News Summary: Higher US profit at Deutsche Telekom

AP News
Posted: Aug 09, 2012 9:53 AM

THE RESULTS: German phone company Deutsche Telekom had a net profit of €614 million ($756 million) in the second quarter.

U.S. ASSIST: Higher earnings from its U.S. division, T-Mobile, helped. Earnings there rose thanks to cost cuts and stronger sales revenue, though the company said it saw a decline in the most profitable kind of customers — those with long-term contracts.

OTHER FACTORS: Deteriorating economies in several countries, added regulation, and exchange rate shifts in the Polish and Hungarian currencies weighed on earnings.