Former state-telecom monopoly Deutsche Telekom saw revenues and net profit drop in the second quarter, but stayed within analysts expectations. DT said revenues were down just 2.9 percent, but profit was off a whopping 35 percent. The company said a strong euro and rising interest rates were the main culprits.
Like its American cousins, DT saw a drop in landlines (7.1 percent) and an impressive 23.5 percent increase in broadband customers. Also in kind with U.S. telcos, DT is leaning more heavily on its wireless business. It added about 8.7 percent more mobile users in the quarter. Deutsche Telekom, however, also faces the somewhat daunting task of breaking out of the mature European mobile market. It's counting heavily on its U.S. arm--T-mobile--to make that move.
For more:
- See the Wall Street Journal story
- and this release
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