DT 3Q06 results

DT announced 3Q06 results with net profit down 20% to €1.9bn, with revenues up 2.8% to €15.5bn, and EBITDA down 7% to €5.1bn. Bad results, in line with recent profit warning, were due to the loss of 500k landline connections in Germany for the second consecutive quarter. EBITDA at T-Mobile fell 2% to €2.7bn and fell 8% at T-Com to € 2.2bn. Capital expenditure is seen coming in at €9bn in 2006 and about €7.7bn in 2007. Another cost saving plan to cut €2bn in 2007 has been initiated and will be followed by other constraints in following years in order to restore profit. It will also dispose of some assets over the next three years for about €3bn. DT said it is on track to meeting out targets for the full year, and anticipates a small revenue growth in 2007 with an EBITDA adjusted upwards at about € 20bn. Capex should be around €9bn in 2006 and is down to around €7.7bn in 2007.