Deutsche Telekom AG 2009 Third quarter report

• The 2009 3Q Analyst & Investor Meeting and Press Conference will be broadcast live over the Internet from homepage of Deutsche Telekom starting at 11:30 p.m. CET.
• Net revenue of the Group increased by 6.2 percent year-on-year in the first nine months of 2009 to EUR 48.4 billion.
• Domestic net revenue was EUR 21.0 billion, EUR 0.6 billion lower than in the first nine months of 2008. International net revenue increased year-on-year by EUR 3.5 billion to EUR 27.4 billion. The proportion of net revenue generated outside Germany increased from 52.6 percent to 56.7 percent.
• Group EBITDA in the first nine months of 2009 rose to EUR 15.4 billion compared with EUR 14.4 billion in the prior-year period. Group EBITDA adjusted for special factors1 increased from EUR 14.8 billion in the prior-year period to EUR 15.6 billion.
• Net profit amounted to EUR 0.4 billion in the first nine months of 2009, compared with a net profit of EUR 2.2 billion in the first three quarters of 2008.
• Net profit adjusted for special factors amounted to EUR 2.5 billion, slightly lower than in the first nine months of 2008.
• Free cash flow before dividend payments was EUR 5.1 billion compared with EUR 5.8 billion in the first three quarters of 2008.
• Net debt increased by EUR 4.2 billion compared with the end of 2008 to EUR 42.4 billion.

Deutsche Telekom posts good figures to continue the positive development of the prior quarter. The Group therefore confirms its guidance for the year as adjusted in April despite the recent negative development in exchange rates, particularly the marked weakness of the U.S. dollar against the euro over the course of the year. Cost-cutting measures and improvements in efficiency continue to bear fruit: Deutsche Telekom posted year-on-year increases in profitability in all operating segments between July and September.

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