Growth persists for Deutsche Telekom, yet its stock experiences a decline
In a recent development, Deutsche Telekom, the German telecommunications giant, has reported strong first-half 2025 results, with a 3.7% increase in net revenue and a 34.1% rise in net profit. Despite this impressive performance, the company's stock has taken a hit, primarily due to weaknesses in its key German segment[1][2][3].
The German segment, which accounts for a significant portion of Deutsche Telekom's revenue, missed market expectations, with revenue down 1.3% and broadband subscriber losses higher than forecast. This domestic underperformance has caused investor concerns about the company's outlook in its home market, leading to a stock price decline despite the strong overall financials.
However, the company's confidence in sustained growth remains unshaken. They have raised their annual targets for the second consecutive year, reflecting their belief in robust service revenue and operational efficiencies[1][3]. This optimism is supported by positive results in other markets, particularly the U.S., where growth has been strong.
In a separate development, Deutsche Telekom is integrating an external subscription service provided by "Piano". This integration involves the transfer of certain personal data to third countries, including the USA, for data processing purposes. It's important to note that this data transfer is pursuant to Art 49(1)(a) GDPR[4].
Under GDPR (General Data Protection Regulation), any subscription service like Piano operating in or serving users within the EU must obtain clear, informed consent before processing personal data, provide transparent information on data use, allow users to access, correct, or delete their data, ensure data security, and report breaches promptly[5]. The subscription service would need to comply strictly with these GDPR requirements for user data privacy and protection. Failure to comply could result in fines and reputational damage, impacting service trust and adoption.
Deutsche Telekom provides more details on data processing in their privacy policy and privacy statement, both available at the footer of their offer. Users can also withdraw their consent for this data processing at any time via the "Withdraw Tracking" link in the footer of Telekom's offer[4].
In summary, Deutsche Telekom’s stock fluctuations despite strong results are chiefly due to weaker-than-expected performance in its German market, while GDPR applies broadly to any user data handling by subscription services like Piano, mandating strict privacy and security compliance.
[1] Deutsche Telekom AG (2025). Deutsche Telekom H1 2025 Results. Retrieved from https://www.telekom.com/en/company/investor-relations/financial-reports/half-year-report-2025
[2] Reuters (2025). Deutsche Telekom's German segment misses market expectations. Retrieved from https://www.reuters.com/business/media-telecom/deutsche-telekom-german-segment-misses-market-expectations-2025-08-03/
[3] MarketWatch (2025). Deutsche Telekom's shares fall despite strong results. Retrieved from https://www.marketwatch.com/story/deutsche-telekoms-shares-fall-despite-strong-results-2025-08-03
[4] Deutsche Telekom AG (2025). Privacy Policy. Retrieved from https://www.telekom.com/en/privacy-policy
[5] European Commission (2018). General Data Protection Regulation (GDPR). Retrieved from https://ec.europa.eu/info/law/law-topic/data-protection/reform/general-data-protection-regulation-gdpr/what-gdpr_en
What may be causing investor concerns about Deutsche Telekom's stock, despite strong overall financials, is the company's underperformance in its German segment, which accounts for a significant portion of its revenue. In a separate development, subscription services like Piano, integrating with Deutsche Telekom, must comply strictly with GDPR (General Data Protection Regulation) requirements for user data privacy and protection, as failure to do so could result in fines and reputational damage.
