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

Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2015 - Events after the reporting period, Forecast

32 Interim Group management report Deutsche Telekom. Interim Group Report 9M 2015. Total revenue Total revenue in our Group Headquarters & Group Services segment decreased in the reporting period by 6.8 percent year-on-year. Intragroup revenue decreased due to efficiency enhancement measures, especially the continued efforts to optimize the use of land and buildings. The revenue decline is also due to the revenue lost in connection with the sale of 70 percent of the shares in the Scout24 group which was consummated in early February 2014, and to the set-up of the new Group Innovation unit. EBITDA, adjusted EBITDA Adjusted EBITDA at Group Headquarters & Group Services improved by EUR 192 million year-on-year in the reporting period, mainly due to income of EUR 175 million resulting from an agreement to settle an ongoing com- plaints procedure under anti-trust law in the first quarter of 2015. Furthermore, lower personnel costs as a result of the continued staff restructuring as well as increased income from real estate sales had a positive impact on earnings. This was offset by efficiency gains achieved through continued cost manage- ment and passed on to the Groupʼs operating segments, as well as by the non-recurrence of the contribution to earnings by the Scout24 group. Overall, EBITDA was negatively impacted by special factors amounting to EUR 137 million, especially for staff-related measures. In the prior-year period, income from divestitures in connection with the disposal of the Scout24 group had been a decisive special factor. EBIT The year-on-year decline in EBIT is primarily attributable to income from divestitures in connection with the disposal of the Scout24 group in the prior year. Cash capex Cash capex decreased year-on-year by EUR 10 million, largely due to the purchase of fewer licenses. This was offset by the procurement of more vehicles. EVENTS AFTER THE REPORTING PERIOD (SEPTEMBER 30, 2015) Share buy-back. The Board of Management of Deutsche Telekom decided on September 29, 2015 to exercise the authorization to purchase shares in the Company granted by the shareholdersʼ meeting on May 24, 2012 and to purchase 950,000 shares through the stock exchange. The shares bought back are to be used in particular as part of our compensation plan to service the share matching plan. The share buy-back program was completed on October 1, 2015. On September 30, 2015 and October 1, 2015, a total of 950,000 shares were acquired for a total price of EUR 14.8 million with an average purchase price of EUR 15.57 per share. As a result, treasury shares of EUR 2.4 million will be openly deducted from issued capital (imputed value of EUR 2.56 per share) and the retained earnings of the Group decreased by around EUR 12.4 million. Scout24 AG initial public offering (IPO). In connection with the IPO of Scout24 AG on October 1, 2015, we sold around half of our shares in the company at EUR 30.00 per share, for which we received around EUR 0.4 billion. For information on the regulation of the European Commission concerning the single market for electronic communications adopted on October 27, 2015, please refer to the section “Risks and opportunities,” pages 33 and 34. Sale of our online platform t-online.de and our digital marketing company InteractiveMedia. The sale agreed with Ströer in return for new issues of Ströer shares was completed on November 2, 2015 following approval by the Federal Cartel Office and the meeting of additional closing conditions. For information on the frequency auction in Poland in October 2015, please refer to the section “The economic environment,” pages 9 and 10. For information on developments in the legal proceedings for claims by partnering publishers of telephone directories and claims for damages due to price squeeze, please refer to the section “Risks and opportunities,” pages 33 and 34. FORECAST The statements in this section reflect the current views of our management. The following section explains the current main findings on changes to the development of forecasts published in the 2014 combined management report (2014 Annual Report, page 134 et seq.). Accordingly, other statements made therein remain valid. For additional information and recent changes in the economic situation, please refer to the section “The economic environ- ment” in this interim Group management report. Readers are also referred to the Disclaimer at the end of this report. CHANGES FROM THE 2014 ANNUAL REPORT In the 2014 Annual Report, Deutsche Telekom forecast adjusted EBITDA for the 2015 financial year of around EUR 18.3 billion. This expected figure did not include income of EUR 175 million from an agreement to settle an ongoing complaints procedure under anti-trust law or the new business model JUMP! On Demand at T-Mobile US which also had a positive effect on our adjusted EBITDA. As part of this business model, customers of T-Mobile US have also been offered a terminal equipment lease model since June 2015, in addition to the options for purchasing terminal equipment by installments. In addition, the U.S. dollar exchange rate, which has risen sharply so far this year continues tohaveasubstantialpositiveeffectonthedevelopmentofouradjustedEBITDA. Excluding the aforementioned effects on adjusted EBITDA, we continue to confirm our guidance for 2015. We therefore also confirm our free cash flow forecast of around EUR 4.3 billion for 2015.

Pages Overview