Deutsche Telekom’s Fiber Record and Q1 Strength Tested by Labour Standoff
26.05.2026 - 13:32:25 | boerse-global.de
Deutsche Telekom’s fourth and final scheduled wage negotiation round opens on Tuesday against a backdrop of widespread warning strikes, with more than 32,000 employees having already walked out since late April. The outcome could either cement the recent technical breakout in the stock or send it into a tailspin—but the company’s operational engine is firing on more cylinders than it has in years.
April brought a new milestone in the fixed-line business. The group added 209,000 fibre-optic connections during the month, 62,000 more than in the same period last year and a year-on-year jump of more than 42%. A total of 13.2 million households and businesses can now be connected to the FTTH network, with speeds up to 2,000 Mbit/s. The build-out brings the reach of 100 Mbit/s services to over 37 million homes, while 33 million can access up to 250 Mbit/s. That last figure is key: it means Deutsche Telekom can gradually upsell existing customers to higher tiers without laying fresh cables.
The company’s quarterly report, published in mid-May, already hinted at the underlying momentum. Group revenue grew organically by 4.7% to €29.9 billion, while adjusted EBITDA AL rose 7.5% to €11.5 billion. Free cash flow reached €5.7 billion in the first quarter, giving management ample room for both capital expenditure and shareholder returns.
Within Germany, the picture was mixed. The number of own-brand broadband subscribers dipped by 3,000 in the quarter, even as the FTTH penetration rate climbed from 15.5% to 17.1% year on year. That means 2.2 million households are now on genuine fibre-to-the-home contracts. The mobile unit compensated: service revenues in Germany increased 2.1% and the group added 200,000 contract customers under its own brands.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
For the full year, management has raised its outlook, targeting adjusted EBITDA AL of approximately €47.5 billion and free cash flow of more than €19.8 billion. That bullish forecast provides the platform for an ambitious capital return programme: a share buyback of up to €2 billion is planned for 2026, with most of the shares to be cancelled. In the week ending 22 May, the group purchased 1.53 million of its own shares at an average of €28.99, for a total of around €44.3 million, followed by a further 293,551 shares at €29.32 the next trading day.
Against this strong financial backdrop, the union ver.di is pressing for a 6.6% pay increase for roughly 70,000 tariff employees, a €660 annual member bonus, and a €120 monthly rise in training allowances. The employer’s offer—tabled after three rounds—was rejected as wholly inadequate. Strike action has already widened to include all Telekom sites in Hesse on Tuesday, hitting locations in Kassel, Frankfurt and Darmstadt. Customer appointments are likely to be disrupted and hotlines strained.
Deutsche Telekom’s management argues that the robust earnings do not constitute a blank cheque. The fibre build-out remains capital-intensive, and the group is also expanding into new business lines—it recently became the only German network operator to offer satellite-based business broadband as a fully managed service via Starlink. Balancing investment, buybacks and wage inflation is the delicate act now underway.
Deutsche Telekom at a turning point? This analysis reveals what investors need to know now.
The stock closed Tuesday at €29.49, virtually flat on the day but up 9.75% over the past month. It crossed above its 200-day moving average on 22 May, a technical signal that could be reinforced by a swift wage deal or undermined by a prolonged standoff. No further bargaining sessions are scheduled after today—either the parties reach an agreement or the conflict escalates. For now, the fibre record adds weight to the long-term thesis, but the immediate catalyst lies in Potsdam.
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