France Telecom first half earnings plunge 18%

France Telecom reported a 18% drop in first half net profit as tax and financing costs increased.

An Associated Press report also said France's dominant telecoms operator's net profit in the six months through June fell to €2.7 billion ($4.21 billion) from €3.3 billion.

Revenues advanced 1.5% to €26.3 billion (US$41 billion) in the first half.

In the second quarter the increase in sales was 1.6% to €13.3 billion

(US$20.73 billion), the Associated Press report said.

The company did not break out separate quarterly profit figures.

France Telecom said it expects continued revenue growth despite an expected slowdown in some countries during the second half.

The company said it confirms its full-year target of generating more than €7.8 billion (US$12.16 billion) in organic cash flow.