Deutsche Telekom, the largest telecommunications company in Europe, reported unexpected losses in the fourth quarter of 2010, caused by the decline in operations in South-East Europe and depreciation of assets.
From October to December 2010, the German company’s net loss was 582 million Euros (803 million dollars), compared with a loss of 3 million Euros in the same period of 2009. Analysts estimated a net profit of 546 million Euros.
The profit adjusted before the payment of interest and taxes, depreciation and amortization decreased by 10% to 4.55 billion Euros, while analysts estimated 4.7 billion Euros.
German company’s profit was affected by exceptional costs including depreciation of 445 million Euros in assets in Romania and Greece.
Deutsche Telekom shares fell Friday on the Frankfurt Stock Exchange by 1.3% to 9.79 Euros. This year the German company’s shares rose overall 2.7%, while in 2010 decreased by 6.2%.
Deutsche Telekom revenues declined 4.5% to 15.5 billion Euros, while sales in Germany rose by 0.6% to 6.4 billion Euros. In Romania, revenues declined 7.1% and in Greece, 15%.
For 2010, Deutsche Telekom reported a net profit of 1.7 billion Euros, compared to 353 million Euros in 2009. Revenues decreased by 3.4% to 62.42 billion Euros.