France Telecom reported that its shares fell sharply after the company warned that revenue fell significantly short of its target for 2005, an Associated Press report said.
The Associated Press report also said the French carrier is expecting revenues to also fall this year.
The report quoted a France Telecom statement saying that 2005 revenue growth would be between 2% and 3%, compared with the 3% to 5% targeted by the company's so-called 'NExT' industrial plan.
Pro-forma revenue growth, which excludes selloffs, acquisitions and currency effects, will be close to 2% in 2006, the company said, blaming 'accelerated technological changes, competitive pressure and the regulatory environment' for its under-performance," the report said.
Including revenue from Amena, the Spanish mobile operator it bought in July, France Telecom predicted 7% revenue growth in 2006, with cash flow generation of 7 billion euros ($8.5 billion).