Deutsche Telekom’s T-Online is out of trouble sooner than expected. T-Online, Europe’s largest Internet service provider, has posted a positive result in the third quarter, sending shares up six percent.
Looking to make a profit by 2003
The result came as a surprise. Despite losses of 7.7 million euros on two new joint ventures, T-Online posted a smaller loss than many analysts had expected.
T-Online, which is 81.7 per cent owned by Deutsche Telekom, said sales in the first nine months had risen 50 percent, 0.9 million euros before interest, taxes and depreciation.
The media side of its business seemed to be paying off. The company generated sales from advertising and e-commerce of just over 40 million euros in the three months to September.
The result means third quarter earnings are virtually in line with results in the first two quarters.
Although T-Online did not detail how the improvement was achieved. But the company said it expected to continue to benefit from the phased withdrawal of a heavily loss making flat-rate offering started last year.
Out of the 500.000 customers on the flat-rate, 460.000 had switched tariffs and stayed with T-Online, the company said.
By the end of September, T-Online had just under ten million customers, hitting ten million by the beginning of the third quarter.
The stock market reacted positively to T-Online’s prospects. Shares in the company went up more than 6 percent.