Ad-hoc | 28 October 1999 07:57

Ad hoc-Service: Deutsche Telekom AG englisch

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Ad hoc notification in accordance with Section 15 of the Security Trading Act (WpHG) Bonn, October 28, 1999 Deutsche Telekom Group Preliminary key figures for the first three quarters of 1999 (January 1, 1999 to September 30, 1999) – Growth drivers continue to boom – In fixed-network operations, small share of market growth taken despite more intense competition – Decrease in revenue due to tariff cuts in the fixed network almost compensated by growth areas – Income lower due to reduction of profit margins in fixed network in Germany – Sale of stake in Sprint expected to boost income considerably – Acquisition of 35% stake in Croatian Telekom and Media One’s . holdings in Eastern Europe – T-Mobil: 300,000 new subscribers per month and 150 million SMS messages sent in September – T-Online: 100,000 new customers per month and number of log-ins doubled Deutsche Telekom AG announces a preliminary indication of the corporate group’s results for the first three quarters of the 1999 financial year. Deutsche Telekom emphasizes that these results are only initial results on the basis of current information. Deviations may arise between these figures and the audited figures which are to be published on November 30, 1999. Revenue and net income, January 1 to September 30 Billions of EUR Q1 – Q3 1999 Q1 – Q3 1998 Change Revenue 25.5 26.25* -3 % Consolidated 1.25 1.55 -19% net income * figure includes revenues amounting to EUR 250 million from taking over and billing services for competitors which were no longer recorded under revenue in 1999. The revenue of the Deutsche Telekom Group decreased by approximately 3% in the first nine months of the 1999 financial year compared with the same period last year. The reduction was thus considerably less pronounced than in the first half of 1999, when revenue fell by 5%. This was attributable to the continued boom in our growth areas mobile communications, online business, access and systems solutions, as well as the first full consolidation of the Austrian company max.mobil. as of January 1, 1999, and its newly acquired sales subsidiary (also backdated to January 1, 1999) with combined revenues of approximately EUR 560 million. It must be remembered that the considerable tariff cuts made in the course of the year, which will save customers approximately EUR 3 billion over the full year, contributed to this decrease in revenue. Despite intensified competition, Deutsche Telekom succeeded in taking a small share of the growth of the telecommunications market in the first nine months of 1999. As expected, it was not possible to compensate in the short term for the enormous tariff cuts, the last of which was implemented on June 1, 1999, for international long-distance calls, and the resulting decrease in margins in the main revenue driver, telephone network communications, with increased revenues from the growth areas, in particular mobile communications. Furthermore, tax expense increased compared with the second quarter due to the discontinuation of the special conditions. The costs of Deutsche Telekom’s capital increase in June 1999, which amounted to approximately EUR 200 million, must also be included in the comparison with the figures for 1998. One 2 One will be consolidated beginning October 1. This will lead to proportional contribution to revenue and a reduction of income attributable to goodwill and the take-over of current losses for one quarter. MCI Worldcom filed a take-over bid for Sprint on October 5, 1999, which Sprint accepted. If Deutsche Telekom’s stake in Sprint FON and PCS is valued at the day the bid was filed, the stake is worth approximately EUR 8.6 billion, compared with its book value of approximately EUR 1.5 billion. Deutsche Telekom intends to sell its stake in Sprint. On October 4, 1999, Deutsche Telekom announced its acquisition of a 35% stake in Croatian Telekom for US-Dollar 850 million. The take-over of several of MediaOne’s holdings in Eastern Europe for a total of US$ 2 billion was announced on October 22. Specifically, these are an additional 22.5% stake in the Polish mobile communications company PTC, 49% of the Hungarian mobile communications companies Westel and the controlling majority in the Russian company RTDC. These acquisitions represent a consistent continuation of Deutsche Telekom’s strategy of building a pan-european mobile communications business. Employees and debt 30.09.99 30.09.98 Change Change in % Personnel 174,800 184,127 9,327 -5% (excluding Matav and max.mobil.) Financial liabilities * 37.7 43.9 -6.2 -14% (excluding Matav and max.mobil.) in billions of EUR * including loan notes On September 30, 1999, the number of employees in the Deutsche Telekom Group (excluding Matav and max.mobil.) had fallen by approximately 5% compared with the figure at September 30, 1998 to approximately 174,800. The number of employees was reduced, avoiding compulsory redundancies, by approximately 4,400 between January 1 and September 30, 1999. Debts (excluding Matav and max.mobil.) were reduced according to plan to approximately EUR 37.7 billion at September 30, 1999. In the Deutsche Telekom Group (including Matav and max.mobil.), debt now amounts to EUR 39.1 billion. Offset by liquid assets and marketable securities, the net financial liabilities of the Group amounted to approximately EUR 24.7 billion at September 30, 1999. The inflow of funds of approximately EUR 1.6 billion compared with June 30, 1999 includes the earnings from the utilization of the Greenshoe which amounted to ca. EUR 1 billion. The purchase price for One 2 One was paid at October 1, 1999. Customer trends for selected services in thousands September September Change in Change in % 30, 1999 30, 1998 thousands Telephone lines 47,388 46,132 1,256 3% incl. ISDN channels of which: ISDN 12,407 9,315 3,092 33% channels total of which: residential customers 5,426 3,470 1,956 56% business customers 6,980 5,836 1,144 20% T-Online customers 3,573 2,442 1,131 46% Mobile telephony 7,943 5,153 2,790 54% subscribers (T-D1 and T-C-Tel) of which: T-D1 7,707 4,760 2,947 62% Deutsche Telekom’s growth drivers have accelerated once again. T-Online registered 100,000 new customers per month; this number is continuing to grow. 900,000 new customers have joined T-Online since the beginning of 1999. The use of the online services by the individual customers is also growing strongly. At the end of September, the number of log-ins had already passed the 1 billion mark. That is twice as many as in the same period last year. This also already exceeds the figure of 838 million for the entire 1998 year. T-D1 registered a net average of 300,000 new subscribers per month during the third quarter. With a forecasted total of nine million subscribers at the end of 1999, T-D1 is thus expected to exceed its target by far. The number of short messages (SMS) sent by mobile telephones grew to approximately 150 million in September alone. The penetration rate of the German mobile communications market increased by one percentage point in the third quarter of 1999 and had reached approximately 24% at the end of September. The ISDN boom in fixed-network telephone lines is continuing. Compared with the same period last year, the number of ISDN channels among business customers grew by 20% and an impressive 56% among residential customers. 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. End of release Ende der Mitteilung