Deutsche Telekom Reports Double-Digit Revenue Growth

- First Quarter Revenues Increase 16 Percent to EUR 11.1 Billion -



- Net Income (Excluding Goodwill and UMTS Costs) Increases By

18 Percent to EUR 450 Million -



- EBITDA From Mobile Communications Increases 68% To

EUR 590 Million in First Quarter -



- Proposed Dividend for the 2000 Financial Year

Unchanged at EUR 0.62 Per Share -



Apr 24, 2001, 01:00 ET from Deutsche Telekom

    BONN, Germany, April 24 /PRNewswire Interactive News Release/ -- Deutsche
 Telekom (NYSE:   DT) (FSE: DTE) today announced a successful start to the year
 2001.  Group revenues in the first three months of 2001 increased to EUR
 11.1 billion, according to preliminary indicators released on Tuesday, in
 comparison to EUR 9.5 million last year.  Dr. Ron Sommer, Chief Executive
 Officer of Deutsche Telekom, noted that this revenue increase of approximately
 16 percent in the first quarter is in line with the growth target of over 15
 percent for the entire 2001 financial year.
     "Not only will we keep up with the already achieved high level of growth,
 but we'll accelerate the tempo throughout the balance of the fiscal year,"
 said Dr. Sommer.
     Net income before amortization of goodwill and UMTS costs (amortization
 and interest) as an expression of the Group's operating earnings power
 increased 18 percent from EUR 377 million to approximately EUR 450 million.
 Including the amortization of goodwill and the UMTS costs, the Group loss
 decreased from EUR 1 billion in the fourth quarter of 2000 to EUR 0.4 billion
 in the first quarter of 2001.
     For the full 2001 financial year, the Group expects a double-digit
 percentage improvement in earnings before interest, taxes, depreciation and
 amortization (EBITDA), primarily due to improvements at T-Mobile
 International. This trend is already confirmed by T-Mobile's EBITDA increase
 in the first quarter from approximately EUR 350 million to approximately EUR
 590 million.
     The Board of Management and the Supervisory Board will propose payment of
 an unchanged dividend of EUR 0.62 per share for the 2000 financial year to the
 shareholders' meeting.
     Net income for the entire financial year 2000 totaled EUR 5.9 billion,
 compared with EUR 1.3 billion in 1999. Revenues for the entire financial year
 2000 equaled EUR 40.9 billion, compared with EUR 35.4 billion in 1999.
     Deutsche Telekom noted that one-fifth of total Group revenues were
 generated outside of Germany. Broken down along its business lines, revenues
 in mobile communications alone increased from EUR 5.3 million to
 EUR 9.2 million, accounting for 23 percent of total Group revenues. The
 carriers' services and data communications businesses accounted for 10 and
 8 percent of total revenues respectively. Only 36 percent of revenues were
 generated from the fixed-network business, compared with 80 percent in 1995
 -- a development which documents Deutsche Telekom's successful re-structuring
 measures.
     "Financially speaking, the year 2000 was the most successful year on
 record in the history of Deutsche Telekom," said CFO Dr. Karl-Gerhard Eick.
 "Deutsche Telekom continues to be one of Europe's strongest cash-flow
 generators."
     Cash generated from Deutsche Telekom's operations in 2000 increased by
 nearly EUR 750 million, or more than 6 percent to almost EUR 13.0 billion.
 EBITDA, the most important indicator of operating profitability according to
 the capital markets, increased from EUR 14.5 billion to EUR 20.7 billion.
 Excluding one-time effects such as the partial sale of the broadband cable
 business and new acquisitions as well as customer acquisition costs, EBITDA
 decreased to EUR 12.9 billion. Deutsche Telekom emphasized that customer
 acquisition costs in mobile communications, with a growth of nearly 15 million
 subscribers in Germany, Great Britain and Austria within one year, would not
 be repeated.
     Net debt increased by one percent from EUR 56.5 billion at year-end 2000
 to EUR 57.1 billion in the first quarter of 2000. This is a result of the
 increased shareholding in the Czech mobile communications operator Radiomobil.
 The company will be consolidated on April 1, 2001.
 
      Personnel the first quarter 2001
 
                                 Q1 2001            Q1 2000          % Change
      DTAG personnel             126,527            134,799             -6%
      Personnel Group            229,735            196,000             +17%
 
     Customer trends for selected services in the first quarter
 
     Net growth in subscriber numbers for mobile communications companies under
 majority ownership was 2.6 million in the first quarter of 2001 compared with
 the end of 2000, but Deutsche Telekom maintains its expectation that
 subscriber growth will slow over the course of the year. Besides the current
 high penetration rate in Western Europe, this is also a result of the
 announcement made by all large mobile communications operators that they
 intend to reduce their customer acquisition costs substantially (in particular
 through reducing the subsidization of mobile phones). On a pro rata basis to
 its shareholdings in mobile communications operators, Deutsche Telekom now has
 almost 38 million subscribers and over 46 million subscribers worldwide.
     The implementation of the Company's strategy to continuously upgrade fixed
 network access also pushed advanced during the period. This was demonstrated
 clearly with the sale of approximately 850,000 T-DSL accesses (over 50% of
 which have been connected), further unabated growth in ISDN to 18.6 million
 channels and 5.8 million AktivPlus customers. Deutsche Telekom thus not only
 has a leading position in Europe with T-DSL accesses and the most ISDN
 channels in the world, but also offers one of the most attractive tariff
 schedules in Europe.
     The business model at T-Online for the current financial year is also
 focused on an improvement of the cost basis. With 8.7 million subscribers
 T-Online succeeded, however, in expanding its market leadership in Europe
 considerably in the first quarter of 2001.
 
                           March 31,    March 31,    Dec. 31, March 31, 2001/
                                2001         2000        2000  March 31, 2000
                          in million   in million  in million         in %(5)
     Mobile subscribers
     Majority-owned companies   33.8         18.6        31.2             82%
     - of which: T-D1           20.8         10.9        19.1             91%
     - of which: One 2 One       9.0          5.0         8.3             80%
     - of which: max.mobil.      2.1          1.6         2.1             31%
     - of which: Westel(1)       1.9          1.1         1.7             73%
     Proportionate
      subscribers(2)            37.9         20.3        34.8             87%
     Total mobile subscribers(3)                                46.0         24.3
 42.1             89%
 
     Telephone lines            49.9         48.2        49.4            3.5%
     Aktiv Plus customers        5.8          1.5         4.5            287%
     T-DSL contracts            0.85          0.0         0.6            n.a.
     ISDN channels              18.6         14.4        17.3             29%
     - of which: residential
        customers                9.7          6.8         8.8             43%
     - of which: business
        customers                8.9          7.5         8.5             19%
 
     T-Online subscribers        8.7          5.6         7.9             55%
     - of which: T-Online        7.1          4.9         6.5             45%
     - of which: Club
        Internet(4)              0.7          0.4         0.6             75%
     - of which: Ya.com(4)       0.7          0.3         0.7            133%
     - of which: others          0.2          0.0         0.1            n.a.
 
      (1) held directly and indirectly via MATAV
      (2) proportion of subscribers pro rata to shareholding
      (3) majority shareholdings in mobile communications and total subscribers
          of shareholdings not fully consolidated
      (4) figures for Q1 2000 not consolidated at this time (pro forma)
      (5) percentages on the basis of rounded figures
 
     About Deutsche Telekom
     Deutsche Telekom is Europe's largest communications company and one of the
 largest communications carriers worldwide based on 2000 revenues of
 40.9 billion euros ($38.6 billion). Through T-Mobile, Deutsche Telekom's
 mobile telephony subsidiary, Deutsche Telekom serves more than 45 million
 mobile telephony customers worldwide. Deutsche Telekom offers its customers a
 complete range of fixed-line voice telephony products and services through
 approximately 50 million access lines. Deutsche Telekom is a leading provider
 of high-speed digital access lines with approximately 850,000 new asymmetric
 digital subscriber line (T-DSL) services currently sold and more than
 18 million channels using the information transfer standard ISDN (Integrated
 Services Digital Network). In online services, T-Online is Europe's largest
 Internet provider with more than 8.5 million subscribers. In January 2001,
 Deutsche Telekom launched T-Systems, Europe's second-largest provider of
 comprehensive IT and telecommunications services to business customers in more
 than 20 countries. For more information about Deutsche Telekom, visit
 http://www.telekom.de/international.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X97303863
 
 

SOURCE Deutsche Telekom
    BONN, Germany, April 24 /PRNewswire Interactive News Release/ -- Deutsche
 Telekom (NYSE:   DT) (FSE: DTE) today announced a successful start to the year
 2001.  Group revenues in the first three months of 2001 increased to EUR
 11.1 billion, according to preliminary indicators released on Tuesday, in
 comparison to EUR 9.5 million last year.  Dr. Ron Sommer, Chief Executive
 Officer of Deutsche Telekom, noted that this revenue increase of approximately
 16 percent in the first quarter is in line with the growth target of over 15
 percent for the entire 2001 financial year.
     "Not only will we keep up with the already achieved high level of growth,
 but we'll accelerate the tempo throughout the balance of the fiscal year,"
 said Dr. Sommer.
     Net income before amortization of goodwill and UMTS costs (amortization
 and interest) as an expression of the Group's operating earnings power
 increased 18 percent from EUR 377 million to approximately EUR 450 million.
 Including the amortization of goodwill and the UMTS costs, the Group loss
 decreased from EUR 1 billion in the fourth quarter of 2000 to EUR 0.4 billion
 in the first quarter of 2001.
     For the full 2001 financial year, the Group expects a double-digit
 percentage improvement in earnings before interest, taxes, depreciation and
 amortization (EBITDA), primarily due to improvements at T-Mobile
 International. This trend is already confirmed by T-Mobile's EBITDA increase
 in the first quarter from approximately EUR 350 million to approximately EUR
 590 million.
     The Board of Management and the Supervisory Board will propose payment of
 an unchanged dividend of EUR 0.62 per share for the 2000 financial year to the
 shareholders' meeting.
     Net income for the entire financial year 2000 totaled EUR 5.9 billion,
 compared with EUR 1.3 billion in 1999. Revenues for the entire financial year
 2000 equaled EUR 40.9 billion, compared with EUR 35.4 billion in 1999.
     Deutsche Telekom noted that one-fifth of total Group revenues were
 generated outside of Germany. Broken down along its business lines, revenues
 in mobile communications alone increased from EUR 5.3 million to
 EUR 9.2 million, accounting for 23 percent of total Group revenues. The
 carriers' services and data communications businesses accounted for 10 and
 8 percent of total revenues respectively. Only 36 percent of revenues were
 generated from the fixed-network business, compared with 80 percent in 1995
 -- a development which documents Deutsche Telekom's successful re-structuring
 measures.
     "Financially speaking, the year 2000 was the most successful year on
 record in the history of Deutsche Telekom," said CFO Dr. Karl-Gerhard Eick.
 "Deutsche Telekom continues to be one of Europe's strongest cash-flow
 generators."
     Cash generated from Deutsche Telekom's operations in 2000 increased by
 nearly EUR 750 million, or more than 6 percent to almost EUR 13.0 billion.
 EBITDA, the most important indicator of operating profitability according to
 the capital markets, increased from EUR 14.5 billion to EUR 20.7 billion.
 Excluding one-time effects such as the partial sale of the broadband cable
 business and new acquisitions as well as customer acquisition costs, EBITDA
 decreased to EUR 12.9 billion. Deutsche Telekom emphasized that customer
 acquisition costs in mobile communications, with a growth of nearly 15 million
 subscribers in Germany, Great Britain and Austria within one year, would not
 be repeated.
     Net debt increased by one percent from EUR 56.5 billion at year-end 2000
 to EUR 57.1 billion in the first quarter of 2000. This is a result of the
 increased shareholding in the Czech mobile communications operator Radiomobil.
 The company will be consolidated on April 1, 2001.
 
      Personnel the first quarter 2001
 
                                 Q1 2001            Q1 2000          % Change
      DTAG personnel             126,527            134,799             -6%
      Personnel Group            229,735            196,000             +17%
 
     Customer trends for selected services in the first quarter
 
     Net growth in subscriber numbers for mobile communications companies under
 majority ownership was 2.6 million in the first quarter of 2001 compared with
 the end of 2000, but Deutsche Telekom maintains its expectation that
 subscriber growth will slow over the course of the year. Besides the current
 high penetration rate in Western Europe, this is also a result of the
 announcement made by all large mobile communications operators that they
 intend to reduce their customer acquisition costs substantially (in particular
 through reducing the subsidization of mobile phones). On a pro rata basis to
 its shareholdings in mobile communications operators, Deutsche Telekom now has
 almost 38 million subscribers and over 46 million subscribers worldwide.
     The implementation of the Company's strategy to continuously upgrade fixed
 network access also pushed advanced during the period. This was demonstrated
 clearly with the sale of approximately 850,000 T-DSL accesses (over 50% of
 which have been connected), further unabated growth in ISDN to 18.6 million
 channels and 5.8 million AktivPlus customers. Deutsche Telekom thus not only
 has a leading position in Europe with T-DSL accesses and the most ISDN
 channels in the world, but also offers one of the most attractive tariff
 schedules in Europe.
     The business model at T-Online for the current financial year is also
 focused on an improvement of the cost basis. With 8.7 million subscribers
 T-Online succeeded, however, in expanding its market leadership in Europe
 considerably in the first quarter of 2001.
 
                           March 31,    March 31,    Dec. 31, March 31, 2001/
                                2001         2000        2000  March 31, 2000
                          in million   in million  in million         in %(5)
     Mobile subscribers
     Majority-owned companies   33.8         18.6        31.2             82%
     - of which: T-D1           20.8         10.9        19.1             91%
     - of which: One 2 One       9.0          5.0         8.3             80%
     - of which: max.mobil.      2.1          1.6         2.1             31%
     - of which: Westel(1)       1.9          1.1         1.7             73%
     Proportionate
      subscribers(2)            37.9         20.3        34.8             87%
     Total mobile subscribers(3)                                46.0         24.3
 42.1             89%
 
     Telephone lines            49.9         48.2        49.4            3.5%
     Aktiv Plus customers        5.8          1.5         4.5            287%
     T-DSL contracts            0.85          0.0         0.6            n.a.
     ISDN channels              18.6         14.4        17.3             29%
     - of which: residential
        customers                9.7          6.8         8.8             43%
     - of which: business
        customers                8.9          7.5         8.5             19%
 
     T-Online subscribers        8.7          5.6         7.9             55%
     - of which: T-Online        7.1          4.9         6.5             45%
     - of which: Club
        Internet(4)              0.7          0.4         0.6             75%
     - of which: Ya.com(4)       0.7          0.3         0.7            133%
     - of which: others          0.2          0.0         0.1            n.a.
 
      (1) held directly and indirectly via MATAV
      (2) proportion of subscribers pro rata to shareholding
      (3) majority shareholdings in mobile communications and total subscribers
          of shareholdings not fully consolidated
      (4) figures for Q1 2000 not consolidated at this time (pro forma)
      (5) percentages on the basis of rounded figures
 
     About Deutsche Telekom
     Deutsche Telekom is Europe's largest communications company and one of the
 largest communications carriers worldwide based on 2000 revenues of
 40.9 billion euros ($38.6 billion). Through T-Mobile, Deutsche Telekom's
 mobile telephony subsidiary, Deutsche Telekom serves more than 45 million
 mobile telephony customers worldwide. Deutsche Telekom offers its customers a
 complete range of fixed-line voice telephony products and services through
 approximately 50 million access lines. Deutsche Telekom is a leading provider
 of high-speed digital access lines with approximately 850,000 new asymmetric
 digital subscriber line (T-DSL) services currently sold and more than
 18 million channels using the information transfer standard ISDN (Integrated
 Services Digital Network). In online services, T-Online is Europe's largest
 Internet provider with more than 8.5 million subscribers. In January 2001,
 Deutsche Telekom launched T-Systems, Europe's second-largest provider of
 comprehensive IT and telecommunications services to business customers in more
 than 20 countries. For more information about Deutsche Telekom, visit
 http://www.telekom.de/international.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X97303863
 
 SOURCE  Deutsche Telekom