Wednesday, February 27, 2008

Deutsche Telekom Posts 2007 results

Deutsche Telekom reported Q4 and full-year financial results for 2007, posting adjusted EBITDA of EUR 19.3 billion, which is about the same as in 2006 and ahead of its guidance of EU 19 billion. Free cash flow before dividends increased to EUR 6.6 billion, also just ahead of the company's prior guidance. The company cited double-digit growth in mobile communications abroad and bright prospects in broadband and IP television, offset by continuing fixed-network line losses, the growing trend towards flat rates, and falling prices for Internet access.

Some notable points from the annual report:

  • T-Mobile Deutschland signed up 962,000 new fixed-term contract customers in 2007, an increase of 20.7 percent compared with 2006. Overall, T-Mobile increased its subscriber base in Germany to almost 36 million at year-end.

  • At EUR 8.0 billion, revenue at T-Mobile Deutschland was down 2.7 percent on 2006 following a 4.7 percent decrease in the previous year. Adjusted EBITDA fell by 11.1 percent year-on-year to EUR 2.9 billion.

  • Excluding Germany, T-Mobile revenue rose to EUR 27.1 billion in the 2007 financial year, an increase of 12.2 percent on 2006.

  • T-Mobile USA remains the principal growth driver outside Germany with revenue up 3.3 percent to EUR 14.1 billion and adjusted EBITDA up
    4.3 percent year-on-year to EUR 3.9 billion. On a dollar basis, revenue climbed by a substantial 12.6 percent and adjusted EBITDA rose by as
    much as 13.7 percent.

  • T-Mobile's international subscriber base expanded by more than 6.5 million net additions to 83.7 million.

  • T-Home revenue declined by 8.0 percent in Germany in the 2007 financial year to EUR 20.1 billion. As a result,

  • In Germany, T-Home maintained its lead in the broadband market with a new customer share of around 44 percent of broadband growth for 2007 as a whole. T-Home won just under 2 million new broadband DSL customers in 2007. As a result, more than 9 million customers
    in Germany now have a broadband line directly from T-Home. In addition, there are 3.5 million resale DSL lines.

  • The VDSL rollout has reached 27 towns and cities, while another 750 are supplied with ADSL2+. This means around half of all German households had access to VDSL orADSL2+ Internet connections in 2007.

  • By the end of 2008, the company aims to have signed up half a million IPTV customers.

  • T-Home's activities outside Germany proved successful in Eastern Europe, where revenue rose by 3.7 percent to EUR 2.4 billion in the
    2007 financial year and adjusted EBITDA also increased by 4.1 percent to EUR 1.1 billion. This improvement was mainly attributable to the growth of the Eastern European broadband market. The number of broadband lines including resale was lifted by around 400,000 to 1.4 million, an increase of 39.5 percent.

  • T-Systems' business outside Germany expanded by 7.1 percent in 2007 to EUR 2.5 billion. In Germany, by contrast, revenue fell by 10.0 percent to EUR 9.5 billion. Overall, therefore, revenue at Deutsche Telekom's Business Customers arm decreased by 6.9 percent to EUR 12.0 billion at the close of 2007. This is primarily due to the decline in internal revenues in the Group, which slipped 15.5 percent to EUR 3.0 billion.