Deutsche Telekom Expects Sales to Fall at German Unit

Updated from 12:25 p.m. EDT

Deutsche Telekom (DT Quote) said that sales and earnings at its combined Internet and fixed-line operation would fall further this year, sending the stock lower by nearly 8%.

Europe's largest telecom group said it expects revenue for its German fixed-line unit to fall between 4% and 6% in 2008 as it struggles to compete with cable all-in-one packages. Adjusted earnings before interest, taxes, depreciation and amortization at the German unit should decline by 5% to 8% this year, according to the company. ...