Bonn: Deutsche Telekom AG, Europe's biggest phone company, posted a loss in the fourth quarter primarily on a writedown in the value of its Greek unit.
The net loss was three million euros (Dh14.9 million) on a 500 million-euro impairment charge, the Bonn-based company said in a statement Thursday.
Analysts had predicted a profit of 597.6 million euros, the average of seven estimates compiled by Bloomberg. In the year-earlier period, the company had a net loss of 730 million euros on costs related to job cuts. Sales rose 0.6 per cent to 16.2 billion euros.
Chief Executive Officer Rene Obermann is banking on cost cuts to boost profit as the economic slump slows demand for phone services. Having slashed expenses by 5.9 billion euros between 2005 and 2009, Deutsche Telekom said today it plans to cut costs by 4.2 billion euros by the end of 2012.
"Cost discipline was key to getting through economically challenging times," he said in the statement.
Expense cuts and rising sales in emerging markets led Vodafone Group this month to raise its full-year cash flow forecast. BT Group, the UK's biggest fixed-line operator, said earnings rose 11 per cent in the fourth quarter before interest, taxes, depreciation, amortisation and costs to cut jobs.
