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Deutsche Telekom records net income of almost two billion EUR in
the first quarter of the year 2000, including proceeds from sale of
Global One - Group revenue increases to EUR 9.4 billion - 1999
financial year a success despite strong competitive pressures
In the first quarter of the year 2000, Deutsche Telekom was able
to maintain its level of income despite the intense competitive
pressure and steep drop in rates. Taken on a comparable basis, i.e.
excluding One 2 One, max.mobil. and SIRIS, net income has remained
the same at EUR 0.5 billion according to preliminary figures. After
inclusion of the proceeds from the sale of Global One and after
consideration of the changes in the composition of the Deutsche
Telekom Group and the accelerated depreciation in area of the
telephone network effected to increase our competitiveness, net
income was EUR 1.9 billion.
In comparison with 1998, Deutsche Telekom increased revenues by
EUR 1.1 billion to EUR 9.4 billion. Of this increase, the first full
consolidation of shareholdings in the British mobile communications
operator One 2 One, the Austrian mobile communications company
max.mobil. and the French fixed-network company SIRIS accounts for
EUR 0.8 billion; EUR 0.3 billion is attributed to the growth drivers
and our core businesses. Debt increased to EUR 45.2 billion as at the
end of March 2000, compared with EUR 39 billion at the end of the
first quarter of 1999. This was mainly attributable to the purchase
of MediaOne activities in Poland and Hungary, T-Online capital
increase and changes in the composition of the Deutsche Telekom
Revenues rose slightly in the 1999 financial year, increasing one
percent from EUR 35.1 billion to EUR 35.5 billion. This was achieved
even though Deutsche Telekom's customers saved more than EUR 3
billion in the wake of price reductions. Market-share losses were
clearly contained. It was possible to compensate for the decline in
revenues in the traditional network communications segment with
sustained growth achieved in the other growth drivers - most notably,
mobile communications - and revenues from international business
activities. The shareholding in max.mobil. was increased and One 2
One was fully consolidated for the first time in the fourth quarter.
The proportion of network communications revenues fell to 47.2% of
total Group revenues in 1999, as compared with 58.4% in 1998.
Domestic and international long-distance call charges now account for
only 12% of revenues compared with 24% in 1998. This demonstrates
that our reliance on these revenues is diminishing as Deutsche
Telekom evolves from a classic telecommunications company to a modern
full-service telematics provider.
Net income totaled EUR 1.3 billion, almost EUR 1 billion down on
the previous year's level. The drastic decline in margins in network
communications could not be offset, unlike in the case of revenues.
Another aspect was goodwill depreciation and startup losses in our
strategic shareholdings max.mobil and One 2 One - which totaled EUR
0.5 billion. The costs of the capital increase - over EUR 0.2 billion
- must also be considered. Furthermore, there were not yet any
partial sales of the broadband cable network during the year under
review - and hence no profit contribution either.
Deutsche Telekom intends to propose at the Annual Shareholders'
Meeting an unchanged dividend of EUR 0.62 per share.
Original-Content von: Deutsche Telekom AG, übermittelt durch news aktuell