T-Systems: International growth in the first half-year
13/08/2007
International and domestic revenue trends also differed at T-Systems. The international business reported a further revenue increase of just under 10 percent to EUR 1.2 billion.

agosto 09, 2007

New orders in the Business Customers segment remained almost stable in the first half of the year at EUR 6.8 billion. T-Systems gained new, high-volume orders with energy utility Centrica in the United Kingdom and with Bosch and Airbus in Asia.

In Germany, however, revenue decreased by 9.9 percent in the first six months to EUR 4.7 billion compared with the prior-year period. This decline can be attributed to the continued intense competition and the price erosion in the traditional telecommunications business.

Total revenue in the Business Customers area declined by 6.4 percent in the first half of 2007 to EUR 5.9 billion, due to internal revenue trends. By contrast, net revenue decreased by just 2.9 percent to EUR 4.4 billion. The development of total revenue clearly reflects on the one hand the price pressure prevalent in the market and the reduced IT budgets of the largest business customers. On the other hand, the disproportionately large drop in internal revenue demonstrates the contribution T-Systems makes to cutting internal costs.

Adjusted EBITDA decreased by 22.4 percent year-on-year to EUR 541 million in the first half of the year, although the decline in the second quarter was only 17.6 percent compared with the same period in 2006.