SECURITIES
AND EXCHANGE COMMISSION
Form
6-K
REPORT
OF FOREIGN PRIVATE ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16
UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For
the month of November 2009
Commission
file number 001-14540
Deutsche
Telekom AG
(Translation
of Registrant’s Name into English)
Friedrich-Ebert-Allee
140,
53113
Bonn,
Germany
(Address
of Principal Executive Offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F x Form
40-F o
Indicate
by check mark whether the registrant by furnishing the information contained in
this form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes o No x
This
report is deemed submitted and not filed pursuant to the rules and regulations
of the Securities and Exchange Commission.
T-MOBILE
USA REPORTS THIRD QUARTER 2009 RESULTS
|
$1.56
billion Operating Income Before Depreciation and Amortization (“OIBDA”) in
the third quarter of 2009, up from $1.53 billion in the third quarter of
2008; OIBDA margin of 33% in the third quarter of 2009.
|
|
Cash
Cost Per User (“CCPU”) of $23 during the third quarter of 2009, compared
to $25 in the third quarter of 2008.
|
|
Aggressive
build out of the 3G network continues with coverage reaching 167 million
people, an increase of almost 50% in the quarter.
|
|
Expanded
adoption of data devices with 2.8 million 3G capable converged devices now
on the T-Mobile USA network.
|
|
Continued
recognition in the third quarter of 2009 for industry leading wireless
retail sales satisfaction and wireless customer care performance by J.D.
Power and Associates.
|
|
Total
customers declined by 77,000 in the third quarter of 2009, compared to
670,000 net customer additions in the third quarter of
2008.
|
BELLEVUE,
Wash., November 5, 2009 -- T-Mobile USA, Inc. (“T-Mobile USA”) today reported
third quarter of 2009 results. In the third quarter of 2009, T-Mobile
USA reported OIBDA of $1.56 billion, essentially in line with the second quarter
of 2009 and the third quarter of 2008, with an OIBDA margin of
33%. Additionally, T-Mobile USA reported CCPU of $23, an increase in
3G capable converged device users, and an increase in 3G coverage by almost 50%
to 167 million people.
"In
the quarter we took deliberate steps to align our operational cost structure to
market realities while reasserting our position as the value leader in
wireless," said Robert Dotson, president and CEO, T-Mobile
USA. "We've made tremendous progress with our nationwide rollout of
3G. Over six months we will have almost doubled our high-speed
coverage with a goal of reaching 200 million consumers by the end of
December. That coverage is now accompanied by a rich data experience
with the broadest array of 3G Android devices of any wireless
carrier. Lastly, we've introduced our new Even More plans that can
cut wireless consumers' bills in half relative to AT&T and
Verizon. These plans make available affordable unlimited nationwide
calling, texting and data services to customers coast to coast.”
"The
building blocks are coming into place for our U.S. business to take full
advantage of the sizeable opportunities available to us in wireless data," said
Rene Obermann, CEO, Deutsche Telekom. "I am pleased with the continued
progress on building out our 3G network. The team has expanded
distribution, bringing T-Mobile products and services to more people in more
places. The team is also exercising sound cost management with a focus on
solid margins in a challenging environment."
Customers
|
|
T-Mobile
USA served 33.4 million customers at the end of the third quarter of 2009
down slightly from 33.5 million at the end of the second quarter of 2009,
but up from 32.1 million at the end of the third quarter of
2008.
|
|
|
In
the third quarter of 2009, total customers declined by 77,000, compared to
net customer additions of 325,000 in the second quarter of 2009 and
670,000 in the third quarter of 2008. The number of contract
customers declined by 140,000 in the third quarter of
2009.
|
|
|
Compared
to the second quarter of 2009, the number of net new customer additions
decreased due to higher churn of contract customers, as explained
below.
|
|
|
The
number of net new customer additions decreased compared to the third quarter
of 2008 due primarily to fewer gross customer additions and higher churn
from FlexPaysm
customers.
|
|
|
Prepaid
net customer additions, including wholesale customers, were 63,000 in the
third quarter of 2009, down from 268,000 in the second quarter of 2009 and
377,000 in the third quarter of
2008.
|
|
|
Lower
wholesale net customer additions were the primary reason for lower
sequential prepaid additions. Wholesale customers totaled 1.6
million at September 30, 2009.
|
|
|
Contract
customers comprised 80% of T-Mobile USA’s total customer base at September
30, 2009, compared to 81% in the second quarter of 2009 and 83% in the
third quarter of 2008.
|
Churn
|
|
Contract
churn was 2.4% in the third quarter of 2009, up from 2.2% in the second
quarter of 2009 and consistent with 2.4% in the third quarter of
2008.
|
|
|
Contract
churn increased in the third quarter of 2009 compared to the second
quarter of 2009, due in part to competitive intensity, including handset
innovation, and the seasonal impact from the “back-to-school”
window.
|
|
|
Blended
churn, including both contract and prepaid customers, was 3.4% in the
third quarter of 2009, up from 3.1% in the second quarter of 2009 and 3.0%
in the third quarter of 2008.
|
|
|
Sequentially
and year-over-year prepaid churn increased in particular due to wholesale
and FlexPay no-contract.
|
OIBDA
and Net Income
|
|
T-Mobile
USA reported OIBDA of $1.56
billion in the third quarter of 2009, compared to $1.60 billion in
the second quarter of 2009 and $1.53 billion in the third quarter of
2008.
|
|
|
The
sequential decrease in OIBDA was due primarily to lower ARPU, as described
below. Year-over-year OIBDA increased as lower customer
revenues were offset by lower customer acquisition costs and lower costs
of serving customers.
|
|
|
OIBDA
margin (as defined in Note 6 to the Selected Data, below) was 33% in the
third quarter of 2009, down slightly from 34% in the second quarter of
2009 and improved from 31% in the third quarter of
2008.
|
|
|
Net
income for the third quarter of 2009 was $417 million, compared to $425
million in the second quarter of 2009 and $442 million in the third
quarter of 2008.
|
Revenue
|
|
Service
revenues (as defined in Note 1 to the Selected Data, below) were $4.73
billion in the third quarter of 2009, down from $4.77 billion in the
second quarter of 2009 and $4.91 billion in the third quarter of
2008.
|
|
|
The
sequential and year-over-year decrease in service revenue in the third
quarter of 2009 was primarily due to the fall in ARPU, as described
below.
|
|
|
Total
revenues, including service, equipment, and other revenues were $5.38
billion in the third quarter of 2009, up from $5.34 billion in the second
quarter of 2009 and down from $5.51 billion in the third quarter of
2008.
|
|
|
Sequentially,
the increase was driven by higher equipment sales revenue partially
related to distribution growth and an expanded data device
lineup. Compared to the third quarter of 2008, higher equipment
sales revenues in the third quarter of 2009 were offset by lower service
revenues.
|
ARPU
|
|
Blended
Average Revenue Per User (“ARPU” as defined in Note 1 to the Selected
Data, below) was $47 in the third quarter of 2009, down from than $48 in
the second quarter of 2009 and $52 in the third quarter of 2008.
|
|
|
Contract
ARPU was $52 in the third quarter of 2009, in line with the second quarter
of 2009, but down from $55 in the third quarter of
2008.
|
|
|
Contract
ARPU year-over-year decreased as growth in data services was offset by
fewer higher-ARPU customers due to competitive intensity, customers moving
to unlimited plans, and less
roaming.
|
|
|
Prepaid
ARPU was $20 in the third quarter of 2009, down from $21 in the second
quarter of 2009 and $24 in the third quarter of
2008.
|
|
|
The
decrease in prepaid ARPU is due to fewer Flexpay no-contract
customers.
|
|
|
Data
services revenue (as defined in Notes 1 and 8 to the Selected Data, below)
was $1.0 billion in the third quarter of 2009, representing 21.1% of
blended ARPU, or $10.00 per customer, up from 20.8% of blended ARPU, or
$9.90 per customer in the second quarter of 2009, and 17.3% of blended
ARPU, or $8.90 per customer in the third quarter of 2008. Data services
revenue increased 18%
year-over-year.
|
|
|
2.8
million 3G-capable converged devices (such as the T-Mobile®
MyTouchTM,
T-Mobile®
G1TM,
and the T-Mobile®
Dash 3GTM)
were on the T-Mobile USA network at the end of the third quarter of 2009,
an increase of 33% from the second quarter of
2009.
|
|
|
The
increase of 3G-capable converged devices and the continued build-out of
the 3G network is driving internet access revenue growth with the
increased adoption of 3G data plans, offset partially by a decrease in
messaging revenue.
|
|
|
Messaging
revenue continued to be a significant component of data ARPU, with the
total number of messages carried on the network increasing to 75 billion
in the third quarter of 2009, compared to 74 billion in second quarter of
2009 and 49 billion in the third quarter of
2008.
|
CPGA
and CCPU
|
|
The
average cost of acquiring a customer, Cost Per Gross Add (“CPGA” as
defined in Note 4 to the Selected Data, below) was $290 in the third
quarter of 2009, up from $270 in the second quarter of 2009 and in line
with third quarter of 2008.
|
|
|
CPGA increased in
the third quarter of 2009 compared to the second quarter of
2009. This
was primarily related to higher acquisition costs due to increased
customer adoption of 3G converged data
devices.
|
|
|
The
average cash cost of serving customers, Cash Cost Per User (“CCPU” as
defined in Note 3 to the Selected Data, below), was $23 per customer per
month in the third quarter
of 2009, in line with the second quarter of 2009 and down from $25 in the
third quarter of 2008.
|
|
|
Year-over-year
CCPU decreased due to cost saving initiatives and the customer base moving
towards lower ARPU products which incur lower servicing
costs. Both of these items more than offset higher network
costs related to the 3G network
build.
|
|
|
Compared
to the third quarter of 2008, all components of CCPU (network costs,
general and administrative, and subsidy loss unrelated to customer
acquisition) decreased in absolute
terms.
|
Capital
Expenditures
|
|
Cash
capital expenditures (as defined in Note 7 to the Selected Data, below)
were $787 million in the third quarter of 2009, compared to $1.08 billion
in the second quarter of 2009 and $956 million in the third quarter of
2008.
|
|
|
The
decrease in cash capital expenditures in the third quarter of 2009 was a
result of timing of network build, with a continued focus on enhancing and
expanding the national coverage of the UMTS/HSPA (3G) network during the
quarter.
|
|
|
T-Mobile
USA’s 3G network now reaches 167 million people, and is continuing to
grow. Furthermore, the entire 3G network will be HSPA 7.2 Mbps
(megabits per second) enabled by year
end.
|
|
|
In
September, T-Mobile USA launched a trial of HSPA+ technology with a
maximum download speed of up to 21 Mbps in
Philadelphia.
|
Stick
Together Highlights
|
|
On
August 13, 2009, T-Mobile USA achieved the highest ranking in a tie for
the J.D. Power and Associates 2009 Wireless Customer Care Performance
StudySM
– Volume 2. Since 2004, T-Mobile USA has received the highest
ranking, including two ties, in nine of the last 10 Customer Care
Performance Studies conducted by J.D. Power and
Associates.
|
|
|
In
August T-Mobile USA’s products and services started being offered in more
than 4,000 RadioShack stores across the U.S. and Puerto Rico, almost
doubling our national retail distribution
network.
|
|
|
On
September 17, 2009, T-Mobile USA received the highest ranking among
national wireless carriers in the J.D. Power and Associates 2009 Wireless
Retail Sales Satisfaction StudySM
– Volume 2. The award further reflects T-Mobile’s continued
achievements for overall customer experiences, whether in-store, online or
on the phone.
|
|
|
On
October 21, 2009, T-Mobile
USA announced the fourth quarter of 2009 availability of the
BlackBerry®
Bold™ 9700 with Wi-Fi Calling from T-Mobile. It will be the
first 3G-powered BlackBerry smartphone available through T-Mobile USA,
adding to the holiday lineup of 3G converged devices such as the
T-Mobile®
myTouchTM
and recently announced Samsung Behold®
II. Additionally, on November 2, 2009, T-Mobile USA
launched the national availability of the MotorolaTM
CLIQTM. This
is the first AndroidTM-powered
device with MOTOBLURTM,
a solution developed to manage and integrate communication sources
together on the home screen.
|
|
|
On
October 25, 2009, T-Mobile USA unveiled its new ‘Even More’ and ‘Even More
Plus’ rate plans. These plans respond to customers needs for
affordable nationwide calling, texting, and data plans; while providing
new ways to get new phones and data devices with equipment installment
plans.
|
T-Mobile
USA is the U.S. wireless operation of Deutsche Telekom AG (NYSE: DT). In order
to provide comparability with the results of other US wireless carriers, all
financial amounts are in US dollars and are based on accounting principles
generally accepted in the United States (“GAAP”). T-Mobile USA
results are included in the consolidated results of Deutsche Telekom, but differ
from the information contained herein as Deutsche Telekom reports financial
results in Euros and in accordance with International Financial Reporting
Standards (IFRS).
This
press release includes non-GAAP financial measures. The non-GAAP financial
measures should be considered in addition to, but not as a substitute for, the
information provided in accordance with GAAP. Reconciliations from
the non-GAAP financial measures to the most directly comparable GAAP financial
measures are provided below following Selected Data and the financial
statements.
SELECTED DATA FOR T-MOBILE USA
|
(thousands)
|
Q3 09 | Q2 09 | Q1 09 |
Full
Year 2008
|
Q4 08 | Q3 08 | ||||||||||||||||||
|
Customers,
end of period2
|
33,420 | 33,497 | 33,173 | 32,758 | 32,758 | 32,136 | ||||||||||||||||||
|
Thereof
contract customers
|
26,882 | 27,022 | 26,966 | 26,806 | 26,806 | 26,539 | ||||||||||||||||||
|
Thereof
prepaid customers
|
6,538 | 6,475 | 6,207 | 5,952 | 5,952 | 5,597 | ||||||||||||||||||
|
Net
customer (losses) / additions
|
(77 | ) | 325 | 415 | 2,940 | 621 | 670 | |||||||||||||||||
|
Acquired
customers
|
- | - | - | 1,132 | - | - | ||||||||||||||||||
|
Minutes
of use/contract customer/month
|
1,160 | 1,150 | 1,130 | 1,150 | 1,130 | 1,140 | ||||||||||||||||||
|
Contract
churn
|
2.40 | % | 2.20 | % | 2.30 | % | 2.10 | % | 2.40 | % | 2.40 | % | ||||||||||||
|
Blended
churn
|
3.40 | % | 3.10 | % | 3.10 | % | 2.90 | % | 3.30 | % | 3.00 | % | ||||||||||||
|
($)
|
||||||||||||||||||||||||
|
ARPU
(blended)
1
|
47 | 48 | 48 | 51 | 50 | 52 | ||||||||||||||||||
|
ARPU
(contract)
|
52 | 52 | 52 | 55 | 54 | 55 | ||||||||||||||||||
|
ARPU
(prepaid)
|
20 | 21 | 21 | 23 | 23 | 24 | ||||||||||||||||||
|
Data
ARPU (blended)
8
|
10.00 | 9.90 | 9.40 | 8.90 | 9.30 | 8.90 | ||||||||||||||||||
|
Cost
of serving (CCPU)3,9
|
23 | 23 | 24 | 25 | 25 | 25 | ||||||||||||||||||
|
Cost
per gross add (CPGA)4
|
290 | 270 | 300 | 290 | 270 | 290 | ||||||||||||||||||
|
($
million)
|
||||||||||||||||||||||||
|
Total
revenues
|
5,380 | 5,342 | 5,398 | 21,885 | 5,722 | 5,506 | ||||||||||||||||||
|
Service
revenues1
|
4,733 | 4,766 | 4,774 | 19,242 | 4,904 | 4,911 | ||||||||||||||||||
|
OIBDA5
|
1,556 | 1,601 | 1,383 | 6,123 | 1,568 | 1,531 | ||||||||||||||||||
|
OIBDA
margin 6
|
33 | % | 34 | % | 29 | % | 32 | % | 32 | % | 31 | % | ||||||||||||
|
Capital
expenditures7
|
787 | 1,078 | 1,125 | 3,603 | 895 | 956 | ||||||||||||||||||
Since all companies do not calculate these figures in the same manner, the information contained in this press release may not be comparable to similarly titled measures reported by other companies.
|
1
|
Average
Revenue Per User (“ARPU”) represents the average monthly service revenue
we earn from our customers. ARPU is calculated by dividing
service revenues for the specified period by the average customers during
the period, and further dividing by the number of months in the
period. We believe ARPU provides management with useful
information to evaluate the revenues generated from our customer
base. Service
revenues include contract, prepaid, and roaming and other service
revenues, and do not include equipment sales and other revenues. Data
services revenues (including messaging and non-messaging revenue) are a
component of service revenues. Within the consolidated
financial statements below, other revenues include co-location rental
income and, through 2008, wholesale revenues from the usage of our network
in California, Nevada, and New York by AT&T customers, among other
items, and are therefore not included in
ARPU.
|
|
2
|
A
customer is defined as a SIM card with a unique mobile identity number
which generates revenue. Contract customers and prepaid customers include
FlexPay customers depending on the type of rate plan selected. FlexPay
customers with a contract are included in contract customers, and FlexPay
customers without a contract are included in prepaid
customers. Wholesale customers are included in prepaid
customers as they most closely align with this customer
segment. Machine-to-machine customers have contracts and are
therefore included in contract
customers.
|
|
3
|
The average cash cost
of serving customers, or Cash Cost Per User (“CCPU”) is a non-GAAP
financial measure and includes all network and general and administrative
costs as well as the subsidy loss unrelated to customer
acquisition. Subsidy loss unrelated to customer acquisition
includes upgrade handset costs for existing customers offset by upgrade
equipment revenues and other related direct costs. This measure
is calculated as a per month average by dividing the total costs for the
specified period by the average total customers during the period and
further dividing by the number of months in the period. We believe that
CCPU, which is a measure of the costs of serving a customer, provides
relevant and useful information and is used by our management to evaluate
the operating performance of our
business.
|
|
4
|
Cost
Per Gross Add (“CPGA”) is a non-GAAP financial measure and is calculated
by dividing the costs of acquiring a new customer, consisting of customer
acquisition costs plus the subsidy loss related to customer acquisition
for the specified period, by gross customers added during the period.
Subsidy loss related to customer acquisition consists primarily of the
excess of handset and accessory costs over related revenues incurred to
acquire new customers. We believe that CPGA, which is a measure
of the cost of acquiring a customer, provides relevant and useful
information and is used by our management to evaluate the operating
performance of our business.
|
|
5.
|
Operating
Income Before Interest, Depreciation and Amortization (“OIBDA”) is a
non-GAAP financial measure, which we define as operating income before
depreciation and amortization. In a capital-intensive industry
such as wireless telecommunications, we believe OIBDA, as well as the
associated percentage margin calculation, to be meaningful measures of our
operating performance. OIBDA should not be construed as an alternative to
operating income or net income as determined in accordance with GAAP, as
an alternative to cash flows from operating activities as determined in
accordance with GAAP or as a measure of liquidity. We use OIBDA
as an integral part of our planning and internal financial reporting
processes, to evaluate the performance of our business by senior
management and to compare our performance with that of many of our
competitors. We believe that operating income is the financial
measure calculated and presented in accordance with GAAP that is the most
directly comparable to OIBDA. OIBDA is not adjusted for
integration costs of T-Mobile’s acquisition of SunCom Wireless in February
of 2008.
|
|
6.
|
OIBDA
margin is a non-GAAP financial measure, which we define as OIBDA (as
described in Note 5 above) divided by service
revenues.
|
|
7
|
Capital
expenditures consist of amounts paid by T-Mobile USA for purchases of
property and equipment.
|
|
8
|
Data
ARPU is defined as total data revenues divided by average total customers
during the period. Total data revenues include data revenues
from contract customers, prepaid customers, Wi-Fi revenues and data
roaming revenues. The relative fair value of data revenues from
unlimited voice and data plans are included in total data
revenues.
|
|
9
|
Certain
of the comparative figures in the prior period have been reclassified to
conform to the current period CCPU
presentation.
|
T-MOBILE
USA
Condensed
Consolidated Balance Sheets
(dollars
in millions)
(unaudited)
|
September
30,
|
December
31,
|
||||||||||||||||||||||
|
2009
|
2008
|
||||||||||||||||||||||
|
ASSETS
|
|||||||||||||||||||||||
|
Current
assets:
|
|||||||||||||||||||||||
|
Cash
and cash equivalents
|
$ 67
|
$ 306
|
|||||||||||||||||||||
|
Receivables
from affiliates
|
611
|
113
|
|||||||||||||||||||||
|
Accounts
receivable, net of allowances of $314 and $291,
respectively
|
2,621
|
2,809
|
|||||||||||||||||||||
|
Inventory
|
915
|
931
|
|||||||||||||||||||||
|
Current
portion of net deferred tax assets
|
1,259
|
1,148
|
|||||||||||||||||||||
|
Other
current assets
|
580
|
644
|
|||||||||||||||||||||
|
Total
current assets
|
6,053
|
5,951
|
|||||||||||||||||||||
|
Property
and equipment, net of accumulated depreciation of $11,988
|
|||||||||||||||||||||||
|
and
$10,830, respectively
|
12,925
|
12,600
|
|||||||||||||||||||||
|
Goodwill
|
12,025
|
12,011
|
|||||||||||||||||||||
|
Spectrum
licenses
|
15,244
|
15,254
|
|||||||||||||||||||||
|
Other
intangible assets, net of accumulated amortization of $98 and $562,
respectively
|
172
|
212
|
|||||||||||||||||||||
|
Long-term
investments and other assets
|
243
|
262
|
|||||||||||||||||||||
|
$ 46,662
|
$ 46,290
|
||||||||||||||||||||||
|
LIABILITIES
AND EQUITY
|
|||||||||||||||||||||||
|
Current
liabilities:
|
|||||||||||||||||||||||
|
Accounts
payable and accrued liabilities
|
$ 3,039
|
$ 4,057
|
|||||||||||||||||||||
|
Current
payables to affiliates
|
5,536
|
1,557
|
|||||||||||||||||||||
|
Other
current liabilities
|
343
|
364
|
|||||||||||||||||||||
|
Total
current liabilities
|
8,918
|
5,978
|
|||||||||||||||||||||
|
Long-term
payables to affiliates
|
9,181
|
13,850
|
|||||||||||||||||||||
|
Deferred tax
liabilities
|
3,217
|
2,452
|
|||||||||||||||||||||
|
Other
long-term liabilities
|
1,403
|
1,227
|
|||||||||||||||||||||
|
Total
long-term liabilities
|
13,801
|
17,529
|
|||||||||||||||||||||
|
Commitments
and contingencies
|
|||||||||||||||||||||||
|
Stockholder’s
equity:
|
|||||||||||||||||||||||
|
Common
stock and additional paid-in capital
|
36,594
|
36,594
|
|||||||||||||||||||||
|
Accumulated
other comprehensive loss
|
8
|
-
|
|||||||||||||||||||||
|
Accumulated
deficit
|
(12,742)
|
(13,906)
|
|||||||||||||||||||||
|
Total
stockholder’s equity
|
23,844
|
22,688
|
|||||||||||||||||||||
|
Noncontrolling
interest
|
99
|
95
|
|||||||||||||||||||||
|
Total
equity
|
23,943
|
22,783
|
|||||||||||||||||||||
|
$ 46,662
|
$ 46,290
|
||||||||||||||||||||||
T-MOBILE
USA
Condensed
Consolidated Statements of Operations
(dollars
in millions)
(unaudited)
|
Quarter
Ended September 30,
2009
|
Quarter
Ended
June
30, 2009
|
Quarter
Ended
September 30,
2008
|
||||||
|
Revenues:
Contract
|
$ 4,197
|
$ 4,211
|
$ 4,342
|
|||||
|
Prepaid
|
382
|
396
|
382
|
|||||
|
Roaming
and other services
|
154
|
159
|
187
|
|||||
|
Equipment
sales*
|
602
|
535
|
542
|
|||||
|
Other*
|
45
|
41
|
53
|
|||||
|
Total
revenues
|
5,380
|
5,342
|
5,506
|
|||||
|
Operating
expenses:
|
||||||||
|
Network
|
1,261
|
1,236
|
1,284
|
|||||
|
Cost
of equipment sales*
|
937
|
862
|
858
|
|||||
|
General
and administrative*
|
827
|
852
|
927
|
|||||
|
Customer
acquisition
|
799
|
791
|
906
|
|||||
|
Depreciation
and amortization
|
713
|
723
|
678
|
|||||
|
Total
operating expenses
|
4,537
|
4,464
|
4,653
|
|||||
|
Operating
income
|
843
|
878
|
853
|
|||||
|
Other
expense, net
|
(175)
|
(191)
|
(128)
|
|||||
|
Income
before income taxes
|
668
|
687
|
725
|
|||||
|
Income
tax expense
|
(251)
|
(262)
|
(283)
|
|||||
|
Net
income
|
417
|
425
|
442
|
|||||
|
Other
comprehensive loss, net of tax:
|
||||||||
|
Unrealized
loss on available-for-sale securities
|
-
|
8
|
-
|
|||||
|
Total
comprehensive income
|
$ 417
|
$ 417
|
$ 442
|
|||||
* Certain
of the comparative figures in the prior periods have been reclassified to
conform to the current period presentation.
T-MOBILE
USA
Condensed
Consolidated Statements of Cash Flows
(dollars
in millions)
(unaudited)
| Quarter
Ended
September
30,
2009
|
Quarter Ended September 30, 2008 | |||||||
|
Operating
activities:
|
||||||||
|
Net
income
|
$ | 417 | $ | 442 | ||||
|
Adjustments
to reconcile net income to net cash provided
by operating
activities:
|
||||||||
|
Depreciation
and
amortization
|
713 | 678 | ||||||
|
Income
taxexpense
|
251 | 283 | ||||||
|
Bad
debt
expense
|
128 | 140 | ||||||
|
Other,
net
|
46 | 54 | ||||||
|
Changes
in operating assets and liabilities:
|
||||||||
|
Accounts
receivable
|
(146 | ) | (156 | ) | ||||
|
Inventory
|
58 | (76 | ) | |||||
|
Other
current and non-current
assets
|
11 | (15 | ) | |||||
|
Accounts
payable and accrued liabilities
|
7 | 131 | ||||||
|
Net
cash provided by operating
activities
|
1,485 | 1,481 | ||||||
|
Investing
activities:
|
||||||||
|
Purchases
of property and
equipment
|
(787 | ) | (956 | ) | ||||
|
Purchase
of intangible
assets
|
(10 | ) | (33 | ) | ||||
|
Short-term
affiliate loan receivable,
net
|
(850 | ) | (475 | ) | ||||
|
Other,
net………………………………………………………....
|
2 | (1 | ) | |||||
|
Net
cash used in investing
activities
|
(1,645 | ) | (1,465 | ) | ||||
|
Financing
activities:
|
||||||||
|
Long-term
debt borrowings from affiliates
…
|
- | 750 | ||||||
|
Long-term
debt repayment to
affiliates
|
(50 | ) | (825 | ) | ||||
|
Other,
net
|
- | 1 | ||||||
|
Net
cash used in financing
activities
|
(50 | ) | (74 | ) | ||||
|
Change
in cash and cash
equivalents
|
(210 | ) | (58 | ) | ||||
|
Cash
and cash equivalents, beginning of period
|
277 | 218 | ||||||
|
Cash
and cash equivalents, end of
period
|
$ | 67 | $ | 160 | ||||
Non-cash investing and
financing activities with affiliates:
In the
third quarter of 2009, T-Mobile USA remitted $850 million to affiliates as a
short-term receivable. $250 million of the cash outflow was used during the
period as settlement of debt upon maturity.
In the
third quarter of 2008, T-Mobile USA remitted $475 million to affiliates as a
short term receivable. $400 million of the cash outflow, together with $825
million cash was used during the period as settlement of debt in line with the
repayment schedule.
T-MOBILE
USA
Reconciliation
of Non-GAAP Financial Measures to GAAP Financial Measures
(dollars
in millions, except for CPGA and CCPU)
(unaudited)
OIBDA is
reconciled to operating income as follows:
| Q3 2009 | Q2 2009 | Q1 2009 |
Full Year 2008
|
Q4 2008 | Q3 2008 | |||||||||||||||||||
|
OIBDA
|
$ | 1,556 | $ | 1,601 | $ | 1,383 | $ | 6,123 | $ | 1,568 | $ | 1,531 | ||||||||||||
|
Depreciation
and amortization
|
(713 | ) | (723 | ) | (697 | ) | (2,753 | ) | (730 | ) | (678 | ) | ||||||||||||
|
Operating
income
|
$ | 843 | $ | 878 | $ | 686 | $ | 3,370 | $ | 838 | $ | 853 | ||||||||||||
The
following schedule reflects the CPGA calculation and provides a reconciliation
of cost of acquiring customers used for the CPGA calculation to customer
acquisition costs reported on our condensed consolidated statements of
operations:
|
Q3 2009
|
Q2 2009
|
Q1 2009
|
Full Year 2008
|
Q4 2008
|
Q3 2008
|
|||||||||||||||||
|
Customer
acquisition costs
|
$799
|
$791
|
$851
|
$3,540
|
$897
|
$906
|
||||||||||||||||
|
Plus:
Subsidy loss
|
||||||||||||||||||||||
|
Equipment
sales
|
(602)
|
(535)
|
(578)
|
(2,386)
|
(715)
|
(542)
|
||||||||||||||||
|
Cost
of equipment sales
|
937
|
862
|
1,013
|
3,647
|
1,056
|
858
|
||||||||||||||||
|
Total
subsidy loss
|
335
|
327
|
435
|
1,261
|
341
|
316
|
||||||||||||||||
|
Less:
Subsidy loss unrelated to customer acquisition
|
(164)
|
(184)
|
(251)
|
(734)
|
(214)
|
(178)
|
||||||||||||||||
|
Subsidy
loss related to customer acquisition
|
171
|
143
|
184
|
527
|
127
|
138
|
||||||||||||||||
|
Cost
of acquiring customers
|
$970
|
$934
|
$1,035
|
$4,067
|
$1,024
|
$1,044
|
||||||||||||||||
|
CPGA
($ / new customer added)
|
$290
|
$270
|
$300
|
$290
|
$270
|
$290
|
||||||||||||||||
T-MOBILE
USA
Reconciliation
of Non-GAAP Financial Measures to GAAP Financial Measures
(dollars
in millions, except for CPGA and CCPU)
(unaudited)
The
following schedule reflects the CCPU calculation and provides a reconciliation
of the cost of serving customers used for the CCPU calculation to total network
costs plus general and administrative costs reported on our condensed
consolidated statements of operations:
| Q3 2009 | Q2 2009 | Q1 2009 |
Full Year 2008
|
Q4 2008 | Q3 2008 | |||||||||||||||||||
|
Network
costs
|
$ | 1,261 | $ | 1,236 | $ | 1,249 | $ | 5,007 | $ | 1,286 | $ | 1,284 | ||||||||||||
|
General
and administrative costs*
|
827 | 852 | 902 | 3,569 | 916 | 927 | ||||||||||||||||||
|
Total
network and general and administrative costs*
|
2,088 | 2,088 | 2,151 | 8,576 | 2,202 | 2,211 | ||||||||||||||||||
|
Plus:
Subsidy loss unrelated to customer acquisition*
|
164 | 184 | 251 | 734 | 214 | 178 | ||||||||||||||||||
|
Total
cost of serving customers*
|
$ | 2,252 | $ | 2,272 | $ | 2,402 | $ | 9,310 | $ | 2,416 | $ | 2,389 | ||||||||||||
|
CCPU
($ / customer per month)*
|
$ | 23 | $ | 23 | $ | 24 | $ | 25 | $ | 25 | $ | 25 | ||||||||||||
* Certain
of the comparative figures in prior periods have been reclassified to conform to
the current period CCPU presentation.
About
T-Mobile USA:
Based in
Bellevue, Wash., T-Mobile USA, Inc. is the U.S. wireless operation of Deutsche
Telekom AG (NYSE: DT). By the end of the third quarter of 2009, almost 151
million mobile customers were served by the mobile communication segments of the
Deutsche Telekom group — 33.4 million by T-Mobile USA — all via a common
technology platform based on GSM and UMTS, the world’s most widely-used digital
wireless standards. T-Mobile USA’s innovative wireless products and services
help empower people to connect to those who matter most. Multiple independent
research studies continue to rank T-Mobile USA among the highest in numerous
regions throughout the U.S. in wireless customer care and call quality. For more
information, please visit http://www.T-Mobile.com. T-Mobile is a federally
registered trademark of Deutsche Telekom AG. For further information
on Deutsche Telekom, please visit www.telekom.de/investor-relations.
Press
Contacts: Investor
Relations Contacts:
Michael
Lange Investor
Relations Bonn
Deutsche
Telekom Deutsche
Telekom
+49
228.936.31717 +49
228.181.88880
Andreas
Leigers Nils
Paellmann
Deutsche
Telekom Investor
Relations New York
+49
228.181.4949 Deutsche
Telekom
+1 212.424.2951
+1 877.DT SHARE
(toll-free)
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
DEUTSCHE
TELEKOM AG
|
|
|
By:
|
/s/ Raphael Kübler
|
|
Name:
|
Raphael
Kübler
|
|
Title:
|
Senior
Vice President Controlling and
Accounting
|
Date: November
6, 2009