DT revenue up slightly but suffers 40% drop in net profit

9 Aug 2007

Europe’s largest telco by revenue, Deutsche Telekom (DT) has posted a 40% drop in second quarter net income as falling customer numbers at its fixed line division continued. DT lost 516,000 fixed-line customers in the second quarter, bringing the total to 1.1 million losses in the first half of 2007. For the three months ending 30 June net profit fell – for the fifth quarter in succession – from EUR1.02 billion (EUR1.4 billion) last year to EUR608 million this year. Quarterly revenue was up 2.9% year-on-year to EUR15.6 billion from EUR15.13 billion as growth at wireless unit T-Mobile International (up 10% to EUR8.65 billion) more than compensated for the shrinking wireline business (slipping 7% to EUR5.66 billion). Commenting on the results, CEO Rene Obermann said, ‘We are on the right track with our activities to become more competitive and keep our costs under control,’ before adding, ‘However, we should not let this hide the fact that our journey is far from over and will not become any easier as we continue on this path,’ the CEO added. As part of the restructuring, 8,200 employees in Germany left the company in the first half of 2007.

Germany, Deutsche Telekom (DT)