Lower sales drag Deutsche Telekom profits

Deutsche Telekom's fourth-quarter profit fell 43% due to a charge on its British wireless operations and lower sales of traditional telephone services, an Associated Press report said.

The report said the carrier's full-year profit, however, grew strongly and the company proposed its highest dividend yet.


The company earned 989 million euros ($1.18 billion) in the quarter, down from 1.74 billion euros ($2.1 billion) a year earlier, the report said.


The report further said earnings were weighed down by a 1.9-billion-euro ($2.3-billion) write-down of goodwill at the company's British arm, T-Mobile UK.


Net profit for the full year surged to 5.6 billion euros ($6.7 billion) from 1.6 billion euros ($1.9 billion) in 2004. Revenue rose 3.9% to 59.6 billion euros ($71.1 billion), the report said.

Deutsche Telekom said it planned to boost its dividend payout, the report added.