Deutsche Telekom Posts Full Year Loss of $6.9 Billion
Published on: 28th Feb 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
Germany's Deutsche Telekom has reported a net profit for the fourth quarter of EUR793 million (USD1 billion) but a net loss of EUR5.26 billion (USD6.9 billion) for the full year thanks to a non cash writedown of EUR7.4 billion related to its MetroPCS takeover bid.
Revenues for the fourth-quarter were down slightly at EUR14.7 billion (USD19.3 billion), and also down slightly for the full year at EUR58.2 billion (USD76 billion).
"We are going on the offensive - with extensive investments in networks and in the market," said René Obermann, CEO of Deutsche Telekom. "In doing so, we retain our general cost discipline as a source of strength. For 2012, we are delivering sound balance sheet figures, we plan to pay a stable dividend, and we have reduced net debt by more than EUR 3 billion to EUR 36.9 billion."
The adjusted EBITDA margin for the full year stood at 30.9 percent, a decline of around 0.9 percentage points year-on-year, largely due to the increase in market investments in the German mobile communications market, especially in the fourth quarter of around 27 percent compared with the fourth quarter of 2011.
The company cut its workforce by 2.3% over the year, ending with just under 230,000 employees.
In light of planned substantial increases in investments, Deutsche Telekom expects free cash flow of approximately EUR 5 billion for the current financial year. In 2013, adjusted EBITDA is expected to amount to around EUR 17.4 billion. Assuming successful completion of the transaction with MetroPCS, the expected adjusted EBITDA would be around EUR 18.4 billion, extrapolated to include MetroPCS for the full year.
Tags: deutsche telekom