Ad-hoc | 31 July 2001 07:48

Deutsche Telekom AG english

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Bonn, July 31, 2001 Deutsche Telekom Group Preliminary key figures for the first half of the 2001 financial year (January 1, 2001 to June 30, 2001) – Group revenue increased by 17.4% in the first half of the financial year to EUR 22.6 billion from EUR 19.2 billion – Income a) rose by approximately 20% to EUR 0.6 billion – EBITDA in mobile communications more than doubled compared with the first half of 2000 – The number of fixed network telephone lines continued to grow – more than 1 million T-DSL contracts sold – Subscriber growth of the worldwide mobile communications business greater than 60% – T-D1 is market leader in Germany – strong growth at VoiceStream – T-Mobile International listing will not take place in 2001 – Deutsche Telekom successfully placed Euro bonds of EUR 8 billion a) excluding goodwill, UMTS costs, Sprint FON sale and VoiceStream Deutsche Telekom AG today announced its preliminary indication of the Group’s results for the first half of the 2001 financial year. Deutsche Telekom emphasized that these results are initial results based on current information. Deviations may arise between these figures and the final figures, which will be published on August 28, 2001. Compared with the first half of the 2000 financial year, Group revenue in- creased by 17,4% to EUR 22.6 billion. Of this, EUR 0.4 billion is attributable to the first-time consolidation of the U.S. mobile communications company VoiceStream Wireless (including Powertel) for the month of June 2001. Preliminary indications show a significant increase in the Group’s operating results for the first half of the 2001 financial year. end of ad hoc announcement (c) DGAP 31.07.2001 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Income before amortization of goodwill and UMTS costs (including tax related effects)rose by approximately 20% in the first half of 2001 to approximately EUR 0.6 billion compared to EUR 0.5 billion in the same period last year. This excludes the positive effects from the sale of Srint FON shares and the effect of the first-time consolidation of VoiceStream/Powertel. In the second quarter of 2001, Deutsche Telekom generated neutral net income resulting in net income of EUR -0.4 billion for the first six months of 2001. This figure includes the entire amortization of goodwill (EUR -1.0 billion) and UMTS costs (EUR -0.9 billion), as well as the sale of Sprint FON shares (EUR +1.0 billion) and the impact of VoiceStream/Powertel’s first-time consolidation (EUR -0.3 billion excluding goodwill) for the month of June. In the first half of 2001, EBITDA of the mobile communications business more than doubled to EUR 1.4 billion from EUR 0.6 billion in the same period last year. It has nearly reached the level attained for the entire 2000 financial year. After a thorough review, Deutsche Telekom has decided not to proceed with the listing of T-Mobile International before the end of 2001. However, this does not in any way change the strategic decision to proceed with the company’s listing in the future. Revenue and net income from January 1 to June 30, 2001 Billions of EUR H1/2001 H1/2000 Change Group revenue 22.6 19.2 17.4% Net income (see footnotes) 0.6 a) 0.5 b) 20.0% a) before goodwill/UMTS costs (taking into account the related tax effect), excluding VoiceStream/Powertel, excluding sale of Sprint FON shares b) before goodwill/UMTS costs (taking into account the related tax effect), excluding special effects announced last year Personnel Deutsche Telekom AG has continued to reduce staff systematically. The number Of employees in the Group increased by approximately 54,100 primarily as a result of changes in the composition of the Deutsche Telekom Group. In particular, this includes approximately 14,200 employees at VoiceStream/Power- tel, approximately 12,100 employees at Slovenske Telekommunikacie and approximately 20,800 employees from debis Systemhaus. Reporting date June 30, 2001 June 30, 2000 Change personnel DTAG 125,900 133,128 -5.4 % Group personnel 245,200 195,648 25.3 % Net debt As expected, net debt has increased by EUR 12.0 a) billion as of June 30, 2001, compared with the first quarter of 2001. This results primarily from the full consolidation of VoiceStream/Powertel’s net debt of approximately EUR 8.3 billion, the payment of the cash component to VoiceStream shareholders of EUR 4.9 billion, the dividend payment of EUR 1.9 billion for the 2000 financial year, and tax payments amounting to EUR 0.8 billion. The sale of Sprint FON shares, amounting to EUR 1.9 billion (cash effect) and the inflow of cash from Wind amounting to EUR 2.3 billion (balance of purchase price) both had a positive effect on net debt. Deutsche Telekom remains fully committed to its long-term goal to reduce debt. The company expects a further inflow of cash from the sale of other assets in the coming months. Billions of EUR June 30, 2001 March 31, 2001 Change Net debt 68.8 a) 56.8 21.1 % a) The purchase price payment for Wind, which was actually posted on July 2, 2001 (June 30, 2001, was a Saturday) is taken into account in this figure. With the exception of historical information, the matters discussed in this release are forward-looking statements that involve risks identified in Deutsche Telekom’s filings with the U.S. Securities and Exchange Commission, particularly in its most recent Annual Report on Form 20-F. End of part 1, part 2 to follow ——————————————————————————– WKN: 555750; Index: DAX, EURO STOXX 50 Listed: Amtlicher Handel in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, Stuttgart und München; EUREX; New York (ADS); Tokio; Toronto 310748 Jul 01