deposit spread

1,63 %

Market risk

Credit risk

Company overview

Deutsche Telekom Headquarters in Bonn, Germany

Germans in the USA

Deutsche Telekom is one of the world's largest telecommunications operators. It offers fixed and mobile telecommunication services to retail and business customers, as well as IT services

DT has a dominant market position in Germany, but two-thirds of its revenue and profit come from the US market. DT controls the third largest US mobile operator T-Mobile

DT's largest shareholder is the German state, which has a stake of 30% held directly and through the government-owned bank KfW

While everything is stable

The DT's credit profile is typical for the telecommunications sector: steady, but single-digit revenue growth, high profitability, but low FCF, because of the high CAPEX

The company’s leverage remains elevated since 2020, when T-Mobile acquired Sprint, the fourth-largest mobile network operator in the US

Heavy investments in 5G network put pressure on DT free cash flow generation in the recent years. But the drop in CAPEX in the US, coupled with improved profitability and sale of tower business, led to the debt reduction

We believe the DT’s credit risk is quite stable. So, amid expectations of the interest rate cuts in Europe, supporting bond prices, we propose the Short Time Buy of the long-term DT bond with high coupon. The high current yield (Coupon/ Price) compensates for high market risk

Company Financials

as of 31.12.2024 EUR bn

Column 1	Column 2	Column 3	Column 4	Column 5	Column 6
Assets	304,9	EBITDA Margin	43 %	CFO/Debt	0,3
Revenue	115,8	Net debt	137	FCF	28,7
EBITDA	50,2	Net Debt/EBITDA	2,7x	Equity	98,6
Net Profit	11,2	EBITDA/Interest	8x	Debt/Equity	1,5x

131,7 EUR bn

Market cap
on 31.12.2024

Key points

Streamlining Global Data Exchange for Daimler Truck with T-Systems' Managed EDI Services

Deutsche Telekom (DT) is a German telecommunications company, the largest in Europe and consistently ranked among the 500 largest companies in the world by revenue. DT has 252 million mobile clients and 22 million Internet subscribers. The company employs 200 thousand employees and is headquartered in Bonn.

The Deutsche Telekom brand is the most valuable among telecommunications company brands. It ranks 9th in value among global brands. In 2024, Brand Finance estimated it at $73 billion, which is $1 billion more than its closest competitor, the US company Verizon.

DT is younger than Amazon and Nvidia. It was formed in 1995 when, in the process of privatization, the state monopoly Deutsche Bundespost was divided into three companies - Deutsche Post (postal services), Deutsche Postbank (banking services) and Deutsche Telekom (telecommunications). The German government remains a DT shareholder. It owns 13.8% of the shares directly and 16.6% through the state-owned development bank KfW.

Although DT is a German company, it generates approximately two-thirds of its revenue and profit from the US market. DT has been operating in the US market since 2001 and controls the third largest US mobile operator T-Mobile. T-Mobile has 120 million subscribers in the US - twice as many as DT in its domestic German market.

Over the past five years, DT has been focused on building 5G mobile network. In Germany, DT has installed over 80 thousand 5G base stations, which provide coverage to 96% of the population. In the US, the DT 5G network covers 98% of the population (330 million people). Heavy investments in 5G network put pressure on DT free cash flow generation in 2019-2022.

Now the company's focus is shifting towards the build-out of FTTH (Fiber to the Home) in the European market. In Germany, 8 million households are connected to fiber at a speed of 1 Gb/s, in the rest of Europe - 9 million households. In 2024, DT aims to increase the number of German and European households connected to FTTH at least by 1 million.

In the fixed-line broadband market, DT has dominant position and is able to expand average revenue per user (ARPU) over time supported by its ongoing FTTH rollout. The company bundles IP television, mobile and broadband through its MagentaEINS consumer brand.

DT's financial position is stable. Although revenue and profit growth year-on-year is measured by a few percent, it lasts long and continuously. Thus, in Germany, EBITDA has remained in the growth zone for 29 quarters in a row, and in the rest of Europe - 24 quarters in a row. The gradual realization of synergies from T-Mobile's acquisition of the US telecommunications operator Sprint in 2020 leads to an improvement of the overall profitability of DT. In 2023, it increased by 2 percentage points.

In 2023, DT sold a majority stake (51%) in GD Tower, its towers business in Germany and Austria. The company used 10.7 billion euros cash proceeds predominantly to reduce debt. As a result, DT's leverage decreased to 2.3x Net Debt/EBITDA (2.8x including leases).

We believe DT’s business risk profile is the strongest in the EMEA telecoms sector, given its unique combination of a strong incumbent position in the German telecom market and strong market position in the U.S., particularly post the Sprint merger.

We expect the normalization in CAPEX and stronger EBITDA margin to drive an equally strong improvement in DT free cash flow, so the company’s credit risk will be stable.

All data and information is provided “as is” for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. Please consult your broker or financial representative to verify pricing before executing any trade. Bondfish is not an investment adviser, financial adviser or a broker. None of the data and information constitutes investment advice nor an offering, recommendation or solicitation by Bondfish to buy, sell or hold any security or financial product, and Bondfish makes no representation (and has no opinion) regarding the advisability or suitability of any investment. Mention of specific financial products or operations does not constitute an endorsement by Bondfish.

The financial products or operations referred to in such data and information may not be suitable for your investment profile and investment objectives or expectations. It is your responsibility to consider whether any financial product or operation is suitable for you based on your interests, investment objectives, investment horizon and risk appetite. Bondfish shall not be liable for any damages arising from any operations or investments in financial products referred to within. Bondfish does not recommend using the data and information provided as the only basis for making any investment decision.

This data is not updated in real time and represents the prices available at the end of the previous trading day. Bondfish does not verify any data and disclaims any obligation to do so. Bondfish expressly disclaims the accuracy, adequacy, or completeness of any data and shall not be liable for any errors, omissions or other defects therein, delays or interruptions in such data, or for any actions taken in reliance thereon. Bondfish shall not be liable for any damages relating to your use of the information provided herein.

Past performance is not a reliable indicator of future results.

Our curated bond selection