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Deutsche Telekom AG - Interim Group report - January 1 to March 31, 2012

The T-Share

6 We have made a solid start to the financial year and confirm our guidance for the full year 2012 despite tough environmental factors such as the intense competitive pressure and price changes imposed by regulatory authorities in many countries. The overall economic situation has stabilized in some countries. The development of our business in the first three months of the year was largely shaped by a generally positive development in Europe and the United States. Revenue and adjusted EBITDA are trending upward in the Europe operating segment compared with prior quarters. Despite the decline in earnings,Deutsche Telekom’s home market offers significant strategic advan- tages, particularly in comparison with competitors, such as a better position on the domestic fixed-network and mobile communications markets, a better structure of competition on the mobile communications market, and a better economic environment. Net revenue decreased only slightly, while adjusted EBITDA and free cash flow remained constant. Deutsche Telekom at a glance. The T-Share. Q1  2012 Q1 2011 FY 2011 Xetra closing prices Share price on the last trading day € 9.02 10.87 8.87 Year high € 9.24 10.89 11.32 Year low € 8.48 9.55 7.95 Weighting of the T-Share in major stock indexes DAX 30 % 4.4 5.2 5.1 Dow Jones Euro STOXX 50© % 1.9 1.2 2.0 Dow Jones Europe STOXX 600 Telecommunications© % 10.5 10.7 10.2   Market capitalization billions of € 39.0 47.0 38.3 Number of shares issued millions 4,321 4,321 4,321 Total return of the T-Share in the first quarter of 2012. T-Share performance. -10 0 5 -5 10 15 % DAX 30 Dow Jones Europe STOXX 600 Telecommunications Total return of the T-Share (dividend reinvested) Jan. 1, 2012 Jan. 15, 2012 Feb. 1, 2012 Feb. 15, 2012 Mar. 1, 2012 Mar. 15, 2012 Mar. 30, 2012 In the first quarter of 2012, the T-Share posted a price advance of 1.6 percent on a total return basis (share price performance plus reinvested dividend), closing at EUR 9.02 on March 30, 2012 (Xetra trading). The Supervisory Board and the Board of Management will propose to the shareholders’ meeting convened for May 24, 2012 a stable dividend of 70 cents per share. After outperforming the overall market in 2011, which had been a year of crisis, the T-Share’s upward trend was halted in the opening months of 2012 by profit warnings and dividend cuts at a number of our competitors in the European telecommunications sector. This sector continues to be impacted by competi- tion on many markets and difficult economic conditions in some countries. The uncertainty dragged the Dow Jones Europe Stoxx 600 Telecommunications© down 2.3 percent in the first quarter.