BONN, Germany -- Deutsche Telekom has confirmed its guidance for the full year following the first quarter of 2011. Business in the first three months was shaped by positive developments overall in Germany and at T Systems, while the companies in the Europe operating segment faced a host of challenges, as did T-Mobile USA.

The first quarter was dominated by the planned sale of T Mobile USA to AT&T. This 39-billion-dollar deal represents a value-enhancing solution for business in the North American market that will also benefit in particular the company's customers in this region. The deal is still subject to legal and regulatory approval in the United States.

Together with the establishment of the Everything Everywhere joint venture in the UK and the securing of undisputed ownership in the Polish company PTC, the U.S. deal means that the "Fix" component of the strategy presented in March 2010 is now largely complete. The "Transform" and "Innovate" elements are now in the spotlight and the figures for the first quarter show that measures in these areas have also been successful. For example, revenue in the mobile Internet growth area climbed by 28 percent to EUR 1.2 billion year-on-year. The deal in the U.S. has not affected the target of generating – by 2015 – around half of the Group’s revenue in the growth areas specified in the strategy presentation.

The figures for the first quarter show a mixed picture overall. Adjusted for the deconsolidation of T-Mobile UK, which was still included in the figures for the first quarter of 2010, revenue declined by 3.0 percent to EUR 14.6 billion. Adjusted EBITDA decreased by 5.0 percent to EUR 4.5 billion. Adjusted net profit declined by 27.4 percent to EUR 0.7 billion. While Systems Solutions business and Germany business largely enjoyed encouraging development, the earnings situation in the U.S. and Europe segments was impacted by a raft of factors. These included a difficult competitive environment, intervention by the regulatory authorities, and tax burdens.

"We have done our homework correctly. The planned sale of T Mobile USA heralded the beginning of a new era for us," explained René Obermann, Chairman of the Board of Management of Deutsche Telekom. "The course has been set for the Group's realignment and we intend to pursue this course systematically. The figures for the first quarter show, however, that there are further challenges ahead."

Deutsche Telekom AG (NYSE: DT)