Deutsche Telekom Earnings in Line With Estimates

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Aug. 7 (Bloomberg) –- Bloomberg’s Caroline Hyde reports earnings for Deutsche Telekom, Europe’s largest phone company, which reported an increase in profit as the company added mobile customers in Germany and the U.S. She speaks to Mark Barton and Manus Cranny on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Telekom.

Caroline hyde is here.

Basically in line with -- basically flat on last year.

It is in line with where analyst had been expected.

Sales were tiny bit weaker than had been expected.

Analysts wanted 15.2 billion euros but sales flat on the previous year.

This is a company facing intense pressure in terms of prices.

They have stronger competitors.

It's going to up the ante in terms of pricing competition.

The chief executive has vowed to revitalize the company, particularly the european operation.

The biggest setback of course all over the news yesterday is the u.s. unit.

What will happen after sprint walked away?

Sprint walked away because of concern about regulation.

They were looking to merge the number three and number four players in the u.s. the regulator came out with a statement yesterday evening saying sprint has to focus attention on the competition in the u.s. and they are quite happy with three or four players.

The question is does the valuation of t-mobile go down as the deal goes forward?

That is what the holder of spread over in japan was trying to focus on.

Showing that they cannot compete with verizon and at&t. it is interesting if dish will come up.

With a look at t-mobile u.s. and will american mobile even come in and have an analysis, or what will happen to the iliad bid?

They were looking to buy a 56% stake.

But it is a lowball bid.

It didn't have the regulatory risk.

Maybe that brings their offer up a little bit higher.

We understand that actually t-mobile u.s. is going to pooh-pooh the iliad deal and say it is not enough.

They will see if anyone tries to join them to raise financing and go for a bigger price tag.

This is a fascinating element.

How much does deutsche telekom want to rid itself of its u.s. unit?

They have managed to steal market share.

900,000 in the first quarter.

The reason for that growth is because they are undercut during.

-- undercutting.

This is the struggle for deutsche telekom.

T-mobile u.s. is starting to win out but it will cost them a lot in future earnings.

They would like to focus energies in europe.

At the moment sales and profits meeting analyst estimates.

That's one set of results.

We've just had comments that the

This text has been automatically generated. It may not be 100% accurate.

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