UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2010
Commission file number 001-14540
Deutsche Telekom AG
(Translation of Registrant’s Name into
English)
Friedrich-Ebert-Allee 140,
53113 Bonn,
Germany
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or
Form 40-F.
Form 20-F
x Form
40-F o
Indicate by check mark whether the registrant by furnishing
the information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes o No x
This report is deemed submitted and not filed pursuant to
the rules and regulations of the Securities and Exchange
Commission.
Press release
Bonn, May 12, 2010
Deutsche Telekom off to a good start in 2010
Adjusted net
profit up 36 percent
|
Free cash flow
more than tripled to EUR 1.4
billion
|
German mobile
market leadership consolidated
|
Data revenue
per user in the United States increased by USD
1.50
|
Stable
development in Southern and Eastern Europe in the first
quarter
|
Deutsche Telekom got off to a good start in the 2010
financial year, recording sound figures in the first quarter. Adjusted EBITDA
increased by 1.6 percent compared with the first quarter of 2009 to
EUR 4.9 billion. With revenue almost stable – down 0.6 percent to
EUR 15.8 billion – the adjusted EBITDA margin improved by
0.6 percentage points to 30.9 percent.
The development of adjusted net profit was particularly
encouraging, increasing by 36 percent year-on-year to EUR 0.9 billion.
Unadjusted net profit jumped by just under EUR 2 billion from EUR -1.1
billion to EUR +0.8 billion. The free cash flow trend was also impressive, with
free cash flow of EUR 1.4 billion being recorded in the first three months
of 2010, up from EUR 0.4 billion in the first quarter of 2009.
“These results show that we got off to a good start in
2010,” said René Obermann, CEO of Deutsche Telekom. “We have further stabilized
our operations – in some cases achieving substantial improvements – and
implemented important steps in our new strategy at the same time.”
Among the operating highlights in the first three months of
2010 were the outstanding figures in the German mobile business. The surge in
the profitability of the mobile subsidiaries in the Europe operating segment and
the revenue growth at T-Systems were also satisfactory. Business in Southern and
Eastern Europe was stable with consistently high margins in spite of the
difficult economic situation in countries such as Greece. T-Mobile USA reported
sustained high demand for 3G-enabled converged devices.
By acquiring online payment service provider ClickandBuy in
March of this year, the Group secured itself a leading position in a
fast-growing segment. Furthermore, as of the end of the first quarter, the
official launch of Telekom Deutschland GmbH marked the completion of the
integration of fixed-network and mobile operations in Germany.
Deutsche Telekom maintains its guidance for the Group as
communicated. Excluding the effects of the joint venture between T-Mobile UK and
Orange UK in the United Kingdom, Deutsche Telekom expects to generate adjusted
EBITDA of approximately EUR 20 billion and free cash flow of
around
EUR 6.2 billion in the 2010 financial
year.
The assets and liabilities of T-Mobile UK have no longer
been shown in the consolidated statement of financial position since April 1,
2010, following the establishment of the joint venture in the United Kingdom.
Equally, T-Mobile UK's income statement has no longer been included in the
consolidated income statement since the same date. Instead, the joint venture is
included in the consolidated statement of financial position under investments
accounted for using the equity method and the joint venture's profit or loss
reported in the consolidated income statement under profit/loss from financial
activities.
These changes affect
Deutsche
Telekom’s adjusted EBITDA in the amount of EUR 0.4 to 0.5 billion. Taking
into account the agreed advance dividend from the joint venture, Deutsche
Telekom does not expect to see any impact on free cash flow.
Overview of developments in the operating
segments:
Germany
The Company further consolidated its market leadership in
service revenues in the German mobile communications sector. The focus remained
on value-driven growth. Business in Germany progressed overall in the first
quarter despite the challenging economic environment, regulatory requirements,
and more intense competition. As a result, the broadband market share has
remained stable since 2007, at 46 percent. The positive trend continued
with an additional 130,000 Entertain packages sold, bringing the figure up to
1.2 million as of March 31, 2010.
The Germany operating segment significantly slowed the
decline in revenues compared with the prior year, reporting a decrease of
2.2 percent to EUR 6.2 billion in the first quarter of 2010
compared with the first three months of 2009, when total revenue was down
4.6 percent. Adjusted EBITDA decreased by 2.7 percent to
EUR 2.3 billion in the first quarter of 2010.
Total revenue from mobile operations in Germany rose by
2.5 percent in the first quarter of 2010 to EUR 2.0 billion,
mainly as a result of 3.3 percent higher service revenues. Mobile data revenues
continued their solid growth trend, increasing by 39 percent year-on-year.
Adjusted EBITDA from mobile communications increased by 8.8 percent to
EUR 0.8 billion and the adjusted EBITDA margin grew by 2.4 percentage
points. This was attributable in particular to the positive revenue trend and
lower general and administrative expenses. The success of value-driven growth is
also reflected in the increased share of contract customers in the total
customer base. As of March 31, 2010, Deutsche Telekom served
17.3 million mobile contract customers in Germany, up 1.9 percent
compared with the prior-year quarter.
In the first quarter of the year, revenue in the fixed
network fell by 4.1 percent year-on-year to EUR 4.5 billion. Adjusted
EBITDA amounted to EUR 1.5 billion, the decrease in revenue being largely
offset by effective cost management. At 372,000, the number of line losses in
the first quarter was down 38.2 percent compared with the same quarter in
2009.
United States
In the United States, demand for mobile Internet services
is rising in line with strategic expectations. The number of 3G-enabled
converged devices in T-Mobile’s network rose by one third to 5.2 million in the
first three months of 2010 alone. This represents an increase of 3.7 million
compared with the previous year. As a result, non-voice revenue per customer
also increased by USD 1.50 year-on-year.
Customer numbers at T-Mobile USA declined by 77,000 in the
first quarter of 2010 as a result of the intense competitive environment and an
industry-wide downturn. As of March 31, 2010, the U.S. mobile subsidiary
served 33.7 million customers, 0.5 million more than one year
earlier.
T-Mobile USA’s business figures were negatively impacted by
the exchange rate of the U.S. dollar against the euro. On a U.S. dollar basis,
Deutsche Telekom’s U.S. subsidiary posted a revenue shortfall of just
2.2 percent, while adjusted EBITDA rose by 0.8 percent. On a euro
basis, however, revenue in the first quarter of 2010 was down 7.8 percent
compared with the prior-year period to EUR 3.8 billion. At the same time,
adjusted EBITDA decreased by 5.0 percent to EUR 1 billion. The
adjusted EBITDA margin improved year-on-year by 0.8 percentage points to
26.4 percent in the first quarter of this year. The profitability of the
U.S. business is underlined by the net profit of USD 362 million generated
in the first three months of 2010, compared with USD 322 million in the
same period of 2009.
Europe
The mobile companies assigned to the Europe operating
segment all recorded a pleasing rise in profitability. This segment posted an
adjusted EBITDA margin of 27.6 percent in the first quarter, an increase of
8.4 percentage points compared with the previous year. The revenue trend is
also encouraging. Total revenue fell by a mere 1.0 percent to EUR 2.4 billion.
Adjusted for the impact of regulatory decisions and exchange rates, revenue
actually increased slightly.
The customer base in the segment remained stable at 44.0
million in spite of the deregistration of inactive prepay customers. 171,000 net
contract additions were recorded in the first three months of 2010. The
companies in Poland and the Netherlands were particularly successful at customer
acquisition and once again shifted their customer base clearly towards lucrative
contract customers.
Due to strict cost control, all national companies
succeeded in increasing their profit margins despite intense competition and
unfavorable regulatory decisions. Non-recurring effects, for instance in
Austria, also contributed to this positive trend. T-Mobile CZ in the Czech
Republic remains the most profitable company with an adjusted EBITDA margin of
48.4 percent.
The first quarter of 2010 was the last time T-Mobile UK
reported its business figures. The new joint venture company with Orange UK
commenced operations on April 1, 2010, and will publish its figures
separately in the future. Going forward, the national companies in Poland, the
Czech Republic, Austria, and the Netherlands will be disclosed in the new Europe
segment together with the companies that had previously been assigned to the
Southern and Eastern European segment.
Southern and Eastern Europe
In the first quarter of 2010, Deutsche Telekom further
strengthened its position in the markets of Southern and Eastern Europe despite
the challenging economic environment. Total revenue increased by EUR 0.4
billion year-on-year to EUR 2.4 billion. Adjusted EBITDA grew by
EUR 0.1 billion in the same period to EUR 0.9 billion. Revenue and
adjusted EBITDA were significantly affected by the inclusion of the OTE group.
OTE has only been fully consolidated since February 2009 and was therefore
not included in the figures for the entire first quarter of 2009.
The strained economic situation and continuing intense
competition in both mobile communications and the traditional fixed network
negatively affected the organic revenue trend in the first quarter of 2010. In
addition, tax burdens had a negative impact on mobile revenue in Croatia.
Intensive cost savings did fully compensate for these effects on adjusted
EBITDA. The adjusted EBITDA margin nevertheless remained high at almost
39 percent.
The broadband market also grew in the first quarter of
2010. With 3.9 million broadband lines in total, the operating segment recorded
an increase of 3.0 percent compared with the end of 2009. Growth in the
broadband market was also driven by the ongoing success in the marketing of
IPTV, with the number of IPTV customers almost doubling within one
year.
All mobile companies contributed to the increase in
contract customer numbers in absolute terms. The percentage of contract
customers in the total customer base increased slightly in all countries except
Slovakia. The total mobile customer base was reduced by 0.6 million in the first
quarter of 2010 to 34.0 million. The mobile business in the Southern and
Eastern Europe segment declined compared with the end of 2009 in several
countries, reflecting macroeconomic trends and new registration requirements for
prepay products in some countries.
Systems Solutions
In the first quarter of the year, total revenue from
T-Systems’ operations returned to an upward trend, increasing by
1.2 percent year-on-year to EUR 2.1 billion, driven in particular
by the 5.7 percent growth in T-Systems’ international
business.
The large number of deals with corporate customers in the
previous year had a positive effect on the figures. This positive upward trend
in incoming orders also continued in the first quarter due to major new deals
with the German Aerospace Center (DLR), Deutsche Post DHL, TUI Travel, and
Swiss Federal Railways. In spite of the universal economic and
financial crisis, new orders increased by 7.3 percent in the first three
months of 2010.
Business with customers outside the Deutsche Telekom Group
expanded by 2.4 percent, reflecting T-Systems’ increasingly strong
positioning on national and international markets. Intragroup revenue declined
by 1.8 percent compared with the previous year to EUR 0.6 billion,
further underlining T-Systems’ contribution to the Group’s cost-cutting
efforts.
Adjusted EBIT increased by 38.2 percent to EUR 47
million as a result of the extensive restructuring and efficiency enhancement
program Save for Service as well as the extension of the economic useful lives
of non-current assets. The adjusted EBIT margin totaled 2.2 percent, up
from 1.6 percent the prior-year quarter. By contrast, adjusted EBITDA of
the Systems Solutions operating segment declined by 7.1 percent to
EUR 0.2 billion in the first quarter, largely attributable to higher costs
of goods and services purchased in connection with the new major
deals.
The Deutsche Telekom Group at a glance*:
|
Q1 2010
millions of EUR
|
Q1 2009
millions of EUR
|
Change
millions of EUR
|
Change
%
|
FY 2009
millions of EUR
|
Net revenue
- Domestic
- International
|
15,812
6,739
9,073
|
15,902
6,943
8,959
|
(90)
(204)
114
|
(0.6)
(2.9)
1.3
|
64,602
28,033
36,569
|
Profit (loss) from operations (EBIT)
|
2,029
|
244
|
1,785
|
n.a.
|
6,012
|
Adjusted EBIT
|
2,230
|
1,917
|
313
|
16.3
|
9,158
|
EBITDA
|
4,690
|
4,942
|
(252)
|
(5.1)
|
19,906
|
Adjusted
EBITDA
|
4,890
|
4,812
|
78
|
1.6
|
20,668
|
Net profit (loss)
|
767
|
(1,124)
|
1,891
|
n.a.
|
353
|
Adjusted net profit (loss)
|
891
|
655
|
236
|
36.0
|
3,390
|
Free cash flow before dividend
payments
|
1,439
|
416
|
1,023
|
n.a.
|
6,969
|
Net cash from operating activities
|
3,271
|
2,966
|
305
|
10.3
|
15,795
|
Cash outflows for investments in property, plant and
equipment, and intangible assets (excluding goodwill)
|
1,934
|
2,611
|
(677)
|
(25.9)
|
9,202
|
Net debt at reporting date
|
40,418
|
42,833
|
(2,415)
|
(5.6)
|
40,911
|
Number of employees at reporting date
|
258,240
|
260,798
|
(2,558)
|
(1.0)
|
259,920
|
Germany operating segment*:
|
Q1 2010
millions of EUR
|
Q1 2009
millions of EUR
|
Change
millions of EUR
|
Change
%
|
FY 2009
millions of EUR
|
Total revenue
- Fixed network
- Mobile communications
|
6,189
4,530
2,000
|
6,331
4,724
1,952
|
(142)
(194)
48
|
(2.2)
(4.1)
2.5
|
25,423
18,736
8,109
|
Net revenue
|
5,804
|
5,969
|
(165)
|
(2.8)
|
23,813
|
Profit (loss) from operations (EBIT)
|
1,171
|
1,325
|
(154)
|
(11.6)
|
5,062
|
Adjusted EBIT
|
1,285
|
1,347
|
(62)
|
(4.6)
|
5,418
|
EBITDA
|
2,185
|
2,341
|
(156)
|
(6.7)
|
9,258
|
Adjusted
EBITDA
- Fixed network
- Mobile communications
|
2,299
1,468
828
|
2,363
1,609
761
|
(64)
(141)
67
|
(2.7)
(8.8)
8.8
|
9,607
6,247
3,373
|
Adjusted EBITDA margin
|
37.1%
|
37.3%
|
|
(0.2)%p
|
37.7%
|
Number of employees (average)
|
80,729
|
86,086
|
(5,357)
|
(6.2)
|
84,584
|
Comments on the table:
The contributions of the fixed-network and mobile
communications sub-segments generally show the unconsolidated view, and do not
take consolidation effects at operating segment level into
consideration.
Effective July 1, 2009, the Germany operating segment
includes the fixed-network and mobile communications business. The fixed-network
figures include PASM (Power and Air Condition Solution Management GmbH & Co.
KG) without Global Network, International Carrier Services & Solutions
(ICSS), the share of Deutsche Telekom AG in the Product House as well as the
business customers transferred from the Systems Solutions operating segment
effective January 1, 2009. The mobile communications figures include DFMG
(Deutsche Funkturm GmbH).
All prior-quarter and prior-year figures have been adjusted
for better comparability. Percentages were calculated on the basis of figures
shown.
United States operating segment*:
|
Q1 2010
millions of EUR
|
Q1 2009
millions of EUR
|
Change
millions of EUR
|
Change
%
|
FY 2009
millions of EUR
|
Total revenue
|
3,814
|
4,137
|
(323)
|
(7.8)
|
15,471
|
Profit (loss) from operations (EBIT)
|
544
|
530
|
14
|
2.6
|
2,233
|
Adjusted EBIT
|
544
|
530
|
14
|
2.6
|
2,233
|
EBITDA
|
1,008
|
1,061
|
(53)
|
(5.0)
|
4,261
|
Adjusted
EBITDA
|
1,008
|
1,061
|
(53)
|
(5.0)
|
4,261
|
Adjusted EBITDA margin
|
26.4%
|
25.6%
|
|
0.8%p
|
27.5%
|
Number of employees (average)
|
38,663
|
37,720
|
943
|
2.5
|
38,231
|
Europe operating segment*:
|
Q1 2010
millions of EUR
|
Q1 2009
millions of EUR
|
Change
millions of EUR
|
Change
%
|
FY 2009
millions of EUR
|
Total revenue
|
2,412
|
2,436
|
(24)
|
(1.0)
|
10,034
|
Of which: T-Mobile UK
|
783
|
836
|
(53)
|
(6.3)
|
3,390
|
Of which: T-Mobile NL
|
442
|
444
|
(2)
|
(0.5)
|
1,807
|
Of which: PTC
|
441
|
416
|
25
|
6.0
|
1,757
|
Of which: T-Mobile CZ
|
279
|
275
|
4
|
1.5
|
1,191
|
Of which: T-Mobile A
|
248
|
267
|
(19)
|
(7.1)
|
1,038
|
Net revenue
|
2,264
|
2,307
|
(43)
|
(1.9)
|
9,486
|
Profit
(loss) from operations (EBIT)
a
|
375
|
(1,786)
|
2,161
|
n.a.
|
(905)
|
Adjusted EBIT
|
380
|
23
|
357
|
n.a.
|
996
|
EBITDA
|
660
|
461
|
199
|
43.2
|
2,506
|
Adjusted
EBITDA
|
665
|
467
|
198
|
42.4
|
2,557
|
Of which: T-Mobile UK
|
167
|
113
|
54
|
47.8
|
611
|
Of which: T-Mobile NL
|
102
|
64
|
38
|
59.4
|
430
|
Of which: PTC
|
169
|
110
|
59
|
53.6
|
616
|
Of which: T-Mobile CZ
|
135
|
127
|
8
|
6.3
|
614
|
Of which: T-Mobile A
|
83
|
53
|
30
|
56.6
|
283
|
Adjusted EBITDA margin
|
27.6%
|
19.2%
|
|
8.4%p
|
25.5%
|
Number of employees (average)
|
17,594
|
18,277
|
(683)
|
(3.7)
|
18,105
|
Comments on the table:
a) Including an impairment loss of EUR 1.8 billion
recognized on the goodwill of the cash-generating unit T-Mobile UK in the first
quarter of 2009.
Southern and Eastern Europe operating
segment*:
|
Q1 2010
millions of EUR
|
Q1 2009
millions of EUR
|
Change
millions of EUR
|
Change
%
|
FY 2009
millions of EUR
|
Total revenue
|
2,387
|
1,964
|
423
|
21.5
|
9,685
|
Of which: Hungary
|
402
|
391
|
11
|
2.8
|
1,682
|
Of which: Croatia
|
267
|
278
|
(11)
|
(4.0)
|
1,161
|
Of which: Slovakia
|
230
|
244
|
(14)
|
(5.7)
|
974
|
Of which: Greece
|
997
|
655
|
342
|
52.2
|
3,899
|
Of which: Romania
|
291
|
204
|
87
|
42.6
|
1,104
|
Of which:
Other
a
|
229
|
206
|
23
|
11.2
|
976
|
Net revenue
|
2,349
|
1,929
|
420
|
21.8
|
9,510
|
Profit (loss) from operations (EBIT)
|
304
|
504
|
(200)
|
(39.7)
|
1,037
|
Adjusted EBIT
|
352
|
323
|
29
|
9.0
|
1,579
|
EBITDA
|
877
|
980
|
(103)
|
(10.5)
|
3,784
|
Adjusted
EBITDA
|
925
|
799
|
126
|
15.8
|
3,826
|
Of which: Hungary
|
162
|
164
|
(2)
|
(1.2)
|
675
|
Of which: Croatia
|
113
|
128
|
(15)
|
(11.7)
|
525
|
Of which: Slovakia
|
107
|
112
|
(5)
|
(4.5)
|
439
|
Of which: Greece
|
376
|
239
|
137
|
57.3
|
1,447
|
Of which: Romania
|
72
|
67
|
5
|
7.5
|
293
|
Of which:
Other
a
|
98
|
92
|
6
|
6.5
|
444
|
Adjusted EBITDA margin
|
38.8%
|
40.7%
|
|
(1.9)%p
|
39.5%
|
Number of employees (average)
|
52,531
|
43,348
|
9,183
|
21.2
|
51,172
|
Comments on the table:
Including first-time consolidation of OTE from February 1,
2009.
a) “Other” consists of Bulgaria, Albania, Macedonia, and
Montenegro.
Systems Solutions operating segment*:
|
Q1 2010
millions of EUR
|
Q1 2009
millions of EUR
|
Change
millions of EUR
|
Change
%
|
FY 2009
millions of EUR
|
Total revenue
|
2,131
|
2,106
|
25
|
1.2
|
8,798
|
- Computing services
- Desktop services
- Systems integration
- Telecommunications
-
Other
a
|
750
344
426
745
(134)
|
688
326
432
780
(120)
|
62
18
(6)
(34)
(14)
|
9.0
5.5
(1.4)
(4.4)
(11.7)
|
2,925
1,404
1,741
3,225
(497)
|
Net revenue
|
1,532
|
1,496
|
36
|
2.4
|
6,083
|
New orders
|
2,156
|
2,010
|
146
|
7.3
|
9,305
|
Profit (loss) from operations (EBIT)
|
18
|
11
|
7
|
63.6
|
(11)
|
Adjusted EBIT
|
47
|
34
|
13
|
38.2
|
229
|
EBITDA
|
168
|
188
|
(20)
|
(10.6)
|
710
|
Adjusted
EBITDA
|
196
|
211
|
(15)
|
(7.1)
|
923
|
Adjusted EBITDA margin
|
9.2%
|
10.0%
|
|
(0.8)%p
|
10.5%
|
Number of employees (average)
|
47,446
|
44,449
|
2,997
|
6.7
|
45,328
|
Comments on the table:
The 160,000 or so business customers transferred from the
Systems Solutions operating segment effective January 1, 2009, are shown as part
of the fixed-network operations in the Germany operating segment. All
prior-quarter and prior-year figures have been adjusted for better
comparability.
a) Non-core activities and consolidation.
Group Headquarters & Shared Services*:
|
Q1 2010
millions of EUR
|
Q1 2009
millions of EUR
|
Change
millions of EUR
|
Change
%
|
FY 2009
millions of EUR
|
Total revenue
|
565
|
618
|
(53)
|
(8.6)
|
2,410
|
Net revenue
|
53
|
68
|
(15)
|
(22.1)
|
253
|
Profit (loss) from operations (EBIT)
|
(365)
|
(309)
|
(56)
|
(18.1)
|
(1,249)
|
Adjusted EBIT
|
(360)
|
(309)
|
(51)
|
(16.5)
|
(1,148)
|
EBITDA
|
(177)
|
(50)
|
(127)
|
n.a.
|
(416)
|
Adjusted
EBITDA
|
(172)
|
(50)
|
(122)
|
n.a.
|
(315)
|
Number of employees (average)
|
22,070
|
19,445
|
2,625
|
13.5
|
20,181
|
*Deutsche Telekom defines EBITDA as profit/loss from
operations before depreciation, amortization and impairment losses. For a
detailed explanation of non-GAAP performance measures, special factors affecting
EBITDA, adjusted EBITDA, the adjusted EBITDA margin as well as special factors
affecting profit or loss and the adjusted net profit, please refer to
“Reconciliation to pro forma figures” that is posted on Deutsche Telekom's
Investor Relations website at www.telekom.com.
Development of customer numbers in the first quarter of
2010.
Germany operating segment:
|
Mar. 31, 2010
thousands
|
Mar. 31, 2009
thousands
|
Change
thousands
|
Change
%
|
Fixed network
|
|
|
|
|
Fixed-network lines
|
25,864
|
27,699
|
(1,835)
|
(6.6)
|
Retail broadband lines
|
11,665
|
10,984
|
681
|
6.2
|
Wholesale bundled lines
|
1,523
|
2,209
|
(686)
|
(31.1)
|
ULLs
|
9,242
|
8,606
|
636
|
7.4
|
Wholesale unbundled lines
|
661
|
316
|
345
|
n.a.
|
Mobile communications
|
|
|
|
|
Mobile
customers
a
|
38,544
|
38,984
|
(440)
|
(1.1)
|
Comments on the table:
Percentages were calculated on the basis of figures
shown.
As a result of the change in the terms of contract, prepay
contracts no longer end automatically, but run for an unlimited duration and can
be terminated by the customer at any time and by Telekom Deutschland GmbH with
one month's notice. Telekom Deutschland GmbH reserves the right to make use of
this right of termination and to deregister cards in the system.
United States operating segment:
|
Mar. 31, 2010
thousands
|
Mar. 31, 2009
thousands
|
Change
thousands
|
Change
%
|
Mobile
customers
a
|
33,713
|
33,173
|
540
|
1.6
|
Comments on the table:
a) One mobile communications card corresponds to one
customer.
Europe operating segment:
|
Mar. 31, 2010
thousands
|
Mar. 31, 2009
thousands
|
Change
thousands
|
Change
%
|
Mobile
customers
a
|
44,003
|
44,026
|
(23)
|
0.1
|
Of
which: T-Mobile UK
b
|
17,175
|
16,675
|
500
|
3.0
|
Of which:
T-Mobile NL
c
|
4,392
|
5,235
|
(843)
|
(16.1)
|
Of which: PTC
|
13,361
|
13,287
|
74
|
0.6
|
Of which: T-Mobile CZ
|
5,449
|
5,411
|
38
|
0.7
|
Of which: T-Mobile A
|
3,626
|
3,418
|
208
|
6.1
|
Comments on the table:
a) One mobile communications card corresponds to one
customer.
b) Including Virgin Mobile.
c) Around 900,000 inactive customers were added to the
customer base due to the acquisition of Orange and the migration in the 2009
financial year of Orange customers to T-Mobile’s customer base. After a period
of inactivity of 180 days, these customers were churned in the fourth quarter of
2009, substantially reducing prepay customer figures.
Southern and Eastern Europe operating segment:
|
Mar. 31, 2010
thousands
|
Mar. 31, 2009
thousands
|
Change
thousands
|
Change
%
|
Fixed network
|
|
|
|
|
Fixed-network lines
|
11,654
|
12,637
|
(983)
|
(7.8)
|
Of which: Hungary
|
1,771
|
1,966
|
(195)
|
(9.9)
|
Of which: Croatia
|
1,462
|
1,531
|
(69)
|
(4.5)
|
Of which: Slovakia
|
1,093
|
1,123
|
(30)
|
(2.7)
|
Of which: Greece
|
4,095
|
4,490
|
(395)
|
(8.8)
|
Of which: Romania
|
2,721
|
2,971
|
(250)
|
(8.)
|
Retail broadband lines
|
3,675
|
3,176
|
499
|
15.7
|
Wholesale bundled lines
|
212
|
282
|
(70)
|
(24.8)
|
ULLs
|
1,210
|
796
|
414
|
52.0
|
Wholesale unbundled lines
|
35
|
27
|
8
|
29.6
|
Mobile communications
|
|
|
|
|
Mobile customers
|
33,983
|
32,259
|
1,724
|
5.3
|
Of which: Hungary
|
5,120
|
5,347
|
(227)
|
(4.2)
|
Of which: Croatia
|
2,798
|
2,781
|
17
|
0.6
|
Of which: Slovakia
|
2,399
|
2,331
|
68
|
2.9
|
Of which: Greece
|
8,813
|
8,412
|
401
|
4.8
|
Of which: Romania
|
7,155
|
6,106
|
1,049
|
17.2
|
Comments on the table:
Including first-time consolidation of OTE from February 1,
2009.
Net additions in the first quarter of 2010.
Germany operating segment:
|
Q1 2010
thousands
|
Q1 2009
thousands
|
Change
thousands
|
Change
%
|
Fixed network
|
|
|
|
|
Fixed-network lines
|
(372)
|
(602)
|
(230)
|
(38.2)
|
Retail broadband lines
|
188
|
390
|
(202)
|
(51.8)
|
Wholesale bundled lines
|
(98)
|
(328)
|
230
|
(70.1)
|
ULLs
|
149
|
336
|
(187)
|
(55.7)
|
Wholesale unbundled lines
|
61
|
110
|
(49)
|
(44.5)
|
Mobile communications
|
|
|
|
|
Mobile
customers
a
|
(592)
|
(117)
|
(475)
|
n.a.
|
Comments on the table:
Totals were calculated on the basis of precise figures and
rounded to millions. Percentages were calculated on the basis of figures
shown.
a) As a result of the change in the terms of contract,
prepay contracts no longer end automatically, but run for an unlimited duration
and can be terminated by the customer at any time and by Telekom Deutschland
GmbH with one month's notice. Telekom Deutschland GmbH reserves the right to
make use of this right of termination and to deregister cards in the
system.
United States operating segment:
|
Q1 2010
thousands
|
Q1 2009
thousands
|
Change
thousands
|
Change
%
|
Mobile
customers
a
|
(77)
|
415
|
(492)
|
n.a.
|
Comments on the table:
a) One mobile communications card corresponds to one
customer.
Europe operating segment:
|
Q1 2010
thousands
|
Q1 2009
thousands
|
Change
thousands
|
Change
%
|
Mobile
customers
a
|
(321)
|
(166)
|
(155)
|
(93.4)
|
Of
which: T-Mobile UK
b
|
(3)
|
(111)
|
108
|
97.3
|
Of which:
T-Mobile NL
c
|
(200)
|
(74)
|
(126)
|
n.a.
|
Of which: PTC
|
(138)
|
14
|
(152)
|
n.a.
|
Of which: T-Mobile CZ
|
(7)
|
(11)
|
4
|
36.4
|
Of which: T-Mobile A
|
27
|
16
|
11
|
68.8
|
Comments on the table:
a) One mobile communications card corresponds to one
customer.
b) Including Virgin Mobile.
c) Around 900,000 inactive customers were added to the
customer base due to the acquisition of Orange and the migration in the 2009
financial year of Orange customers to T-Mobile’s customer base. After a period
of inactivity of 180 days, these customers were churned in the fourth quarter of
2009, substantially reducing prepay customer figures.
|
Southern and Eastern Europe operating
segment:
|
|
Q1 2010
thousands
|
Q1 2009
thousands
|
Change
thousands
|
Change
%
|
Fixed network
|
|
|
|
|
Fixed-network lines
|
(281)
|
(209)
|
72
|
34.4
|
Of which: Hungary
|
(50)
|
(45)
|
(5)
|
(11.1)
|
Of which: Croatia
|
(22)
|
(19)
|
(3)
|
(15.8)
|
Of which: Slovakia
|
(8)
|
(3)
|
(5)
|
n.a.
|
Of which: Greece
|
(133)
|
(89)
|
(44)
|
49.4
|
Of which: Romania
|
(55)
|
(34)
|
(19)
|
61.8
|
Retail broadband lines
|
129
|
188
|
(59)
|
(31.4)
|
Wholesale bundled lines
|
(17)
|
(29)
|
12
|
n.a.
|
ULLs
|
127
|
104
|
23
|
22.1
|
Wholesale unbundled lines
|
2
|
4
|
(2)
|
(50.0)
|
Mobile communications
|
|
|
|
|
Mobile customers
|
(593)
|
547
|
(1,140)
|
n.a.
|
Of which: Hungary
|
1
|
(14)
|
15
|
n.a.
|
Of which: Croatia
|
(61)
|
91
|
(152)
|
n.a.
|
Of which: Slovakia
|
23
|
(16)
|
39
|
n.a.
|
Of which: Greece
|
(404)
|
386
|
(790)
|
n.a.
|
Of which: Romania
|
(126)
|
117
|
(243)
|
n.a.
|
Comments on the table:
First-time consolidation of OTE from February 1,
2009.
This press release contains forward-looking statements that
reflect the current views of Deutsche Telekom management with respect to future
events. These also include statements on market potential, statements on finance
guidance, as well as on the dividend outlook. They are generally identified by
the terms "expect," "anticipate," "believe," "intend," "estimate," "aim for,"
"goal," "plan," "will," "strive for," "outlook," or similar expressions and
often include information that relates to net revenue expectations or targets
for adjusted EBITDA, profit or loss, earnings performance, and other indicators,
as well as personnel-related measures and workforce adjustments. Forward-looking
statements are based on current plans, estimates, and projections. They 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, including those described in the sections
"Forward-Looking Statements" and "Risk Factors" of the Company's Form 20-F
annual report filed with the U.S. Securities and Exchange Commission. Among the
relevant factors are the progress of Deutsche Telekom’s workforce reduction
initiative, the restructuring of operating activities in Germany, and the impact
of other significant strategic or business initiatives, including acquisitions,
dispositions, business combinations, and cost reduction measures. In addition,
regulatory decisions, stronger than expected competition, technological change,
litigation and regulatory developments, among other factors, may have a material
adverse effect on costs and revenue development. Furthermore, changes in the
economic and business environments – for example, the current economic slump –
in markets where we, our subsidiaries and affiliates operate, the enduring
instability and volatility on the global financial markets, as well as exchange
rate and interest rate fluctuations can also adversely affect our business
development and the availability of capital at favorable terms. 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
met. Deutsche Telekom does not assume any obligation to update forward-looking
statements to take new information or future events into account or otherwise.
Deutsche Telekom does not reconcile its adjusted EBITDA guidance to a GAAP
measure because it would require unreasonable effort to do so. As a rule,
Deutsche Telekom does not predict the net effect of future special factors due
to their uncertainty. Special factors and interest, taxes, depreciation and
amortization (including impairment losses) can have a significant effect on
Deutsche Telekom's results.
In addition to figures prepared in
accordance
with IFRS, Deutsche Telekom presents
non-GAAP financial performance measures, including EBITDA, EBITDA margin,
adjusted EBITDA, adjusted EBITDA margin, adjusted EBT, adjusted net profit, 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. For further information relevant to the
interpretation of these terms, please refer to the chapter “Reconciliation of
pro forma figures” posted on Deutsche Telekom’s website (www.telekom.com) under
the link "Investor Relations."
Deutsche Telekom AG
Corporate Communications
Tel.:
+49 (0) 228 181-49 49
E-Mail:
presse@telekom.de
Further information is available for journalists at
www.telekom.com/media
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
DEUTSCHE TELEKOM AG
By: /
s/
Dr. Guillaume Maisondieu
Name: Dr. Guillaume Maisondieu
Title: Chief Accounting Officer
Date: May 12, 2010