UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form 6-K
REPORT OF
FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2006
Commission file number 001-14540
DEUTSCHE
TELEKOM AG
(Translation of
registrant’s name into English)
Friedrich-Ebert-Allee
140
53113 Bonn
Germany
(Address of principal
executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
This report is deemed submitted and not filed pursuant to the rules and regulations of the Securities and Exchange Commission.
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Deutsche Telekom at a glance.
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a For detailed information and calculations, please refer to “Reconciliation of pro forma figures,” page 50 et seq. b Since figures are rounded, totals may differ. |
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Deutsche Telekom at a glance.
At a glance
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Second |
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First |
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Q2 |
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Q2 |
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Change |
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H1 |
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H1 |
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Change |
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FY |
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Net revenue |
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15,130 |
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14,743 |
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2.6 |
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29,972 |
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29,031 |
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3.2 |
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59,604 |
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Domestic |
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8,139 |
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8,517 |
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(4.4 |
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16,347 |
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17,028 |
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(4.0 |
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34,183 |
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International |
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6,991 |
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6,226 |
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12.3 |
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13,625 |
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12,003 |
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13.5 |
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25,421 |
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EBIT (profit from operations) |
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2,085 |
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2,572 |
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(18.9 |
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4,403 |
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4,859 |
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(9.4 |
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7,622 |
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Special factors affecting EBITa |
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(68 |
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(6 |
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n.a. |
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(160 |
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(26 |
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n.a. |
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(2,546 |
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Adjusted EBIT (profit from operations)a |
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2,153 |
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2,578 |
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(16.5 |
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4,563 |
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4,885 |
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(6.6 |
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10,168 |
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Adjusted EBIT margina (%) |
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14.2 |
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17.5 |
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15.2 |
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16.8 |
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17.1 |
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Loss from financial activities |
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(772 |
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(452 |
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(70.8 |
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(1,340 |
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(1,167 |
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(14.8 |
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(1,410 |
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Profit before income taxes |
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1,313 |
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2,120 |
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(38.1 |
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3,063 |
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3,692 |
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(17.0 |
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6,212 |
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Depreciation, amortization and impairment losses |
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(2,664 |
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(2,610 |
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(2.1 |
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(5,234 |
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(5,144 |
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(1.7 |
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(12,497 |
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of property, plant and equipment |
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(2,034 |
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(1,986 |
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(2.4 |
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(3,987 |
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(3,907 |
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(2.0 |
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(8,070 |
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of intangible assets |
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(630 |
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(624 |
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(1.0 |
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(1,247 |
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(1,237 |
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(0.8 |
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(4,427 |
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EBITDAb |
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4,749 |
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5,182 |
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(8.4 |
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9,637 |
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10,003 |
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(3.7 |
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20,119 |
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Special factors affecting EBITDAa,b |
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(68 |
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(6 |
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n.a. |
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(150 |
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(26 |
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n.a. |
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(610 |
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Adjusted EBITDAa,b |
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4,817 |
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5,188 |
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(7.2 |
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9,787 |
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10,029 |
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(2.4 |
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20,729 |
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Adjusted EBITDA margina,b (%) |
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31.8 |
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35.2 |
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32.7 |
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34.5 |
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34.8 |
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Net profit |
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1,005 |
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1,169 |
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(14.0 |
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2,084 |
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2,153 |
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(3.2 |
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5,584 |
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Special factorsa |
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(44 |
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(6 |
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n.a. |
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72 |
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2 |
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n.a. |
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921 |
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Adjusted net profita |
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1,049 |
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1,175 |
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(10.7 |
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2,012 |
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2,151 |
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(6.5 |
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4,663 |
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Earnings per share/ADSc, basic and diluted |
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0.23 |
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0.28 |
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(17.9 |
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0.49 |
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0.51 |
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(3.9 |
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1.31 |
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Cash capexd |
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(1,925 |
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(1,824 |
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(5.5 |
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(3,969 |
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(4,915 |
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19.2 |
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(9,269 |
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Net cash from operating activities |
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2,892 |
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3,639 |
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(20.5 |
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5,688 |
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5,815 |
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(2.2 |
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14,998 |
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Free cash flow (before dividend payments)e |
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967 |
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1,815 |
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(46.7 |
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1,719 |
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900 |
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91.0 |
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5,729 |
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Equity ratiof (%) |
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— |
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— |
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39.1 |
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35.5 |
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36.4 |
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Net debte |
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— |
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— |
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38,819 |
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44,548 |
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(12.9 |
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38,639 |
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June 30, |
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Mar. 31, |
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Change |
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Dec. 31, |
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Change |
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June 30, |
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Change |
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Number of employees at balance sheet date |
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Deutsche Telekom Group |
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249,991 |
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248,982 |
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0.4 |
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243,695 |
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2.6 |
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244,277 |
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2.3 |
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Non-civil servants |
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207,073 |
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204,818 |
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1.1 |
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197,741 |
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4.7 |
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197,644 |
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4.8 |
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Civil servants |
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42,918 |
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44,164 |
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(2.8 |
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45,954 |
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(6.6 |
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46,633 |
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(8.0 |
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Number of fixed-network and mobile customers |
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Telephone linesg (in millions) |
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53.2 |
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53.9 |
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(1.3 |
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54.8 |
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(2.9 |
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56.1 |
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(5.2 |
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Broadband linesh (in millions) |
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10.0 |
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9.4 |
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6.4 |
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8.6 |
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16.3 |
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7.1 |
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40.8 |
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Mobile customersi (in millions) |
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90.2 |
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88.7 |
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1.7 |
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87.6 |
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3.0 |
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81.8 |
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10.3 |
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a For a detailed explanation of the special factors affecting EBITDA, adjusted EBITDA, the adjusted EBITDA margin as well as special factors affecting profit or loss and the adjusted net profit, please refer to “Reconciliation of pro forma figures,” page 47 et seq.
b Deutsche Telekom defines EBITDA as profit/loss from operations excluding depreciation, amortization and impairment losses.
c One ADS (American Depositary Share) corresponds in economic terms to one ordinary share of Deutsche Telekom AG.
d Cash outflows for investments in property, plant and equipment, and intangible assets (excluding goodwill) as shown in the cash flow statement.
e For detailed information, please refer to “Reconciliation of pro forma figures,” page 50 et seq.
f Based on shareholders’ equity excluding amounts earmarked for dividend payments, which are treated as current liabilities.
g Telephone lines of the Group (including ISDN channels), including for internal use.
h Broadband lines in operation, including Germany, Eastern and Western Europe.
i Number of customers of the fully consolidated mobile communications companies of the Mobile Communications strategic business area. For an explanation of the change in the method for counting mobile customers as of 2006, please refer to page 23 et seq.
4
The ten strategic measures of the Excellence Program promote the operational realization of Deutsche Telekom’s strategic goals and brings together the Group’s main focal areas for the future: “We aim to shape the information and communications sector as Europe’s largest full-service telecommunications company and the leading service provider in the industry.”
Strategic measures of the strategic business areas.
The focus in the Mobile Communications strategic
business area is on value-oriented customer and revenue growth as
well as on increasing customer satisfaction. The goal is to increase value for
money and perception of quality further with segment-specific offers and
improved calling plan structures. The successful Relax calling plans have been
expanded to include the Relax XL option with a much broader range of services
for an attractive package price. A variety of minute buckets and the
T-Mobile@home rate option allow customers to keep an eye on their mobile
telephony costs. T-Mobile
is one of the leading providers of mobile Internet with web’n’walk and a
broadened range of enabled handsets. Mobile broadband is now also a reality
with the launch of HSDPA and speeds of up to 1.8 Mbit/s.
The Broadband/Fixed Network strategic business area is
focusing on defending its core business by stabilizing and increasing the
market share for call minutes and defending market shares for lines, on tapping
new business areas, and on growth in the broadband area. The “Conquer the home”
initiative is centered on the further development of the broadband growth
market. The foundation for offering bundled products was laid by the merger
with T-Online. The Broadband/Fixed Network business area will launch its first
triple-play services, and other innovative services such as high-definition
television (HDTV) on the market in the second half of 2006. The games of
the first and second Bundesliga soccer divisions
will be available on the Internet via Deutsche Telekom’s new high-speed
network.
The market environment in the Business Customers strategic business area is dominated by an increasing, customer-driven convergence of telecommunications and IT services. The strategic measures are therefore aimed not only at strengthening the core telecommunications business, but also at the growth segment of information technology. The focus in the core telecommunications business is on the aggressive defense of market shares among small, medium-sized and large enterprises, the rapid roll-out of IP services and on streamlining the product portfolio and consolidating platforms. In the European IT market, the business area is generating long-term growth by offering standardized IT services and solutions for small and medium-sized enterprises and by expanding its IT outsourcing business among new and existing key accounts. The acquisition of the IT service provider gedas considerably strengthened T-Systems’ market position in the automotive segment, taking it an important step further in the expansion of its global footprint.
Group-wide strategic measures.
Deutsche Telekom offers consumers and business customers communications and broadband services for the home and on the move, all from a single source. The potential of this market position is safeguarded by Group-wide strategic measures. Deutsche Telekom realizes new revenue potential, for example, with new convergent products such as T-One. The customer uses a single handset for fixed-network communication when at home and mobile communication when on the move. Internet telephony is also possible using T-One at any of the over 7,500 HotSpots operated by T-Com and T-Mobile.
The sustained increase in customer satisfaction and improved use of cross-selling potential are goals of the recently launched Group-wide customer relationship management system. In addition, integrated customer management is intended to increase sales efficiency and improve sales channels. As in 2005, the top executives of the Group are this year again spending several days in direct dialog with customers.
On the cost side, efforts to improve the IT systems and the network infrastructure are being pushed ahead. The conversion to IP-based next generation networks will lead to a considerable efficiency boost in the next
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few years. In addition, the focus is on lowering real estate-related costs and the personnel cost ratio. Implementation of staff restructuring began on schedule. Group Headquarters underwent initial streamlining in order to improve central functions.
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· Net revenue increased by 3.2 percent, from EUR 29.0 billion
in the first half of 2005 to EUR 30.0 billion in the
first half of 2006.
· Group EBITDA1 adjusted for special factors decreased by 2.4 percent year-on-year, from EUR 10.0 billion to EUR 9.8 billion; Group EBITDA decreased by 3.7 percent from EUR 10.0 billion to EUR 9.6 billion.
· Net profit adjusted for special factors1 decreased by 6.5 percent from EUR 2.2 billion to EUR 2.0 billion, net profit decreased slightly by 3.2 percent from EUR 2.2 billion to EUR 2.1 billion.
· Free cash flow2 before dividend payments increased by EUR 0.8 billion to EUR 1.7 billion.
· Net debt3 decreased from EUR 44.5 billion at June 30, 2005 to EUR 38.8 billion.
This development was the result of two offsetting trends:
· The proportion of net revenue generated outside Germany increased from 41.3 percent to 45.5 percent.
· Within Germany:
· Revenue decreased by 4.0 percent year-on-year from EUR 17.0 billion to EUR 16.3 billion as a result of high pressure from competition and on prices.
· Adjusted for special factors, EBITDA of subsidiaries based in Germany
fell by 5.8 percent from EUR 6.6 billion
to EUR 6.2 billion.
· Outside Germany:
· Revenue increased by 13.5 percent year-on-year from EUR 12.0 billion to EUR 13.6 billion as a result of organic and inorganic growth.
· Adjusted for special factors, EBITDA of subsidiaries based outside Germany increased by 4.1 percent from EUR 3.5 billion to EUR 3.6 billion.
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1 For a detailed explanation of the special factors affecting EBITDA, adjusted EBITDA, the adjusted EBITDA margin and special factors affecting net profit/loss after income taxes and the adjusted net profit, please refer to “Reconciliation of pro forma figures,” page 47 et seq.
2 Deutsche
Telekom defines free cash flow as cash generated from operations less interest paid
and cash outflows for investments in property, plant and equipment, and
intangible assets (excluding goodwill). For calculation of free cash flow,
please refer to “Reconciliation of pro forma figures,”
page 50.
3 For detailed information, please refer to “Reconciliation of pro forma figures,” page 51.
8
The merger of T-Online International AG into Deutsche Telekom AG, which had been approved in 2005, initially could not become effective due to lawsuits filed by some T-Online shareholders. However, with a final and conclusive ruling of the Federal Court of Justice (Bundesgerichtshof), made public on June 1, 2006, the so-called release proceedings initiated by T-Online International AG were successfully completed, meaning that the merger could be entered into the commercial register on June 6, 2006 and thereupon became effective.
With the entry of the merger in the relevant commercial register, the T-Online shareholders became new Deutsche Telekom AG shareholders. After the merger became effective shares in T-Online International AG ceased to be listed at the close of June 6, 2006. For processing reasons, the technical exchange of shares in the former T-Online International AG for shares in Deutsche Telekom AG at the ratio of 25 T-Online International AG shares to 13 Deutsche Telekom AG shares as agreed in the merger agreement was carried out mid-July 2006. The new Deutsche Telekom AG shares were included in the trading of Deutsche Telekom shares as of July 17, 2006.
The merger has brought the Broadband/Fixed Network
strategic business area, which consists of T-Com and T-Online, a decisive step
closer to achieving an improved structure. After the entry in the commercial
register a process was launched to shape future cooperation step by step and to
allow the Company to act in the market with the combined strengths of
the units.The customer will receive fully integrated products and services from
a single source, and be presented with structures that are simple and
transparent.
A new, simplified integrated product portfolio will be launched in the fall. This means flat rates for lines, including telephony, surfing and television services. IT systems and business processes are also being harmonized and restructured. Customer service units are working closely together so that customers are served in the best way possible in all respects, regardless of whether they go to a T-Punkt store or call one of the hotlines. The intention is to make the customer perceive the Broadband/Fixed Network strategic business area as a single provider with a simple and transparent product portfolio as soon as possible.
The successful T-Online brand will continue to be used
as an independent product brand for all IP-based services of Deutsche Telekom
in the mass market. All brands of T-Online will continue to exist as part of
the trademark structure of
the Broadband/Fixed Network strategic business area.
After the merger became effective on June 6, 2006, Broadband/Fixed Network will no longer report on T-Online as a separate unit within Broadband/Fixed Network. For reporting purposes, Broadband/Fixed Network is broken down into its domestic and international segments. The Scout24 group is reported in the domestic segment since its parent company has its registered office in Germany.
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Events in the second quarter of 2006. |
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Group |
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FIFA World Cup 2006TM. |
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· As a partner of FIFA and the national organization committee for the 2006 World Cup, Deutsche Telekom was responsible for three quarters of all IT and telecommunications services for the 2006 World Cup. Each of the twelve World Cup stadiums was networked and had its own individually designed technical solution. The focus was on TV broadcast, multimedia equipment, traffic management, security radio, and infrastructure management, all of which were installed jointly by T-Systems, T-Com, and T-Mobile. Media & Broadcast — the media unit of the Business Customers area — processed video and audio signals from the stadiums at the international broadcasting center in Munich-Riem. For the first time ever, all World Cup games were broadcast in HDTV quality. These images were supplied to almost all of the large public viewing screens. In addition, a high-speed network linked all stadiums and locations, ensuring smooth communication right up to the final — thanks to mobile communication standards such as GPRS and UMTS, Internet telephony, and wireless local networks. Moreover, T-Systems installed traffic management and control systems as well as electronic access systems at a number of World Cup locations. Additional mobile communication base stations were installed and existing locations were upgraded to ensure optimum mobile communication services. To provide sufficient capacity for data transmission via UMTS and HSDPA, a second frequency was activated, doubling capacity in some areas. In addition, the mobile TV service went live on May 16, 2006 with the “T-Mobile FIFA World Cup 2006TM Highlights” channel. |
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Workforce restructuring at Deutsche Telekom AG includes civil servants. |
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· On May 31, 2006, the Federal Cabinet adopted the “Draft Second Bill to Amend the Act for the Improvement of the Staff Structure at the Residual Special Asset of the Federal Railways and the Successor Companies of the Former Deutsche Bundespost” and introduced it into the legislative process. Among other aims, the draft legislation is intended to help correct the negative consequences of a structural feature of the successor companies to Deutsche Bundespost. These companies employ a high proportion of civil servants in Western Germany, while staff covered by collective agreements make up the majority of the workforce in Eastern Germany. Once the law comes into force — expected in the fourth quarter of 2006 — it will give Deutsche Telekom an opportunity to ensure the socially responsible inclusion of civil servants employed at Deutsche Telekom in the workforce restructuring process. The law will not affect the federal budget. The draft stipulates that civil servants of all service grades aged 55 and over who are working in areas where there is a surplus of staff, and for whom employment in another area is not possible or would be unreasonable under civil service law, may take early retirement. There can be no assurance that the draft legislation will be adopted as proposed. |
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Collective agreement for Deutsche Telekom AG. |
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· Due to the distinct difference in negotiating positions, Deutsche Telekom as employer instituted a prescribed conciliation procedure in the 2006 collective bargaining round for Deutsche Telekom AG. In the collective bargaining negotiations, the conciliation committee headed by former Federal Minister Dr. Heiner Geißler issued a recommendation that was approved by both the ver.di services union and the Board of Management of Deutsche Telekom AG in early June 2006. For employees covered by collective agreements, the agreement provides for a one-time payment of EUR 350, no pay increases until October 2006, and a 3-percent increase in pay-scale salaries starting November 2006. The collective wage agreement will run for 16 months until July 31, 2007. The conciliation procedure resulted in separate arrangements for civil servants, including a one-time payment of up to EUR 735 depending on the respective salary grade. To improve productivity and thus enhance competitiveness, paid breaks for staff using workstation monitors were reduced and the paid recuperation times were abolished in some areas. This cushioned the cost of the pay increase. The additional capacity generated by these measures will then be used to reduce outsourcing to third parties in the areas of services and installation going forward. |
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Successful medium-term note issuances of EUR 1.75 billion. |
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· Deutsche Telekom took advantage of the market environment in the second quarter of 2006 to launch a series of securities with low risk premiums above the respective mid-swap rate. In addition to EUR 750 million securities aimed at retail investors, medium-term notes totaling EUR 1.0 billion were issued. |
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Financial ratios improved further. |
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· The mandatory convertible bond issued in February 2003 was converted to Deutsche Telekom shares on June 1, 2006. The conversion to equity as well as the consolidated Group’s positive free cash flow led to an improvement of the financial ratios. |
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Mobile Communications |
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Acquisition of tele.ring approved. |
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· At the end of April 2006, the Austrian mobile communications subsidiary T-Mobile Austria acquired its Austrian competitor tele.ring following approval of the purchase by the Competition Directorate-General of the European Commission and the Austrian telecommunications authority. The purchase price is approximately EUR 1.3 billion. Following the takeover, T-Mobile Austria now has approximately 3.1 million customers and thus a market share of 37 percent. |
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T-Mobile announces substantial price reductions for international roaming rates. |
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· T-Mobile had already cut roaming prices for its customers several times in the past and announced on June 1, 2006 its greatest ever reduction in wholesale prices for roaming services. It agreed with a number of European network operators to reduce the maximum charge to 45 cents/minute starting in October 2006, and to 36 cents/minute starting in October 2007. This represents roughly half the current average wholesale prices. The network operators have pledged to pass the resulting cost advantages on to the customer quickly and to the greatest extent possible. |
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T-Mobile USA’s strategy confirmed in customer service and satisfaction. |
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· T-Mobile USA’s market position in terms of customer service and satisfaction has been confirmed by more awards. For example, T-Mobile USA again took first place in the recent J.D. Power and Associates Wireless Customer Care Performance Study (www.jdpower.com/corporate/news/releases/pressrelease.asp?ID=2006122). In addition, T-Mobile USA was rated first among the large U.S. mobile telecommunication operators in the VocaLabs customer satisfaction study (www.vocalabs.com/about/pr41.html) for the quality of its customer service for the first time. |
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PTC. |
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· On June 6, 2006 a court of arbitration in Vienna issued a final partial judgment stating that the exercise by T-Mobile Deutschland of a call option on Elektrim S.A.’s share of approximately 48 percent in PTC on February 15, 2005 was effective, i.e., a purchase agreement between T-Mobile Deutschland and Elektrim on the acquisition of these shares had been constituted. The arbitration court shall issue a further partial judgment concerning the final purchase price. Deutsche Telekom does not yet control PTC. |
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Broadband/Fixed Network |
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Discontinuation of DSL resale procedure and prohibition of DSL NetRental. |
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· On June 6, 2006 the Federal Network Agency discontinued the ex-post rates regulation procedure for DSL resale. The reason for this is the retroactive increase in the resale discount for alternative providers from 11.5 to 20 percent that took effect as of June 1, 2006. In addition, the Federal Cartel Office launched an investigation of the DSL NetRental product on March 20, 2006, followed by the Federal Network Agency on March 22, 2006. In a ruling dated May 22, 2006, the Federal Network Agency established that the rates for the DSL NetRental product represented market abuse and did not satisfy the requirements of § 28 of the Telecommunications Act (Telekommunikationsgesetz - TKG), and that they were therefore invalid. DSL resale terms have therefore been applied since May 22, 2006. The terms and conditions for DSL NetRental billing were applied for the period January 1, 2006 to May 21, 2006. In addition, the contracts were terminated by Deutsche Telekom AG for good cause with immediate effect. |
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Launch of T-DSL 16000. |
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· T-Com launched the new high-speed T-DSL 16000 line in mid-May 2006, and the higher bandwidths are now laying the foundation for data-intensive applications. T-Com is thus continuing the DSL success story by fulfilling customers’ demands for greater bandwidth. The new service offers maximum speeds of up to 16 Mbit/s downstream and 1,024 kbit/s upstream. |
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Reduction in interconnection charges. |
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· On April 13, 2006 the Federal Network Agency set the new interconnection charges for the German telecommunications market, lowering the previously approved charges by 10 percent on average. Charges for the basic termination and origination services were reduced by up to 11.9 percent. The new charges are valid from June 1, 2006 to November 30, 2008. |
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Business Customers |
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T-Systems and ZDF sign agreement on digital terrestrial television. |
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· ZDF, a German public service television channel, will rely on T-Systems’ experience and technology to broadcast its digital programs for terrestrial reception. T-Systems and ZDF signed a long-term agreement in early May 2006. Media & Broadcast, the media unit of the Business Customers area, will broadcast ZDF’s DVB-T programs as network operator from a total of 135 locations. Since the launch of DVB-T in 2003, approximately 50 million television viewers have enjoyed the added value that DVB-T offers, such as greater program variety, significantly improved picture and sound quality, as well as additional programming information. More than 90 percent of the population will be able to receive DVB-T by the end of 2008. |
13
Overall economic situation/ industry situation.
Global economic development
The global economy continued to grow in the first half of 2006, although the macroeconomic environment has deteriorated sharply in recent months. The crisis in the Middle East is seeing oil prices reach new all-time highs, and major central banks worldwide are tightening monetary policy to curb the risk of higher inflation.
Economic indicators in industrialized countries generally recorded strong growth in the first half of 2006, although the pace of growth varied by quarter. Real GDP growth in the G-7 countries in the first quarter of 2006 rose by an annualized 3.5 percent. Overall, during the second quarter of 2006 economic growth in the leading industrialized countries appeared to continue pointing upwards, although first signs of regional economic slowdowns started emerging.
The economy in the euro zone picked up again in the first six months of 2006. Real GDP grew by an annualized 2.4 percent in the first quarter of 2006. German economic growth underperformed the rest of the euro zone in the first three months of 2006. For the second quarter, a range of economic indicators point to an acceleration of economic growth; private consumption and exports are expanding significantly, and the majority of business surveys early in the year suggested an improvement in business sentiment. Unemployment is falling slightly on the back of moderate pay settlements among other factors, leading to a further revival in consumption, and investments are expanding slightly. The gap between the rate of economic growth in Germany and the rest of the euro zone is expected to continue to narrow in 2006. Following a modest increase in the first quarter of 2006, German economic indicators picked up across the board in the spring. The pull-forward effects on consumer spending of the 2007 VAT increase will further bolster economic growth. Faced with growing risks of inflation and strong lending and monetary growth, the European Central Bank hiked its key lending rate to 2.75 percent in June.
Economic growth is slowing down perceptibly in the United States. Following a sharp 5.3 percent rise in the first quarter of 2006 due mainly to one-time factors, a range of indicators — such as private consumption, new housing starts, and consumer confidence — fell heavily, indicating that the pace of economic expansion is set to decelerate. The seasonally adjusted figures on GDP development in the second quarter of 2006 published by the U.S. Department of Trade indicate growth of only about 2.5 percent over the second quarter of 2005. Prices started rising sharply in the United States at the same time, fuelled in particular by the soaring price of oil. The U.S. Federal Reserve raised the intended federal funds rate to 5.25 percent at the end of June 2006. The pace of economic growth also slowed slightly in Japan. Following the sharp rise in the previous year, the rate of expansion decelerated in the spring. A range of rising price indices suggest that the phase of deflation in Japan is now over. The Japanese central bank responded by tightening its monetary policy from June 2006.
The outlook for the second half of 2006 indicates a significantly lower rate of economic expansion in industrialized countries. The dampening effects of further oil price rises and the macroeconomic risks associated with the political crises in the Middle East could adversely affect global private consumption and corporate investment.
14
Telecommunications market
Since the German telecommunications sector was fully deregulated at the beginning of 1998, Deutsche Telekom has had to cope with increasingly intense competition. The battle for customers initially focused predominantly on fixed-network voice telephony call minutes, but now also encompasses access charges and fixed-mobile substitution. The main force driving this development is the intensification of competition from attractive package offers from local network operators.
The strong price pressure in the telecommunications sector is reflected in the figures published by the Federal Statistical Office for the overall telecommunications services price index (fixed network, mobile communications, and Internet). From the perspective of private households, consumer prices for telecommunications services were on average 3.3 percent lower in the second quarter of 2006 than in the prior-year period, and prices for mobile telephony services in particular were 12.5 percent lower year-on-year. Consumer prices for Internet use also declined by an average of 5.9 percent year-on-year.
Regulation: Telecommunications Act
The German Federal Cabinet adopted a draft amendment to the Telecommunications Act on May 17, 2006. The amendment relates primarily to the exemption, for a limited time only, of new markets from market regulation, and to a range of provisions that extend consumer protection. The question of whether, and if so to what extent, this meets Deutsche Telekom’s call for the high-speed fiber optic network to be exempted from regulation cannot yet be conclusively assessed on the basis of the existing draft legislation. The provisions referring to consumer protection indicate that, in addition to the fixed network, mobile communications will be subject to a higher level of consumer protection regulation going forward. Depending on how this amendment is ultimately structured, it could entail considerable investment and revenue risks for the industry as a whole in Germany. Deutsche Telekom does not expect the amendment to the Telecommunications Act to come into force before early 2007.
15
Regulation: directives and recommendations
The fundamental principles of the sector-specific regulation of the European telecommunications markets are set out in EU directives and other communications issued by the European Commission. The directives and recommendations adopted in 2002 are currently being reviewed (2006 Review). At the end of June 2006, the Commission published a communiqué on intended changes to the relevant directives and the draft of a new recommendation on the telecommunications submarkets to be regulated (Markets Recommendation).
The Commission’s communiqué concerning the 2006 Review shows that it is no longer pursuing its original goal of reducing sector-specific regulation and a transition to general competition law, but instead is now aiming to strengthen regulation, while at the same time substantially expanding the Commission’s powers. The latter intention is likely to meet with resistance from both national governments and regulators. The first draft of the revised directives is expected for the end of 2006, and transposition into national law is unlikely before 2008/2009.
Although the draft Markets Recommendation provides for a reduction in the number of regulated markets — in particular end-customer markets — it only effectively excludes those markets that are already largely unregulated in many countries. On the other hand, the Commission is proposing to extend regulation to additional wholesale markets for mobile communications. The Markets Recommendation will probably come into force at the end of the year, and will then be implemented by the individual Member States.
16
Business developments in the Group.
Net revenue
Deutsche Telekom’s net revenue for the first six months of 2006 was approximately EUR 30 billion. The Company thus continued its positive revenue development, recording growth of EUR 0.9 billion or 3.2 percent as against the first half of 2005. This continued growth course was aided by currency translation effects — in particular from the translation of U.S. dollars (USD) — in the amount of around EUR 0.3 billion, as well as effects relating to the composition of the Group in the amount of around EUR 0.2 billion. In the second quarter of 2006, the Company’s net revenue increased by EUR 0.4 billion or 2.6 percent year-on-year.
Revenue growth was driven in particular by the Mobile Communications strategic business area, where the substantial growth at T-Mobile USA remained the primary revenue contributor. Overall, the Mobile Communications business area increased its revenue in the first six months by just under 11 percent year-on-year. The quarter-on-quarter comparison is also positive, with revenue up by over 9 percent as against the second quarter of 2005.
The year-on-year decline in revenue recorded by the Broadband/Fixed Network strategic business area is due primarily to the loss of narrowband subscriber lines, a decline in call revenues, and considerable price drops in the Internet access market. Overall, this could not be offset by the volume-related growth in DSL resale and in subscriber lines.
Revenue in the Business Customers strategic business area also declined. Persistently strong price pressure in the Telecommunications and Computing & Desktop Services areas led to a decrease in revenue at the Enterprise Services unit in particular.
|
|
|
|
|
Second |
|
|
|
|
|
First half of 2006 |
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
Q2 |
|
Change |
|
H1 |
|
H1 |
|
Change |
|
FY |
|
|
Net revenue |
|
14,842 |
|
15,130 |
|
14,743 |
|
2.6 |
|
29,972 |
|
29,031 |
|
3.2 |
|
59,604 |
|
|
Mobile Communicationsa |
|
7,575 |
|
7,856 |
|
7,197 |
|
9.2 |
|
15,431 |
|
13,943 |
|
10.7 |
|
29,452 |
|
|
Broadband/ Fixed Networka |
|
6,156 |
|
6,146 |
|
6,469 |
|
(5.0 |
) |
12,302 |
|
13,024 |
|
(5.5 |
) |
26,035 |
|
|
Business Customersa |
|
3,011 |
|
3,146 |
|
3,219 |
|
(2.3 |
) |
6,157 |
|
6,325 |
|
(2.7 |
) |
12,850 |
|
|
Group Headquarters & Shared Servicesa |
|
871 |
|
894 |
|
883 |
|
1.2 |
|
1,765 |
|
1,736 |
|
1.7 |
|
3,505 |
|
|
Inter-segment revenueb |
|
(2,771 |
) |
(2,912 |
) |
(3,025 |
) |
3.7 |
|
(5,683 |
) |
(5,997 |
) |
5.2 |
|
(12,238 |
) |
a Total revenue (including revenue between strategic business areas).
b Elimination of revenue between strategic business areas.
17
Contribution of the strategic business areas to net revenue (after elimination of revenue between strategic business areas)
|
|
|
H1 |
|
Proportion |
|
H1 |
|
Proportion |
|
Change |
|
Change |
|
FY |
|
|
Net revenue |
|
29,972 |
|
100.0 |
|
29,031 |
|
100.0 |
|
941 |
|
3.2 |
|
59,604 |
|
|
Mobile Communications |
|
15,082 |
|
50.3 |
|
13,493 |
|
46.5 |
|
1,589 |
|
11.8 |
|
28,531 |
|
|
Broadband/Fixed Network |
|
10,292 |
|
34.4 |
|
10,878 |
|
37.5 |
|
(586 |
) |
(5.4 |
) |
21,731 |
|
|
Business Customers |
|
4,439 |
|
14.8 |
|
4,529 |
|
15.6 |
|
(90 |
) |
(2.0 |
) |
9,058 |
|
|
Group Headquarters & Shared Services |
|
159 |
|
0.5 |
|
131 |
|
0.4 |
|
28 |
|
21.4 |
|
284 |
|
The Mobile Communications strategic business area further increased its proportion of the Group’s total revenue and contributed more than 50 percent of net revenue in the reporting period. However, the share of revenue accounted for by the Broadband/Fixed Network and Business Customers strategic business areas declined to around 34 and 15 percent respectively.
Net revenue generated outside Germany
The Group’s international revenue increased by around EUR 1.6 billion year-on-year to EUR 13.6 billion. This improvement is also reflected in the quarter-on-quarter comparison: Compared with the second quarter of 2005, the share of revenue generated abroad rose by around EUR 0.8 billion in the second quarter of 2006 to around EUR 7 billion. The key factor for this successful international growth is the continued positive revenue trend at T-Mobile USA and T-Mobile UK in particular. Domestic revenue declined on both a six-month and a quarterly basis.
The proportion of revenue generated outside Germany in the first half of 2006 increased by more than 4 percentage points year-on-year to 45.5 percent.
|
|
|
|
|
Second |
|
|
|
|
|
First |
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
Q2 |
|
Change |
|
H1 |
|
H1 |
|
Change |
|
FY |
|
|
Net revenue |
|
14,842 |
|
15,130 |
|
14,743 |
|
2.6 |
|
29,972 |
|
29,031 |
|
3.2 |
|
59,604 |
|
|
Domestic |
|
8,208 |
|
8,139 |
|
8,517 |
|
(4.4 |
) |
16,347 |
|
17,028 |
|
(4.0 |
) |
34,183 |
|
|
International |
|
6,634 |
|
6,991 |
|
6,226 |
|
12.3 |
|
13,625 |
|
12,003 |
|
13.5 |
|
25,421 |
|
|
Proportion generated internationally (%) |
|
44.7 |
|
46.2 |
|
42.2 |
|
|
|
45.5 |
|
41.3 |
|
|
|
42.6 |
|
|
Europe (excluding Germany) |
|
3,234 |
|
3,560 |
|
3,310 |
|
7.6 |
|
6,794 |
|
6,425 |
|
5.7 |
|
13,272 |
|
|
North America |
|
3,332 |
|
3,356 |
|
2,852 |
|
17.7 |
|
6,688 |
|
5,444 |
|
22.9 |
|
11,858 |
|
|
Other |
|
68 |
|
75 |
|
64 |
|
17.2 |
|
143 |
|
134 |
|
6.7 |
|
291 |
|
18
Profit before income taxes
The Group’s profit before income taxes amounted to around EUR 3.1 billion in the first half of 2006, down by around EUR 0.6 billion year-on-year. Despite an improvement in gross profit, higher selling expenses in particular led to a decline in the profit from operations by around EUR 0.5 billion as against the previous year to EUR 4.4 billion. In addition, the loss from financial activities was affected by the increase in finance costs and the deterioration of the share of profit/loss of equity-accounted investments.
Net profit
At around EUR 2.1 billion, net profit in the first half of 2006 was down slightly on the previous year. This trend was partially offset, however, by the change in income tax expenses, which fell by around EUR 0.5 billion year-on-year, due mainly to the reversal of tax provisions.
Net profit was affected by special factors amounting to around EUR 0.1 billion net in the first six months of 2006. These relate primarily to revenue components from the sale of Celcom in 2003, which were not received until the first quarter of 2006. Expenses from severance and voluntary redundancy payments and restructuring, for example, had an offsetting effect. Adjusted for these special factors, net profit amounted to around EUR 2.0 billion compared with EUR 2.2 billion in the prior-year period. In the first half of 2005, net profit was not impacted by any significant special factors.
EBIT
|
|
|
|
|
Second |
|
|
|
|
|
First |
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
Q2 |
|
Change |
|
H1 |
|
H1 |
|
Change |
|
FY |
|
|
EBITa in the Group |
|
2,318 |
|
2,085 |
|
2,572 |
|
(18.9 |
) |
4,403 |
|
4,859 |
|
(9.4 |
) |
7,622 |
|
|
Mobile Communications |
|
1,055 |
|
1,083 |
|
1,225 |
|
(11.6 |
) |
2,138 |
|
2,191 |
|
(2.4 |
) |
3,005 |
|
|
Broadband/ Fixed Network |
|
1,262 |
|
1,254 |
|
1,409 |
|
(11.0 |
) |
2,516 |
|
2,843 |
|
(11.5 |
) |
5,142 |
|
|
Business Customers |
|
99 |
|
37 |
|
195 |
|
(81.0 |
) |
136 |
|
369 |
|
(63.1 |
) |
409 |
|
|
Group Headquarters & Shared Services |
|
(94 |
) |
(271 |
) |
(232 |
) |
(16.8 |
) |
(365 |
) |
(499 |
) |
26.9 |
|
(840 |
) |
|
Reconciliation |
|
(4 |
) |
(18 |
) |
(25 |
) |
28.0 |
|
(22 |
) |
(45 |
) |
51.1 |
|
(94 |
) |
a EBIT is profit/loss from operations as shown in the income statement.
EBIT decreased by EUR 0.5 billion in the first six months of 2006 to around EUR 4.4 billion. While Group Headquarters & Shared Services improved its EBIT, the strategic business areas recorded a decline in EBIT.
19
EBITDA
EBITDA was around EUR 9.6 billion in the first half of 2006, down by around EUR 0.4 billion or 3.7 percent year-on-year. EBITDA growth at the Mobile Communications business area and at Group Headquarters & Shared Services could not offset the declines in EBITDA recorded by the Broadband/Fixed Network and Business Customers strategic business areas.
Adjusted EBITDA
Special factors amounting to a net total of minus EUR 150 million negatively affected EBITDA in the first half of 2006. These consisted mainly of expenses from severance and voluntary redundancy payments as well as from restructuring.
The Group also recognized one-time expenses relating to DSL campaigns in the income statement. Negative net special factors totaling EUR 26 million were recorded in the previous year. Negative special factors due to severance and voluntary redundancy payments and restructuring expenses in particular were offset by a positive special factor from insurance refunds.
Adjusted for special factors, EBITDA in the first half of 2006 decreased by EUR 0.2 billion to EUR 9.8 billion. The decline in adjusted EBITDA in the Broadband/Fixed Network business area was due to the decrease in fixed-network revenue, increased customer acquisition costs, especially in the broadband segment, and to higher costs in connection with the launch of new products. This combined impact on adjusted EBITDA was partially offset by cost-cutting measures. The Mobile Communications business area and Group Headquarters & Shared Services increased their adjusted EBITDA.
The growth achieved by Mobile Communications is due mainly to positive revenue development as a result of continued strong customer growth. Group Headquarters & Shared Services increased its adjusted EBITDA as a result of greater earnings contributions from real estate sales and reduced personnel costs relating to the lower headcount at Vivento.
|
|
|
|
|
Second |
|
|
|
|
|
First |
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
Q2 |
|
Change |
|
H1 |
|
H1 |
|
Change |
|
FY |
|
|
Adjusted EBITDAa |
|
4,970 |
|
4,817 |
|
5,188 |
|
(7.2 |
) |
9,787 |
|
10,029 |
|
(2.4 |
) |
20,729 |
|
|
Mobile Communications |
|
2,280 |
|
2,363 |
|
2,443 |
|
(3.3 |
) |
4,643 |
|
4,554 |
|
2.0 |
|
9,772 |
|
|
Broadband/ Fixed Network |
|
2,277 |
|
2,239 |
|
2,429 |
|
(7.8 |
) |
4,516 |
|
4,873 |
|
(7.3 |
) |
9,859 |
|
|
Business Customers |
|
341 |
|
326 |
|
423 |
|
(22.9 |
) |
667 |
|
815 |
|
(18.2 |
) |
1,586 |
|
|
Group Headquarters & Shared Services |
|
87 |
|
(82 |
) |
(66 |
) |
(24.2 |
) |
5 |
|
(138 |
) |
n.a. |
|
(335 |
) |
|
Reconciliation |
|
(15 |
) |
(29 |
) |
(41 |
) |
29.3 |
|
(44 |
) |
(75 |
) |
41.3 |
|
(153 |
) |
a Deutsche Telekom defines EBITDA as profit/loss from operations excluding depreciation, amortization and impairment losses. For a detailed explanation of the special factors affecting EBITDA, adjusted EBITDA, and the adjusted EBITDA margin, please refer to “Reconciliation of pro forma figures,” page 47 et seq.
20
Free cash flow
The improvement in free cash flow is attributable not only to lower capital expenditure but also to reduced interest payments. This is offset by the deterioration in cash generated from operations, which is due in particular to the change in working capital and the decline in profit from operations. The staff restructuring measures had a negative impact of EUR 0.2 billion on free cash flow in the first half of 2006.
|
|
|
|
|
Second |
|
|
|
|
|
First |
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
Q2 |
|
Change |
|
H1 |
|
H1 |
|
Change |
|
FY |
|
|
Cash generated from operations |
|
3,305 |
|
3,807 |
|
4,843 |
|
(21.4 |
) |
7,112 |
|
7,419 |
|
(4.1 |
) |
17,929 |
|
|
Interest paid |
|
(509 |
) |
(915 |
) |
(1,204 |
) |
24.0 |
|
(1,424 |
) |
(1,604 |
) |
11.2 |
|
(2,931 |
) |
|
Net cash from operating activities |
|
2,796 |
|
2,892 |
|
3,639 |
|
(20.5 |
) |
5,688 |
|
5,815 |
|
(2.2 |
) |
14,998 |
|
|
Cash outflows for investments in property, plant and equipment, and intangible assets (excluding goodwill) |
|
(2,044 |
) |
(1,925 |
) |
(1,824 |
) |
(5.5 |
) |
(3,969 |
) |
(4,915 |
) |
19.2 |
|
(9,269 |
) |
|
Free cash flow before dividend paymentsa |
|
752 |
|
967 |
|
1,815 |
|
(46.7 |
) |
1,719 |
|
900 |
|
91.0 |
|
5,729 |
|
a For detailed information and calculations, please refer to “Reconciliation of pro forma figures,” page 50.
21
Net debt
Net debt increased slightly compared with the end of 2005, although the Group recorded a decrease in this item in the first quarter of 2006, where positive cash flow and proceeds from real estate sales offset the effects of the acquisition of the IT services provider gedas. In the second quarter of 2006, however, net debt rose in particular due to the dividend payments for the 2005 financial year totaling EUR 3.0 billion and cash outflows amounting to EUR 1.3 billion in connection with the acquisition of tele.ring Telekom Service GmbH. Offsetting effects came from the conversion to equity of the mandatory convertible bond in the amount of EUR 2.1 billion and from a positive cash flow.
In a year-on-year comparison, net debt was reduced by EUR 5.7 billion.
|
|
|
June 30, |
|
Mar. 31, |
|
Change |
|
Dec. 31, |
|
Change |
|
June 30, |
|
Change |
|
|
Bonds |
|
38,587 |
|
39,696 |
|
(2.8 |
) |
37,255 |
|
3.6 |
|
40,746 |
|
(5.3 |
) |
|
Liabilities to banks |
|
2,365 |
|
2,447 |
|
(3.4 |
) |
2,227 |
|
6.2 |
|
3,530 |
|
(33.0 |
) |
|
Liabilities to non-banks from promissory notes |
|
635 |
|
641 |
|
(0.9 |
) |
645 |
|
(1.6 |
) |
653 |
|
(2.8 |
) |
|
Liabilities from derivatives |
|
571 |
|
549 |
|
4.0 |
|
678 |
|
(15.8 |
) |
745 |
|
(23.4 |
) |
|
Lease liabilities |
|
2,301 |
|
2,374 |
|
(3.1 |
) |
2,373 |
|
(3.0 |
) |
2,473 |
|
(7.0 |
) |
|
Liabilities arising from ABS transactions |
|
1,213 |
|
1,331 |
|
(8.9 |
) |
1,363 |
|
(11.0 |
) |
1,384 |
|
(12.4 |
) |
|
Other financial liabilities |
|
102 |
|
185 |
|
(44.9 |
) |
106 |
|
(3.8 |
) |
121 |
|
(15.7 |
) |
|
Gross debt |
|
45,774 |
|
47,223 |
|
(3.1 |
) |
44,647 |
|
2.5 |
|
49,652 |
|
(7.8 |
) |
|
Cash and cash equivalents |
|
5,667 |
|
8,343 |
|
(32.1 |
) |
4,975 |
|
13.9 |
|
3,910 |
|
44.9 |
|
|
Available-for-sale/held-for-trading financial assets |
|
105 |
|
123 |
|
(14.6 |
) |
148 |
|
(29.1 |
) |
114 |
|
(7.9 |
) |
|
Derivatives |
|
406 |
|
395 |
|
2.8 |
|
445 |
|
(8.8 |
) |
673 |
|
(39.7 |
) |
|
Other financial assets |
|
777 |
|
573 |
|
35.6 |
|
440 |
|
76.6 |
|
407 |
|
90.9 |
|
|
Net debta |
|
38,819 |
|
37,789 |
|
2.7 |
|
38,639 |
|
0.5 |
|
44,548 |
|
(12.9 |
) |
a For detailed information and calculations, please refer to “Reconciliation of pro forma figures,” page 51.
22
Mobile Communications
The Mobile Communications strategic business area bundles all activities of T-Mobile International AG & Co. KG. T-Mobile is represented in Germany, the United States, the United Kingdom, the Netherlands, Austria, the Czech Republic, Hungary, Slovakia, Croatia, Macedonia and Montenegro. It also holds a minority interest in a Polish company. All T-Mobile companies offer digital mobile voice and data services to consumers and business customers. T-Mobile also sells hardware and other terminal devices in connection with the services offered. In addition, T-Mobile services are sold to resellers and to companies that buy network services and market them independently to third parties (mobile virtual network operators, or MVNOs).
|
|
|
Q2 2006a |
|
Q2 2005a |
|
|
Total revenue |
|
7,856 |
|
7,197 |
|
|
T-Mobile Deutschland |
|
2,060 |
|
2,128 |
|
|
T-Mobile USA |
|
3,340 |
|
2,858 |
|
|
T-Mobile UK |
|
1,122 |
|
1,013 |
|
|
Adjusted EBITDA |
|
2,363 |
|
2,443 |
|
|
Adjusted EBITDA margin (%) |
|
30.1 |
|
33.9 |
|
|
|
|
|
|
|
|
|
Number of employees (average) |
|
52,603 |
|
49,271 |
|
|
|
|
|
|
|
|
|
Mobile customers (millions) |
|
90.2 |
|
81.8 |
|
a For a detailed explanation of the calculations and definitions of the various amounts, please refer to page 23 et seq.
Broadband/ Fixed Network
The Broadband/Fixed Network strategic business area offers consumers and small business customers state-of-the-art infrastructure for traditional fixed-network services, broadband Internet access, and customer-oriented multimedia services. Broadband/Fixed Network also does business with national and international network operators and with resellers (wholesale including resale), and provides upstream services for Deutsche Telekom’s other strategic business areas.
Following the merger of T-Online International AG into Deutsche Telekom AG, T-Online no longer reports as a separate unit, but is managed as a successful product brand. For reporting purposes, Broadband/Fixed Network is broken down into its domestic and international segments. The Scout24 group is reported in the domestic segment since its parent company has its registered office in Germany.
|
|
|
Q2 |
|
Q2 |
|
|
Total revenue |
|
6,146 |
|
6,469 |
|
|
Domestic |
|
5,445 |
|
5,776 |
|
|
International |
|
701 |
|
693 |
|
|
Adjusted EBITDA |
|
2,239 |
|
2,429 |
|
|
Adjusted EBITDA margin (%) |
|
36.4 |
|
37.5 |
|
|
|
|
|
|
|
|
|
Number of employees (average) |
|
110,028 |
|
113,515 |
|
|
|
|
|
|
|
|
|
Broadband lines (millions) |
|
10.0 |
|
7.1 |
|
|
|
|
|
|
|
|
|
Narrowband lines (millions) |
|
40.1 |
|
42.1 |
|
|
|
|
|
|
|
|
|
Internet customers with a billing relationship (millions) |
|
15.6 |
|
14.7 |
|
a For a detailed explanation of the calculations and definitions of the various amounts, please refer to page 27 et seq.
23
Business Customers
The Business Customers strategic business area offers its customers products and services from a single source along the entire information and communications technology value chain. The Business Customers strategic business area is divided into two business units: T-Systems Enterprise Services, which supports around 60 multinational corporations and large public authorities, and T-Systems Business Services, which serves around 160,000 small and medium-sized business customers. T-Systems, Deutsche Telekom’s business customer brand, is represented in over 20 countries by subsidiaries, primarily in Germany and Western Europe (France, Spain, Italy, the United Kingdom, Austria, Switzerland, Belgium, and the Netherlands).
|
|
|
Q2 2006a |
|
Q2 2005a |
|
|
Total revenue |
|
3,146 |
|
3,219 |
|
|
Enterprise Services |
|
2,057 |
|
2,086 |
|
|
Business Services |
|
1,089 |
|
1,133 |
|
|
Adjusted EBITDA |
|
326 |
|
423 |
|
|
Adjusted EBITDA margin (%) |
|
10.4 |
|
13.1 |
|
|
|
|
|
|
|
|
|
Number of employees (average) |
|
57,010 |
|
51,727 |
|
|
|
|
|
|
|
|
|
New orders |
|
3,886 |
|
3,897 |
|
a For a detailed explanation of the calculations and definitions of the various amounts, please refer to page 34 et seq.
24
Mobile Communications: Customer development and selected KPIs
|
|
|
June 30, |
|
Mar. 31, |
|
Change |
|
Dec. 31, |
|
Change |
|
June 30, |
|
Change |
|
|
Mobile customers (total)a |
|
90.2 |
|
88.7 |
|
1.7 |
|
87.6 |
|
3.0 |
|
81.8 |
|
10.3 |
|
|
T-Mobile Deutschlandb |
|
30.4 |
|
30.2 |
|
0.7 |
|
29.5 |
|
3.1 |
|
28.2 |
|
7.8 |
|
|
T-Mobile USA |
|
23.3 |
|
22.7 |
|
2.6 |
|
21.7 |
|
7.4 |
|
19.2 |
|
21.4 |
|
|
T-Mobile UKc |
|
16.7 |
|
16.4 |
|
1.8 |
|
17.2 |
|
(2.9 |
) |
16.1 |
|
3.7 |
|
|
T-Mobile Netherlands |
|
2.4 |
|
2.3 |
|
4.3 |
|
2.3 |
|
4.3 |
|
2.3 |
|
4.3 |
|
|
T-Mobile Austriaa |
|
3.1 |
|
3.1 |
|
0.0 |
|
3.1 |
|
0.0 |
|
3.0 |
|
3.3 |
|
|
T-Mobile CZ (Czech Republic) |
|
4.7 |
|
4.6 |
|
2.2 |
|
4.6 |
|
2.2 |
|
4.5 |
|
4.4 |
|
|
T-Mobile Hungary |
|
4.3 |
|
4.2 |
|
2.4 |
|
4.2 |
|
2.4 |
|
4.1 |
|
4.9 |
|
|
T-Mobile Hrvatska (Croatia) |
|
2.0 |
|
2.0 |
|
0.0 |
|
1.9 |
|
5.3 |
|
1.7 |
|
17.6 |
|
|
T-Mobile Slovensko (Slovakia) |
|
2.0 |
|
2.0 |
|
0.0 |
|
2.0 |
|
0.0 |
|
1.9 |
|
5.3 |
|
|
Otherd |
|
1.1 |
|
1.1 |
|
0.0 |
|
1.1 |
|
0.0 |
|
1.0 |
|
10.0 |
|
a One mobile communications card corresponds to one customer. The total was calculated on the basis of precise figures and rounded to millions. Percentages are calculated on the basis of figures shown. Organic customer growth is reported for better comparability: tele.ring customers were also included in the historic customer base, although the shares were not acquired until the end of April 2006.
b The change in customer base in Germany in the first quarter of 2006 as compared with year-end 2005 comprises 284,000 net additions and 440,000 machine-to-machine (M2M) SIM cards. M2M SIM cards are used in automated communication between machines. M2M SIM cards have been counted as customers since the first quarter of 2006 in order to bring the reporting of T-Mobile Deutschland in line with that of the other T-Mobile companies. Prior-year comparatives have not been adjusted.
c Including Virgin Mobile. Despite positive net new customer growth in the first quarter of 2006, the number of customers declined in the first quarter of 2006 compared with year-end 2005 due to a change in the reporting standard. For more information, refer to the Group report for the first quarter of 2006.
d “Other” includes MobiMak (Macedonia) and MONET (Montenegro).
The number of customers in the Mobile Communications strategic business area passed the 90 million mark for the first time at the end of the second quarter of 2006. T-Mobile is thus maintaining its strong growth course. Overall, the T-Mobile Group recorded organic customer growth of 1.5 million in the second quarter of 2006. The acquisition of tele.ring in Austria even improved real growth to 2.5 million. The number of fixed-term contract customers grew particularly strongly, contributing over 90 percent to customer growth. Fixed-term contract customers now account for over 51 percent of the entire customer base. This is reflected by the clear success of package rates such as Relax or Flext in the United Kingdom, which are now used by some 7.5 million customers. In the past twelve months, the T-Mobile group achieved organic customer growth of 8.6 million, an increase of over 10 percent.
25
T-Mobile USA remained the main growth driver with 613,000 new customers, 83 percent of whom hold a fixed-term contract. Within the space of one year, T-Mobile USA’s customer base grew by nearly 4.1 million to 23.3 million at the end of the reporting period. The marketing switch from one-year to two-year contracts at the beginning of the second quarter of 2006 led to a short-term dip in growth for fixed-term contract customers. The number of new customers gained each month increased again in the course of the second quarter of 2006, returning to the high first-quarter level in June. The positive customer retention effect resulting from the sale of two-year contracts is expected to be felt in the coming year. T-Mobile USA continued to focus on profitable growth in the increasingly competitive pay-as-you-go customer segment.
ARPU4 at T-Mobile USA fell by EUR 1 year-on-year to EUR 40 in the second quarter of 2006. A slight increase in contract customer ARPU almost completely balanced out a decline in pay-as-you-go ARPU. Data services revenue per customer developed particularly well, rising by over 40 percent compared with the prior-year quarter. At 11 percent in total, the proportion of data services revenue in the second quarter clearly passed the 10-percent mark that was achieved for the first time in the first quarter of 2006.
T-Mobile Deutschland also continued to expand its customer base in the second quarter of 2006. The number of customers rose by a total of 170,000. A particularly encouraging development was the strong growth in fixed-term contract customers, which at 175,000 reflects the successful marketing of the Relax rates. Another growth driver was the T-Mobile@home calling plan introduced in January 2006. By the end of the reporting period, over 700,000 customers had opted for this service allowing them to make attractively priced mobile calls from home. With a drop of only 5,000, the number of pay-as-you-go customers remained practically stable. The decline in ARPU to EUR 21 during the second quarter of 2006 is mainly attributable to the continued intense price competition in Germany and to the reduction in mobile termination charges in December 2005. Compared with the first quarter of 2006, ARPU increased slightly.
T-Mobile UK succeeded in attracting 369,000 new customers in the United Kingdom. While the number of pay-as-you-go customers remained virtually constant, the number of fixed-term contract customers grew by a record 363,000. This represents over 11 percent growth in fixed-term contract customers within one quarter and demonstrates the success of the Flext calling plan introduced at the beginning of March 2006, which has already attracted 771,000 new customers to T-Mobile UK. This represents an increase of 515,000 on the first quarter of 2006. By focusing on fixed-term contract growth, ARPU stabilized at EUR 28 compared with the same period last year.
Growth also continued unabated in the rest of Western Europe and in Eastern Europe. In both regions, T-Mobile again boosted new customer growth year-on-year despite increased penetration. The higher proportion of fixed-term contract customers over the previous year underlines the valuable nature of this growth.
4 ARPU — average revenue per user — is used to measure monthly revenue from services per customer. ARPU is calculated as follows: revenue generated by customers for services (i.e., voice services, including incoming and outgoing calls, and data services) plus roaming revenue, monthly charges, and revenue from visitor roaming, divided by the average number of customers in the month. Revenue from services excludes the following: revenue from terminal equipment, revenue from customer activation, revenue from virtual network operators, and other revenue not generated directly by T-Mobile customers.
26
Mobile Communications: Development of operations
|
|
|
|
|
Second |
|
|
|
|
|
First |
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
Q2 |
|
Change |
|
H1 |
|
H1 |
|
Change |
|
FY |
|
|
Total revenuea |
|
7,575 |
|
7,856 |
|
7,197 |
|
9.2 |
|
15,431 |
|
13,943 |
|
10.7 |
|
29,452 |
|
|
of which: T-Mobile Deutschland |
|
2,004 |
|
2,060 |
|
2,128 |
|
(3.2 |
) |
4,064 |
|
4,202 |
|
(3.3 |
) |
8,621 |
|
|
of which: T-Mobile USA |
|
3,354 |
|
3,340 |
|
2,858 |
|
16.9 |
|
6,694 |
|
5,456 |
|
22.7 |
|
11,887 |
|
|
of which: T-Mobile UK |
|
1,032 |
|
1,122 |
|
1,013 |
|
10.8 |
|
2,154 |
|
2,001 |
|
7.6 |
|
4,153 |
|
|
of which: T-Mobile Netherlands |
|
271 |
|
282 |
|
267 |
|
5.6 |
|
553 |
|
523 |
|
5.7 |
|
1,064 |
|
|
of which: T-Mobile Austriab |
|
217 |
|
285 |
|
213 |
|
33.8 |
|
502 |
|
435 |
|
15.4 |
|
885 |
|
|
of which: T-Mobile CZ |
|
240 |
|
259 |
|
229 |
|
13.1 |
|
499 |
|
446 |
|
11.9 |
|
938 |
|
|
of which: T-Mobile Hungary |
|
257 |
|
260 |
|
275 |
|
(5.5 |
) |
517 |
|
531 |
|
(2.6 |
) |
1,090 |
|
|
of which: T-Mobile Hrvatska |
|
116 |
|
138 |
|
129 |
|
7.0 |
|
254 |
|
230 |
|
10.4 |
|
512 |
|
|
of which: T-Mobile Slovensko |
|
100 |
|
104 |
|
93 |
|
11.8 |
|
204 |
|
179 |
|
14.0 |
|
378 |
|
|
of which: Otherc |
|
42 |
|
48 |
|
45 |
|
6.7 |
|
90 |
|
76 |
|
18.4 |
|
174 |
|
|
EBIT (profit from operations) |
|
1,055 |
|
1,083 |
|
1,225 |
|
(11.6 |
) |
2,138 |
|
2,191 |
|
(2.4 |
) |
3,005 |
|
|
EBIT margin (%) |
|
13.9 |
|
13.8 |
|
17.0 |
|
|
|
13.9 |
|
15.7 |
|
|
|
10.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and impairment losses |
|
(1,225 |
) |
(1,280 |
) |
(1,180 |
) |
(8.5 |
) |
(2,505 |
) |
(2,316 |
) |
(8.2 |
) |
(6,696 |
) |
|
EBITDAd |
|
2,280 |
|
2,363 |
|
2,405 |
|
(1.7 |
) |
4,643 |
|
4,507 |
|
3.0 |
|
9,701 |
|
|
Special factors affecting EBITDAd |
|
0 |
|
0 |
|
(38 |
)e |
n.a. |
|
0 |
|
(47 |
)f |
n.a. |
|
(71 |
)g |
|
Adjusted EBITDAd |
|
2,280 |
|
2,363 |
|
2,443 |
|
(3.3 |
) |
4,643 |
|
4,554 |
|
2.0 |
|
9,772 |
|
|
Adjusted EBITDA margind (%) |
|
30.1 |
|
30.1 |
|
33.9 |
|
|
|
30.1 |
|
32.7 |
|
|
|
33.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash capexh |
|
(1,092 |
) |
(840 |
) |
(1,007 |
) |
16.6 |
|
(1,932 |
) |
(3,512 |
) |
45.0 |
|
(5,603 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of employeesi |
|
51,511 |
|
52,603 |
|
49,271 |
|
6.8 |
|
52,057 |
|
49,092 |
|
6.0 |
|
49,479 |
|
a The amounts stated for the national companies correspond to their respective unconsolidated financial statements (single-entity financial statements adjusted for uniform group accounting policies and reporting currency) without taking into consideration consolidation effects at the level of the strategic business area.
b Including the first-time consolidation of tele.ring.
c “Other” includes the revenues generated by MobiMak (Macedonia) and MONET (Montenegro). MONET has been fully consolidated since the second quarter of 2005.
d Deutsche Telekom defines EBITDA as profit/loss from operations excluding depreciation, amortization and impairment losses. For a detailed explanation of the special factors affecting EBITDA, adjusted EBITDA, and the adjusted EBITDA margin, please refer to “Reconciliation of pro forma figures,” page 47 et seq.
e Expenses for Save for Growth at T-Mobile Deutschland (EUR 33 million), T-Mobile Netherlands (EUR 2 million), T-Mobile International AG & Co. KG (EUR 2 million), expenses at T-Mobile Deutschland for Vivento (EUR 1 million).
f Expenses for Save for Growth at T-Mobile Deutschland (EUR 33 million), T-Mobile Austria (EUR 7 million), T-Mobile Netherlands (EUR 2 million), T-Mobile International AG & Co. KG (EUR 2 million); expenses at T-Mobile Deutschland for Vivento (EUR 3 million).
g Expenses for Save for Growth at T-Mobile Deutschland (EUR 33 million), T-Mobile UK (EUR 23 million), T-Mobile Austria (EUR 7 million), T-Mobile Netherlands (EUR 2 million), T-Mobile International AG & Co. KG (EUR 3 million); expenses at T-Mobile Deutschland for Vivento (EUR 3 million).
h Investments in property, plant and equipment, and intangible assets (excluding goodwill) as shown in the cash flow statement.
i Average number of employees.
27
Mobile Communications: Total revenue
In the first six months of 2006, T-Mobile boosted its revenue by 10.7 percent or EUR 1.5 billion year-on-year. The main driver of this continued strong growth was again T-Mobile USA, whose revenues rose by 22.7 percent. The T-Mobile group also recorded double-digit growth rates in the Czech Republic, Slovakia, and Montenegro. In the United Kingdom, revenue growth accelerated from 4.5 percent in the first quarter to 10.8 percent in the second quarter of 2006. In Austria, the acquisition of tele.ring at the end of April 2006 led to correspondingly higher revenue for T-Mobile Austria. With the exception of Germany and Hungary, all companies increased their ARPU revenues. Developments at T-Mobile UK are particularly encouraging: Growth in ARPU revenue by more than 8.4 percent clearly reflects the company’s success in acquiring fixed-term contract customers. The decline in revenue in Germany is largely attributable to the reduction in termination charges in December last year and the relentless price pressure.
Mobile Communications: EBITDA
At EUR 4.6 billion, adjusted EBITDA in the Mobile Communications strategic business area increased by 2.0 percent in the first six months of 2006 compared with the previous year’s adjusted figure. EBITDA rose by 3 percent over the unadjusted EBITDA figure of the previous year. The adjusted EBITDA margin declined by 2.6 percentage points to 30.1 percent due to the announced investments in customer growth and measures to improve market position. At nearly EUR 1.9 billion, T-Mobile USA recorded by far the highest EBITDA of all the national companies. This equates to a margin of 28 percent. With an EBITDA margin of 39 percent, T-Mobile Deutschland recorded EBITDA of EUR 1.6 billion. This represents a slight decline on the first half of 2005. Compared with the first quarter of 2006, the EBITDA margin for T-Mobile UK in the second quarter of 2006 remained virtually constant at 15 percent. In the United Kingdom, the focus was again on the marketing of new calling rates and the correspondingly strong customer growth in the second quarter of 2006.
Mobile Communications: EBIT
EBIT (profit from operations) decreased by EUR 0.1 billion in the first six months of 2006 to EUR 2.1 billion. Depreciation, amortization, and impairment losses increased by EUR 0.2 billion due to the larger asset base.
Mobile Communications: Personnel
In the first six months of 2006, the average number of employees in the Mobile Communications strategic business area increased by 2,965 year-on-year to 52,057. The higher figure is primarily attributable to the recruitment of new staff at T-Mobile USA as a result of the company’s growth. In Europe, the number of employees increased slightly, while the initial consolidation of tele.ring in Austria and the growth-driven recruitment of new staff in the United Kingdom more than offset workforce reductions in Germany.
28
Broadband/Fixed Network: Customer development and selected KPIs
|
|
|
June 30, |
|
Mar. 31, |
|
Change |
|
Dec. 31, |
|
Change |
|
June 30, |
|
Change |
|
|
Broadbanda |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lines (total)b |
|
10.0 |
|
9.4 |
|
6.4 |
|
8.6 |
|
16.3 |
|
7.1 |
|
40.8 |
|
|
Domesticc |
|
9.0 |
|
8.6 |
|
4.7 |
|
7.9 |
|
13.9 |
|
6.7 |
|
34.3 |
|
|
of which: resaled |
|
2.5 |
|
2.2 |
|
13.6 |
|
1.6 |
|
56.3 |
|
0.7 |
|
n.a. |
|
|
Internationale |
|
1.0 |
|
0.8 |
|
25.0 |
|
0.6 |
|
66.7 |
|
0.4 |
|
n.a. |
|
|
Broadband rates (total)f |
|
6.5 |
|
6.1 |
|
6.6 |
|
5.5 |
|
18.2 |
|
4.5 |
|
44.4 |
|
|
of which: domestic |
|
5.1 |
|
4.9 |
|
4.1 |
|
4.5 |
|
13.3 |
|
3.7 |
|
37.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Narrowbanda |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lines (total)b |
|
40.1 |
|
40.6 |
|
(1.2 |
) |
41.2 |
|
(2.7 |
) |
42.1 |
|
(4.8 |
) |
|
Domesticg |
|
34.2 |
|
34.7 |
|
(1.4 |
) |
35.2 |
|
(2.8 |
) |
36.0 |
|
(5.0 |
) |
|
Standard analog lines |
|
24.9 |
|
25.2 |
|
(1.2 |
) |
25.5 |
|
(2.4 |
) |
25.9 |
|
(3.9 |
) |
|
ISDN lines |
|
9.4 |
|
9.6 |
|
(2.1 |
) |
9.8 |
|
(4.1 |
) |
10.1 |
|
(6.9 |
) |
|
International (Eastern Europe only) |
|
5.8 |
|
5.9 |
|
(1.7 |
) |
6.0 |
|
(3.3 |
) |
6.2 |
|
(6.5 |
) |
|
Magyar Telekomh |
|
3.0 |
|
3.1 |
|
(3.2 |
) |
3.2 |
|
(6.3 |
) |
3.3 |
|
(9.1 |
) |
|
Slovak Telekom |
|
1.2 |
|
1.2 |
|
0.0 |
|
1.2 |
|
0.0 |
|
1.2 |
|
0.0 |
|
|
T-Hrvatski Telekom |
|
1.6 |
|
1.6 |
|
0.0 |
|
1.7 |
|
(5.9 |
) |
1.7 |
|
(5.9 |
) |
|
Narrowband rates (total)f |
|
3.8 |
|
4.1 |
|
(7.3 |
) |
4.4 |
|
(13.6 |
) |
4.9 |
|
(22.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internet customers with a billing relationship (total)f, i |
|
15.6 |
|
15.5 |
|
0.6 |
|
15.2 |
|
2.6 |
|
14.7 |
|
6.1 |
|
Table includes broadband and narrowband lines (Germany plus Eastern and Western Europe).
a The total was calculated on the basis of precise figures and rounded to millions. Percentages calculated on the basis of figures shown.
b Lines in operation.
c Broadband lines excluding lines for internal use.
d Definition of resale: sale of broadband lines based on DSL technology to alternative providers outside the Deutsche Telekom Group.
e Includes customers with broadband lines on proprietary network.
f “Customers with a billing relationship” includes Germany, Eastern and Western Europe. Eastern Europe includes Magyar Telekom, T-Hrvatski Telekom, and Slovak Telekom; Western Europe includes Ya.com and Club Internet.
g Telephone lines excluding internal use and public telecommunications, including wholesale services.
h Subscriber-line figures are recorded including Magyar Telekom’s subsidiary MakTel and Telekom Montenegro. Prior-year comparatives have not been adjusted.
i Total calculated on the basis of customers (broadband and narrowband rates) in Germany, in Western and Eastern Europe with a billing relationship and PAYG (pay as you go).
29
The Broadband/Fixed Network strategic business area continued its growth course in the broadband market in the second quarter of 2006, driving up the number of both broadband lines and broadband rate customers. The total number of broadband lines rose by 594,000 to 10.0 million in the second quarter of 2006. In Germany, around 9.0 million DSL lines provided by T-Com were in operation at the end of June 2006, up 402,000 in the second quarter of the year. This increase trailed the figure for the prior quarter for seasonal reasons, but far outstripped that for the prior-year quarter. T-Com participated in the sustained, buoyant broadband growth in particular through its DSL resale business. Falling prices on the ISP market and the intensified marketing of bundled packages were the driving forces behind the dynamic growth in the broadband sector. The total number of DSL resale lines for third parties increased in the second quarter of 2006 by 387,000 to 2.5 million. By contrast, the development of the Group’s retail share in Germany was slowed by the delay in the merger of T-Online International AG into Deutsche Telekom AG. Outside Germany the broadband boom is continuing, adding 192,000 DSL lines in the second quarter of 2006. Broadband/Fixed Network recorded high growth rates in Eastern Europe, where the total number of new broadband lines increased by 87,000 quarter-on-quarter to 751,000. The customer base therefore more than doubled compared with the previous year. In Western Europe, the strong growth recorded in the first quarter of 2006 continued thanks to the establishment of its own infrastructure which again boosted the number of additions, this time by over 100,000 to 262,000.
As the number of broadband lines continued to grow, so does the broadband rate customer base, which expanded by a total of 381,000 customers to 6.5 million. In Germany, Broadband/Fixed Network served 5.1 million DSL rate customers at the end of the reporting period. This corresponds to growth of 235,000 new customers in three months and an increase of just under 38 percent or 1.4 million net additions compared with the second quarter of 2005. Outside Germany, the Broadband/Fixed Network strategic business area attracted 147,000 new broadband rate customers in the second quarter of 2006. Growth in Eastern Europe in the second quarter of 2006 of 75,000 DSL rate customers thus surpassed that in the same quarter of the previous year by a substantial margin. In Western Europe, there were 795,000 DSL rate customers at the end of the second quarter of 2006. This represents an increase of 326,000 or just under 70 percent year-on-year.
The positive development ultimately reflects the success of a systematic quality strategy with which the Broadband/Fixed Network business area provides its broadband customers with advanced access line technology and DSL services. This is evidenced by a Stiftung Warentest study of 15 Internet service providers in Germany (“test” magazine, May 2006 edition) in which T-Online came out on top.
30
During the reporting period, Broadband/Fixed Network continued to develop its product portfolio to include new innovative broadband services. Its portfolio of access services was broadened with the offer of a double flat rate for surfing and DSL telephony that can be selected for all available access line speeds. Mid-May 2006 also saw the market launch of the new T-DSL 16000 line for particularly data-intensive applications. In the entertainment area, the existing video-on-demand portfolio is being continually expanded: Customers now have access to a film library with 1,300 titles from all genres including 600 Hollywood blockbusters. The positive response from customers is reflected in the approximately 120,000 streams per month in the second quarter of 2006.
In the second quarter of 2006, Broadband/Fixed Network expanded its offering for the online games portal Gamesload by entering into new alliances with prominent providers such as Take 2 Interactive and Zylom. Musicload announced a substantial increase in acceptance on Germany’s online music download market. In the first six months of the year, downloads were up 34 percent year-on-year to approximately 7.7 million.
Broadband/Fixed Network recorded a drop in the number of narrowband lines, as expected. The customer churn in favor of fixed-network competitors with fully integrated bundled packages was the main factor in the decline in narrowband lines in Germany. The loss of lines often occurs in connection with customers’ acquisition of their first broadband line. The Broadband/Fixed Network strategic business area had only limited capacity to act due to the delay in the merger of T-Online International AG into Deutsche Telekom AG. On the domestic market, the number of fixed-network lines decreased by 503,000 or 4.8 percent to 34.2 million in the second quarter of 2006, mirroring the decline in the previous quarter. This was compounded by the effects of fixed-mobile substitution in particular and, to a lesser extent, substitution by cable network operators. At 9.4 million, the total number of T-ISDN lines decreased by approximately 7 percent year-on-year, a disproportionately high figure. This trend can be attributed in part to the bundled voice and Internet products offered by competitors. An increasing number of DSL line users are also switching from T-ISDN to an analog T-Net line.
The declining trend in the volume of call minutes in T-Com’s network persisted. Aside from the loss of T-Com’s own lines, this is attributable to the increasing substitution by voice over IP and mobile communications compared with the previous year. By contrast, T-Com once again increased its customer retention for local, national, international and fixed-to-mobile calls by successfully marketing rate options—now with 14.6 million rate customers — as in previous quarters. This shows that T-Com has managed to sustainably combat call-by-call and preselection. The XXL Fulltime rate proved to be particularly popular with customers. T-Com attracted almost 1.4 million customers for this rate in just under nine months. 717,000 customers opted for the fixed-to-mobile optional calling plan introduced on December 1, 2005.
31
Broadband/Fixed Network: Development of operations
|
|
|
|
|
Second |
|
|
|
|
|
First |
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
Q2 |
|
Change |
|
H1 |
|
H1 |
|
Change |
|
FY |
|
|
Total revenue |
|
6,156 |
|
6,146 |
|
6,469 |
|
(5.0 |
) |
12,302 |
|
13,024 |
|
(5.5 |
) |
26,035 |
|
|
Domestic |
|
5,464 |
|
5,445 |
|
5,776 |
|
(5.7 |
) |
10,909 |
|
11,667 |
|
(6.5 |
) |
23,249 |
|
|
of which: network communications |
|
2,885 |
|
2,838 |
|
3,098 |
|
(8.4 |
) |
5,723 |
|
6,262 |
|
(8.6 |
) |
12,349 |
|
|
of which: value-added services |
|
233 |
|
224 |
|
264 |
|
(15.2 |
) |
457 |
|
537 |
|
(14.9 |
) |
1,069 |
|
|
of which: terminal equipment |
|
74 |
|
82 |
|
94 |
|
(12.8 |
) |
156 |
|
185 |
|
(15.7 |
) |
425 |
|
|
of which: data communications |
|
318 |
|
324 |
|
281 |
|
15.3 |
|
642 |
|
620 |
|
3.5 |
|
1,226 |
|
|
of which: wholesale services |
|
1,028 |
|
1,089 |
|
1,066 |
|
2.2 |
|
2,117 |
|
2,143 |
|
(1.2 |
) |
4,357 |
|
|
of which: IP/Interneta |
|
740 |
|
714 |
|
758 |
|
(5.8 |
) |
1,454 |
|
1,511 |
|
(3.8 |
) |
2,994 |
|