Media

Deutsche Telekom meets financial targets for 2011

  • Share
    Two clicks for more data privacy: click here to activate the button and send your recommendation. Data will be transfered as soon as the activation occurs.
  • Print
  • Read out
  • Adjusted EBITDA of EUR 18.7 billion and free cash flow of EUR 6.4 billion including negative exchange rate effects
  • Excluding regulatory decisions, net revenue down organically by 2.5 percent to EUR 58.7 billion
  • Adjusted EBITDA margin up by 0.5 percentage points to 31.8 percent based on the same composition of the Group
  • Mobile Internet, IPTV, and smartphone segments showing continued growth
  • T-Mobile USA to launch LTE in 2013
  • Proposed dividend remains stable at 70 euro cents per share for the 2011 financial year
  • Guidance for the 2012 financial year: adjusted EBITDA of around EUR 18 billion and free cash flow of around EUR 6 billion

Deutsche Telekom met its financial targets for the 2011 financial year despite a difficult business environment for the telecommunications industry as a whole. Adjusted EBITDA was EUR 18.7 billion, with a EUR 0.2 billion negative impact owing to changes in exchange rates. Adjusted for this exchange rate effect included in the forecast, the Group's adjusted EBITDA was EUR 18.9 billion, while Deutsche Telekom's guidance for the year was around EUR 19.1 billion. Exchange rate fluctuations had a EUR 0.1 billion negative impact on free cash flow. The reported figure of EUR 6.4 billion hence corresponds to the forecast figure of EUR 6.5 billion. The Supervisory Board and the Board of Management will propose to the shareholders' meeting on May 24 a stable dividend of 70 cents per share, corresponding to a payout rate of 47 percent of free cash flow.

"In 2011, the Company operated in a challenging environment in every respect, a situation that is not going to change this year," commented René Obermann, Chairman of the Board of Management of Deutsche Telekom. "Our capacity for innovation, cost discipline, and readiness for change are vital assets as we prepare to master these challenges in 2012, too."  

Continued intense competition in many markets, a difficult economic environment in several countries, and burdensome regulatory decisions had an ongoing negative influence on the business of telecommunications companies and, therefore, also on Deutsche Telekom's business. Net revenue in 2011 hence declined 6.0 percent to EUR 58.7 billion. Adjusted for the deconsolidation of the UK subsidiary T-Mobile UK in the prior year, the decline was 4.9 percent. Excluding T-Mobile UK and adjusted for exchange rate effects and the impact of regulatory decisions, net revenue decreased by 2.5 percent.

Deutsche Telekom's adjusted net profit for 2011 reached EUR 2.9 billion, 15.2 percent less than in the prior year. Unadjusted net profit for the full financial year decreased by around two thirds year-on-year to EUR 0.6 billion. This was due to a number of different special factors in the fourth quarter that in total led to an unadjusted net loss in the three months of approximately EUR 1.3 billion. Goodwill impairment in the United States and impairments on goodwill and property, plant, and equipment in Southeastern Europe, notably Greece, of approximately EUR 3.3 billion in the context of scheduled impairment tests in the fourth quarter had a negative impact on unadjusted net profit. The positive impact of the compensation received from AT&T, comprising a cash payment of around EUR 2.3 billion and the right to the transfer of spectrum licenses at a fair value of approximately EUR 0.9 billion minus the applicable tax effects, following the termination of the agreement to sell T-Mobile USA, was hence more than offset.

The Group's cash capex amounted to EUR 8.4 billion, 14.7 percent less than in the prior year. Investments in the Germany segment (excluding the acquisition of the LTE licenses in 2010) increased further by approximately EUR 0.2 billion to more than EUR 3.6 billion, while the level of debt decreased significantly. At December 31, 2011, net debt stood at EUR 40.1 billion, a year-on-year decrease of 5.1 percent.

The Save for Service efficiency program delivered some impressive results. Its original target had been to cut costs by EUR 4.2 billion between 2010 and 2012. At December 31, 2011, savings had already reached EUR 4.5 billion. In other words, the target was substantially exceeded one year ahead of schedule. The Group will continue apace with its efforts to enhance efficiency. The result of these efforts can be seen in the adjusted EBITDA margin at Group level which increased 0.5 percentage points to 31.8 percent.

For the 2012 financial year, Deutsche Telekom expects adjusted EBITDA of around EUR 18 billion and free cash flow of around EUR 6 billion. This takes into consideration higher expenses in the United States for the move into the LTE era. The assumption underlying both of these forecasts is that exchange rates will remain stable over the 2011 average, with no significant further deterioration in the economic and regulatory environment.

Germany – Major growth in mobile Internet In 2011, business in Germany benefited from growth in the customer base and in data, as well as from further profitability gains. The number of customers with Entertain, Deutsche Telekom's TV service, went up by 34 percent to 1.6 million. Entertain Sat, which was only launched in September, performed particularly well. 97,000 of the 177,000 new Entertain customers in the fourth quarter opted for the new satellite-based version of the product. In the fixed network, the number of line losses was 21 percent lower than in 2010 – a historical low. At the same time, Deutsche Telekom succeeded in defending its strong share in the broadband market of over 45 percent.

More than one million new mobile contract customers in 2011 is ample proof of the attractiveness of the new rate plans and the success of efforts to boost activities in the service provider segment. In 2011, the number of smartphones as a proportion of total devices sold went up yet again, this time by 19 percentage points to 62 percent. Almost half a million Apple iPhones were sold in the fourth quarter alone, the highest ever quarterly iPhone sales figure for Deutsche Telekom in Germany. The smartphone boom has translated into unbroken growth in the mobile data segment. In 2011, mobile data revenues went up 30 percent to EUR 1.6 billion, rising by as much as 31.7 percent in the fourth quarter.

In 2011, revenue from business in Germany decreased 4.4 percent year-on-year to EUR 24.0 billion, owing to severe competition as well as regulatory decisions. The decrease in mobile termination rates in the German mobile market resulted in a drop in revenue of approximately EUR 850 million for all German mobile communications companies in 2011. For Deutsche Telekom, this effect alone totaled more than EUR 0.2 billion. The prior-year comparison is distorted due to the discontinuation of the cash card business. Mobile service revenues declined 2.4 percent in 2011. Adjusted for the cut in mobile termination rates, revenues underwent a slight increase of 0.6 percent. Efficiency improvement efforts once again succeeded in almost fully compensating for the lower revenue, taking adjusted EBITDA in this operating segment to EUR 9.6 billion, just 0.2 percent below the 2010 figure. Accordingly, the margin for the entire segment was 39.9 percent, 1.6 percentage points more than in the prior year.

USA– LTE launch set for the coming year For T-Mobile USA, the past year was characterized by significant challenges, particularly in the fourth quarter, following the market launch of the new Apple iPhone model by the three major national competitors in October. In the fourth quarter alone, the U.S. mobile subsidiary lost 802,000 contract customers, 706,000 of them branded customers.

As a result of the negative trend in the customer base in the full year, revenue also decreased by 3.3 percent to USD 20.6 billion. Adjusted EBITDA was maintained at USD 5.3 billion, a decrease of 3.1 percent thanks to cost savings and new rate plans without subsidized handsets. In the fourth quarter, adjusted EBITDA in U.S. dollars even rose by 3.4 percent.

In December, Deutsche Telekom and AT&T terminated their agreement on the sale of T-Mobile USA. Under the terms of the agreement, Deutsche Telekom received USD 3 billion in cash from AT&T as well as valuable mobile spectrum. Starting in 2013, the company will use this spectrum, refarmed frequencies, and an additional investment in the mobile network of around USD 1.4 billion to begin offering services based on the new mobile communications standard LTE (Long-Term Evolution). Other elements in the continuation of the Challenger strategy in the United States include relaunching the T-Mobile brand and addressing the business customer segment more actively.

Europe– Margins defended

In light of the difficult economic situation, the national companies in the Europe operating segment brought the 2011 financial year to a close with a generally solid performance in the fourth quarter. The adjusted EBITDA margin for the full year increased by 0.5 percentage points to 34.6 percent. On a like-for-like basis (excluding T-Mobile UK), revenue decreased 5.8 percent year-on-year to EUR 15.1 billion in the full financial year. Of this decrease, more than a thirdis attributable to regulatory decisions in the mobile communications sector. In the same period, adjusted EBITDA, again excluding T-Mobile UK, declined 5.9 percent year-on-year to EUR 5.2 billion. In the fourth quarter by contrast, adjusted EBITDA increased by 3.6 percent, and the decline in revenue amounted to just 3.6 percent compared to the same period in 2010. Taken as a whole, the revenue and earnings trend improved constantly over the course of the year compared with 2010.

The difficult economic situation notwithstanding, in many markets the major growth trends remained unbroken. The number of broadband customers grew 5.4 percent to 4.6 million, while the number of mobile contract customers in the Europe segment rose 3 percent to over 27 million. IPTV growth continued apace at 24 percent. The European mobile data business also remained on track with growth of 15 percent over the full year. The Netherlands, Greece, Poland, and Austria recorded the strongest growth and therefore continue to carry the greatest weight in terms of data business in the segment.

The European national companies succeeded in maintaining their strong profitability in the 2011 financial year. In its home market Greece, OTE kept its adjusted EBITDA margin for the full year virtually stable at the prior-year level. In Hungary, the adjusted EBITDA margin increased from 37.4 percent in 2010 to 37.7 percent.

Systems Solutions – Investments in quality bear fruit T-Systems' business saw moderate growth in 2011. Total revenue increased slightly by 2.1 percent year-on-year to EUR 9.2 billion, with disproportionately high growth in external revenue (2.4 percent) and in international revenue (4.2 percent).

At EUR 8.8 billion, order entry was down 4.9 percent year-on-year. This decline was partly due to T-Systems' decision in 2011 to prioritize quality assurance in existing contracts over acquiring new business. It also reflects an industry-wide trend away from big deals toward more cloud-based contracts. Cloud-based contracts are billed based on use and only stipulate a minimum purchase quantity; the actual order volume per corporate customer is usually significantly greater.

The cost involved in quality assurance had an impact on earnings figures in 2011. Adjusted EBITDA declined 8.0 percent to EUR 0.9 billion. The adjusted EBIT margin for the full year was 2.7 percent, one percentage point under the 2010 figure. The adjusted EBIT margin recovered considerably in the fourth quarter compared with the prior quarter to 5.0 percent. This is attributable to high revenue in the fourth quarter due to seasonal effects with a high system utilization and virtually unchanged costs. In addition, the quality assurance measures have taken effect, leading to a historic high in terms of customer satisfaction.

Pro-forma figures adjusted for the deconsolidation of T-Mobile UK as of April 1, 2010 In the United Kingdom, the former T-Mobile UK became part of the joint venture with France Télécom's subsidiary Orange UK, Everything Everywhere, effective April 1, 2010. To allow greater transparency concerning the development of operations in both years, the following table presents revenue, adjusted EBITDA, and adjusted and unadjusted net profit for the full 2010 financial year both including and excluding T-Mobile UK. This presentation is a supplement to the table showing the corresponding actual figures.

 

 

ReportedPro forma
    FY 2011 millions of EURFY 2010 millions of EURFY 2011 millions of EURFY 2010 millions of EURChange   %
Net revenue58,65362,42158,65361,663(4.9)
Adjusted EBITDA18,68519,47318,68519,300(3.2)
Net profit5571,6955571,775(68.6)
Adjusted net profit2,8513,3642,8513,439(17.1)

Comments on the table: The 2010 figures have been adjusted to eliminate the revenue and earnings contribution of T-Mobile UK to adjusted EBITDA, net profit, and adjusted net profit. No adjustments are necessary for the fourth quarter of 2010, as the figures are already comparable with the reported figures for the fourth quarter of 2011.

The Deutsche Telekom Group at a glance*:

 

 

Q4 2011 millions of EURQ4 2010 millions of EUR

Change

%

FY 2011 millions of EURFY 2010 millions of EUR

Change

%

Net revenue14,91115,477(3.7)58,65362,421(6.0)
Of which: domestic6,6236,985(5.2)26,36127,268(3.3)
Of which: international8,2888,492(2.4)32,29235,153(8.1)
Profit (loss) from operations (EBIT)(33)(176)81.35,5865,5051.5
Adjusted EBIT6601,682(60.8)7,6068,364(9.1)
EBITDA7,2653,383n.a.20,02217,31315.6
Adjusted EBITDA4,6114,5501.318,68519,473(4.0)
Adjusted EBITDA margin30.9%29.4%1.5p31.8%31.2%0.6p
Net profit(1,340)(514)n.a.5571,695(67.1)
Adjusted net profit(92)758n.a.2,8513,364(15.2)
Free cash flow a1,8871,7338.96,4216,543(1.9)
Cash capex b(2,230)(2,540)(12.2)(8,406)(9,851)(14.7)
Net debt   40,12142,269(5.1)
Number of employees at the reporting date   235,132246,777(4.7)

Comments on the table: a   Before dividend payments, spectrum investment, PTC transaction, and AT&T break-up fee.

b   Cash outflows for investments in property, plant, and equipment, and intangible assets (excluding goodwill).

Germanyoperating segment*:

 Q4 2011 millions of EURQ4 2010 millions of EURChange %FY 2011 millions of EURFY 2010 millions of EURChange %
Total revenue6,0476,442(6.1)24,03125,145(4.4)
Net revenue5,6836,014(5.5)22,62123,523(3.8)
Profit (loss) from operations (EBIT)9901,048(5.5)4,4454,916(9.6)
Adjusted EBIT1,1221,244(9.8)5,1525,425(5.0)
EBITDA2,1542,162(0.4)8,8929,109(2.4)
Adjusted EBITDA2,2862,358(3.1)9,5999,618(0.2)
Adjusted EBITDA margin37.6%36.6%1.0p39.9%38.3%1.6p
Number of employees   (average)75,45477,680(2.9)76,02879,364(4.2)

Europeoperating segment*:

 Q4 2011 millions of EURQ4 2010 millions of EURChange %FY 2011 millions of EURFY 2010 millions of EURChange %
Total revenue3,7723,913(3.6)15,12416,840(10.2)
Of which: Greece867937(7.5)3,5463,876(8.5)
Of which: Romania273287(4.9)1,0721,165(8.0)
Of which: Hungary3503238.41,4381,517(5.2)
Of which: Poland409475(13.9)1,7401,839(5.4)
Of which: Czech Republic270291(7.2)1,0921,157(5.6)
Of which: Croatia263278(5.4)1,0841,148(5.6)
Of which: Netherlands4654278.91,7471,767(1.1)
Of which: Slovakia231232(0.4)886934(5.1)
Of which: Austria234238(1.7)924983(6.0)
Of which: United Kingdoma--n.a.-783n.a.
Of which: Otherb464491(5.5)1,8271,937(5.7)
Net revenue3,5953,750(4.1)14,43116,183(10.8)

Profit (loss) from operations (EBIT)(601)(478)(25.7)780985(20.8)
Adjusted EBIT51738036.12,0662,282(9.5)
EBITDA1,2331,09312.84,9955,142(2.9)
Adjusted EBITDA1,3111,2653.65,2415,748(8.8)
Of which: Greece321335(4.2)1,3001,433(9.3)
Of which: Romania73679.0274281(2.5)
Of which: Hungary1106083.3542567(4.4)
Of which: Poland153187(18.2)629691(9.0)
Of which: Czech Republic118134(11.9)509551(7.6)
Of which: Croatia13111315.95085070.2
Of which: Netherlands17412242.65054619.5
Of which: Slovakia918211.0388403(3.7)
Of which: Austria5670(20.0)253283(10.6)
Of which: United Kingdoma--n.a.-167n.a.
Of which: Otherb8994(5.3)339426(20.4)
Adjusted EBITDA margin34.7%32.3%2.4p34.6%34.1%0.5p
Number of employees   (average)58,31863,506(8.2)60,10565,435(8.1)

Comments on the table: The contributions of the national companies generally correspond to their respective unconsolidated financial statements and do not take consolidation effects at operating segment level into consideration.

a   Deconsolidation of T-Mobile UK effective April 1, 2010.

b Other: National companies of Bulgaria, Albania, F.Y.R.O. Macedonia, Montenegro, as well as ICSS,Europe Headquarters, and up to and including May 2010, Deutsche Telekom International UK (formerlyT-Mobile International UK).

United Statesoperating segment*:

 Q4 2011 millions of EURQ4 2010 millions of EURChange %FY 2011 millions of EURFY 2010 millions of EURChange %
Total revenue3,8483,942(2.4)14,81116,087(7.9)
Net revenue3,8473,940(2.4)14,80116,075(7.9)
Profit (loss) from operations (EBIT)(2,955)472n.a.(710)2,092n.a.
Adjusted EBIT(604)472n.a.1,7212,092(17.7)
EBITDA9891,000(1.1)3,6974,156(11.0)
Adjusted EBITDA1,0431,0004.33,8314,156(7.8)
Adjusted EBITDA margin27.1%25.4%1,7p25.9%25.8%0.1p
Number of employees   (average)32,70937,340(12.4)34,51837,795(8.7)

Systems Solutions operating segment*:

 Q4 2011 millions of EURQ4 2010 millions of EURChange %FY 2011 millions of EURFY 2010 millions of EURChange %
Total revenue2,4572,479(0.9)9,2499,0572.1
Of which: Computing Services826835(1.1)3,1363,1280.3
Of which: Desktop Services374409(8.6)1,3731,461(6.0)
Of which: Systems Integration489503(2.8)1,8711,8013.9
Of which: Telecommunications8538322.53,1973,0863.6
Of which: Other a(85)(99)14.1(328)(419)21.7
Net revenue1,7261,7140.76,5676,4112.4
Order entry2,2683,206(29.3)8,8269,281(4.9)
Profit (loss) from operations (EBIT)8(5)n.a.(43)44n.a.
Adjusted EBIT124137(9.5)252333(24.3)
EBITDA1761628.6597667(10.5)
Adjusted EBITDA282299(5.7)872948(8.0)
Adjusted EBITDA margin11.5%12.1%(0.6)p9.4%10.5%(1.1)p
Number of employees   (average)48,19547,7710.948,22447,5881.3

Comments on the table: a   Non-core activities and consolidation.

Group Headquarters & Shared Services*:

 Q4 2011 millions of EURQ4 2010 millions of EURChange %FY 2011 millions of EURFY 2010 millions of EURChange %
Total revenue52145115.52,1442,166(1.0)
Net revenue60591.72332291.7
Profit (loss) from operations (EBIT)2,525(1,226)n.a.1,160(2,479)n.a.
Adjusted EBIT(497)(564)11.9(1,538)(1,710)10.1
EBITDA2,733(986)n.a.1,956(1,639)n.a.
Adjusted EBITDA(289)(324)10.8(742)(870)14.7
Number of employees   (average)21,26522,229(4.3)21,49422,312(3.7)

*   Deutsche Telekom defines EBITDA as profit/loss from operations before depreciation, amortization, and impairment losses.

Development of customer numbers in the fourth quarter of 2011 Germanyoperating segment:

 Dec. 31, 2011 thousandsDec. 31, 2010 thousandsChange thousandsChange %
Fixed network    
Fixed-network lines23,39924,650(1,251)(5.1)
Retail broadband lines12,26511,9543112.6
TV1,5531,15639734.3
Unbundled local loop lines (ULLs)9,5989,4981001.1
Wholesale unbundled lines1,2221,03718517.8
Wholesale bundled lines704984(280)(28.5)
Mobile communications    
Mobile customers a35,40334,6947092.0

Comments on the table: a Since April 1, 2010, Telekom Deutschland GmbH has automatically terminated prepaid cards that have not been topped up for two years and have been inactive for three months.

Europeoperating segment:

 

Dec. 31, 2011

thousands

Dec. 31, 2010

thousands

Change

thousands

Change

%

Europetotal a

Fixed-network lines

Retail broadband lines

Unbundled local loop lines (ULLs)

Wholesale unbundled lines

Wholesale bundled lines

Mobile customers a

 

10,563

4,588

             1,844

 

50

153

60,293

 

11,337

4,353

             1,504

 

44

180

             60,100

 

(774)

235

                  340

 

6

(27)

             193

 

(6.8)

5.4

                 22.6

 

13.6

(15.0)

                 0.3

Greece

Fixed-network lines

Broadband lines

Mobile customers

 

3,317

1,126

7,885

 

3,739

1,147

7,990

 

(422)

(21)

(105)

 

(11.3)

(1.8)

(1.3)

Romania

Fixed-network lines

Broadband lines

Mobile customers

 

2,487

1,078

6,499

 

2,597

961

6,849

 

(110)

117

(350)

 

(4.2)

12.2

(5.1)

Hungary b

Fixed-network lines

Broadband lines

Mobile customers

 

1,486

848

4,817

 

1,652

824

5,208

 

(166)

24

(391)

 

(10.0)

2.9

(7.5)

Poland

Mobile customers

 

14,161

 

13,259

 

902

 

6.8

CzechRepublic

Fixed-network lines

Broadband lines

Mobile customers

 

100

100

5,381

 

69

69

5,475

 

31

31

(94)

 

44.9

44.9

(1.7)

Croatia

Fixed-network lines

Broadband lines

Mobile customers

 

1,387

651

2,418

 

1,431

629

2,901

 

(44)

22

(483)

 

(3.1)

3,5

(16.6)

Netherlands

Fixed-network lines

Broadband lines

Mobile customers

 

294

284

4,909

 

289

289

4,526

 

5

                      (5)

383

 

1.7

(1.7)

8.5

Slovakia

Fixed-network lines

Broadband lines

Mobile customers

 

1,021

464

2,326

 

1,061

436

2,411

 

(40)

28

(85)

 

(3.8)

                      6.4

(3.5)

Austria

Mobile customers

 

4,060

 

3,778

 

282

 

7.5

Bulgaria

Mobile customers

 

4,265

 

3,920

 

345

 

                      8.8

Other c

Fixed-network lines

Broadband lines

Mobile customers

 

471

239

3,573

 

498

220

3,782

 

(27)

19

           (209)

 

(5.4)

8.6

(5.5)

Comments on the table:

a For better comparability, the customers of T-Mobile UK, who were transferred to the Everything Everywhere joint venture as of April 1, 2010, following the merger of T-Mobile UK and Orange UK, were subtracted from all historical customer figures.

b With effect from January 1, 2011, the business customer base was reclassified and divided between the Europe and Systems Solutions operating segments. As part of this process, the mobile and fixed-network lines of corporate customers in Hungary were reassigned to T-Systems.

c   Other: National companies of Albania, the F.Y.R.O. Macedonia, and Montenegro.

United Statesoperating segment:

 Dec. 31, 2011 thousandsDec. 31, 2010 thousandsChange thousandsChange %
Mobile customers a33,18533,734(549)(1.6)

Comments on the table: a   One mobile communications card corresponds to one customer.

Net additions in the fourth quarter of 2011 Germanyoperating segment:

 Q4 2011 thousandsQ4 2010 thousands

Change

thousands

Change

%

Fixed network    
Fixed-network lines(295)(373)7820.9
Retail broadband lines64110(46)(41.8)
TV1771146355.3
Unbundled local loop lines (ULLs)27131(104)(79.4)
Wholesale unbundled lines

 

24

 

144

 

(120)

 

(83.3)

Wholesale bundled lines

(53)

(159)

106

66.7

Mobile communications    
Mobile customers a498(188)686n.a.

Comments on the table: a Since April 1, 2010, Telekom Deutschland GmbH has automatically terminated prepaid cards that have not been topped up for two years and have been inactive for three months.

Europeoperating segment:

 Q4 2011 thousandsQ4 2010 thousands

Change

thousands

Change

%

Europetotal a

Fixed-network lines

Retail broadband lines

Unbundled local loop lines (ULLs)

Wholesale unbundled lines

Wholesale bundled lines

Mobile customers a

(188)

58

124

2

(3)

              826

(188)

168

                  105

5

(13)

               (273)

0

(110)

                  19

(3)

10

               1,099

0.0

(65.5)

               18.1

(60.0)

76.9

                  n.a.

Greece

Fixed-network lines

Broadband lines

Mobile customers

 

(116)

(10)

11

 

(120)

15

(340)

 

4

(25)

351

 

                       3.3

n.a.

n.a.

Romania

Fixed-network lines

Broadband lines

Mobile customers

 

(37)

26

(41)

 

(28)

59

(210)

 

                      (9)

(33)

169

 

(32.1)

(55.9)

80.5

Hungary b

Fixed-network lines

Broadband lines

Mobile customers

 

(19)

17

28

 

(38)

13

62

 

19

4

                   (34)

 

50.0

30.8

(54.8)

Poland

Mobile customers

 

755

 

(62)

 

817

 

n.a.

CzechRepublic

Fixed-network lines

Broadband lines

Mobile customers

 

7

7

(17)

 

16

16

15

 

(9)

(9)

(32)

 

(56.3)

(56.3)

n.a.

Croatia

Fixed-network lines

Broadband lines

Mobile customers

 

(8)

3

(67)

 

(6)

29

127

 

(2)

(26)

(194)

 

(33.3)

(89.7)

n.a.

Netherlands

Fixed-network lines

Broadband lines

Mobile customers

 

(3)

(2)

(26)

 

1

1

66

 

(4)

(3)

            (92)

 

n.a.

n.a.

n.a.

Slovakia

Fixed-network lines

Broadband lines

Mobile customers

 

(8)

7

8

 

(11)

13

4

 

3

(6)

4

 

27.3

(46.2)

n.a.

Austria

Mobile customers

 

126

 

95

 

31

 

                    32.6

Bulgaria

Mobile customers

 

99

 

34

 

65

 

n.a.

Other c

Fixed-network lines

Broadband lines

Mobile customers

 

(5)

10

(48)

 

(2)

13

(64)

 

(3)

(3)

16

 

n.a.

(23.1)

25.0

Comments on the table:

a For better comparability, the customers of T-Mobile UK, who were transferred to the Everything Everywhere joint venture as of April 1, 2010, following the merger of T-Mobile UK and Orange UK, were subtracted from all historical customer figures.

b With effect from January 1, 2011, the business customer base was reclassified and divided between the Europe and Systems Solutions operating segments. As part of this process, the mobile and fixed-network lines of corporate customers in Hungary were reassigned to T-Systems.

c Other: National companies of Albania, the F.Y.R.O. Macedonia, and Montenegro.

United Statesoperating segment:

 Q4 2011 thousandsQ4 2010 thousandsChange thousandsChange %
Mobile customers a(526)(23)(503)n.a.

Comments on the table: a One mobile communications card corresponds to one customer.

This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows, and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom's control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions, business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings, and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets and changes in interest and currency exchange rates may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write-downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.

In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.

FAQ