Thursday April 17, 2014

question of the week

Survey results are meant for general information only, and are not based on recognised statistical methods.

Home »  News »  Business

Deutsche Telekom has large Q3 loss due to accounting writedown on T-Mobile USA division

This Feb. 23, 2012 photo shows Deutsche Telekom CEO Rene Obermann in Bonn, Germany. THE CANADIAN PRESS/AP, Frank Augstein

FRANKFURT - An accounting writedown at its T-Mobile USA division sent Germany's Deutsche Telekom AG skidding to a big third-quarter loss of 6.9 billion ($8.8 billion).

Though the 7.4 billion charge wiped out the quarter's net profits, the company stayed with its earnings forecast. CEO Rene Obermann said Thursday the company's day-to-day business remained "completely on track."

Revenues were flat at 14.65 billion. Adjusted operating profit, which excludes the U.S.-related loss, fell 26 per cent to 1.97 billion.

Telekom took the reduction because of the way accounting rules apply to T-Mobile USA's merger with Dallas-based MetroPCS Communications. The deal is aimed at giving T-Mobile the size and wireless capacity to compete with other U.S. carriers. It has struggled as the fourth-largest carrier; Deutsche Telekom tried to sell the unit to No. 2 AT&T last year but the deal was blocked by U.S. antitrust regulators.

"We made a forward-looking decision for our U.S. business in full awareness of the accounting consequences," Obermann said in a statement. "Anyone seeing only the clear net loss is overlooking the fact that our operating business is completely on track."

Deutsche Telekom shares rose 0.4 per cent to 8.52.

T-Mobile USA, based in Bellevue, Washington, saw operating profits fall 14.2 per cent to $1.2 billion excluding one-time charges and financial items such as interest and taxes. The company said the decline was expected because of higher advertising expenses. Revenue fell 5.9 per cent to $4.9 billion.

The U.S. unit gained prepaid customers but lost 492,000 contract customers, a result the company called "unsatisfactory."


NOTE: To post a comment in the new commenting system you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Yahoo, OpenID. You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Coast Reporter welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

blog comments powered by Disqus

About Us | Advertising | Contact Us | Sitemap / RSS   Glacier Community Media:    © Copyright 2014 Glacier Community Media | User Agreement & Privacy Policy
Business in Vancouver Whistler Question Squamish Chief Powell River Peak Real Estate Weekly My Local Flyers


Lost your password?