Deutsche Telekom today posted a 36% year-on-year increase in first quarter profit, up to EUR1.62 billion from EUR1.2 billion, on a 3.5% rise in revenues to EUR14.38 billion. The figures were boosted by the expansion of Telekom’s international operations, in particular its T-Mobile USA division, which signed up nearly a million new subscribers in the three-month period. In Europe tough mobile competition led to much slower growth, with T-Mobile Germany increasing its customer base by 89,000 in the quarter. Total group-wide mobile subscribers rose by 1.5 million. Broadband customer growth was fairly dramatic, with more than half a million new DSL customers across the group, 300,000 of them domestic customers. Despite these significant gains, and a corresponding rise in internet revenues to EUR509 from EUR489, broadband division T-Online reported a fall in net income of 22%, due to costs involved in implementing strategic initiatives including new DSL/voice packages, ‘triple play’ services and market expansion, in particular in France and Spain.