US writedown pushes Deutsche Telekom into Q3 loss

November 8, 2012

(AP) An accounting writedown at its T-Mobile USA division sent Germany's Deutsche Telekom AG skidding to a big third-quarter loss of 6.9 billion ($8.8 billion).

Though the 7.4 billion charge wiped out the quarter's net profits, the company has maintained its earnings forecast. CEO Rene Obermann said Thursday the company's day-to-day business remained completely on track.

Overall revenues were flat at 14.65 billion, while adjusted operating profit, which excludes the U.S.-related loss, fell 26 percent to 1.97 billion.

Telekom took the reduction because of the way accounting rules apply to T-Mobile USA's merger with MetroPCS.

T-Mobile USA, based in Bellevue, Washington, gained prepaid customers but lost 492,000 contract customers, a result the company called unsatisfactory. Its operating profit excluding the accounting charge fell 67 percent to 342 million.

Associated Press