UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
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 April 2009
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
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.
Deutsche
Telekom expects adjusted EBITDA in 2009 to be 2 to 4 percent below the
prior-year figure and free cash flow of around EUR 6.4
billion
April 21, 2009
Ad
hoc notification from Deutsche Telekom in accordance with § 15 of the Securities
Trading Act (WpHG)
In a
tough economic environment, Deutsche Telekom increased revenue by around
6 percent to approximately EUR 15.9 billion in the first quarter of
2009 with the Greek company OTE consolidated for the first time. Adjusted EBITDA
increased by some 3 percent to EUR 4.8 billion. Excluding the consolidation
of OTE, Group revenue was stable at EUR 15.0 billion, with adjusted EBITDA
dropping by 5 percent to EUR 4.5 billion. Free cash flow was between
EUR 0.2 billion and EUR 0.3 billion in the first quarter of 2009,
compared with EUR 1.6 billion in the same period last year and EUR 0.5
billion in the first three months of 2007. Higher capital expenditure, the
deviation in adjusted EBITDA and increased expenses for staff-related measures
had an impact in the first quarter of 2009.
Overall,
Deutsche Telekom's figures were slightly above forecast in Germany, in both
fixed-network and mobile business. T-Systems also increased its contribution to
results.
On the
other hand, the Group felt the impact of the economic slowdown and the more
intense competitive environment, particularly in the United States and the
United Kingdom. In Poland and the United Kingdom, fluctuations in the local
currency exchange rates also had a negative effect on revenue and adjusted
EBITDA.
Disregarding
the growth effect of the Greek company OTE that has been consolidated since
February 1, 2009, Deutsche Telekom expects adjusted Group EBITDA in these
unfavorable conditions to be between 2 and 4 percent lower for the full
year, compared with EUR 19.5 billion in the prior year. The Board of
Management today initiated a package of measures to safeguard the expected
results. Free cash flow is expected to reach around EUR 6.4 billion,
compared with EUR 7.0 in the prior year, on the back of these measures.
This will also lay the foundation for a shareholder-friendly dividend
policy.
Notes
to the of ad hoc notification
Revenues
of national companies in the United States, the United Kingdom and Poland in
particular were impacted by the marked downturn in the economic environment, for
example with lower roaming revenues as a result of the lower level of traveling.
In addition, there were dramatic movements in the exchange rates with the United
Kingdom and Poland. European mobile communications business in the prior
consolidation group – i.e., excluding OTE – recorded a decrease in revenue of
EUR 0.4 billion. Of this, exchange rate effects accounted for around
EUR 0.3 billion. These exchange rate effects had a negative impact of
around EUR 0.1 billion on adjusted EBITDA. In total, adjusted EBITDA fell
by around EUR 0.3 billion. In addition, high levels of expenditure for
customer acquisition and retention led to increases on the cost
side.
In the
United States, the 3G network will be rolled out much further as part of the
package of measures passed by the Board of Management, and the portfolio of
3G-enabled handsets will be expanded to reinforce the competitive position of
T-Mobile USA. The overlay of the proprietary 2G network is being accelerated to
reduce the amount of roaming charges that have to be paid. In addition,
agreements on interconnection charges and data business are to be renegotiated.
A reduction in non-usage-driven variable costs is planned and overarching costs
such as marketing expenses and travel costs are to be cut, while increases in
wages and salaries are on hold.
Strict
controls on costs in the areas of administration, advertising and systems are
scheduled for T-Mobile UK. The main task for the new management team is to
reposition the company. In addition, prepay and contract customer offers are to
be improved.
Expenditures
for new customer acquisition and retention are to be reduced in Poland. In
addition, PTC will cut overarching costs such as advertising and staff costs.
The timing of the distribution of operating costs and expenditures will be tied
more closely to the development of business in order to avoid phases of higher
ongoing costs in coming quarters.
These new
expectations are based on the assumption that the economic environment will not
decline significantly further and that exchange rates will remain approximately
at current levels.
All
statements are based on preliminary calculations prior to conclusive
consolidation and review. As such, these figures may deviate from the finalized
quarterly figures to be published on May 7.
In the
Outlook section, this ad hoc notification contains forward-looking statements
that reflect the current views of Deutsche Telekom management with respect to
future events. Forward-looking statements are based on current plans, estimates
and projections. They should therefore be considered with caution. Such
statements are subject to risks and uncertainties, most of which are difficult
to predict and are generally beyond Deutsche Telekom's control, including those
described in the sections "Forward-Looking Statements" and "Risk Factors" of the
Company's Form 20-F annual report filed with the U.S. Securities and Exchange
Commission. Among the relevant factors are the progress of Deutsche Telekom’s
workforce reduction initiative and the impact of other significant strategic or
business initiatives, including acquisitions, dispositions, business
combinations, and cost reduction measures. In addition, regulatory decisions,
stronger than expected competition, technological change, litigation and
regulatory developments, among other factors, may have a material adverse effect
on costs and revenue development. Furthermore, an economic downturn in Europe or
North America and changes in exchange and interest rates could also affect our
business development and the availability of capital under favorable conditions.
If these or other risks and uncertainties materialize, or if the assumptions
underlying any of these statements prove incorrect, Deutsche Telekom's actual
results may be materially different from those expressed or implied by such
statements. Deutsche Telekom can offer no assurance that its expectations or
targets will be met. Deutsche Telekom does not assume any obligation to update
forward-looking statements to take new information or future events into account
or otherwise. Deutsche Telekom does not reconcile its adjusted EBITDA guidance
to a GAAP measure because it would require unreasonable effort to do so. As a
general matter, Deutsche Telekom does not predict the net effect of future
special factors because of their uncertainty. Special factors and interest,
taxes, depreciation and amortization (including impairment losses) can have a
significant effect on Deutsche Telekom's results.
In
addition to figures prepared in accordance with IFRS, Deutsche Telekom presents
non-GAAP financial performance measures, including EBITDA, EBITDA margin,
adjusted EBITDA, adjusted EBITDA margin, adjusted EBT, adjusted net profit, free
cash flow, gross debt and net debt. These non-GAAP measures should be considered
in addition to, but not as a substitute for, the information prepared in
accordance with IFRS. Non-GAAP financial performance measures are not subject to
IFRS or any other generally accepted accounting principles. Other companies may
define these terms in different ways. For further information relevant to the
interpretation of these terms, please refer to the chapter “Reconciliation of
pro forma figures” posted on Deutsche Telekom’s website (www.telekom.com) under
the link "Investor Relations."
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
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DEUTSCHE TELEKOM AG
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By:
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/s/ Guido
Kerkhoff
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Name:
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Guido
Kerkhoff
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Title:
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Member
of the Management Board for South Eastern
Europe
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Date: April 21, 2009