Please activate JavaScript!
Please install Adobe Flash Player, click here for download

Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2011

4 To our shareholders. Developments in the Group. Net revenue (plus United States). (billions of €) United States Continuing operations 46.9 12.1 34.8 Q1 – Q3 2010 Q1 – Q3 2011 10.9 32.8 43.7 0.8 T-Mobile UK n Net revenue from continuing operations decreased by 5.8 percent compared with the first nine months of 2010. Excluding T-Mobile UK, net revenue decreased by EUR 1.3 billion or 3.7 percent. n Operations were positively impacted by the development of mobile data revenue and the increase in revenue from Systems Solutions as a result of new deals. n Operations were negatively impacted by line losses in the fixed network, price changes imposed by regulation, the difficult overall economic situation in some countries, and price cuts in response to intense competitive pressure. Proportion of net revenue generated internationally. (%) 39.8 54.9 45.1 60.2 excluding United States including United States n The proportion of net revenue from continuing operations generated outside Germany fell to 39.8 percent. n Domestic net revenue amounted to EUR 19.7 billion, EUR 0.5 billion less than in the first three quarters of 2010. International net revenue decreased by 10.2 percent or EUR 1.5 billion year-on-year. n The decline in international net revenue is primarily attributable to the establishment of the Everything Everywhere joint venture in the United Kingdom. T-Mobile UK has no longer been fully consolidated since April 1, 2010. Adjusted EBITDA (plus United States). (billions of €) United States Continuing operations 14.9 3.1 11.8 Q1 – Q3 2010 Q1 – Q3 2011 2.8 11.3 14.1 0.2 T-Mobile UK n Adjusted EBITDA decreased by EUR 0.5 billion compared with the first three quarters of the prior year. Excluding T-Mobile UK, adjusted EBITDA decreased by EUR 0.3 billion or 2.7 percent. n Fixed-network lines lost to competitors, price changes imposed by regulation, and newly imposed or raised special taxes on telecommunications services had a negative impact on adjusted EBITDA. n Cost management and the Save for Service program partly offset these effects. Free cash flow (before dividend payments, spectrum investment and PTC transaction). (billions of €) 4.8 Q1 – Q3 2010 Q1 – Q3 2011 4.5 n Free cash flow decreased by EUR 0.3 billion to EUR 4.5 billion. n Cash inflows from dividends received and lower income tax payments were largely offset by the lower year-on-year levels of cash inflows from the canceling of interest rate swaps, from receivables sold (factoring), and of interest received. Domestic International