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

Development of business in the Group

9Interim Group management report Group structure, strategy and management. With regard to our Group structure, strategy and management, please refer to the notes in the 2011 combined management report (2011 Annual Report, page 60 et seq.). No significant changes were recorded in this area from the Group’s point of view. Since January 1, 2012, Deutsche Telekom has pooled the tasks and functions of the Digital Services growth business as well as the Internet service provider STRATO, which as of December 31, 2011 were still largely part of the Germany operating segment, as the Digital Business Unit (DBU) under Group Headquar- ters & Shared Services. For more information, please refer to the disclosures under segment reporting in the interim consolidated financial statements (page 35). Results of operations of the Group. Net revenue. In the first quarter of the 2012 financial year, we generated net revenue of EUR 14.4 billion, slightly down on the same period in the prior year. Intense competition and price changes imposed by the regulatory authorities had a negative effect. Net exchange rate effects of around EUR 0.1 billion on the proportion of net revenue generated internationally, especially from the translation of U.S. dollars into euros, had a positive impact on net revenue. Our United States operating segment increased its revenue, whereas all others recorded decreases. For details on the revenue trends in our Germany, Europe, United States and Systems Solutions operating segments as well as at Group Headquarters & Shared Services, please refer to the section “Development of business in the operating segments” (page 13 et seq.). Development of business in the Group. Contribution of the operating segments to net revenue. Q1  2012  millions of € Q1 2011 millions of € Change millions of € Change % FY 2011  millions of € Net revenue 14,432 14,597 (165) (1.1) 58,653 Germany 5,658 5,794 (136) (2.3) 23,201 Europe 3,575 3,672 (97) (2.6) 15,124 United States 3,847 3,770 77 2.0 14,811 Systems Solutions 2,245 2,260 (15) (0.7) 9,249 Group Headquarters & Shared Services 717 735 (18) (2.4) 2,977 Intersegment revenue (1,610) (1,634) 24 1.5 (6,709) Breakdown of revenue by regions. (%) Contribution of the segments to net revenue. (%) 27.0 27.2 1.4 44.4 11.3 26.5 23.6 1.7 36.9 Other countries North America Germany Europe (excluding Germany) United States Germany Group Headquarters & Shared Services Systems Solutions Europe

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