Ad-hoc | 13 November 2003 06:31

Deutsche Telekom AG english

ad hoc announcement of Deutsche Telekom part 2 and end Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Ad hoc announcement of Deutsche Telekom part two and end end of ad-hoc-announcement (c)DGAP 13.11.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Part 2 and the end of ad hoc announcement of Deutsche Telekom Of the divisions, T-Com was once again the largest revenue driver and contributor to results in the Group in the third quarter. Nevertheless, the development of T-Com’s revenue was influenced by regulatory, competitive and general economic factors and – adjusted to exclude the revenue contribution of the cable companies in prior-year figures – was 1.8 percent lower than in the same period last year. Cumulative adjusted EBITDA increased by around 1 percent year-on-year to approximately EUR 7.7 billion as a result of cost savings and efficiency improvements. Revenue in the mobile communications division increased by approximately 18 percent to almost EUR 16.8 billion in the first three quarters of 2003, compared with EUR 14.2 billion in the same period last year. This development reflects the positive effect of the continued growth in the number of customers and improvements in average revenue per user in several foreign companies, as well as the first-time consolidation of T-Mobile Netherlands since the fourth quarter of 2002. Excluding T-Mobile Netherlands, total revenue increased year-on-year by more than 13 percent in the first three quarters of 2003. With a jump of 35.4 percent year-on-year to EUR 1.748 billion, T-Mobile had another record quarter with its adjusted EBITDA. T-Mobile Deutschland remained the main contributor to EBITDA with a year-on-year increase of 11.5 percent to EUR 953 million in the third quarter of 2003. Adjusted EBITDA increased from EUR 3.85 billion to approximately EUR 5 billion year-on-year in the first nine months. Despite the difficult market environment, T-Systems succeeded in increasing its total revenue by around 1 percent year-on-year to more than EUR 7.7 billion in the first nine months of 2003. The sustained increase of 22 percent in adjusted EBITDA to approximately EUR 1 billion was a result mainly of the continued improvement in cost structures. In the third quarter, the T-Online division again reported clear growth in total revenue. Revenues in the first nine months increased by more than 20 percent year-on-year to over EUR 1.3 billion. EBITDA (in accordance with German GAAP) increased year-on-year by 140 percent in the third quarter of 2003 to approximately EUR 84 million. EBITDA in the first nine months increased to EUR 260 million compared with EUR 50 million in the same period last year. In the first nine months of 2003, Group Headquarters & Shared Services generated total revenue of EUR 3.2 billion, representing a slight increase of 1.5 percent year-on-year, primarily as a result of organizational changes in previous periods. Compared with the same period last year, EBITDA in the first nine months of 2003 was boosted in particular by special factors, such as income from the sale of shareholdings, transfer payments to Vivento, and the non-recurrence of the book losses on the sale of France Telecom shares. This press release contains forward-looking statements that reflect the current views of the Deutsche Telekom management with respect to future events. Forward-looking statements are based on current plans, estimates and projections, and therefore too much reliance should not be placed on them. 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 Form 20-F/A submitted to the U.S. Securities and Exchange Commission on June 27, 2003. 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 does not assume any obligation to update forward-looking statements to take new information or future events into account. In addition to the figures shown in accordance with German GAAP, Deutsche Telekom also shows so-called pro forma figures, e.g., EBITDA, adjusted EBITDA, net debt, and free cash flow. These pro forma financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with German GAAP. For a definition of these pro forma figures, please refer to the explanations under “Reconciliation to pro forma figures” in the Group Report on the third quarter of 2003 and Deutsche Telekom’s Investor Relations website at http://www.telekom.de. ——————————————————————————– 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 130631 Nov 03