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

Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2015

20 Interim Group management report Deutsche Telekom. Interim Group Report 9M 2015. DEVELOPMENT OF OPERATIONS millions of € Q1 2015 Q2 2015 Q3 2015 Q3 2014 Change % Q1–Q3 2015 Q1–Q3 2014 Change % FY 2014 TOTAL REVENUE 5,589 5,580 5,593 5,587 0.1 % 16,762 16,534 1.4 % 22,257 Consumers 3,024 3,034 3,015 3,029 (0.5) % 9,073 8,875 2.2 % 11,970 Business Customers 1,440 1,425 1,447 1,430 1.2 % 4,312 4,252 1.4 % 5,726 Wholesale 928 932 954 934 2.1 % 2,814 2,828 (0.5) % 3,775 Value-Added Services 60 55 54 59 (8.5) % 169 179 (5.6) % 242 Other 137 134 123 135 (8.9) % 394 400 (1.5) % 544 Profit from operations (EBIT) 1,190 1,156 1,227 1,279 (4.1) % 3,573 3,767 (5.1) % 4,663 EBIT margin % 21.3 20.7 21.9 22.9 21.3 22.8 21.0 Depreciation, amortization and impairment losses (935) (946) (919) (957) 4.0 % (2,800) (2,891) 3.1 % (3,893) EBITDA 2,125 2,102 2,146 2,236 (4.0) % 6,373 6,658 (4.3) % 8,556 Special factors affecting EBITDA (86) (122) (123) (88) (39.8) % (331) (152) n. a. (254) EBITDA (ADJUSTED FOR SPECIAL FACTORS) 2,211 2,224 2,269 2,324 (2.4) % 6,704 6,810 (1.6) % 8,810 EBITDA margin (adjusted for special factors) % 39.6 39.9 40.8 41.6 40.1 41.2 39.6 CASH CAPEX (949) (2,622) (1,073) (1,009) (6.3) % (4,644) (2,732) (70.0) % (3,807) Total revenue Revenue increased by 1.4 percent in the first three quarters of 2015 compared with the prior-year period. This development was mainly driven by revenue from mobile business, which grew by 7.0 percent, especially in non-contract terminal equipment business, and the ongoing positive revenue trend recorded for our second brand “congstar.” Increased television, IT, and terminal equipment revenues had a positive impact on the fixed-network revenue trend, although they were not sufficient to fully compensate for the revenue declineinotherareas.Revenueinthefixed-networkbusinessthusdecreased by 2.3 percent. Revenue from Consumers increased by 2.2 percent compared with the prior- year period. Traditional fixed-network business continued to be dominated by volume- and price-related reductions in revenue, which was down by 2.9 percent compared with the prior-year period. A positive development here is the sustained revenue growth in the broadband business of 0.7 percent in the third quarter of 2015. The 8.6 percent revenue growth in the mobile business more than compensated for the losses in the fixed-network business. The revenue growth in mobile business was primarily driven by increased terminal equipment revenue from the marketing of smartphones. Our mobile service revenues grew slightly by 0.8 percent in the first nine months of 2015. Data revenues increased by 7.0 percent compared with the prior-year period. By contrast, prepay revenues, especially from our Telekom brand, had a negative effect. Revenue from Business Customers increased by 1.4 percent, mainly due to the increase of 3.6 percent in mobile revenues. This increase was primarily driven by terminal equipment revenues. The effect was offset by declining fixed-network revenues in traditional voice telephony, which were not fully compensated by the positive trend in IT revenues. Wholesale revenue declined slightly by 0.5 percent in the first nine months of 2015, mainly due to lower volumes of minutes and regulation-induced reductions in prices for interconnection calls (from December 1, 2014), as well as falling numbers of unbundled local loop lines. This revenue decline was partially offset by the positive trend in unbundled lines, mainly due to the contingent model. Revenue from Value-Added Services decreased by 5.6 percent, primarily as a result of expiring business models such as public phones and directory inquiries as well as decreased use of premium rate numbers. EBITDA, adjusted EBITDA EBITDA adjusted for special factors decreased slightly by 1.6 percent year-on- year in the first three quarters of 2015 to EUR 6.7 billion. The decline is mainly due to collectively agreed pay increases and to the increased headcount required for the network upgrade and build-out. With an adjusted EBITDA margin of 40.1 percent, we are at our expected target level for the entire year of 40 percent. EBITDA in the reporting period amounted to EUR 6.4 billion, a decrease of 4.3 percent on the prior-year period, due in particular to higher special factors for expenses in connection with our staff restructuring. EBIT Profit from operations decreased by 5.1 percent to EUR 3.6 billion compared with the first nine months of the prior year. This was mainly attributable to higher expenses incurred in connection with staff-related measures and non-staff-related restructuring expenses. Offsetting effects resulted from a 3.1 percent decrease in depreciation and amortization. Cash capex Cash capex increased by EUR 1.9 billion year-on-year, due in particular to the spectrum auction in June 2015. Excluding spectrum investment, our cash capex rose by EUR 0.3 billion compared with the prior-year period. During 2015, we again made significant investments in the vectoring/fiber-optic cable roll-out, our IP transformation, and our LTE infrastructure as part of our integrated network strategy. TOTAL REVENUE 5,5895,5805,5935,5870.1 % 16,76216,5341.4 % 22,257 Consumers 3,0243,0343,0153,029 (0.5) % 9,0738,8752.2 % 11,970 Business Customers 1,4401,4251,4471,4301.2 % 4,3124,2521.4 % 5,726 Wholesale 9289329549342.1 % 2,8142,828 (0.5) % 3,775 Value-Added Services 60555459 (8.5) % 169179 (5.6) % 242 Other 137134123135 (8.9) % 394400 (1.5) % 544 Profit from operations (EBIT) 1,1901,1561,2271,279 (4.1) % 3,5733,767 (5.1) % 4,663 EBIT margin % 21.320.721.922.921.322.821.0 EBITDA 2,1252,1022,1462,236 (4.0) % 6,3736,658 (4.3) % 8,556 EBITDA (ADJUSTED FOR SPECIAL FACTORS) 2,2112,2242,2692,324 (2.4) % 6,7046,810 (1.6) % 8,810 (adjusted for special factors) % 39.639.940.841.640.141.239.6

Pages Overview