DT releases preliminary Q1 2009 results, lowers full-year guidance

22 Apr 2009

German telecoms company Deutsche Telekom (DT) has announced its preliminary results for the three months ended 31 March 2009, posting an increase in revenue of 6% to EUR15.9 billion (USD20.58 billion), while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3% to EUR4.8 billion. The group added that these results were helped by the consolidation of Greek operator OTE for the first time, excluding which revenue remained stable at EUR15 billion and EBITDA dropped 5% to EUR4.5 billion. Meanwhile, free cash flow amounted to between EUR200 million and EUR300 million in the period, compared with EUR1.6 billion in the first quarter of 2008.

DT recorded better than expected business developments in Germany, with T-Home adding around 390,000 net new retail customers. Including OTE, the group recorded an increase of 4% in reported fixed line revenue to EUR5.9 billion and adjusted EBITDA increased 6% in the first quarter to EUR2 billion. Excluding OTE, fixed line revenue declined by 6% to EUR5.3 billion and T-Home’s revenue from its domestic business fell 6% to EUR4.8 billion. Total domestic mobile revenue for T-Mobile Deutschland declined 1% to EUR1.9 billion and adjusted EBITDA also decreased 1% to EUR700 million. T-Systems’ EBITDA saw an increase of 4% to EUR200 million, however, revenue decreased 4% year-on-year in the first quarter to EUR2.1 billion. Outside of its domestic market, DT’s international results were impacted by the economic slowdown, the more intense competitive environment, particularly in the US and the UK, and fluctuations in local currency exchange rates.

As a result of the current economic climate, DT has cut its 2009 full-year EBITDA guidance, expecting the result to be between 2% and 4% lower than the EUR19.5 billion recorded in 2008. The company also expects free cash flow of around EUR6.4 billion in 2009, down from EUR7 billion a year earlier. CEO Timotheus Höttges said: ‘We are currently in difficult times for rapid, comprehensive and clear communication. For that reason, we have decided to inform our shareholders as early as possible.’

The company will release its finalised Q1 2009 results on 7 May.

Germany, Deutsche Telekom (DT)