Deutsche Telekom reported 2012 results down in line with its outlook and reiterated its forecasts for increased investment in the coming years. Revenues fell 0.8 percent last year to EUR 58.17 billion, and adjusted EBITDA declined 3.8 percent to EUR 17.98 billion, versus a target of EUR 18 billion. The EBITDA margin fell 0.9 points to 30.9 percent, hurt especially in Q4 by investments in the German mobile market, which the operator said were paying off in customer wins.
In the fourth quarter, revenues were down 1.4 percent year-on-year to EUR 14.71 billion, with Poland the only country showing any growth. Revenues in Germany fell 0.5 percent to EUR 6.59 billion, and international revenues declined 2.1 percent to EUR 8.12 billion, including a 1.4 percent fall in the US. EBITDA was down 12.7 percent to EUR 4.03 billion, and the net result moved to a profit of EUR 793 million versus a loss of EUR 1.34 billion a year ago.
DT's net result for the full year was a loss of EUR 5.26 billion, versus a profit of EUR 557 million a year earlier, due to a one-time accounting charge in Q3 for the planned merger of T-Mobile USA and MetroPCS. Excluding the one-time items, net profit fell 11.3 percent to EUR 2.5 billion.
Free cash flow was 2.8 percent lower at EUR 6.24 billion in 2012, ahead of the target of EUR 6 billion, after roughly flat capex of EUR 8.43 billion. The company maintained its dividend at EUR 0.70 per share, or 48 percent of free cash flow. With capex expected to pick up this year, DT targets free cash flow of EUR 5 billion. CEO Rene Obermann said the company is "going on the offensive" and reiterated plans for almost EUR 30 billion in investments in the period 2013-2015. Adjusted EBITDA is forecast down again at EUR 17.4 billion in 2013, or EUR 18.4 billion if MetroPCS is included over the full year.
