Deutsche Telekom 1Q Net Loss Euro1.1 Billion

Telekom said total revenue for its mobile communications division increased 9 percent to euro9.2 billion from euro8.4 billion in the first quarter of 2008. The division however recorded an operating loss of euro635 million compared with a profit of euro1.3 billion in the first quarter of 2008.

"The impact of the marked downturn in the economic environment was felt as much in the United States as in the United Kingdom and Poland, where negative exchange rate effects further intensified the declining trend in revenue and earnings," Telekom said.

The company said the number of mobile customers in the U.S. and Europe outside of Germany increased 20 percent to more than 148 million, with T-Mobile USA reporting a 20 percent increase in revenues to euro4.1 billion. Business in Germany remained largely stable on year-ago levels.

The broadband and fixed network division saw revenues increase 3.6 percent to euro5.9 billion and operating profit increase 32 percent to euro1.2 billion.

Due to the acquisition of Greek telekom company OTE, the volume of international business for the division nearly doubled. At the end of the first quarter, international Telekom subsidiaries served around 3.2 million digital subscriber line customers, half of which were from OTE customers in Greece and Romania.