Service agreement of STRABAG group company SPFS with Deutsche Telekom ends latest on 30 June 2019
18 October 2017
The facility management services agreement between STRABAG Property and Facility Services GmbH Germany (SPFS) and Deutsche Telekom, which had been concluded in parallel with the acquisition of DeTeImmobilien in 2008, will end latest effective 30 June 2019. After long and intense negotiations, Deutsche Telekom has decided to award these services to another provider.
With the loss of a key client that had contributed annual average revenue of about € 550 million, STRABAG PFS must undergo a fundamental reorganisation. According to a preliminary estimate, the restructuring will result in a one-off earnings reduction in the mid-range double-digit million euros. A corresponding provision allowance is currently expected already with effect from 31 December 2017.
Against this background, STRABAG SE’s targeted EBIT margin of at least 3 % for 2017 appears ambitious, yet within reach. The annual revenue loss won’t impact the targets of the STRABAG SE Group until 2019.
Directly affected by the decision are around 3,300 employees who are working exclusively for the Deutsche Telekom account.
