Deutsche Telekom AG — Earnings Release 1998

Oct 28, 1998

News Details

Ad-hoc | 28 October 1998 08:25

Ad hoc-Service: Deutsche Telekom AG englisch

—————————————————————— Ad hoc-Service: Deutsche Telekom AG englisch Ad hoc-Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Bonn, October 28,1998 Deutsche Telekom Group Preliminary key figures for the first three quarters of 1998 (January 1,1998 to September 30,1998) Result increases as expected Deutsche Telekom announces aggressive tariff and cost reduction measures Further growth at T-ISDN, T-Online and T-Mobil Deutsche Telekom AG hereby releases a preliminary indication of the corporate group results for the first three quarters of 1998. Deutsche Telekom emphasizes that these are initial results on the basis of current information. The final third-quarter figures to be published on November 25, 1998 may deviate from these figures. Revenue and results, January 1 – September 30 billions of DM 1st – 3rd 1st – 3rd Change Dec. 31,1997 quarter 1998 quarter 1997 Revenue 51.4 49.6 3.6 % 67.6 Net income 3.00 2.45 22 % 3.30 In the first nine months of the current financial year, revenue could be increased by 3.6 % compared to the same period last year. Net income in the first nine months of 1998 was approximately DM 3 billion. Compared to the same period last year, this represents an increase of 22 %. Revenue and results in third quarter billions of DM 3rd quarter 98 Change half year Change 3rd quarter 97 1998 first half 97 Total revenue 17.03 1.6% 34.37 4.5% Revenue without ICP* 16.76 0.0% 34.15 3.9% Net income 1.05 31% 1.95 18% * without the revenue for invoicing on behalf of competitors The unchanged revenue in the third quarter (without taking the revenue for the invoicing on behalf of competitors into account) is directly attributable to the market share losses of long distance calls. These are a direct result of the asymmetrical regulation measures and the one-sided preferential treatment of the competitors. Therefore, Deutsche Telekom will be introducing aggressive tariff reduction measures earlier than planned. Moreover, cost savings measures already introduced will be accelerated even more. The increase in net revenue was positively influenced by developmts in our subsidiaries and associated companies. Important for future development are the outstanding decisions of the Regulatory Authority, in particular on the unbundled local loop, on the qualification of competitors as Access Network Operators / Carrier Network Operators / Resellers and on cable TV – and the respective resulting effects on competition for Deutsche Telekom. Employees and debt Sept. 30,1998 Sept.30, 1997 Change Change Employees 184,100 195,300 -11,200 -6.0% (excluding Matav) Debt in billions of DM (excuding Matav) 84.9 91.4 -6.5 -7.1% As of September 30, 1998, the number of employees in the corporate group (excluding Matav) amounted to 184,100 employees, 11,200 less than at the end of September 1997. The reduction of debt continued according to plan; however, it must be noted that due to the maturity of the individual debt positions, repayments mostly take place in the fourth quarter. Compared to September 30, 1997, debt (excluding Matav) was reduced by DM 6.5 billion to DM 84.9 billion. In the Deutsche Telekom group (including Matav), debt amounted to DM 86.2 billion at the end of the third quarter of 1998. Customer trends for selected services in millions Sept. 30,1998 Dec. 31, 1997 1st – 3rd quart. 1998 Telephone lines 46.0 45.2 1.8 % – of which: ISDN channels 9.3 7.3 27 % T-Online customers 2.4 1.9 26 % Mobile telephony customers 5.2 3.8 36 % (T-D1 + T-C-Tel) Paging and other mobile 0.9 1.1 -19 % communications customers Cable subscribers 17.6 17.3 1.7 % The number of ISDN and T-Online customers, with growth of 27 % and 26 % respectively since the beginning of the year, continues to develop positively. To ensure the continuation of this trend in online communicatians, all T-Online customers will receive two free hours and 10 MByte of free storage space for their personal homepage. T-Mobil has extended the successful local tariff to two local favorite area codes from November 15, 1998, so that the growth trend of the first nine months will continue. At its meeting on September 16, 1998, the Supervisory Board gave the Board of Management its permission to begin negotiations with potential partners and interested buyers for the cable TV business. With the exception of historical information the matters discussed in this release are forward-looking statements that involve risks identified in filings with the U.S Securities and Exchange Commission. Ende der Mitteilung