T-Systems increases third quarter revenues Thursday 10 November 2011 PDF Print Frankfurt/Bonn, Germany, November 10, 2011 T-Systems increases third quarter revenues - Order entry rises due to new business and contract extensions. - High investments in quality securing measures for new contracts. - Intelligent networks: First regional net for high-risk heart cases. _______________________________________________________________ Order entry at Systems Solutions developed encouragingly in the third quarter, climbing 18.5 percent year-on-year to EUR 1.9 billion. The higher order volume was a result of big deals such as with Daimler, as well as numerous smaller contracts for cloud services. From January to September 2011, order entry increased by 8 percent year-on-year to EUR 6.6 billion. T Systems also reported revenue growth in the third quarter of 2011. With a rise of 2.3 percent to EUR 2.3 billion, the increase was, however, somewhat lower than in the first half of the year. Seen over the first nine months of the year, revenue climbed 3.3 percent to EUR 6.8 billion. Costs relating to quality assurance measures for existing agreements con-tinued to have a negative impact on earnings and margins. Adjusted EBITDA decreased by 8.1 percent in the third quarter to EUR 0.2 billion. The adjusted EBIT margin is the key indicator of the profitability of Systems Solutions busi-ness and fell to 2.4 percent compared with 3.3 percent in the third quarter of 2010. This was, however, better than the 1.6 percent in the first half of the year. The quality assurance measures are starting to pay off and have, for example, resulted in improved customer satisfaction indices over the course of the year. Progress was also seen in the growth areas of the Group that fall under the banner of intelligent network solutions. In the healthcare field, Germany's first national telemedicine network was launched in Brandenburg in early October. The network enables at-risk heart patients to receive remote medical treatment thanks to Deutsche Telekom technology. Unnecessary examinations and hos-pital stays will be minimized as a result, and the quality of life for patients improved. *Please see attached PDF for the table of figures* This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows, and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom's control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor, or business initiatives, including acquisitions, dispositions, business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings, and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets and changes in interest and currency exchange rates may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise. In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt, and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways. --- Deutsche Telekom AG Corporate Communications Tel.: +49 228 181 – 4949 E-Mail: email@example.com Further information for the media at: www.telekom.com/media and www.telekom.com/photos About Deutsche Telekom Deutsche Telekom is one of the world’s leading integrated telecommunications companies with around 128 million mobile customers, 35 million fixed-network lines and approximately 17 million broadband lines (as of June 30, 2011). The Group provides products and services for the fixed network, mobile communications, the Internet and IPTV for consumers, and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in over 50 countries and has around 241,000 employees worldwide. The Group generated revenues of EUR 62.4 billion in the 2010 financial year – more than half of it outside Germany (as of December 31, 2010). About T-Systems Drawing on a global infrastructure of data centers and networks, T-Systems operates information and communication technology (ICT) systems for multinational corporations and public sector institutions. T-Systems provides integrated solutions for the networked future of business and society. The company's some 47,600 employees combine industry expertise and ICT innovations to add significant value to customers’ core business all over the world. T-Systems generated revenue of around EUR 9.1 billion in the 2010 financial year. This press release was distributed by ResponseSource Press Release Wire on behalf of Kelso Consulting in the following categories: Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.