Deutsche Telekom Stays Positive

Deutsche Telekom continued its positive trend in the second quarter of 2003, as costs fell, debt shrank and earnings improved at the mobile phone unit. Second-quarter net income for Europe's largest phone company was €256 million ($290 million), compared with a year-earlier loss of €2.08 billion, according to Chief Executive Kai-Uwe Ricke. Analysts had expected the company to post a loss for the quarter. Ricke is cutting more than 50,000 jobs through 2005 as sales fall at the phone unit. The company said it plans to resume its dividend for 2004, which will be paid out in 2005.