- CEO Tim Höttges: “Digitalization at all levels is an obligation for Europe and an opportunity for Deutsche Telekom”
- Group tightens its climate protection targets
- Guidance for the year confirmed, unchanged dividend of 60 euro cents per share proposed at Deutsche Telekom’s second virtual shareholders’ meeting
Fit for the future. Deutsche Telekom commits to resolute action in globally difficult times. CEO Tim Höttges explained: “We are still in the middle of the pandemic. I hope once it is over we will take a good hard look. What did we do well? What did we do badly? And change it. The question cannot be: What have I got to lose? Rather it must be: What can we all gain? And exactly what contribution can I make? Digitalization at all levels is the key here. It is an obligation for Europe. And an opportunity for Deutsche Telekom.”
In his opinion, the Group had made it through 2020 with a clear position for its customers and for the network build-out. Not only did it generate revenue of more than 100 billion euros for the first time with growth of 25.4 percent and EBITDA AL of 35 billion euros with growth of 41.6 percent. The company’s reliable networks also provided stability just as many people in Germany had to switch to working from home. And: “Deutsche Telekom managed to provide a sense of security through this period. Our hygiene concepts work. We hope that we will also be able to vaccinate in the near future. More than 70,000 employees within eight weeks. Our company medical service could handle that if permitted by the rules and vaccination prioritization plan.”
Under the motto “Get things done!” the CEO presented the Group’s network build-out endeavors. “We built out more, despite the coronavirus pandemic. I am an avowed ‘network investor’ and will remain so. In the past seven years, we have invested 36 billion euros in Germany alone.”
“Deutsche Telekom has always been leading in mobile communications. We are the best provider in Europe. We have the best network in 12 out of 13 markets,” stated Tim Höttges. Deutsche Telekom is now taking the next step in the fixed network: “Fiber to the home. By 2024, ten million households will get FTTH from us alone. But Deutsche Telekom will not create a new monopoly network. That is why we are working with hundreds of partners.”
Deutsche Telekom also takes a clear position when it comes to climate protection. “We want both things. We want the build-out. And we want it to be climate-neutral, i.e, with net zero emissions. To this end, we have invested tens of millions. We only buy electricity from renewable sources of energy. Deutsche Telekom’s network is 100 percent green.” But that is not enough for the Group. So the more far-reaching targets have been adjusted. “For 2030, we had committed to 90 percent less CO2. Now we have determined that we will reach 100 percent. And we will do this by 2025. Then our own business will be net zero. But we want more. The products that we buy and sell should also be net zero. So, everything, from our buildings, antennas and masts through to the devices at our customers. We will achieve this by 2040. This is being referred to as Scope 3.”
Deutsche Telekom confirmed its guidance for the current financial year. Adjusted EBITDA AL is expected to increase to around 37 billion euros in 2021. Free cash flow AL is expected to total some 8 billion euros. Revenue is also set to rise.
Based on the results for the past financial year, the Board of Management and Supervisory Board will propose an unchanged dividend of 0.60 euros per share. The shareholders’ meeting of Deutsche Telekom is being held as a virtual event for the second year in a row owing to the coronavirus pandemic. The livestream is available for anyone to follow on the website www.telekom.com. Shareholders can exercise their voting rights online.
This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. They are generally identified by the words “expect,” “anticipate,” “believe,” “intend,” “estimate,” “aim,” “goal,” “plan,” “will,” “seek,” “outlook,” or similar expressions and include generally any information that relates to expectations or targets for revenue, adjusted EBITDA, or other performance measures. Forward-looking statements are based on current plans, estimates, and projections, and should therefore be considered 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. They include, for instance, the progress of Deutsche Telekom's staff-related restructuring measures and the impact of other significant strategic or business initiatives, including acquisitions, dispositions, and business combinations. In addition, movements in exchange rates and interest rates, regulatory rulings, stronger than expected competition, technological change, litigation and regulatory developments, among other factors, may have a material adverse effect on costs and revenue development. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, Deutsche Telekom's actual results may be materially different from those expressed or implied by such statements. Deutsche Telekom can offer no assurance that its expectations or targets will be achieved. Without prejudice to existing obligations under capital market law, Deutsche Telekom does not assume any obligation to update forward-looking statements to account for new information or future events or anything else. In addition to figures prepared in accordance with IFRS, Deutsche Telekom presents alternative performance measures, e.g., EBITDA, EBITDA AL, EBITDA margin, adjusted EBITDA, adjusted EBITDA AL, adjusted EBITDA margin, adjusted EBIT, adjusted EBIT margin, adjusted net profit/loss, free cash flow, free cash flow AL, gross debt, and net debt. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
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