France Telecom today posted a 7.4 per cent rise in full-year comparable core profit amid strong Internet sales and solid growth from mobile phone arm Orange.
The former state-controlled group said earnings before interest, tax, depreciation and amortisation (EBITDA) reached €18.3 billion in 2004, just ahead of consensus.
The group also proposed a dividend of 48 cent a share, close to analysts' expectations of 50 cent but higher than the pay-out of 25 cent for 2003.
Britain's top fixed-line phone company BT reported a forecast-beating 9 per cent rise in third-quarter earnings and underlying sales growth for the fourth straight quarter.
France Telecom's majority-controlled corporate telecoms unit Equant meanwhile said France Telecom had agreed to acquire its assets in exchange for its liabilities and a cash payment of €1.26 billion.
Last month, France Telecom announced its intention to buy the 46 per cent it did not already own in Equant.
France Telecom's net attributable income fell to €2.784 billion from €3.206 billion, but the outcome was higher than analysts' forecasts of €2.61 billion on average.
France Telecom's bottom line had been boosted by tax gains in 2003. For 2005, France Telecom reiterated its target of EBITDA of more than €19 billion under French accounting rules and like-for-like sales growth of 3-5 per cent.