Silke
23.01.2001, 09:05
D.Telekom reports bigger-than-expected Q4 loss
(UPDATE: adds detail, background)
By Paul Carrel
FRANKFURT, Jan 23 (Reuters) - German telecoms giant Deutsche Telekom AG reported figures on Tuesday showing a fourth-quarter net loss of 1.0 billion euros ($929.4 million), greater than many analysts had expected.
Analysts polled by Reuters had on average forecast a net loss in the quarter of 410 million euros as the group bore the cost of expanding its T-Mobile cellphone arm and introducing flat-rate fees at its Internet unit T-Online .
The group, Europe's second largest telecoms operator behind British-based Vodafone Group Plc (quote from Yahoo! UK & Ireland: VOD.L), said 2000 net profit including extraordinary items came in at 7.4 billion euros, up from 1.25 billion the previous year.
Analysts were expecting on average net profit of 8.01 billion.
The company did not break out fourth-quarter figures. However, in October it reported nine-month net income of 8.4 billion euros.
Telekom, reporting preliminary figures for 2000, said full-year sales rose 15.2 percent to 40.9 billion euros. Sales adjusted to exclude the effects of new consolidations totalled 37.6 billion euros, up around six percent.
The group also reported a rise in customer numbers at T-Online, in which it retains an 81.7 percent stake, to 7.9 million at the end of 2000 from 4.7 million at the end of 1999. The 2000 figure included new customers gained from acquisitions.
Telekom has relied in recent quarters on extraordinary income to swell its net profit.
Its nine-month unadjusted net profit was bloated by 10.86 billion euros of extraordinary income from the sale of stakes in cable TV operations and other telecoms companies, and proceeds from the flotation of T-Online.
Analysts had expected the 2000 results to be burdened by expansion in the mobile division, which brings with it the cost of acquiring new subscribers, many of whom take up ``pre-paid'' offers which include heavy subsidies for handsets.
Telekom's T-Mobil German cellphone arm -- a unit of T-Mobile, which encompasses all Telekom's cellphone operations -- has reported an 111 percent rise in customer numbers in 2000, with 1.6 million of the 10.1 million new customers signing up in December alone.
(UPDATE: adds detail, background)
By Paul Carrel
FRANKFURT, Jan 23 (Reuters) - German telecoms giant Deutsche Telekom AG reported figures on Tuesday showing a fourth-quarter net loss of 1.0 billion euros ($929.4 million), greater than many analysts had expected.
Analysts polled by Reuters had on average forecast a net loss in the quarter of 410 million euros as the group bore the cost of expanding its T-Mobile cellphone arm and introducing flat-rate fees at its Internet unit T-Online .
The group, Europe's second largest telecoms operator behind British-based Vodafone Group Plc (quote from Yahoo! UK & Ireland: VOD.L), said 2000 net profit including extraordinary items came in at 7.4 billion euros, up from 1.25 billion the previous year.
Analysts were expecting on average net profit of 8.01 billion.
The company did not break out fourth-quarter figures. However, in October it reported nine-month net income of 8.4 billion euros.
Telekom, reporting preliminary figures for 2000, said full-year sales rose 15.2 percent to 40.9 billion euros. Sales adjusted to exclude the effects of new consolidations totalled 37.6 billion euros, up around six percent.
The group also reported a rise in customer numbers at T-Online, in which it retains an 81.7 percent stake, to 7.9 million at the end of 2000 from 4.7 million at the end of 1999. The 2000 figure included new customers gained from acquisitions.
Telekom has relied in recent quarters on extraordinary income to swell its net profit.
Its nine-month unadjusted net profit was bloated by 10.86 billion euros of extraordinary income from the sale of stakes in cable TV operations and other telecoms companies, and proceeds from the flotation of T-Online.
Analysts had expected the 2000 results to be burdened by expansion in the mobile division, which brings with it the cost of acquiring new subscribers, many of whom take up ``pre-paid'' offers which include heavy subsidies for handsets.
Telekom's T-Mobil German cellphone arm -- a unit of T-Mobile, which encompasses all Telekom's cellphone operations -- has reported an 111 percent rise in customer numbers in 2000, with 1.6 million of the 10.1 million new customers signing up in December alone.