Deutsche Telekom’s 2nd-quarter profit rises 32 percent to euro521 million

Deutsche Telekom’s 2Q profit gains 32 pct

BERLIN — Germany’s Deutsche Telekom AG said Thursday that its second-quarter profit rose 32 percent as it reaped the benefits of acquiring Greek company OTE. The company confirmed its outlook for the rest of the year.

The Bonn-based company earned euro521 million ($750.7 million) in the April-June period compared with euro394 million a year earlier. The result was boosted by its acquisition of Greek telecom Hellenic Telecommunications Organization SA late last year.

Sales rose 7.4 percent to euro16.2 billion from euro15.1 billion a year earlier.

“The figures for the second quarter make us confident for the full year,” chief executive Rene Obermann said in a statement. “Hence, we confirm our forecast for 2009.”

That buoyed investors, who sent Deutsche Telekom shares nearly 1 percent higher to euro8.93 in Frankfurt trading.

For the first half of 2009, the company lost euro603 million, compared with a profit last year of euro1.3 billion. However, sales rose nearly 7 percent to euro32.1 billion from euro30.1 billion.

The company reported that the number of subscribers to its mobile phone services worldwide had reached 150 million by the end of June, about 8 million more than the same time last year.

Its fixed network, including broadband Internet service, also gained, showing a 16.7 percent rise to 14.5 million subscribers from 12.4 million in 2008.

Telekom said total revenue for its mobile communications division increased 8.5 percent to euro9.4 billion from euro8.67 billion in the second quarter of 2008.

In Germany, revenue at T-Mobile Deutschland fell 2.2 percent in the first six months of the year compared to last year, coming in at euro3.8 billion, while pretax profit slid 4.1 percent to euro1.4 billion.

Telekom cited fierce competition in its home market along with the regulatory environment.

In the U.S., another key market, T-Mobile has expanded its third-generation wireless networks and still aims to reach coverage for 200 million people by the end of the year.

T-Mobile USA’s sales rose 15.7 percent on the year to euro8 billion from January to June, but the increase was largely credited to exchange effects.

The broadband and fixed network division saw six-month revenues increase 6.3 percent to euro11.9 billion. The figure was boosted by Greece’s OTE.

The systems solutions division, which sets up phone and computer networks for businesses and organizations, said revenues declined 3.2 percent to euro2.17 billion in the second quarter.

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