A challenging economic and regulatory environment has driven France Telecom's earnings down eight percent. During the quarter, France Telecom reported that revenue dropped 6.4 percent to $18.8 billion, falling short of analyst forecasts of $19.03 billion.
Prior to announcing its earnings this week, France Telecom said in July that ongoing regulatory issues such as reductions of call termination rates in France, Poland and Spain would have a big impact on overall company revenue.
But regulatory issues and the economy aren't France Telecom's only problems. Adding to the pain is a raft of employee suicides (it recently reported its 25th) that have taken place over the past year. These suicides could possibly cost the company about $1.48 billion. The ongoing suicide problem prompted France Telecom to put its restructuring process on hold until the end of 2009 and realign its management team.
Current France Telecom CEO should resign, say political groups
France Telecom sees 24th employee suicide
France Telecom puts restructuring process on hold