DT remains on growth course

Deutsche Telekom continued to grow internationally as a result of the first-time consolidation of the Greek OTE group. In the first quarter of 2009, its position as the European company with the best top-line performance in the industry was strengthened.

"Deutsche Telekom, including the Greek company OTE, is continuing to grow," CEO René Obermann told the press. "This fits in with our 'Focus, fix and grow' strategy."

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CEO René Obermann (r.) and CFO Timotheus Höttges presented the Q1 2009 financial figures.

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CEO René Obermann (r.) and CFO Timotheus Höttges presented the Q1 2009 financial figures.

In the first three months of 2009, Deutsche Telekom generated revenue of 15.9 billion euros, 6.2 percent more than in the first quarter of 2008. Following the first-time inclusion of OTE, its subsidiaries and majority shareholdings in Southeastern Europe, the number of fixed-network customers at the end of the first quarter of 2009 increased by 7.5 million in total, of which broadband customers accounted for around 1.7 million. The Broadband/Fixed Network business area recorded around 40 million fixed-network and almost 17 million broadband lines at the end of March. The number of mobile customers grew by around 20 million following the inclusion of the OTE subsidiaries, bringing the total customer base, including net additions in the existing mobile companies, to just under 150 million at the end of March.

Turnaround at T-Systems

T-Systems' international revenue increased by 6.4 percent and continued the positive development of the prior quarters. This positive trend is partly attributable to contracts signed, for example with Shell and OMG, in 2008. "We have started the turnaround here," said Obermann.

"In most areas of the Group, business is stable," the CEO continued. "But it's clear that we are fighting strong headwinds in some national companies. We have responded to the situation and put in place a comprehensive package of measures." Partly as a result of the global economic crisis, the Group had recently adjusted its guidance.

Savings program ahead of plan

Deutsche Telekom expects OTE to boost the Group's adjusted EBITDA by around 2.0 billion euros over the eleven months of the 2009 financial year since its consolidation. As a result, the Group's guidance needs to be increased by a similar amount, having originally been reduced on April 21 by two to four percent compared with the prior-year figure of 19.5 billion euros. Deutsche Telekom expects OTE to contribute around 0.6 billion euros to free cash flow, bringing the Group total to around 7 billion euros.

Results of the cost-cutting program "Save for Service" remain encouraging. "We are well ahead of plan, having already achieved an annual run-rate of gross savings of 4.4 billion euros as of the first quarter," said CFO Timotheus Höttges.