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Deutsche Telekom reports 4th-quarter loss of euro757 million

Deutsche Telekom reports 4th-quarter loss of euro757 million

Deutsche Telekom AG on Thursday posted another quarterly loss but said that its business was stabilizing after many quarters of declines caused by an exodus of fixed-line customers.
The Bonn-based company lost euro757 million (US$1.1 billion) in the October-December period, narrowing its loss of euro898 million a year earlier.
Fourth-quarter sales were about half a percent lower at euro15.8 billion (US$23.7 billion), compared with euro15.9 billion a year earlier.
However, the company said that its adjusted net profit for the fourth quarter was euro808 million (US$1.2 billion) _ about 2 percent lower than the euro824 million it earned a year earlier, but above the euro609 million (US$916.2 million) that analysts polled by Dow Jones Newswires had forecast.
That figure does not include the euro1.4 billion (US$2.1 billion) it spent in shedding jobs and paying out early retirement figures.
"2007 was not an easy year, but it was a very successful year," Chief Executive Rene Obermann said in a news conference after the results were released. "2008 won't be an easy year either, there's no question. Competition has an unbroken dynamic, but we've substantially improved our competitive ability in the last year, and that gives us confidence for the coming year."
Shares of Deutsche Telekom were down 0.3 percent at euro12.88 (US$19.38) in Frankfurt trading.
The company is in the midst of cutting 32,000 jobs as it works to streamline its operations in order to better compete with rivals in Europe, the United States and elsewhere.
For 2007 as a whole, Deutsche Telekom's net profit fell to euro569 million (US$856 million) from euro3.2 billion in 2006, mostly because of an increase in income taxes, according to the company.
Sales for the year rose 1.9 percent to euro62.5 billion (US$94 billion) from euro61.3 billion in 2006.
The company attributed annual sales growth to its mobile communications business, T-Mobile, which climbed 8.4 percent to euro34.7 billion (US$52.2 billion).
Deutsche Telekom said that T-Mobile signed up 962,000 new subscribers in Germany last year, bringing its subscriber base in Germany to nearly 36 million.
Still, the company said revenues from mobile customers in Germany fell 2.7 percent to euro8 billion (US$12 billion) last year.
The company said T-Mobile USA remained the principal growth leader outside Germany, as its annual sales rose 3.3 percent to euro14.1 billion (US$21.2 billion). The unit added 3.6 million new subscribers last year to its customer base to give it a total of 28.7 million.
T-Mobile's US$2.4 billion deal to buy SunCom Wireless in September is also helping it get more market share in the U.S.
T-Mobile U.K. also helped drive annual sales, bringing in euro4.8 billion (US$7.22 billion) last year, an increase of 7.1 percent.
Meanwhile, Telekom said its mobile communications business in Poland, the Czech Republic, Hungary, Slovakia, Croatia, Macedonia and Montenegro were instrumental in the expansion of mobile communications outside the German home market, bringing in euro5.6 billion (US$8.4 billion) in sales last year.
Companywide, international sales were up 10.2 percent at euro31.8 billion (US$47.8 billion), accounting for nearly 51 percent of total sales.
Telekom had said earlier in the year that approximately 2.1 million fixed-lines, or traditional telephone lines, were lost in Germany in 2007, 537,000 of which were in the fourth quarter _ the same level as last year.
As for 2008, Telekom said it expects the group to maintain adjusted earnings before interest, taxes, depreciation and amortization at around euro19.3 billion (US$29 billion), and its free cash flow at around euro6.6 billion (US$9.9 billion), on par with the 2007 financial year.
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On the Net:
http://www.telekom.de


Updated : 2021-08-05 16:58 GMT+08:00