Germany’s second largest telecommunications company
has reported a loss of over five billion euros in the fourth quarter of 2012,
amid a crisis in its mobile market.
CEO of Deutsche Telekom Rene Obermann said a net
loss of around 5.3 billion euros (USD 6.9 billion) had been recorded primarily
due to the recognition of an impairment loss of 7.4 billion euros on T-Mobile
USA - its subsidiary in the US.
The German company said that net profit declined by
11.3 percent to 2.529 billion euros, while operating profit was down 3.8
percent at 17.97 billion euros.
In December, the company slashed its dividend for
this year and next by almost a third, as massive write-downs in the US and
revenue at home have taken away from earnings.
Its revenues have been shrinking for three
consecutive years, partly attributable to the competition adapting to the
changing habits of German customers.
In a bid to regain market share that had been lost
to its rivals, the mobile company is now working on completing a merger of its
US division with other companies including a merger with MetroPCS.
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