Deutsche Telekom sees 2004 profit double

Phone carrier Deutsche Telekom sees net profit doubling this year after a  booming mobile unit helped it post 4 per cent quarterly…

Phone carrier Deutsche Telekom sees net profit doubling this year after a  booming mobile unit helped it post 4 per cent quarterly growth in core earnings and a sales decline at its fixed-line arm slowed.

It met expectations today with earnings before interest, tax, depreciation and amortisation for the second quarter of €4.783 billion ($5.85 billion), adjusted for special items.

Net profit soared to €1.7 billion, boosted by an asset sale and the write-up of mobile phone licences in the United States.

Chief Executive Kai-Uwe Ricke promised €2.5 billion in annual profit and an "attractive" dividend.

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Second quarter sales rose 6 per cent, more than forecast, to €14.4 billion, boosted by a 12 per cent rise at T-Mobile.

Sales at fixed-line unit T-Com, its cash cow, fell less than foreseen, helped by sales from DSL high-speed Internet access.