Deutsche Telekom issued its financial results for 2003, claiming a financial turn-around for the company based on a double strategy of debt reduction and growth in profitable services. Kai-Uwe Ricke, Deutsche Telekom’s CEO, said the company exceeded its financial targets in many key areas. Some highlights of the report:
- For 2003, net revenue increased by 4% year-on-year to EUR 55.8 billion EURs.
- Net income was EUR 1.3 billion EURs.
- EBITDA was EUR 18.3 billion, a head of a target of EUR 16.7 billion to EUR 17.7 billion for the year. This represents an increase of 12.1 percent, considerably higher than revenue growth.
- Net debt has been reduced by a total of EUR 17.7 billion since 2002. At the end of 2003, net debt was EUR 46.6 billion.
- The number of DSL lines increased from 2.8 million to 4.0 million
- T-Mobile continues to be a growth driver for the company, especially T-Mobile USA, which ended the year with 13.1 million users, up by 3.1 million for the year. T-Mobile Europe ended the year with 61 million users, up by 7 million for the year.
- For 2004, the company is forecasting adjusted EBITDA of at least EUR 19.2 billion, along with continued profitable growth and flexible use of free cash flow. Ricke also reiterated a pledge to generate a dividend for shareholders for distribution in 2005.
Ricke also spoke out against proposed legislation in Germany that would require Deutsche Telekom to offer its competitors products for resale without any restriction. He said Deutsche Telekom does not reject resale in principle, but worries that the proposed law would dampen the incentive to invest in new infrastructure. http://www.telekom.de