Rise and shine

2 March 2006 By Mike Verdin

The German telecoms operator is offering investors a chunky 5.3% dividend yield. As well it might. With the group facing a fall in ebitda, a capex splurge and dispute over job cuts, shareholders may need an extra a reason to hang on.

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Deutsche Telekom, the German telecoms operator, said that fourth quarter earnings fell by 41% to E1bn on revenues up 5.4% at E15.5bn. Excluding oneoff charges, including a E1.9bn write down of the value of DT's UK mobile operation, earnings rose by 66%. Underlying ebitda rose by 10.4% to E5.2bn.

The group's fixed line and broadband divisions raised underlying ebitda by 2.0% to E2.5bn despite a 4.2% fall in revenues to E5.5bn.

Mobile grew ebitda by 20% to E2.5bn and revenues by 18.3% to E7.6bn.

In the business customers division, ebitda fell by 8.7% to E325m on revenues down 6.3% at E2.4bn.

For the full year, earnings excluding oneoff items rose by 27% to E4.6bn on revenues up 3.9% at nearly E60bn.

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