Annual Report 2013

Deutsche Telekom at a glance.

In 2013, we were once again in line with all of our key financial targets, with adjusted EBITDA at EUR 17.4 billion and free cash flow even slightly over target at EUR 4.6 billion. Net revenue increased by 3.4 percent to EUR 60.1 billion, largely due to encouragingly strong revenue growth in the United States. While revenue in Germany decreased only slightly, the sustained difficult economic environment, intense competition, and massive regulatory intervention had a negative impact on revenue at our European subsidiaries. As expected, adjusted EBITDA declined by 3.1 percent. Although we recorded slight growth in adjusted EBITDA in the United States and only a moderate decline in Germany, cost-cutting measures only partially offset the decline in revenues in the Europe operating segment.

Following the net loss of EUR 5.4 billion we recorded in 2012 due mainly to the impairment loss recognized in our United States operating segment, we generated net profit of EUR 0.9 billion in the reporting year. Net profit adjusted for special factors also increased from EUR 2.5 billion to EUR 2.8 billion as a result of lower depreciation, amortization and impairment losses, which more than offset the decline in adjusted EBITDA.

The business combination of T-Mobile USA and MetroPCS in May 2013 had a lasting impact on the development of earnings, contributing as much as EUR 2.5 billion to the Group’s net revenue in the reporting year. By contrast, sales of companies such as Globul and Germanos in Bulgaria and Hellas Sat in Greece had a negative effect of around EUR 0.25 billion on the development of revenue. The impact of these transactions on net profit was only minor, however.

Free cash flow (before dividend payments, spectrum investment).b
billions of €
Free cash flow (before dividend payments, spectrum investment)
b And before AT&T transaction and compensation payments for MetroPCS employees.
Net revenue.
billions of €
Net revenue
Adjusted EBITDA.a
billions of €
EBITDA bereinigt
a The prior-year comparatives were adjusted retrospectively due to the application of IAS 19 (amended) as of January 1, 2013. ROCE was only adjusted for 2012.