GDANSK, Oct 10 (Reuters) - Deutsche Telekom

expects its net revenue to grow by an average of 4% per year

through 2027, driven by artificial intelligence and a

data-focused business model, it said on Thursday.

"We are initiating the next stage," said CEO Tim Hoettges

ahead of the start of the company's two-day Capital Markets Day

later on Thursday.

The German group's adjusted operating profit is also set to

rise by 4% to 6% through 2027, it said. Shares were up 1.3% at

0740 GMT following the announcements.

"We have achieved or even exceeded nearly all of our

targets," said Hoettges, referring to goals set at Telekom's

last Capital Markets Day in 2021.

"We will build on this position in the future, for example,

by further intensifying the use of artificial intelligence."

The management board plans to increase its dividend payout

for 2024 to 0.90 euros per share from 0.77 last year. Telekom

aims to distribute between 40% and 60% of its adjusted earnings

per share, set to rise to around 2.50 euros by 2027.

Telekom also announced plans to buy back up to 2 billion

euros' ($2.19 billion) worth of shares next year to recoup some

of the dilution effects of its 2021 capital increase.

In addition to investments and dividend payments, the group

intends to generate more than 15 billion euros by 2027 that it

intends to use flexibly, with options including increasing its

stake in U.S. subsidiary T-Mobile US ( TMUS ) and buying back

additional shares.

T-Mobile had its Capital Markets Day last month, where its

CEO Mike Sievert said it plans to return up to $50 billion to

shareholders through 2027 via share buybacks and dividends.

ODDO BHF analyst Stephane Beyazian said Deutsche Telekom

"could have done better" on shareholder returns, but sees

Telekom's plans to increase efficiency with AI-based automation,

for example in customer centres, as good news.

($1 = 0.9142 euros)