'Deutsche Telekom revenues grow 5.2%, net profit increases'

Deutsche Telekom Group's net revenue increased by 5.2 percent year-on-year to EUR 16.3 billion for the third quarter. EBITDA grew by 10.2 percent year-on-year to EUR 5.39 billion, and the adjusted EBITDA improved by 5.2 percent to EUR 5.5 billion. Deutsche Telekom's net profit amounted to EUR 959 million, 7.2 percent more than last year, while adjusted net profit decreased by 9.1 percent to EUR 1.074 billion. The third-quarter free cash flow grew from EUR 2.2 billion in Q3 2008 to EUR 3.3 billion this year. In a comparison of the first nine months, revenue increased by 6.2 percent to EUR 48.4 billion over the same period in 2008 and adjusted EBITDA rose by 5.5 percent to EUR 15.6 billion. The adjusted net profit decreased by 3.1 percent compared with the first nine months of 2008 to EUR 2.5 billion. The measures taken after the first quarter to improve the situation in the US, the UK and Poland are showing results, with T-Mobile UK's business stabilising over the course of the year, the company said. At the same time, the roll-out of the 3G network in the US is progressing well and Polish subsidiary PTC has finally mastered the challenges it faced thanks to improvements in efficiency and is now once again successful in the Polish market. The Save for Service programme continued its particularly successful course in the third quarter. This efficiency enhancement program has generated savings totalling EUR 5.4 billion so far since its launch in 2005. Deutsche Telekom said it will continue its cost cutting and address the entire cost base of the group. The group confirmed its guidance for the year as adjusted in April, despite the recent negative development in exchange rates, particularly the marked weakness of the US dollar against the euro over the course of the year. The group (without OTE) expects a 2-4 percent drop in adjusted EBITDA compared to 2008 and free cash flow of EUR 6.4 billion.

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