Investing.com -- Deutsche Telekom (ETR: DTEGn ) on Wednesday said it expects further earnings growth in 2025 after surpassing financial targets for the previous year.

The telecommunications giant reported an increase in revenue and profit for 2024, setting the stage for continued expansion in the coming year.

In 2024, Deutsche Telekom’s total revenue rose by 3.4% to €115.8 billion, while service revenues increased by 3.9% to €96.5 billion.

Adjusted earnings before interest, taxes, depreciation, and amortization after leases grew by 6.2% to €43 billion, while free cash flow AL jumped by 18.7% to €19.2 billion. Adjusted net profit saw an 18.3% increase, reaching €9.4 billion.

The company is forecasting further growth in 2025, with adjusted EBITDA AL projected at approximately €44.9 billion—an increase of around 4.5%—and adjusted free cash flow AL expected to rise by about 4% to €19.9 billion. Adjusted earnings per share are anticipated to climb to around €2, representing a 9% increase from 2024.

“We are growing across all business areas. Our flywheel, at the center of our strategy, is spinning and generating the momentum we need to keep building on the successes of 2024 in 2025,” said Deutsche Telekom chief executive Tim Höttges in a statement, describing 2024 as a “record year” for the company.

The company’s German operations saw strong demand for fiber-optic services, with more than 10 million households now able to access high-speed fiber plans.

Mobile service revenue in Germany grew by 2.1% in the fourth quarter, while the customer base for branded contract mobile services expanded by 1.2 million over the full year.

In the United States, T-Mobile US (NASDAQ: TMUS ) continued its industry-leading performance, adding 6.1 million postpaid mobile customers in 2024.

The U.S. segment’s service revenues rose by 4.5% to $66.1 billion, and adjusted EBITDA AL increased by 8.1% to $30.9 billion.

Deutsche Telekom’s stake in T-Mobile US has increased to 51.5% as of January 2025, reinforcing its position in the North American market.

The European division marked its seventh consecutive year of earnings growth, with adjusted EBITDA AL up 8.1% to €4.4 billion. Revenue in the region increased by 5.2% in organic terms, and customer numbers for broadband and mobile services saw continued growth.

T-Systems, Deutsche Telekom’s IT services arm, met all its financial targets for 2024, with order entry rising by 10.8% to €4 billion despite economic headwinds in key industries such as automotive.

Revenue grew by 2.8% to €4 billion, while adjusted EBITDA AL climbed by 14.8% to €369 million.

For 2024, Deutsche Telekom plans to distribute a record dividend of €0.90 per share, subject to approval, and has outlined share buybacks of up to €2 billion in 2025.