Deutsche Telekom registers 9.7% profit growth

Germany's Deutsche Telekom saw a 9.7% rise in first-quarter net profit as growth at its T-Mobile wireless unit outpaced declines in its traditional fixed-line business, an Associated Press report said.

Net profit in the three months to March 31 rose to 1.08 billion euros from 984 million euros in the same period the previous year, the report said.

Sales rose 3.9% to 14.84 billion euros from 14.29 billion euros, the report further said.

The company said it expected 2006 sales to come in at the high end of its previously stated range of 62.1 billion euros to 62.7 billion euros, according to the report.

The report said that based on the first quarter numbers, Deutsche Telekom changed its sales forecast for its two core units, raising the sales guidance for T-Mobile International AG and cutting it for its broadband/fixed-line business.

T-Mobile's sales forecast for 2006 was raised to between 31.9 billion euros and 32.3 billion euros from its earlier guidance of between 30.9 billion euros and 31.3 billion euros.

With its broadband/fixed-line business developing more slowly than expected, the telco cut sales guidance for the unit for 2006 to between 24.8 billion euros and 25.2 billion euros from its original guidance of between 25.4 billion euros and 25.8 billion euros.