Deutsche Telekom AG said it has spent the first half of the year getting in shape for its imminent listing in New York and Frankfurt. The German telecommunications operator reported net profits for the six months to June 30 that were down 81% to the equivalent of $87.6m, which includes $1,247m allocated for reserves and special charges. Revenue edged up 1% to $20,022m. Deutsche Telekom said full year’s figures would be affected by the introduction of sales tax on phone bills, increased competition, price cuts averaging 15% and growth in volumes of around 10%. But it said the traditionally stronger second quarter should partially offset any negative effects from the new taxes. The company forecast profit from ordinary activities to rise by about 110% to $5,393 for the fiscal year. Revenue is expected to drop 6% to $41,796m, but the company promised $1,011m would be paid out in dividends this year following its listing next month. During the half the company attributed the 12% down turn in sale of basic telephone services to $15,168m to uncertainty among customers after rate changes and software errors that overcharged customers in January, and closure of some services. However, mobile connections rose 33% to 2.4m, which produced a revenue increase of 17% to $1,146m, and the cable television subscriber base grew 6% to 16.2m during the half.
