Deutsche Telekom AG [DT] has announced its third consecutive quarterly profit and is confident it has now achieved turnaround.
Though still saddled with E49.2 million of debt ($57.6 billion) of debt, it expects earnings of E19.2 billion ($22.5 billion) in 2004.
In the third quarter to September 30, net income was E508 million ($593.7 million), up from a loss of E20.6 billion ($24.1bn) on revenue 4.9% higher at E14.1 billion ($16.4 billion).
After an out of control expansion, the aim now is to achieve an appropriate return on capital, believed to be 8.5%.
The company is looking for further growth in the final three months, with its mobile operations as the main catalyst.
In the third quarter T-Mobile [DTEGn.DE] increased revenue by 16% to E5.9 billion ($6.9 billion) bringing the increase in the first nine months to 17.8% to E16.8 billion ($19.6 billion).
By contrast, its fixed-line T-Com business remains in decline with revenue in the first nine months down 3.5% at E21.7 billion ($25.4 billion).
The big hope for reversing the trend is broadband connections, and the number of DSL contracts in the third quarter was 300,000, bringing the total to four million.
This article was based on material originally published by ComputerWire.