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Deutsche Telekom AG Board of Management: (f. l.) Adel Al Saleh, Thorsten Langheim, Christian Illek, Claudia Nemat, Srini Gopalan, Dominique Leroy, Timotheus Höttges, Birgit Bohle.
- Tim Höttges at the 2022 shareholders’ meeting: “We are the provider to the Western world.”
- Group firms up fiber-optic targets for Germany: together with GlasfaserPlus, well over 10 million FTTH lines by 2024
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(PRESS RELEASE) BONN, 7-Apr-2022 — /EuropaWire/ — Deutsche Telekom (ETR: DTE), one of the world’s leading integrated telecommunications companies and the largest telecommunications provider in Europe by revenue, has announced that its 2022 shareholders’ meeting was held for the first time since 2019 in-person at the World Conference Center Bonn. Deutsche Telekom’s CEO Tim Höttges described the company as a responsible, successful company. An anchor of stability, particularly in uncertain times. “We were the digital backbone throughout the pandemic. Our networks always kept running smoothly, Tim added.”
Deutsche Telekom also firmed up its build-out target for fiber-optic infrastructure in Germany. Until now, the Group was planning to build 10 million FTTH (fiber to the home) lines by 2024. Together with GlasfaserPlus, a company established by Deutsche Telekom jointly with the Australian investor IFM, the target has now been raised to well over 10 million. Deutsche Telekom’s 5G network now covers 91 percent of the German population.
Höttges added that stability means identifying and managing risks early on. As an example, he mentioned rising energy prices. “We hedged the prices. 85 percent of our energy costs in Germany are fixed for this year – that is a sizable portion. For the coming year, the figure is 75 percent. So, we built in a price cap for ourselves,” he explained. Supply chain interruptions, too, were hardly felt by Deutsche Telekom. “We have long-term supply contracts in place. We are able to provide what our customers need.” Deutsche Telekom had been working for many years to become more independent from individual suppliers, he said. “We always buy from multiple suppliers, never just one. Because, particularly now, we are seeing how important independence is for stability.”
More and more, the business combination of T-Mobile US and Sprint was proving to be a big success. Synergies were higher than first expected. “Originally, we said we expected the takeover to unlock annual cost synergies of 6 billion dollars by the end. We have now raised this to 7.5 billion dollars.”
Höttges also addressed Russia’s war of aggression against Ukraine: “Global solidarity is encouraging. But solidarity alone is not enough. Actions are what count.” He spoke about the Group’s actions, such as making calls and text messages free of charge, as well as the around 650,000 SIM cards already handed out to refugees in Germany, Poland, Hungary, Romania, and Slovakia.
Tim Höttges summed up the situation: “Never in my lifetime has there been so much uncertainty. What is Deutsche Telekom’s role in this world? The most important thing: The T does not waver. We are the provider to the Western world. With strong mainstays on both sides of the Atlantic. The United States and Europe.”
Using a model, Höttges outlined the particular challenges involved in supplying trains on the stage at the shareholders’ meeting. This past year, Deutsche Telekom announced plans for comprehensive mobile coverage of the railway network by 2026. Both the service and quality are to be significantly improved for passengers in close collaboration with Deutsche Bahn. Deutsche Telekom will supply the trains with signal, which Deutsche Bahn will then pass on to its passengers using repeaters in the carriages or window panes, which allow mobile communication signals to pass through.
Major routes used by all ICE trains and the main IC trains are to be supplied with data rates of at least 200 Mbit/s by the end of 2024. By the end of 2025, data rates of at least 200 Mbit/s will also be available on heavily-traveled routes used by more than 2,000 passengers each day. All other routes are to be supplied with data rates of at least 100 Mbit/s by the end of 2026.
The dividend for the 2021 financial year proposed to the shareholders’ meeting is 0.64 euros per share. This is 6.7 percent higher than the 0.60 euros per share paid out one year ago.
Professor Ulrich Lehner chaired his last shareholders’ meeting for Deutsche Telekom as Chairman of the Supervisory Board. Lehner has headed the committee since 2008 and is now leaving for reasons of age. Höttges expressed thanks to him, saying: “You have been a good and insightful advisor to both the Board of Management and to me personally throughout. During our time with you as Chairman of the Supervisory Board, Deutsche Telekom has paid out some 41 billion euros in dividends. You always appealed to reason, but along the way you won the hearts of Deutsche Telekom’s employees.”
This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. They are generally identified by the words “expect,” “anticipate,” “believe,” “intend,” “estimate,” “aim,” “goal,” “plan,” “will,” “seek,” “outlook,” or similar expressions and include generally any information that relates to expectations or targets for revenue, adjusted EBITDA AL, or other performance measures. Forward-looking statements are based on current plans, estimates, and projections, and 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. They include, for instance, the progress of Deutsche Telekom’s staff-related restructuring measures and the impact of other significant strategic or business initiatives, including acquisitions, dispositions, and business combinations. In addition, movements in exchange rates and interest rates, regulatory rulings, stronger than expected competition, technological change, litigation and regulatory developments, among other factors, may have a material adverse effect on costs and revenue development. 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 achieved. Without prejudice to existing obligations under capital market law, Deutsche Telekom does not assume any obligation to update forward-looking statements to account for new information or future events or anything else. In addition to figures prepared in accordance with IFRS, Deutsche Telekom presents alternative performance measures, e.g., EBITDA, EBITDA AL, adjusted EBITDA, adjusted EBITDA AL, adjusted EBITDA margin AL, core EBITDA, adjusted EBIT, EBIT margin, adjusted net profit/loss, adjusted earnings per share, free cash flow, free cash flow AL, gross debt, and net debt. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
About Deutsche Telekom: Deutsche Telekom Group profile
Media Inquiries:
Andreas Fuchs
Spokesperson
media@telekom.de
+49 228 181 49494
SOURCE: Deutsche Telekom AG
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