Deutsche Telekom posts 2007 results: net income down 22%

28 Feb 2008

Europe’s largest telco by revenue, Deutsche Telekom (DT), reports today that it achieved, and in some cases exceeded, its financial targets for 2007. The telco’s adjusted net profit came in at EUR3.0 billion (USD4.8 billion) for full year 2007, down from EUR3.85 billion one year previously, a 22% fall, principally due to an increase in income taxes of EUR400 million. Adjusted EBITDA was stable year-on-year, at EUR19.3 billion (2006: EUR19.4 billion). Although domestic sales slipped by 5.4% to EUR30.7 billion, this was offset by international sales growth of 10.26% to EUR31.8 billion, leaving total group revenue up slightly at EUR62.5 billion. The group’s outlook for the coming year is that adjusted EBITDA will remain constant, and it intends to continue its policy of paying ‘attractive dividends’. DT’s domestic fixed line operation T-Home is expecting its share of new customers in the German broadband market to be at least 45%, whilst American cellular subsidiary T-Mobile USA is expected to see growth in its subscriber base of three million.

Germany, Deutsche Telekom (DT)