Outlook

Detailed Outlook in the Annual Report 2015

You find a detailed view of the fiscal year 2016 and further ahead on page 119 in the Annual Report 2015.

 

Forecast

We plan to increase our customer base in the segments glass-fiber, television and integrated offers, as well as a rising sales volume in our cloud business and again a significant growth in mobile customers in the US. We intend to maintain the dynamic development of this past financial year in 2016 and 2017 and continue to grow profitably.

  • Revenue expected to increase year-on-year in 2016 and 2017.
  • Adj. EBITDA expected to increase to € 21.2 billion and to rise sharply again in 2017.
  • Free cash flow is expected to be approximately € 4.9 billion.
  • Our investments in terms of cash capex are expected to amount to around € 11.2 billion. In 2017 we expect an increase in capital expenditure against 2016.

Dividend2

  • For the 2015 financial year, dividend amounts EUR 0.55 for each no par value share carrying dividend rights.
  • The dividend for the 2015 financial year is tax-free.
  • For the fiscal years 2016 and 2017 we intend to retain our shareholder remuneration policy: We intend to pay a dividend of at least EUR 0.50 per dividend-bearing share, the relative growth of free cashflow is also to be taken into account when measuring the amount of the dividend.


2 Subject to the necessary board resolutions and the resolution of the Annual General Meeting

Operations:

  • Germany: We continue to work on out comprehensive transformation program with the goal to secure our position on the market as the leading integrated telecommunications provider. We plan to do so through innovative and competitive offers. Core elements are strong broadband offers in our fixed and mobile networks as well as our convergence offer “MagentaOne”. The main reason for the slight decrease in revenues in 2016 is the planned reduction in our low-margin mobile handset business. From 2017, we plan to stabilize our revenue.
  • USA: After a strong fiscal year, T-Mobile U.S. will continue to execute on its promise to deliver distinctive value for consumers in all customer segments – postpaid and prepay. For this reasons we expect an increase in branded postpaid and branded prepay customers in 2016 and 2017. For the fiscal year 2016, we expect between 2.4 and 3.5 million additional customers. We expect a significant growth in revenue, especially in mobile service revenues that is driven by this additional customer growth.
  • Europe: We continue to increasingly rely on technology leadership: With the pan-European all-IP network (Pan-Net), we are building a simplified, standardized network across all national companies. By 2018 we plan to have converted all of our integrated national companies to IP. We will increase our investment in our network infrastructure, particularly in the fiber-optic build-out and an increased reach of LTE coverage within our mobile network. The concept of our convergence brand “Magenta One” will contribute to the positive development in our broadband and TV customer base in 2016 and 2017. After a decline in revenue in the current year, we plan to stabilize our revenue from 2017.
  • System Solutions: Our objective is to become the preferred provider of telecommunications and IT services. In the context of a comprehensive transformation program we have driven forward the development and expansion of growth areas, improved the efficiency of our existing business, and discontinued or handed over to partners a number of activities that were not sufficiently profitable for us. We are among the top players in the European IT market and strive to be the number one in cloud computing by 2018.

Stock chart

Aug 25, 2016 | 05:45 PM

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Contacts

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Finance calendar

  • Nov 10, 2016

    3rd Quarter 2016: Financial report as of September 30

    Bonn
  • Mar 02, 2017

    Full Year Results 2016

Twitter

  • @DT_IR

    RT @Telekom_group : Deutsche #Telekom confirms prognosis for full #finance year 2016 #Q2 ^cn https://t.co/xKGg9LQUzP

    Aug, 11 2016 at 07:31 AM
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