Full year results 2010
Deutsche Telekom brings the 2010 financial year to a successful close and expects almost stable development in 2011.
- Adjusted EBITDA target achieved, free cash flow guidance exceeded
- Net profit increased almost five-fold compared with 2009
- Increased revenue from German operations in fourth quarter
- Mobile data business increased by almost 30 percent
- Further improvement in margins at T-Systems
- Proposed dividend of EUR 0.70
- Outlook for 2011 promises stability
Deutsche Telekom achieved and, in some cases, even exceeded its financial targets for 2010. The Group recorded adjusted EBITDA of EUR 19.5 billion in the financial year just ended, matching the forecast made at the start of 2010 (excluding the deconsolidated T-Mobile UK that accounted for around EUR 0.5 billion). At EUR 6.5 billion, free cash flow was considerably higher than the EUR 6.2 billion originally expected. Business in Germany was strong, with mobile Internet, smartphones, broad-band lines and Internet-based (IPTV) television as the growth drivers.
Net revenue increased by 0.4 percent to EUR 62.4 billion excluding the UK. At EUR 3.4 billion, adjusted net profit was on a par with the 2009 figure. Unadjusted for special factors, net profit stood at EUR 1.7 billion, a substantial increase from EUR 0.4 billion in the previous year.
"We delivered solid figures in 2010. We have battled through the headwind caused by the economic environment, special taxes in several countries, and stiff competition. I am particularly pleased about the slight increase in revenue," said René Obermann, CEO of Deutsche Telekom. "At the same time, we have started to implement our new strategy and invested in the future. You have to sow before you can reap."
Find the annual report 2010 here for download on February 25, 2011 at 8 a. m.
The conference call for analysts will be streamed live here at 2 p. m. (CET).
Deutsche Telekom confirms its guidance for the full year 2010.
Deutsche Telekom has confirmed its guidance for the full year following a solid third quarter. Excluding the effects of the joint venture in the United Kingdom, Deutsche Telekom expects to generate adjusted EBITDA of approximately EUR 20 billion and free cash flow of at least EUR 6.2 billion. By the end of the first nine months, adjusted EBITDA amounted to EUR 14.9 billion, while free cash flow stood at EUR 4.8 billion.
Deutsche Telekom posts strong second quarter and confirms its guidance for 2010.
- Adjusted EBITDA of EUR 9.9 billion half way through the year
- Net profit of EUR 1.2 billion at end of half-year, compared with loss of EUR 0.6 billion in prior year
- Free cash flow up 61 percent to EUR 2.9 billion for the half-year
- Strong growth in mobile data continues: up 28 percent in the first six months
- Business in Germany recorded almost stable revenue in the second quarter coupled with an increase in earnings
- 106,000 net additions to the contract customer base in the United States in the second quarter
- Margin in the Europe segment largely stable
- Systems Solutions: Revenue growing, EBIT margin improved
Deutsche Telekom continued the healthy development of the first quarter of 2010 in the period April to June and confirms its guidance for the full year. Revenue in the Germany operating segment stabilized in the second quarter and, at the same time, adjusted EBITDA increased. T-Mobile USA continued its strong growth in the mobile data sector and recorded an increase in the number of contract customers for the first time after three quarters. The EBITDA margin remained at a high level in the Europe segment despite negative regulatory and economic factors impacting several markets. T-Systems increased revenue generated outside the Deutsche Telekom Group and internationally, and improved its EBIT margin.
- Adjusted net profit up 36 percent
- Free cash flow more than tripled to EUR 1.4 billion
- German mobile market leadership consolidated
- Data revenue per user in the United States increased by USD 1.50
- Stable development in Southern and Eastern Europe in the first quarter
Deutsche Telekom got off to a good start in the 2010 financial year, recording sound figures in the first quarter. Adjusted EBITDA increased by 1.6 percent compared with the first quarter of 2009 to EUR 4.9 billion. With revenue almost stable – down 0.6 percent to EUR 15.8 billion – the adjusted EBITDA margin improved by 0.6 percentage points to 30.9 percent.
The development of adjusted net profit was particularly encouraging, increasing by 36 percent year-on-year to EUR 0.9 billion. Unadjusted net profit jumped by just under EUR 2 billion from EUR ‑1.1 billion to EUR +0.8 billion. The free cash flow trend was also impressive, with free cash flow of EUR 1.4 billion being recorded in the first three months of 2010, up from EUR 0.4 billion in the first quarter of 2009.