T-Systems has successfully started into 2010
May 12, 2010
- Revenues went up in the first quarter of 2010
- New big deals and international growth
- Adjusted earnings increased
In the first quarter of the year, total revenue from T-Systems' operations returned to an upward trend, increasing by 1.2 percent year-on-year to EUR 2.1 billion, driven in particular by the 5.7 percent growth in T-Systems' international business.
The large number of deals with corporate customers in the previous year had a positive effect on the figures. This positive upward trend in incoming orders also continued in the first quarter due to major new deals with the German Aerospace Center (DLR), Deutsche Post DHL, TUI Travel, and Swiss Federal Railways. In spite of the universal economic and financial crisis, new orders increased by 7.3 percent in the first three months of 2010.
Business with customers outside the Deutsche Telekom Group expanded by 2.4 percent, reflecting T-Systems' increasingly strong positioning on national and international markets. Intragroup revenue declined by 1.8 percent compared with the previous year to EUR 0.6 billion, further underlining T-Systems' contribution to the Group's cost-cutting efforts.
Adjusted EBIT increased by 38.2 percent to EUR 47 million as a result of the extensive restructuring and efficiency enhancement program Save for Service as well as the extension of the economic useful lives of non-current assets. The adjusted EBIT margin totaled 2.2 percent, up from 1.6 percent the prior-year quarter. By contrast, adjusted EBITDA of the Systems Solutions operating segment declined by 7.1 percent to EUR 0.2 billion in the first quarter, largely attributable to higher costs of goods and services purchased in connection with the new major deals.
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