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T-Systems Quarterly figures
Frankfurt, May 07, 2009
In short:
- Messages T-Systems
- Solid revenue with external customers - despite difficult markets
- Significant international growth through big deals
- Share in group earnings increased
Systems Solutions
T-Systems is Deutsche Telekom’s corporate-customer unit and operates information and communications technology (ICT) for multinational corporations and public institutions.
T-Systems’ international revenue increased by 6.4 percent and continued the positive development of the prior quarters. This positive trend is partly attributable to contracts signed, for example with Shell and OMG, in 2008. In contrast, revenue in Germany declined 8.2 percent. This decrease in domestic revenue is largely due to the reduced volume of internal business with Deutsche Telekom, which was down 12.4 percent. This clearly demonstrates the contribution T-Systems makes to cutting the Group’s costs. Total revenue in the first quarter of 2009 amounted to EUR 2.1 billion, a year-on-year decrease of 4.3 percent. External revenues remained virtually stable at the prior-year level, despite the generally difficult market situation.
Adjusted for the one-time effect of the disposal of Media & Broadcast in the prior year, profit from operations (EBIT) more than doubled. Adjusted EBITDA totaled EUR 0.2 billion. This represents an increase of 3.4 percent on the previous year due to the successfully launched programs to cut costs and enhance efficiency, and more than offset the effects of the revenue decrease.
T-Systems is Deutsche Telekom’s corporate-customer unit and operates information and communications technology (ICT) for multinational corporations and public institutions.
T-Systems’ international revenue increased by 6.4 percent and continued the positive development of the prior quarters. This positive trend is partly attributable to contracts signed, for example with Shell and OMG, in 2008. In contrast, revenue in Germany declined 8.2 percent. This decrease in domestic revenue is largely due to the reduced volume of internal business with Deutsche Telekom, which was down 12.4 percent. This clearly demonstrates the contribution T-Systems makes to cutting the Group’s costs. Total revenue in the first quarter of 2009 amounted to EUR 2.1 billion, a year-on-year decrease of 4.3 percent. External revenues remained virtually stable at the prior-year level, despite the generally difficult market situation.
Adjusted for the one-time effect of the disposal of Media & Broadcast in the prior year, profit from operations (EBIT) more than doubled. Adjusted EBITDA totaled EUR 0.2 billion. This represents an increase of 3.4 percent on the previous year due to the successfully launched programs to cut costs and enhance efficiency, and more than offset the effects of the revenue decrease.
New orders in the first quarter of 2009 were down 14.7 percent year-on-year. This is mainly because last year's figures included the major deal with Shell. However, T Systems won some important new orders in the first quarter of 2009 too, including large-scale contracts with Linde, Rewe and the federal states of North Rhine-Westphalia and Baden-Württemberg.
Systems Solutions at a glance*:
T-Systems | Q1 2009 millions of € | Q1 2008 millions of € | Change millions of € | Change Percent | FY 2008 millions of € |
Total revenue Domestic International | 2.106 1.472 634 | 2.200 1.604 596 | (94) (132) 38 | (4,3) (8,2) 6,4 | 9.343 6.634 2.709 |
Computing & Desktop Services Systems Integration Telecommuni- cations | 900 400 806 | 898 423 879 | 2 (23) (73) | 0,2 (5,4) (8,3) | 3.877 1.741 3.725 |
| Net revenue | 1.496 | 1.504 | (8) | (0,5) | 6.368 |
| New Orders | 2.010 | 2.357 | (347) | (14,7) | 10.235 |
Profit (loss) from operations | 11 | 483 | (472) | (97,7) | 81 |
| EBITDA | 188 | 671 | (483) | (72,0) | 862 |
| Adjusted EBITDA | 211 | 204 | 7 | 3,4 | 826 |
Average number of employees | 44.449 | 46.554 | (2.105) | (4,5) | 46.095 |
Comments on the table
Since January 1, 2009, around 160,000 business customers of the Systems Solutions operating segment (until December 31, 2008 called the Business Customers operating segment) have been included in the Broadband/Fixed Network operating segment. Prior-year comparatives have been adjusted.
About T-Systems
With a global infrastructure of computer centers and networks, T-Systems operates information and communications technology (ICT) for multinational corporations and public institutions. On this basis, Deutsche Telekom’s corporate-customer unit offers integrated solutions for the connected future of business and society. Some 46,000 employees combine industry expertise and ICT innovations to add noticeable value to their customers’ core business all over the world. T-Systems generated revenue of around EUR 11 billion in the 2008 financial year.
With a global infrastructure of computer centers and networks, T-Systems operates information and communications technology (ICT) for multinational corporations and public institutions. On this basis, Deutsche Telekom’s corporate-customer unit offers integrated solutions for the connected future of business and society. Some 46,000 employees combine industry expertise and ICT innovations to add noticeable value to their customers’ core business all over the world. T-Systems generated revenue of around EUR 11 billion in the 2008 financial year.
