Deutsche Telekom expects its fixed-line unit to post core earnings of 9.9 billion to 10.1 billion euros ($13.6 billion) this year following the integration of its Internet arm, it said on March 15. In slides to be presented at an investor presentation on the fringes of technology fair CeBIT in Hanover, Germany, on Tuesday, Deutsche Telekom broke down its earnings forecasts for the three-division structure it is switching to this year.
Under the new structure, Telekom will integrate its Internet provider T-Online International into its fixed-line and broadband division T-Com to save as much as 1 billion euros in costs and better to offer bundled products.
Under the reshuffle, all of Telekom's 160,000 corporate customers will be accounted for under its business customer unit T-Systems, which is expected to post earnings before interest, tax, depreciation and amortisation (EBITDA) of 1.45 billion to 1.55 billion euros this year.
EBITDA at its mobile unit, which is also affected by the reshuffling as some eastern European assets will only now be accounted for under T-Mobile, will come in at 9.6 billion to 9.8 billion euros this year, it said.
Telekom declined to provide pro-forma comparative numbers to show what EBITDA the units would have posted in 2004 under the new structure. It reiterated it expected to post 20.7 billion to 21 billion euros in group EBITDA.
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