Germany's biggest telecoms group, Deutsche Telekom, has posted a surge in second-quarter profit despite fierce market competition. It's even managed to make its US operations profitable again after a long struggle.
Former state monopolist Deutsche Telekom on Thursday confirmed its full-year business outlook after logging a surprising increase in profits in the second quarter of the current year. The German telecommunications giant said quarterly profits soared by 76.4 percent from levels reached in the same period last year.
Telekom said the positive figures were a result of a profound restructuring scheme and massive staff reductions a year ago.
Q2 profits climbed to 614 million euros ($759.7 million). Revenues dropped slightly by 0.7 percent over the same period, totaling 14.38 billion euros.
"We are keeping our word and providing a good deal of reliability to the market with very solid figures," Telekom Chief Executive Rene Obermann said in a statement.
Tough times ahead
He pointed out, though, that competition on the telecoms market was getting fiercer by the month and spoke of a number of worrying factors, such as the ongoing eurozone debt crisis and regulatory intervention in some countries.
Obermann said there had been considerable efficiency gains in Deutsche Telekom's North American operations, with T-Mobile USA boosting its business despite losing another 557,000 customers in the second quarter.
With a revenue increase of 8.7 percent to 3.8 billion euros, T-Mobile USA's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were up 18.6 percent year-on-year, reaching 1.1 billion euros.
hg/tj (Reuters, AFP, dpa)