Deutsche Telekom revenue reports meet market expectations

Deutsche Telekom revenue reports meet market expectations

Europe’s biggest telecommunications group Deutsche Telekom has said that their 2005 earnings had met expectations. The company has benefited a lot from their mobile division, which countered the falling sales in its core fixed-line business.

Deutsche Telekom reported that its bottom-line net profit was 5.6 billion euros (6.7 billion dollars) last year. The company reported figures of 1.6 billion euros in the previous year. The operating profits for the company were up by 5.7 percent at 20.73 billion euros. Sales touched an impressive 59.6 billion euros.

Deutsche Telekom’s mobile business on its own was able to lift operating profit by 16.3 percent to 9.8 billion euros. This was an 11-percent rise in revenues to 29.452 billion euros. Their broadband business on the other hand showed a decline with a 3.6-percent drop revenue to 26.035 billion euros.

Deutsche Telekom chairman Kai-Uwe Ricke said in a statement: “2005 was not an easy year for us. Competition in our markets has become tougher. Nonetheless we managed to hit our targets.”