Ad-hoc | 12 August 2004 06:32
Ad hoc notification of Deutsche Telekom AG
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Deutsche Telekom expects significant increase in net income
– In organic terms, excluding changes in the consolidated group and
exchange rate fluctuations, net revenue increased by around 7.4 percent
in the first 6 months of 2004.
– Reported net revenue up by 4.4 percent to approximately EUR 28.4
billion.
– Group EBITDA increased by 11.0 percent year-on-year from EUR 9.6
billion to EUR 10.7 billion; adjusted EBITDA up by 3.2 percent to
EUR 9.4 billion.
– Organic growth of adjusted Group EBITDA at 5.2 percent
– Results from ordinary business activities quadrupled in the second
quarter to EUR 2.4 billion.
– Net income boosted by 64.5 percent from EUR 1.1 billion to EUR 1.8
billion; adjusted for special factors, it more than tripled from
EUR 0.3 billion to EUR 1.0 billion.
– Free cash flow before dividend payments increased from EUR 4.0 billion
to EUR 4.2 billion.
– Net debt reduced by an additional EUR 3.3 billion to EUR 43.3 billion
compared with EUR 46.6 billion at the end of 2003
– Full-year net income projected to at least double year-on-year to
EUR 2.5 billion.
– Deutsche Telekom’s CEO Kai-Uwe Ricke announces intention to pay an
attractive dividend for the 2004 financial year
End of ad hoc notification
end of ad-hoc-announcement (c)DGAP 12.08.2004
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
Information and elaborations of the issuer concerning this
ad hoc notification
Overview of selected key figures (second quarter of 2004)
Q2/2004 Q2/2003 Change
millions millions %
of EUR of EUR
Revenue 14412 13593 6.0
Adjusted results from 1034 486 n.a.
ordinary business
activities
Results from 2406 598 n.a.
ordinary business
activities
Adjusted net income 728 162 n.a.
Net income 1655 256 n.a.
EBITDA adjusted 4783 4598 4.0
for special factors 1)
EBITDA 1) 6155 4710 30.7
Net cash provided by
operating activities 2878 3143 (8.4)
Free cash flow 1294 1962 (34.1)
before dividend
Investments in property, (1517) (1196) (26.8)
plant and equipment, and
intangible assets
(excl. goodwill)
Overview of selected key figures (first half year of 2004)
H1/2004 H1/2003 Change FY/2003
millions millions % millions
of EUR of EUR of EUR
Revenue 28398 27211 4.4 55838
Adjusted results from 1449 552 n.a. 1122
ordinary business
activities
Results from 2752 1092 n.a. 1398
ordinary business
activities
Adjusted net income 955 275 n.a. 222
Net income 1824 1109 64.5 1253
EBITDA adjusted 9368 9074 3.2 18288
for special factors 1)
EBITDA 1) 10671 9614 11.0 18475
Net cash provided by 7128 6260 13.9 14316
operating activities
Free cash flow 4194 3966 5.8 8285
before dividend
Investments in property, (2536) (2105) (20.5) (6234)
plant and equipment, and
intangible assets
(excl. goodwill)
Net debt at balance 43.3 53.3 (18.3) 46.6
sheet date
(billions of EUR)
Deutsche Telekom significantly increased its net revenue in the second
quarter of 2004, too. Year-on-year, revenue rose by EUR 0.8 billion,
or 6.0 percent, to EUR 14.4 billion in the second quarter. Consequently,
revenue growth was substantially stronger than in the first quarter
(2.7 percent). Revenue was reduced by negative exchange rate effects
amounting to EUR 0.5 billion – in particular from the translation of
U.S. dollars – and by consolidation effects totaling EUR 0.3 billion
that relate, for example, to the deconsolidation of T-Com’s cable
companies as well as to deconsolidation measures at T-Systems. Adjusted
for these effects, organic revenue growth amounted to 7.4 percent.
Deutsche Telekom’s substantial revenue growth was again driven by the
positive business development at the T-Mobile and T-Online divisions.
Both in the second quarter and in the first half of 2004, T-Mobile achieved
a growth rate of approximately 12 percent, which is primarily
attributable to the sustained expansion of the subscriber base.
T-Online, which boosted revenue by more than 11 percent both in the
first half and in the second quarter of this year, made a significant
contribution to the positive development of the Group, in particular
by continuing its broadband strategy.
In spite of the difficult economic and regulatory environment, T-Com
managed to stabilize its revenue performance. The decrease in total
revenue amounted to 3.8 percent in the second quarter, compared with
6.9 percent in the first three months of 2004. The revenue decline in
the first half thus totaled 5.4 percent.
In the first half of 2004, T-Systems kept its revenue at a virtually
constant level year-on-year. In the second quarter of 2004, the
division’s revenue clearly increased by 2.3 percent year-on year
and 6.1 percent quarter-on-quarter.
End of part 1 of elaborations concerning this ad hoc notification
of Deutsche Telekom AG, part 2 follows
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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;
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120632 Aug 04