German telephone giant Deutsche Telekom has announced a rise in profits and revenues for the first half of this year.
The firm reported a 16.9 per cent revenue rise and a 12 per cent increase in core profits. It forecast double-digit average growth in profits and sales until at least 2004.
The company’s financial results are being keenly watched by the German government and investors for clues on the phone operator’s plans to halt the slide in its share price.
Deutsche Telekom said revenues rose 16.9 per cent to euro 22.5 billion (£14.2 billion). Profits before interest, tax, depreciation and amortisation rose 12 per cent, excluding one-offs, to euro 7.2 billion.
"Deutsche Telekom plans to reduce its net debt to euro 50 billion from the current euro 65.5 billion by the end of 2002 through the planned listing of its mobile unit T-Mobile in 2002, and the sale of real estate and non-core assets," chairman Mr Ron Sommer said at a news conference today.
"In the first half of the year the company raised over euro 6 billion through the sale of assets and increased its financial reserves to euro 30 billion in the form of unused committed credit lines and cash," he said.
The German government is Telekom's largest shareholder, with a 43 per cent stake.
AFP