Deutsche Telekom profits form strong US subsidiary
August 11, 2016
Deutsche Telekom on Thursday reported a 13-percent drop in bottom-line earnings for the second quarter as higher staff costs and investments weighed on profit.
Net earnings fell to 621 million euros ($693 million) year on year, with the company pointing to the 400 million euros in one-time costs that arose from an early retirement scheme.
By contrast, operating profit rose by 8 percent in the three months to the end of June to roughly 5.5 billion euros on revenues amounting to 17.8 million euros, marking a 2-percent increase over the same period a year earlier.
Faster internet a priority
The company acknowledged it had once again profited from the strong performance of its T-Mobile US subsidiary. A rival of AT&T and Verizon, it secured another 1.9 million customers in the second quarter.
Deutsche Telekom confirmed its full-year guidance, predicting pre-tax earnings to hit 21.2 billion euros, a 6-percent surge over 2015.
On the home front, the Bonn-based telecoms firm is facing massive investments as it aims to provide faster internet connections to 1.4 million more households across Germany.
hg/jd/ (Reuters, dpa)