German giant Deutsche Telekom (DT) has reported a strong set of results for 2005, leading to a rise in its share price in early trading today and reassuring investors and industry watchers. EBITDA for 2005 grew 5.7% year-on-year to EUR20.7 billion (USD24.7 billion) on the back of sales of EUR59.6 billion, a 3.9% increase on 2004. Cash cow T-Mobile International posted EBITDA of EUR9.8 billion and revenue of EUR29.4 billion, up 16.3% and 11% respectively over the corresponding figures twelve months previously. The robust performance of the mobile segment was more than enough to off-set the ongoing declines at DT’s broadband fixed networks business, where EBITDA fell 3.1% to EUR9.9 billion and sales slipped 3.6% to EUR 26.0 billion. “Competition in our markets has become tougher – and I mean much tougher. Nonetheless we managed to hit our targets,” CEO Kai-Uwe Ricke said in a statement. The telco also announced that it would raise its 2005 dividend to EUR0.72 per share, up from EUR0.62 in 2004 and ahead of analyst expectations.
DT reiterated its forecasts for 2006 and 2007, saying that it expected sales growth of 5% year-on-year with profits likely to remain flat. EUR10 billion has been earmarked for capital expenditure in 2006.