According to JinTong Finance and Economics, Europe's largest telecommunications operator, Deutsche Telekom (DTEGY.US), plans to launch a buyback program of up to 2 billion euros (equivalent to 2.2 billion US dollars) in 2025 and will increase dividends. The German telecommunications operator said in a statement on Thursday that it will propose to distribute a dividend of 90 cents per share in the 2024 fiscal year, higher than last year's 77 cents. Dividend payments require shareholder approval.

Deutsche Telekom outperformed its peers in Europe, benefiting from the user growth of T-Mobile US Inc. (TMUS.US), in which the company holds a majority stake. The company stated on Thursday that it may use this additional cash to continue to increase its stake in the US mobile operator or buy back shares.

Deutsche Telekom CEO Tim Hoettges said in a statement: "In recent years, our global strategy has made us the undisputed number one in Europe. We have achieved or even exceeded almost all of our goals, with the current value surpassing the sum of all our European counterparts."

Hoettges also stated that the company plans to deploy more artificial intelligence tools in its customer service operations, focusing on reducing call volumes through self-service programs supported by applications or AI-driven messenger services. The company expects annual growth rates of around 4% for revenue and service income by 2027. EBITDA is expected to grow at an average annual rate of 4% to 6%.

On Wednesday, Deutsche Telekom's stock price in Frankfurt rose to 26.75 euros. So far this year, the stock has accumulated a rise of about 23%.