European telcos raise payouts as earnings improve in Q3
XLC•European telecom companies raised forecasts and shareholder payouts as cash generation improved. Deutsche Telekom proposed a 10% dividend increase and a buyback of up to €2 billion in 2027, while Swisscom plans to raise its dividend to 27 Swiss francs per share.
1. Payouts and forecasts rise
European telecom companies are raising shareholder payouts and nudging up forecasts as cash generation from network investments, cost cuts and consolidation begins to feed through to results. Deutsche Telekom raised its full-year earnings outlook for the third time this year after quarterly earnings beat analyst expectations, proposed a 10% dividend increase and announced plans for a share buyback of up to €2 billion in 2027.
2. Swisscom cash flow
Swisscom slightly improved its 2026 outlook and plans to raise its dividend to 27 Swiss francs per share from 26 francs. Its nine-month EBITDAaL was 3.83 billion Swiss francs, up from 3.77 billion a year earlier; it now expects full-year operating free cash flow above 2 billion francs and leverage below its prior estimate of around 2.3.
3. Sector outlooks improve
Orange lifted its 2026 core profit growth target, reporting 14.2% revenue growth in Africa and the Middle East in the third quarter and completing its integration of MasOrange. Bouygues, Telia and Proximus also raised their outlooks. Investors remain focused on how operators deploy growing cash flows, balancing shareholder payouts against acquisitions and investment in technologies such as satellite connectivity.
