Tumble in profit for Deutsche Telekom AG
Europe’s largest Telephone company Deutsche Telekom AG, has stated that 2nd quarter profit tumbled 35 percent on German client losses, higher interest costs and a stronger euro.
Deutsche Telekom AG rose by three percent in German trading after repeating full annual profit along with fell cash-flow forecasts.
The German telecommunications giant has been losing fix-line customers since way back in 2001 while the strength of the euro has reduced revenue from the United States of America.
Philipp Musil, who helps oversee about $24 billion at Constantia Privatbank AG in Vienna, says: “The outlook and the absence of bad surprises are what’s positive. There are efficiency gains, but the company has to stop or at least slow the customer losses.”
Deutsche Telekom AG’s net income dropped to 394 million euro’s down from 604 million euro’s the previous year.
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