The Information Technology 100
Deutsche Telekom faces the same curse as all former national telecommunications monopolies: Its market share in the home market -- previously 100% -- can only go down. Yet, under CEO Kai-Uwe Ricke, the Bonn-based company has managed to keep growing. For 2004, DT posted a respectable sales increase of 3.7% to $72 billion, as profit more than tripled to $5.7 billion. The key is T-Mobile service, which the company has turned into a powerful international brand.
Investors also applaud the outfit's move last year to buy up outstanding shares of its separately listed T-Online Internet service and combine the unit with the network business -— a maneuver that helps defend against aggressive competition in broadband. And investors were cheered this year when DT resumed paying a dividend after a two-year drought. Ricke still has plenty of challenges -— voice over Internet springs to mind -— but so far he has made the right moves.
|Return on Equity||13.7%|
|CORPORATE WEB SITE|
All figures are for the most recent available 12 months.
* Latest available data for the 12-month period ended Dec. 31, Jan. 31, Feb. 29, Mar. 31, or Apr. 30. For companies that do not report quarterly, the most recent annual data were used.
Data provided by Standard & Poor's Compustat, BusinessWeek
Related BW Stories
Deutsche Telekom AG operates as a telecommunications company. The company has four divisions: T-Com, T-Mobile, T-Systems, and T-Online. Its T-Com division is responsible for fixed-line telecommunications services in Germany and eastern Europe. T-Mobile division offers international roaming services for global system for mobile communications and general packet radio service to subscribers through international roaming agreements with third-party operators. T-Systems division provides information and communication technology services worldwide to German and international accounts, nonprofit organizations, and governmental agencies. T-Online provides Internet services in Germany. The company markets its products and services principally through third-party distributors primarily in North America and Europe. Deutsche Telekom is headquartered in Bonn, Germany.
No. of Employees
Kai-Uwe Ricke was appointed Chairman of the Board of Management of Deutsche Telekom AG effective from November 15, 2002. In February 2000, Ricke was appointed chairman of the newly founded T-Mobile International where Deutsche Telekom consolidated its principal mobile communications activities. In May 2001, he was appointed to the Board of Management of Deutsche Telekom. As Chief Operating Officer, he was responsible for Deutsche Telekom's mobile and online businesses.