FT net income falls following write-downs

1 Feb 2007

Net income at France Télécom fell by almost 30% in 2006 to approximately EUR4.1 billion (USD5.1 billion) after the telco wrote down the value of its subsidiaries in the UK and Poland by EUR2.7 billion. CFO Gervais Pellissier said the charges are down to the ‘competitive situation’ in the UK and ‘regulatory pressure’ in Poland. The UK write-down accounts for more than 80% of the total. Total revenue grew by 7.5% year-on-year to EUR51.7 billion, boosted by the acquisition of mobile operator Amena in Spain. The telco’s overall mobile customer base was up 5% to 97.6 million customers at 31 December 2006, while a sharp 30% increase in European ADSL broadband accesses to 9.7 million helped limit the decrease in revenue from its ‘Home’ (fixed line) unit to 1.9%.

France, EE, Orange Group