Telekom to pay first dividend in 2 years

3rd March 2005, Comments 0 comments

3 March 2005, BONN - Europe's largest telecoms group Deutsche Telekom AG said on Thursday that it is to pay a dividend after a two-year break and had slashed debt. The company reported that it achieved fourth-quarter net income of EUR 1.42 billion in its fourth straight quarterly profit. In an announcement ahead of a press conference to discuss full-year 2004 figures, Telekom said the figure compared with a loss of EUR 364 million in the final quarter of 2003. The company's turnaround came amid higher earn

3 March 2005

BONN - Europe's largest telecoms group Deutsche Telekom AG said on Thursday that it is to pay a dividend after a two-year break and had slashed debt.

The company reported that it achieved fourth-quarter net income of EUR 1.42 billion in its fourth straight quarterly profit.

In an announcement ahead of a press conference to discuss full-year 2004 figures, Telekom said the figure compared with a loss of EUR 364 million in the final quarter of 2003.

The company's turnaround came amid higher earnings for its T-Mobile and T-Online operations as well as from selling off assets.

For the full year, net income in 2004 reached EUR 4.6 billion, more than triple the EUR 1.3 billion the year before. Net revenues, at EUR 57.9 billion, were up 3.7 percent on 2003 figures.

After two years in which shareholders came away empty-handed as Telekom sought to reduce costs and debts, the company said it aims to pay a 0.62 euros dividend from last year's profits.

The company said that in 2004, it slashed its debts further, by EUR 11.4 billion, to a year-end level of EUR 35.2 billion.

In 2005, the company said it expected adjusted profit for the current year before interest, taxes, depreciation and amortization to rise to between EUR 20.7 billion and EUR 21 billion.

DPA

Subject: German news

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