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Telecom Breaks Profit By 82 Percent


Drastischer profit for the telecom slump: Due to staff restructuring charges in high taxes and reduced the surplus in the previous year by 82 percent. CEO Obermann already considering new measures to recover the costs to press.


Bonn - Narrow margins for Germany's communications giants: The bottom line earned Telekom claims in the last year only about 569 million euros, 2006 there were nearly 3.2 billion.




DDP
logo of Deutsche Telekom: Customer loss continues

The reason for the profit decline was primarily high tax payments, said Telekom chief René Obermann at the annual press conference in Bochum.
Despite the narrow margin, the telecom its shareholders a dividend of 0.78 euros per paper pay. In total, the distribution of profits to 3.4 billion euros. Around one billion euros of which goes to the main shareholder federal government.
According Telekom's balance sheet is less bleak than it appears: The consolidated turnover of 2007 increased slightly, overall by 1.9 percent to 62.5 billion euros. Good business, the Bonn group, especially abroad, where sales increased by more than ten percent. The avisierten financial targets had been achieved despite lower profits, said Obermann. Adjusted earnings before interest, taxes, depreciation and amortization was 2007 with about 19.3 billion euros in the previous year's level.
saved the company money, especially in the Personnel Department. In the past year had about 2.3 billion cost savings - 40 percent of which were due to lower personnel costs has been made, said Chief Financial Officer Karl-Gerhard Eick. Approximately 14,400 employees, Telekom 2007. By the end of 2008 year-end, the Group total 32,000 posts deleted by 2010 planmßig 4.7 billion cost savings.

Obermann is considering claims already further cost reductions. "If there are potentials, we will," he announced.
Telekom loses in its core business dramatically to customers. In the fixed line division announced the consolidated 2007 some 2.1 million customers. Last year the number was similar. The turnover of the fixed network division T-Home declined by eight percent to 20.1 billion euros.
success, the Group is against the sale of DSL lines. Last year, two million new customers added, there are a total of nine million now well. Also in the mobile division T-Mobile provided the collective MyFaves and the iPhone by Apple for inlet. 962,000 customers and roughly 20 percent more than in 2006 concluded in 2007, a contract with T-Mobile. The sales decline could be reduced from the previous year.

Success abroad and declining domestic business registered the business customers division T-Systems. Abroad, sales grew by 7.1 percent to 2.5 billion euros in Germany on the other hand, he went to ten percent to 9.5 billion euros. Telekom had announced that in March on the future of the division will decide. In the discussion is a sale of parts of the division or a partnership with other companies.

ssu / AFP / AP / dpa / Reuters


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