T-Systems Sees Cloud Boost in Q4

Despite the global economic situation, T-Systems increased its overall revenues and external business during Q4 2012. The growth is attributed to an expanding number of cloud contracts.

In the 2012 financial year, T-Systems recorded order entry of EUR 8.7 billion, up some 18 percent year-on-year. This encouraging development was driven by major contracts in the fourth quarter with oil company Shell and the state of Lower Saxony. The extension of the contract with Shell for another five years in particular shows that T-Systems has further improved its position in the strategically important market for cloud services.

Despite persistent price pressure, external revenue was up 0.6 percent year-on-year at EUR 6.6 billion. Total revenue also increased by 0.6 percent to EUR 10 billion. This increase is due to strong international revenue, which rose by some 6 percent compared with 2011 to EUR 3.2 billion. The company is successfully counteracting the ongoing price pressure in the industry with cost-cutting and efficiency measures and improved its adjusted EBIT margin steadily over the course of the year to 2.4 percent in the fourth quarter of 2012.

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