Deutsche Telekom Cuts 2007 Earnings Outlook by €1 Billion

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Deutsche Telekom Cuts 2007 Earnings Outlook by €1 Billion

12:11 am on January 30, 2007 | Category: Business, Telecom Services, Corporate

German telecom conglomerate, Deutsche Telekom, issued a profit warning this weekend, cutting its earnings expectations for this year.

The Bonn-based company is now expecting profits of around €19 billion ($24.6 billion), rather than the €19.7 to €20.2 billion previously predicted.

This change is a result of an “extremely tough domestic competitive environment and the recent development in foreign exchange rates,” the Deutsche Telekom said in a statement. It is no surprise that foreign currency rates would factor into this equation, since the carrier does so much of its business in the United States and other non-European markets.

Deutsche Telekom says that its current investment dividend of €0.72 will not be affected by the decline in financial expectations, and may even be increased at some point in the year.