First quarter revenues increase 16 percent to 11.1 billion euros - Net income (excluding goodwill and UMTS costs) increases by 18 percent to 450 million euros - EBITDA from mobile communications increases 68% to 590 million euros in first quarter - Proposed dividend for the 2000 financial year unchanged at 0.62 euros per share Deutsche Telekom (NYSE: DT) (FSE: DTE) got off to a successful start in the year 2001. Group revenues in the first three months of 2001 increased to 11.1 billion euros, according to preliminary indicators released on Tuesday, in comparison to 9.5 million euros last year. Dr. Ron Sommer, Chief Executive Officer of Deutsche Telekom, noted that this revenue increase of approximately 16 percent in the first quarter is in line with the growth target of over 15 percent for the entire 2001 financial year.
"Not only will we keep up with the already achieved high level of growth, but we'll accelerate the tempo throughout the balance of the fiscal year," said Dr. Sommer.
Net income before amortization of goodwill and UMTS costs (amortization and interest) as an expression of the Group's operating earnings power increased 18 percent from 377 million to approximately 450 million euros. Including the amortization of goodwill and the UMTS costs, the Group loss decreased from one billion euros in the fourth quarter of 2000 to 0.4 billion euros in the first quarter of 2001.
For the full 2001 financial year, the Group expects a double-digit percentage improvement in earnings before interest, taxes, depreciation and amortization (EBITDA), primarily due to improvements at T-Mobile International. This trend is already confirmed by T-Mobile's EBITDA increase in the first quarter from approximately 350 million euros to approximately 590 million euros.
The Board of Management and the Supervisory Board will propose payment of an unchanged dividend of 0.62 euros per share for the 2000 financial year to the shareholders- meeting.
Net income for the entire financial year 2000 totaled 5.9 billion euros, compared with 1.3 billion euros in 1999. Revenues for the entire financial year 2000 equaled 40.9 billion euros, compared with 35.4 billion euros in 1999.
Deutsche Telekom noted that one-fifth of total Group revenues were generated outside of Germany. Broken down along its business lines, revenues in mobile communications alone increased from 5.3 million to 9.2 million euros, accounting for 23 percent of total Group revenues. The carriers- services and data communications businesses accounted for 10 and 8 percent of total revenues respectively. Only 36 percent of revenues were generated from the fixed-network business, compared with 80 percent in 1995 - a development which documents Deutsche Telekom's successful re-structuring measures.
"Financially speaking, the year 2000 was the most successful year on record in the history of Deutsche Telekom," said CFO Dr. Karl-Gerhard Eick. "Deutsche Telekom continues to be one of Europe's strongest cash-flow generators."
Cash generated from Deutsche Telekom's operations in 2000 increased by nearly 750 million euros, or more than 6 percent to almost 13.00 billion euros. EBITDA, the most important indicator of operating profitability according to the capital markets, increased from 14.5 billion euros to 20.7 billion euros. Excluding one-time effects such as the partial sale of the broadband cable business and new acquisitions as well as customer acquisition costs, EBITDA decreased to 12.9 billion euros. Deutsche Telekom emphasized that customer acquisition costs in mobile communications, with a growth of nearly 15 million subscribers in Germany, Great Britain and Austria within one year, would not be repeated.
Net debt increased by one percent from 56.5 billion euros at year-end 2000 to 57.1 billion euros in the first quarter of 2000. This is a result of the increased shareholding in the Czech mobile communications operator Radiomobil. The company will be consolidated on April 1, 2001.