Deutsche Telekom profit down 37 pct to $696 mln

Frankfurt, Germany - German Telecommunications Deutsche Telekom AG company given profits NET fall 37 percent in the first quarter it lost customers of mobile telephony to the United States and his company suffered in crisis-hit the Greece.

Statement of income for Friday showed a net profit of euro480 million ($696 million), compared to euro767 million dollars per year. Revenue fell 7% to euro14.597.

The company said that its business has remained relatively strong in his country of origin, Germany. But he faces a variety of difficulties elsewhere. Those who understand a struggle permanent against the greatest competitors to the United States; slow economies in Greece and Romania. a new tax in Hungary and expensive efforts to attract and retain customers in Dutch and Poland.

The company saw its slide base and income from the client to T-Mobile USA, which is selling to AT & T $ 39 billion. Turnover high among clients of contract of 2.4 per cent was a low point, only partly offset by the growth of prepaid customers.

As a result, the United States global customer decreased 99 000 in the quarter to 33.6 million.

"Despite the sale of T-Mobile USA, the company will continue to pursue its strategy as an aggressive competitor on the market until that the transaction has been closed," the company said in a news release.

The sale to AT & T would reduce the number of American mobile phone companies with national coverage of four to three and must pass a review of antitrust regulators. The Ministry of Justice and the Federal Communications Commission could take a year or more to review the proposed transaction.

Deutsche Telekom earnings were also reduced because the company no longer includes earnings from T-Mobile UK, now part of a joint venture with France Telecom Orange.

Performance of the enterprise of hundred 9 euro per share did not 15 eurocents Analyst estimates. Shares declined 1% to 11.05 trading Germany morning.

Deutsche Telekom profit down 37 pct to $696 mln

Frankfurt, Germany - German Telecommunications Deutsche Telekom AG company given profits NET fall 37 percent in the first quarter it lost customers of mobile telephony to the United States and his company suffered in crisis-hit the Greece.

Statement of income for Friday showed a net profit of euro480 million ($696 million), compared to euro767 million dollars per year. Revenue fell 7% to euro14.597.

The company said that its business has remained relatively strong in his country of origin, Germany. But he faces a variety of difficulties elsewhere. Those who understand a struggle permanent against the greatest competitors to the United States; slow economies in Greece and Romania. a new tax in Hungary and expensive efforts to attract and retain customers in Dutch and Poland.

The company saw its slide base and income from the client to T-Mobile USA, which is selling to AT & T $ 39 billion. Turnover high among clients of contract of 2.4 per cent was a low point, only partly offset by the growth of prepaid customers.

As a result, the United States global customer decreased 99 000 in the quarter to 33.6 million.

"Despite the sale of T-Mobile USA, the company will continue to pursue its strategy as an aggressive competitor on the market until that the transaction has been closed," the company said in a news release.

The sale to AT & T would reduce the number of American mobile phone companies with national coverage of four to three and must pass a review of antitrust regulators. The Ministry of Justice and the Federal Communications Commission could take a year or more to review the proposed transaction.

Deutsche Telekom earnings were also reduced because the company no longer includes earnings from T-Mobile UK, now part of a joint venture with France Telecom Orange.

Performance of the enterprise of hundred 9 euro per share did not 15 eurocents Analyst estimates. Shares declined 1% to 11.05 trading Germany morning.

Deutsche Bank, said hit by another trial U.S. (AFP)

Frankfurt- the German giant Deutsche Bank said on Wednesday that he had been hit by another trial in the United States on the repayment of loans, a day after the US Department of Justice he sued for 1 billion for mortgage fraud.

The German Bank, said in a statement "the Attorney of Los Angeles filed a lawsuit against the wrong person."

Deutsche Bank said that intermediaries such as loan services are contractually responsible for seized property.

The lawsuit filed Tuesday by the US Department of Justice in the New York federal district court, said that the MortgageIT, acquired by Deutsche Bank in January 2007, provided more than 39,000 home loans with the Administration's $ 5 billion federal housing (FHA) the Decade for 2009.

The mortgages were "recklessly" approved by the company to "blatant disregard" of whether the borrowers would be able to make payments out of them.

The Bank and the MortgageIT "because of the substantial profits through (the) resale of these FHA insured mortgage loans," which much later ended up in default, the complaint said.

Deutsche Bank and its subsidiary of MortgageIT "repeatedly lied to include in a government program to select mortgages to insurance, by the Government" said the complaint of the Department of Justice.

The largest bank of the Germany dismissed the charges and pledged to mount a vigorous defense.

"The combination is unfounded and we intend to vigorously defend ourselves against this action," a Deutsche Bank spokesman told AFP, refusing to comment further on.