T-Systems’ Annual Report 2008
Frankfurt, febrero 27, 2009
In short:
- The realignment towards network-centric ICT services is paying off. This is reflected in the large-scale orders from Shell (2008) and Linde (2009).
- The adjusted financial figures take into account the sale of Media & Broadcast and the re-integration of ActiveBilling into Deutsche Telekom AG.
- On this like-for-like basis, revenue for 2008 is relatively stable, operational profit and orders entry have increased significantly.
- International business continues to grow strongly.
- Cooperation with Cognizant is beginning to bear fruit, as seen in the example of Continental.
T-Systems 2008 year figures from Deutsche Telekom's press release
The strategic realignment to focus on network-centric information and communication technology (ICT) is revealing its first successes. This is evidenced by the financial figures adjusted for the disposal of Media & Broadcast, and the reassignment of ActiveBilling within the Group. On a like-for-like basis, i.e. taking into account the changes in the composition of the Group, revenue decreased only slightly by 1.2 percent considering the difficult economic environment. Adjusted EBITDA remained at the same level as 2007, while adjusted profit from operations (EBIT) increased more than fivefold year-on-year, from EUR 12 million to EUR 61 million.
International business reported an increase in revenue of 7.4 percent. The adjusted number of new orders increased by 5.2 percent to EUR 12.3 billion. This was partly due to major deals with Shell, Deutsche Post and Royal & Sun Alliance, for example. The agreement with Linde, announced mid-February 2009, represents another milestone in T-Systems’ international growth strategy.
As the prior-year figures included Media & Broadcast and ActiveBilling, the reported figures show a decline in revenue of 8.2 percent to EUR 11 billion and in EBITDA of 20.0 percent to EUR 0.9 billion. By reducing costs by EUR 0.5 billion in 2008 under the “Save for Service” program, the Business Customer arm also made a valuable contribution to cost cutting.
In 2008, T-Systems entered into a partnership in the systems integration area with the U.S. provider Cognizant. This collaboration is now starting to bear fruit. T-Systems has so far secured 16 joint deals with total revenue of EUR 70 million and new orders worth EUR 121 million. Both partners support Continental’s tire divisions in Hanover, for example, and ensure stable operation of the research and development application landscape.
**Since the first quarter of 2008, the reporting structure of T-Systems has been modified to reflect the new operational orientation. As a result, reporting no longer shows Enterprise and Business Services. The Business Services unit is now fully integrated into Telecommunications. Computing & Desktop Services and Systems Integration are not affected by the realignment.
