Deutsche Telekom Raises Earnings Forecast, Allianz Sees Net Profit Decline, Merck Adjusts Outlook Amid Q1 2025 Results

Deutsche Telekom AG reported a first-quarter adjusted EBITDA AL of €11.30 billion, surpassing the consensus estimate of €11.16 billion, and revenue of €29.76 billion, slightly above the expected €29.73 billion. The company has raised its full-year earnings forecast to €45 billion, driven by a 7.9% increase in quarterly profit to €11.3 billion. This growth was fueled by mobile subscriber gains in Germany, where the number of subscribers rose by 1.8% to 69.8 million. Deutsche Telekom's optimism is further supported by the performance of its U.S. subsidiary, T-Mobile US, which has contributed to the company's decision to resist price cuts in its home market. RWE AG announced its first-quarter results with an adjusted EBIT of €813 million, exceeding the estimate of €749 million, and an adjusted EBITDA of €1.31 billion, slightly above the €1.29 billion forecast. The company maintained its full-year guidance, projecting an adjusted EBITDA range of €4.55 billion to €5.15 billion, adjusted net income between €1.30 billion and €1.80 billion, and adjusted EBIT from €2.35 billion to €2.95 billion. Allianz SE reported a first-quarter operating profit of €4.24 billion, slightly above the expected €4.22 billion, and confirmed its 2025 outlook with a full-year operating profit target of €15 billion to €17 billion. Despite a 2.1% decline in net profit to €2.42 billion, attributed to a one-time tax provision related to the sale of a business in India, Allianz remains confident in achieving its annual goals. The company's strong performance was driven by higher income from its insurance business and inflows in asset management, with the German insurer maintaining its position as a leader in the European insurance market. Allianz's operating profit increased by 6% to €4.24 billion, and its total business volume grew by nearly 12% to €54.0 billion. The adjusted net profit after third-party interests remained stable at €2.55 billion compared to €2.51 billion in the previous year. Allianz sold its stakes in two joint ventures with Bajaj Finserv for €2.6 billion. In the property-casualty segment, business volume grew by 7%, with the claims-cost ratio improving to 91.8% from 91.9%, better than the target of 93%. Claire-Marie Coste-Lepoutre, CFO of Allianz, and Oliver Bäte, CEO, expressed confidence in navigating volatile markets and an uncertain environment. Merck KGaA reported first-quarter net sales of €5.28 billion, just below the expected €5.3 billion, and an adjusted EPS of €2.12, missing the estimate of €2.21. The company adjusted its full-year outlook, now expecting net sales growth of 2% to 6%, down from the previous 3% to 6%, and adjusted EBITDA between €5.8 billion and €6.4 billion, below the consensus of €6.27 billion. Merck cited macroeconomic challenges, including a weak US dollar and uncertainty around tariffs, as reasons for the revised guidance. Thyssenkrupp AG's second-quarter results showed an adjusted EBIT of €19 million, significantly below the expected €148.3 million, and sales of €8.58 billion, missing the forecast of €8.8 billion. The company maintained its full-year adjusted EBIT guidance of €600 million to €1 billion.