Deutsche Telekom chief Mr Ron Sommer came out fighting yesterday, announcing a 12 per cent increase in core profits in the first half of this year and a firm date for flotation of T-Mobil, the company's wireless division.
Mr Sommer promised to deliver double-digit sales and profit growth in the next three years, hoping to steady the nerves of shareholders who have watched their investment plunge over 80 per cent in value in recent months.
"I am convinced that the market is going to relax, improve by the end of this year we're counting on stock market conditions being better next year," he said.
Profits before interest, tax, depreciation and amortisation (EBITDA) rose to €7.2 billion (£5.67 billion) on the back of a 16.9 per cent rise in revenues to €22.5 billion. The company made a net loss of €349 million in the first half of the year, in line with market expectations.
The company plans to use the €10 billion raised from next year's flotation of T-Mobil to reduce the €65 billion debt the company ran up bidding for third generation mobile phone licences last year.
Yesterday's press conference came only hours after Mr Sommer was summoned to meet German Finance Minister Mr Hans Eichel to discuss the recent poor performance of the former state monopoly, in which the government still has a 43 per cent holding. Reports suggest the embattled chief executive was "shown the yellow card".
