Business

Deutsche Telekom profits hit by restructuring costs

Deutsche Telekom AG

Last Updated at 25 Sep 2017, 15:35 GMT *Chart shows local time Deutsche Telekom AG intraday chart
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Deutsche Telekom has reported a big fall in its profits as a result of restructuring costs and poor results from its Greek businesses.

Net profit for the three months to the end of June were 348m euros ($498m; £304m), which was 26.7% down on the same period last year.

Restructuring costs came from putting T-Mobile UK into a joint venture with France Telecom's Orange.

Profits fell "significantly" in Greece due to the economic situation.

"Although these figures are not a cause for celebration, they still give us reason to be confident that we will achieve our targets in a persistently difficult environment," said Deutsche Telekom chief executive Rene Obermann.

Despite falling profits in the first half of the year, the company has maintained its forecasts for the full year.

"Deutsche Telekom is betting on sustained longer-term growth in South Eastern Europe to help boost flagging revenue numbers," said Charlie Davies at the telecoms consultancy Ovum.

"Growth in markets like Poland will be even more important in light of Greece's ongoing economic woes and the overall shaky economic climate makes this a more risky bet."

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