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Telecoms' Results Sag
European Carriers Suffering Amid Global Downturn
8 Maggio 09
Two European telecommunications heavyweights, Deutsche Telekom AG and Telecom Italia SpA, Thursday reported first-quarter results that were weighed down by the economic downturn, but sought to reassure investors on their full-year forecasts.
Deutsche Telekom posted a net loss of €1.12 billion ($1.49 billion) for the quarter ended March 31, compared with a year-earlier net profit of €924 million. The company's bottom line was hurt by a €1.8 billion write-down related to its T-Mobile operations in Britain, for which it said it is reviewing all options.
Despite the hefty write-down, the German company still expects to post a net profit for the full year, said Chief Financial Officer Timotheus Höttges, in a conference call.
Deutsche Telekom last month issued a surprise profit warning, saying that its 2009 operating profit would fall short of expectations because of weak mobile operations in the U.S., Britain and Poland, in particular. The company on Thursday further amended its full-year outlook to account for the consolidation of Hellenic Telecommunications Organization SA.
The company said it now expects 2009 earnings before interest, tax, depreciation and amortization, adjusted for exceptional items, to come in 2% to 4% lower than 2008's €19.5 billion. The acquisition of Greece's OTE will contribute an additional €2 billion to 2009 adjusted Ebitda, the company said. Telecom Italia said its first-quarter net profit fell 4.5% because of a weak performance in Brazil and slowing mobile revenue at home due to the tough economic climate, but the company confirmed its targets for 2009
Italy's largest telecom operator, which is focusing on reducing debt and slashing costs, posted a net profit of €463 million, down from €485 million a year earlier. Revenue fell 6.7% to €6.79 billion from €7.28 billion a year earlier, as a slowdown in mobile spending and a sales-network restructuring were only partially offset by domestic broadband growth.
Chief Executive Franco Bernabe said the first-quarter results were "satisfying," in light of the tough macroeconomic environment, and confirmed the company's commitment to profitability and revenue generation.
European Carriers Suffering Amid Global Downturn
8 Maggio 09
Two European telecommunications heavyweights, Deutsche Telekom AG and Telecom Italia SpA, Thursday reported first-quarter results that were weighed down by the economic downturn, but sought to reassure investors on their full-year forecasts.
Deutsche Telekom posted a net loss of €1.12 billion ($1.49 billion) for the quarter ended March 31, compared with a year-earlier net profit of €924 million. The company's bottom line was hurt by a €1.8 billion write-down related to its T-Mobile operations in Britain, for which it said it is reviewing all options.
Despite the hefty write-down, the German company still expects to post a net profit for the full year, said Chief Financial Officer Timotheus Höttges, in a conference call.
Deutsche Telekom last month issued a surprise profit warning, saying that its 2009 operating profit would fall short of expectations because of weak mobile operations in the U.S., Britain and Poland, in particular. The company on Thursday further amended its full-year outlook to account for the consolidation of Hellenic Telecommunications Organization SA.
The company said it now expects 2009 earnings before interest, tax, depreciation and amortization, adjusted for exceptional items, to come in 2% to 4% lower than 2008's €19.5 billion. The acquisition of Greece's OTE will contribute an additional €2 billion to 2009 adjusted Ebitda, the company said. Telecom Italia said its first-quarter net profit fell 4.5% because of a weak performance in Brazil and slowing mobile revenue at home due to the tough economic climate, but the company confirmed its targets for 2009
![1241805676mkaw007dtelekns20090507184338.gif](http://www.investireoggi.it/forum/immagini/1241805676mkaw007dtelekns20090507184338.gif)
Italy's largest telecom operator, which is focusing on reducing debt and slashing costs, posted a net profit of €463 million, down from €485 million a year earlier. Revenue fell 6.7% to €6.79 billion from €7.28 billion a year earlier, as a slowdown in mobile spending and a sales-network restructuring were only partially offset by domestic broadband growth.
Chief Executive Franco Bernabe said the first-quarter results were "satisfying," in light of the tough macroeconomic environment, and confirmed the company's commitment to profitability and revenue generation.