Deutsche Telekom AG — Earnings Release 2003

Nov 13, 2003

News Details

Ad-hoc | 13 November 2003 06:30

Deutsche Telekom AG english

Ad hoc announcement of Deutsche Telekom AG Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Deutsche Telekom achieves debt reduction target ahead of schedule Bonn, November 13, 2003 – Net revenue increased by 5.4 percent year-on-year to EUR 41.3 billion at September 30, 2003; net income up by EUR 26.1 billion to EUR 1.6 billion – adjusted for special factors, EUR 0.7 billion; Group EBITDA increased by 25.6 percent to EUR 14.3 billion; adjusted EBITDA improved by 15.3 percent to EUR 13.8 billion; 6+6 program successfully completed ahead of schedule: Net debt reduced by EUR 15.1 billion year-on-year to EUR 49.2 billion at September 30, 2003; Free cash flow before dividend payment considerably increased to EUR 7.4 billion in the first nine months. Overview of selected key figures (first nine months of 2003) millions of Euro Q1-Q3 2003 Q1-Q3 2002 Change% FY 2002 Total revenue 41288 39177 5.4 53689 Net income/(loss) 161 (24510) n.a. (24587) EBITDA 14297 11382 25.6 16116 EBITDA adjusted for special factors 13785 11960 15.3 16314 Free cash flow before dividend 7393 4664 58.5 4838 Investments in property, plant and equipment, and intangible assets (3536) (5343) 33.8 (7928) Net debt 49156 64311 (23.6) 61106 Third Quarter 2003 millions of Euro Q3 2003 Q3 2002 Change % Total revenue 14077 13423 4.9 Net income/(loss) 508 (20619) n.a. EBITDA 4683 3823 22.5 EBITDA adjusted for special factors 4711 4203 12.1 end of ad-hoc-announcement (c)DGAP 13.11.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Selected key figures for the divisions T-Com millions of Euro Q1-Q3 2003 Q1-Q3 2002 Change% FY 2002 Total revenue 21747 22532 (3.5) 30559 EBITDA 7684 7624 0.8 10051 Adjusted EBITDA 7777 7624 2.0 10268 T-Mobile Total revenue 16787 14245 17.8 19735 EBITDA 5350 3850 39.0 5038 Adjusted EBITDA 5005 3850 30.0 5038 T-Systems Total revenue 7744 7667 1.0 10489 EBITDA 1076 453 137.5 753 Adjusted EBITDA 1016 833 22.0 1151 T-Online Total revenue 1347 1121 20.2 1584 EBITDA 260 50 n.a. 103 Adjusted EBITDA 235 23 n.a. 76 Group Headquarters and Shared Services Total revenue 3220 3173 1.5 4411 EBITDA 215 (381) n.a. 447 Adjusted EBITDA (5) (183) 97.3 30 Deutsche Telekom increased its revenue in the first nine months of 2003 by 5.4 percent year-on-year to EUR 41.3 billion. Net income improved by EUR 26.1 billion to EUR 1.6 billion. This increase is mainly attributable to the positive development in results from ordinary business activities and the non-recurrence of the negative special factors implemented as a result of the strategic review last year, and improved Group EBITDA. Excluding special factors, the Group recorded net income of EUR 0.7 billion year-on-year with a net loss of EUR 4.2 billion. The double-digit improvement in Group EBITDA recorded earlier this year continued almost to the same extent in the third quarter of 2003, which led to an increase of EUR 2.9 billion in EBITDA for the first nine months to EUR 14.3 billion. Net debt decreased by a total of EUR 15.1 billion since the end of the third quarter of 2002 to EUR 49.2 billion at September 30, 2003. A reduction of almost EUR 12 billion has been achieved since the end of 2002. Deutsche Telekom’s debt reduction target for the full 2003 financial year has thus been achieved ahead of schedule. The 6+6 program has therefore been completed. Free cash flow before dividend payments amounted to EUR 7.4 billion in the first nine months of 2003, approximately EUR 2.7 billion higher than in the same period last year. This increase of approximately 60 percent is mainly attributable to the increase in cash generated from operations and the reduction of approximately EUR 1.8 billion in investments in property, plant and equipment and intangible assets. With free cash flow before dividend payments totaling EUR 7.6 billion since September 30, 2002, the target set in November of last year (EUR 5.5 billion – EUR 6.0 billion) has been exceeded by far. Deutsche Telekom now aims to generate adjusted EBITDA of approximately EUR 18.2 billion in 2003, as opposed to the previous guidance of EUR 16.7 to 17.7 billion. Adjusted EBITDA in the 2002 financial year amounted to EUR 16.3 billion. Total investments for the full 2003 year will not exceed EUR 7 billion. Deutsche Telekom expects to generate adjusted EBITDA of at least EUR 19.2 billion in the 2004 financial year. The 2004 guidance for the free cash flow is EUR 6 billion at least. Furthermore, Deutsche Telekom intends to increase its investments by approximately EUR 1.5 billion over the 2003 level. End of part 1 of ad hoc announcement of Deutsche Telekom, part 2 follows ——————————————————————————– WKN: 555750; ISIN: DE0005557508; Index: DAX, EURO STOXX 50 Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München und Stuttgart; EUREX; London; Amsterdam; NASDAQ Europe; Virtex; New York (ADR); Tokio 130630 Nov 03