Deutsche Telekom posts loss of €3.5 billion

Deutsche Telekom (DT) reported its first loss as a publicly listed company today.

Deutsche Telekom (DT) reported its first loss as a publicly listed company today.

The German telecommunications giant reported a full-year net loss after exceptional items of €3.5 billion after a profit of €5.9 billion in 2000.

The large difference was because of the high number of exceptional items booked in 2000 - €7.4 billion - compared to €1.2 billion in 2001, the company said.

The recent consolidation of US mobile operator Voicestream also contributed €1.9 billion to the fall in net income, as did an increase of €2.4 billion in the amortisation of goodwill, it said.

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A separate listing for its mobile phone unit, T-Mobile, from which it hopes to raise as much €10 billion, is crucial to DT's plan to cut its debt pile to €50 billion by the end of this year.

However, Mr Ron Sommer, chief executive, has acknowledged that the planned T-Mobile offering might "in theory" be deferred until next year.

AFP