U.S. News

Deutsche Telekom Posts 40% Drop in Second-Quarter Profit

Deutsche Telekom said Thursday that its second-quarter net profit fell by 40% as it continued to lose customers from its fixed-line unit.

The Bonn-based firm, Europe's biggest telecommunications company in terms of sales, said it earned 608 million euros ($839 million) in the April-June period, compared with 1.02 billion euros a year earlier.

The figure was still better than the 563 million euros ($777 million) that analysts polled by Dow Jones Newswires had forecast.

Sales rose 2.9% to 15.6 billion euros ($21.5 billion) from 15.13 billion euros a year earlier, lifted by continued growth at the company's wireless unit, T-Mobile. Analysts had expected sales of 15.5 billion euros ($21.4 billion).