Telekom losses
May 7, 2009
The Bonn-based company announced the big loss for the January-March period, and compared it to the net profit of 924 million euros ($1.2 billion) it posted in the first quarter of 2008.
It attributed the loss to a devaluation of its British T-Mobile unit and "the strong economic slowdown and more intense competition in the United Kingdom."
However, in a written statement, the telecommunications giant announced it had an increase in total sales, up 6.2 percent on the same period last year.
That was explained by the integration of Greek telecom operator OTE into Deutsche Telekom's books in February.
"The figures we are presenting today show a mixed picture," Deutsche Telekom chairman Rene Obermann said.
"Despite the difficult environment in some markets, we are in a relatively stable position," he added.
Meanwhile, the Financial Times Deutschland has reported that Telekom plans job cuts in its T-Systems unit, saying that 1,500 workers will be laid off. Rene Obermann has denied the report.