VoiceStream forces first loss for Deutsche Telekom


VoiceStream forces first loss for Deutsche Telekom

German telecommunication giant Deutsche Telekom (DT) reported its first loss since the company became publically listed in 1996, due in large part to its acquisition of US mobile phone carrier, VoiceStream Wireless.

In its preliminary figures for its fiscal year 2001, DT reported a net loss, including one-time charges, of €3.5bn (£2.14bn), compared with a net income of €5.9bn in the previous year, DT said in a statement.

The consolidation of its VoiceStream acquisition caused a €1.9bn (£1.16bn) decrease in DT's net income, the company said. DT also took a charge of €1bn (0.6bn) as part of its rebranding of its mobile communication subsidiaries in Europe, DT said.

Revenue for the group came in at €48.3bn (£29.6bn) in 2001, an increase of 18.1% over its revenue of €40.9bn posted in 2000, the company said.

Business from DT's mobile communication divisions, including VoiceStream, was DT's strongest growth driver for the year, the company said. DT credited subscriber growth and acquisitions as the strengths behind its mobile communication divisions.

Mobile communication brought yearly earnings before interest, taxes, depreciation and amortisation (EBITDA) of €3.1bn (£1.9bn) in 2001, compared to €1.4bn in 2000, DT said.

As of the end of the 2001, DT reported a net debt of €62.1bn (£38bn), compared to a net debt of €56.5bn at the end of 2000, but an improvement on its debt load of €65.2bn (£39.9bn) at the end of its third quarter, DT said. The company's €3.1bn reduction in its debt in the fourth quarter came about mostly through tax refunds in conjunction with its investment in Sprint, DT said.

DT will release its full yearly financial report on 23 April.
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