Deutsche Telekom's second-quarter net income fell 14% because of the loss of traditional phone users, prompting the company to cut its profit outlook for the rest of this year and 2007, according to an Associated Press report.
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The company earned 1.01 billion euros ($1.3 billion) in the April-June period, compared with 1.17 billion euros ($1.5 billion) a year ago, the report said.
The report also said sales rose 2.6% to 15.1 billion euros ($19.4 billion), compared with 14.7 billion euros ($18.4 billion) a year earlier, helped in part by better international sales, which rose 12.3% to 6.9 billion euros ($8.8 billion).
Domestic sales were down 4.4% to 8.1 billion euros ($10.4 billion) from 8.5 billion ($10.8 billion) euros a year ago.
Deutsche Telekom cut its pretax profit outlook to between 19.2 billion euros ($25.3 billion) and 19.7 billion euros ($24.6 billion) for this year.
The company said it would simplify and cut its prices this fall with bundled service offers, the report said.