millions of € 2008 millions of € Change millions of € Change % 2007 millions of € Total revenue 25,423 26,400 (977) (3.7) 28,116
Of which: fixed network 18,736 19,782 (1,046) (5.3) 21,309
Of which: mobile communications 8,109 8,069 40 0.5 8,293
EBIT (profit from operations) 5,062 4,624 438 9.5 4,691
EBIT margin (%) 19.9 17.5 2.4 16.7
Depreciation, amortization and impairment losses (4,196) (4,180) (16) (0.4) (4,341)
EBITDA 9,258 8,804 454 5.2 9,032
Special factors affecting EBITDA (349) (960) 611 63.6 (903)
Adjusted EBITDA a 9,607 9,764 (157) (1.6) 9,935
Of which: fixed network 6,247 6,400 (153) (2.4) 6,645
Of which: mobile communications 3,373 3,364 9 0.3 3,292
Adjusted EBITDA margin (%) 37.7 37.0 35.3
Of which: fixed network 33.3 32.4 31.2
Of which: mobile communications 41.6 41.7 39.7
Cash capex b (3,158) (3,038) (120) (3.9) (3,014)
Number of employees c 84,584 89,961 (5,377) (6.0) 94,460
Of which: fixed network 78,507 83,932 (5,425) (6.5) 86,155
Of which: mobile communications 6,077 6,029 48 0.8 8,305
The contributions of the operating segments generally show the unconsolidated view, and do not take into consideration consolidation effects at the operating segment level. Totals were calculated on the basis of precise figures and rounded to millions. Percentages were calculated on the basis of figures shown.
Effective July 1, 2009 the Germany operating segment includes the fixed-network and mobile communications business. The fixed-network figures include PASM (Power and Air Condition Solution Management GmbH & Co. KG) without Global Network, International Carrier Services & Solutions (ICSS) and the share of Deutsche Telekom AG in the Product House. The mobile communications figures include DFMG (Deutsche Funkturm GmbH). All prior-year figures have been adjusted for better comparability.
a Deutsche Telekom defines EBITDA as profit/loss from operations before depreciation, amortization and impairment losses.
For a detailed explanation of the special factors affecting EBITDA, adjusted EBITDA, and the adjusted EBITDA margin, please refer to the section on “Development of business in the Group.”
b Investments in property, plant and equipment, and intangible assets (excluding goodwill) as shown in the statement of cash flows. c Average of all employees.
Total revenue.
Total revenue in the Germany operating segment decreased by 3.7 percent year-on-year to EUR 25.4 billion, mainly caused by the continuing losses of fixed-network lines due to competition and by regulatory pricing measures in fixed-network and mobile communications.
Fixed network. Total revenue in the fixed network declined by 5.3 percent year-on-year to EUR 18.7 billion in the full year 2009, compared with a decline of 7.2 percent in the 2008 financial year. The decrease in revenue was thus 1.9 percentage points lower year-on-year. The increased number of complete broadband packages and unbundled local loop lines had a positive effect on the development of revenue.
This volume growth only partially offset the decline in revenue, however, which was mainly attributable to continuing line losses resulting from increased competition, falling usage-related charges, and volume-driven decreases in revenues from resale and network services and from inter- connection services.
Mobile communications. In the 2009 financial year, the operating segment maintained and extended its market leadership in service revenues. In addition, continued growth in non-voice (data and messaging) revenue had a positive effect. Non-voice revenue increased as a proportion of service revenues by 4 percentage points in the course of one year. Data revenues developed positively in the 2009 financial year, increasing 46 percent year- on-year. For the overall market in Germany, Deutsche Telekom estimates the mobile data revenue growth rate to be 25 to 30 percent in 2009.
Total mobile communications revenue rose by EUR 40 million or 0.5 percent to EUR 8.1 billion. The increase in revenue was partially offset by more restrictive regulation, in particular lower termination charges from April 1, 2009, new EU roaming regulation as of July 1, 2009, and continuing intense price competition. The national roaming agreement with O2 expired at the
end of 2009. The national roaming revenues generated with O2 in 2009
were on a par with the prior-year level.
EBIT, adjusted EBITDA.
EBIT in the Germany operating segment increased by 9.5 percent year- on-year to approximately EUR 5.1 billion. The reduction in revenue was compensated by cost savings and fewer special factors. Adjusted EBITDA totaled EUR 9.6 billion in the 2009 financial year. The year-on-year decrease of around EUR 0.2 billion was caused primarily by a reduction in fixed- network revenue, which was not fully offset despite systematic cost cutting.
In the fixed network, adjusted EBITDA of EUR 6.2 billion was generated in the 2009 financial year; the adjusted EBITDA margin rose 0.9 percentage points year-on-year to 33.3 percent. Lower revenue-driven costs and reduced costs in particular for third-party services, rental, energy, IT and personnel made up for a major part of the decrease in revenue in the traditional fixed- network business.
Adjusted EBITDA and the adjusted EBITDA margin remained on a par with the prior-year level in the 2009 financial year although regulation and the consistently high level of competition in Germany had a negative effect on EBITDA. Factoring out the disposal of an intangible asset in the third quarter of the prior year (positive EBITDA effect of EUR 0.1 billion), both adjusted EBITDA and the EBITDA margin increased in 2009.
Cash capex.
Cash capex increased EUR 0.1 billion year-on-year in the 2009 reporting year to EUR 3.2 billion, mainly as a result of capital expenditures in the fixed network for the IP transport platform, broadband roll-out and IT sys- tems. Cash capex in mobile communications mainly resulted from capital expenditures for the network build-out, mainly UMTS sites, capacity increases, and investments in IT products.
Personnel.
The average headcount decreased by 6 percent year-on-year to 84,584 employees, primarily due to staff reductions in the fixed-network area.
83
Group management report Development of business in the operating segments
The United States operating segment increased its customer base during the year. The number of customers at the end of 2009 increased to 33.8 million with a total of 1.0 million net additions. Net customer additions decreased year-on-year, with strong growth in wholesale (including MVNOs and machine-to-machine customers) which were partially offset by losses in T-Mobile USA branded customers. Blended churn increased to 3.2 percent from 2.9 percent due to competitive intensity during the year, including handset innovation and market launches by regional unlimited wireless carriers.