Deutsche Telekom 1Q Net Loss Euro1.1 Billion

The systems solutions division, which sets up phone and computer networks for businesses and organizations, said revenues declined 4.3 percent from a year earlier, to euro2.1 billion. Operating profit fell more substantially, to just euro11 million from euro483 million in the first quarter of 2008.

Telekom said the division's international sales increased by more than 6 percent while revenues in Germany fell by more than 8 percent.

Systems orders during the first quarter fell nearly 15 percent, largely because of a big order in the first quarter of 2008. However, Telekom said it had won some major contracts this year from the likes of German industrial gas company Linde AG and from the Rewe grocery store chain. Other major contracts came from the German states of North Rhine-Westphalia and Baden-Wuerttemberg.

Shares of Telekom closed slightly lower Wednesday at euro8.30.

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