View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
January 21, 1997updated 05 Sep 2016 12:46pm

DEUTSCHE TELEKOM ANNOUNCES BETTER-THAN-EXPECTED SALES

By CBR Staff Writer

Deutsche Telekom AG only issued its prospectus for flotation in November, but it appears to have colluded with its advisors in holding something back – by that time, it should have had a pretty accurate picture of the out-turn for the year, yet it was able yesterday to surprise the market by saying that business in 1996 was better than expected. The company, whose shares have been languishing very close to the issue price, announced that group sales rose nearly 6% to the equivalent of $38.7bn on an adjusted basis, and that profit had beaten the company’s forecasts, although we can’t expect to see that number until March, or even May. The desired effect was achieved and the shares rose as high as 31.69 marks in Frankfurt and closed at 31.56 marks, up 1.41%. Deutsche Telekom sales in the first half of 1996 were hit by two factors: it became liable for value added tax for the first time but decided not to pass on the charge to customers, and the 6% rise in revenue for 1996 is calculated by assuming the company paid tax in 1995; the other special factor was a tariff rebalancing, which lowered long-distance calls but raised local calls, which reduced call volumes.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU