US writedown pushes Deutsche Telekom into Q3 loss
FRANKFURT, Germany (AP) — 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 has maintained its earnings forecast. CEO Rene Obermann said Thursday the company's day-to-day business remained "completely on track."
Overall revenues were flat at €14.65 billion, while adjusted operating profit, which excludes the U.S.-related loss, fell 26 percent to €1.97 billion.
Telekom took the reduction because of the way accounting rules apply to T-Mobile USA's merger with MetroPCS.
T-Mobile USA, based in Bellevue, Washington, gained prepaid customers but lost 492,000 contract customers, a result the company called "unsatisfactory." Its operating profit excluding the accounting charge fell 67 percent to €342 million.