Deutsche Telekom posts first quarter profit on sales slide
The German telecommunications giant Deutsche Telekom posted on Wednesday a jump in first quarter net profit while sales slipped owing to weak results from its domestic market.
Deutsche Telekom said net profit jumped to 767 million euros (967 million dollars) in the three-month period, compared with a loss of 1.12 billion euros in the first quarter of 2009, when the devaluation of British assets undermined earnings.
Core earnings, the telecom group's benchmark, edged 1.6 percent higher to 4.89 billion euros, in line with forecasts.
But sales at Deutsche Telekom, the biggest European operator, slipped by 0.6 percent to 15.81 billion euros owing to a drop of 2.9 percent in Germany itself.
The group has steadily lost fixed-line customers and has struggled to replace them with mobile clients because Germany's market has already matured.
Deutsche Telekom fared better abroad, despite a decline in US profit, where T-Mobile USA is the fourth biggest operator.
Eastern and southern European activities provided some support, the company said.
T-Mobile UK, the group's British unit, is being reorganised via a merger with Orange UK, and its results will only be integrated in the parent company's earnings from April 1.
© 2010 AFP