Satisfied despite Reduction in profits

The German Telekom company is satisfied with its sales and profit in the third quarter. Although the company posted a decline in profits the Telekom sees itself on course in all of the important areas.

This  year “everything went well,” chief executive Rene Obermann said Thursday in front of journalists in Bonn. The especially strong demand for smartphones, and also currency fluctuations had a positive effect. Government policy and regulation decisions had negative effects.

The Group posted a third-quarter revenue decline compared to year by 4.1 percent to 15.6 billion euros. Obermann explained that the decline was due to the deconsolidation of T-Mobile UK

The quarterly profit rose by 7.9 percent to 1.035 billion euros. It is, however, according to the company, a tax credit of € 300 million loss carry- forward included in the European business. Adjusted for these and other one-time effects, earnings decline in yields over the same period by 9.8 percent to 969 million euros. Obermann, however, counted differently in order to prove the success of his strategy: the contribution of T-Mobile USA is expected to outperform the previous year by an increase in net income of 22 percent on-year.

The financial and operational performance of the DAX Group are “fully in line with our expectations,” said Obermann. The predicted financial targets for the full year should be accomplished. This  is a planned dividend.

The problem was the high customer interest in smartphones in Germany and Europe but also across the Atlantic. For business with the iPhone, the third quarter was the best it has ever been: almost 400,000 units were sold to customers. The fact that the exclusivity agreement with the manufacturer, Apple, is now expired, Obermann called logical. There are now more attractive devices from different manufacturers in the smart phone and tablet market.

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