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Air Berlin files for bankruptcy protection

Crisis-stricken German airline Air Berlin is seeking protection from its creditors after running out of cash to stay solvent. But the airline says it wants to remain in operation following a government bailout. In a stock market filing Tuesday, Germany's second largest airline said it had filed for bankruptcy protection after its main shareholder, Gulf carrier Etihad, had withdrawn funding for Air Berlin. Under these circumstances, Air Berlin had come to the conclusion that there was no "positive prognosis for continuing the airline," the filing said. It added that two members of the board of directors, who joined after being nominated by Etihad, had resigned. Etihad said in a statement Tuesday Air Berlin's filing for insolvency was "disappointing" for both sides. It noted that it had granted ample financial aid to the carrier over the past six years, with Air Berlin receiving another 250 million euros ($293 million) in April to keep afloat. However, the airline requested the right to carry out insolvency proceedings under its own management, which would "facilitate negotiations with Lufthansa and other interested parties about a possible sale of Air Berlin operations," the airline said. According to German government sources, Berlin will support the plan with a bridge loan of 150 million euros, ensuring that Air Berlin flights will continue according to schedule. "We're in a time when many tens of thousands of travelers and vacationers are in multiple international holiday spots," the German Economics Ministry and Transportation Ministry said in a joint statement. "Otherwise the return flights of these travelers back to Germany with Air Berlin would not have been possible." The government funding also makes sure that Air Berlin aircraft currently under lease from rivals Eurowings and Austrian Airlines can stay in operation. Losses forever? Still in June, the German airline insisted it had sufficient cash to stay solvent despite suffering heavy losses and a string of flight cancellations. "Insolvency is not an issue for us. We have sufficient liquidity and a reliable partner, Etihad, which has pledged its support through to October 2018," a spokeswoman said at the time. Air Berlin booked losses amounting to 1.2 billion euros for the last two years, and has depended on cash infusions from key shareholder Etihad for many years. Except for two quarters, Air Berlin has never turned a profit since 2008. In a bid to turn to the tide, the budget carrier embarked on a massive restructuring plan in September 2016 that included renting 38 aircraft with crew to Lufthansa and slashing 1,200 jobs - about one in seven of its workforce. Amid the restructuring, it was hit by a series of flight cancellations and severe delays, leading to a flood of complaints. This has led to a massive drop in customers. Between January and July, a total of 13.79 million passengers flew the airline, marking a decrease of 16 per cent compared with the same period in 2016. In July alone, the total number of passengers served by Air Berlin fell by 24 percent compared with the same month last year. Now, Germany's flagship carrier, Lufthansa, appears to become Air Berlin's savior. Germany's biggest airline said Tuesday that it was "already in negotiations with Air Berlin to take over parts of the Airberlin Group and is exploring the possibility of hiring additional staff."

Crisis-stricken German airline Air Berlin is seeking protection from its creditors after running out of cash to stay solvent. But the airline says it wants to remain in operation following a government bailout. In a stock market filing Tuesday, Germany’s second largest airline said it had filed for bankruptcy protection after its main shareholder, Gulf carrier Etihad, had withdrawn funding ... Read More »

VW manager pleads guilty in US ‘dieselgate’ case

A Volkswagen (VW) manager, currently jailed in connection with the German automaker's emissions scandal in the United States, has pleaded guilty in a Detroit courtroom, hoping for lesser punishment. US prosecutors confirmed Friday that charges against Volkswagen executive Oliver Schmidt would be reduced after he pleaded guilty to his part in covering up the German carmaker's "dieselgate" emissions-cheating scandal in the US. Schmidt, who led the German automaker's US regulatory compliance office until 2015, appeared in a Detroit court to enter his plea. He had pleaded not guilty before his change of mind. US prosecutors said they would drop a wire fraud charge, which carried a maximum penalty of 20 years in prison. But they retained a fraud conspiracy charge and a charge of violating the US Clean Air Act, which together carry a maximum sentence of seven years. Also under the plea agreement, Schmidt may have to pay a fine of between $40,000 (34,000 euros) and $500,000. The final verdict is due December 6, 2017. In 2015, VW admitted it had equipped about 11 million cars worldwide with defeat devices to evade emissions tests, including about 600,000 vehicles in the United States. Diesel cars marketed as clean were in fact emitting 40 times the permissible limits of nitrogen oxide during normal driving. Altogether eight managers from the German car group are facing charges by US authorities for the company's breach of emissions regulations. Many of the other managers charged are believed to be in Germany, making extradition to the US unlikely. Schmidt was the second VW employee to plead guilty, after former company engineer James Liang admitted last year to helping devise the defeat devices. An FBI affidavit cited him as a cooperating witness. In March, VW agreed to pay $4.3 billion in penalties after pleading guilty to conspiring to violate the US Clean Air Act. That was on top of $17.5 billion in civil settlements. The carmaker still faces an array of legal challenges in Germany and worldwide, and has so far set aside more than 22 billion euros to cover dieselgate costs.

A Volkswagen (VW) manager, currently jailed in connection with the German automaker’s emissions scandal in the United States, has pleaded guilty in a Detroit courtroom, hoping for lesser punishment. US prosecutors confirmed Friday that charges against Volkswagen executive Oliver Schmidt would be reduced after he pleaded guilty to his part in covering up the German carmaker’s “dieselgate” emissions-cheating scandal in ... Read More »

Lufthansa profit flies high on lower costs

The German flagship carrier has beaten analysts' expectations for 2016 results, reporting a record net profit despite falling revenues, which shows that the airline's drive to save costs is bearing fruit. Europe's biggest airline group by revenues unveiled a net profit of 1.78 billion euros ($1.9 billion) for last year - a 4.6 percent increase on 2015, and coming despite a 1.3 percent decline in sales to 31.7 billion euros. "In a very demanding market environment, we successfully kept the Lufthansa Group's margins at their record prior-year levels, through consistent capacity and steering measures and, above all, through our effective cost reductions," chief executive Carsten Spohr said in a statement. Lufthansa group, which includes Austrian Airlines, Swiss, Brussels Airlines and Eurowings as well as the core German flag-carrier, recorded the improved results despite overcapacity in airline services in Europe. This is driving fares, with Lufthansa's revenue per available seat kilometre having declined to 7.8 euro cents, from 8.3 euro cents in 2015. Nevertheless, passenger airlines remained Lufthansa's biggest earner, with improvements in operating profit for its flagship airline and Austrian Airlines. But low-cost passenger carrier Eurowings suffered an operating loss for the year, as did freight unit Lufthansa Cargo. Looking ahead, the group warned that underlying profit for 2017 - a measure that excludes the effect of some changes in pension accounting - would be "slightly below" the 1.75 billion euros logged in 2016. The group plans to offer shareholders a dividend of 50 euro cents per share, the same level as last year's payout. Lufthansa published its 2016 result one day after it had announced a settlement with its pilots over a long-running pay dispute that cost the group 100 million euros in 2016.

The German flagship carrier has beaten analysts’ expectations for 2016 results, reporting a record net profit despite falling revenues, which shows that the airline’s drive to save costs is bearing fruit. Europe’s biggest airline group by revenues unveiled a net profit of 1.78 billion euros ($1.9 billion) for last year – a 4.6 percent increase on 2015, and coming despite ... Read More »

Adidas profits hit the billion mark

German sports goods maker Adidas has announced record profits for 2016, beating analysts' expectations. The Bavaria-based company said net profit topped a billion euros for the first time in the firm's history. The firm said Wednesday that annual net profit increased by 60.5 percent, to 1.02 billion euros ($1.07 billion). The announcement was a surprise to analysts, beating their predictions and the company's own forecast. Chief Executive Kasper Rorsted hailed 2016 as an "exceptional year" for the company, with double-digit growth in almost all regions of the world. It was a big year for sports that featured the Olympic Games in Rio and the European Football Championships in France. The three stripes Much of 2016's success for Adidas was down to strong growth of 16.6 percent at its central three-striped brand, accounting for the biggest share of its revenues. Subsidiary Reebok grew much more modestly at 1.1 percent. Overall revenues increased 14 percent to top 19 billion euros. The company also unveiled an optimistic forecast for this year. They predicted revenue growth of between 11 and 13 percent, adjusting for currency effects, and aim to increase profits by 18-20 percent to around 1.2 billion euros. Citing its strong results, Adidas said it would offer shareholders a dividend of 2 euros per share for 2016, up from 1.60 euros the previous year. After the news was announced, shares in the company leapt on the Frankfurt Stock Exchange. In early morning trading, the stock gained 8.2 percent, which added $2 billion to its market value. By mid-day it was still up over 7 percent, trading at around 171 euros per share.

German sports goods maker Adidas has announced record profits for 2016, beating analysts’ expectations. The Bavaria-based company said net profit topped a billion euros for the first time in the firm’s history. The firm said Wednesday that annual net profit increased by 60.5 percent, to 1.02 billion euros ($1.07 billion). The announcement was a surprise to analysts, beating their predictions ... Read More »

UK growth forecasts cut due to Brexit

Britain has cut its official forecasts for economic expansion in the next two years. Finance Minister Philip Hammond delivered the first budget statement since voters decided to leave the European Union. Addressing Parliament on Wednesday, British Finance Minister Philip Hammond said gross domestic product in the UK was expected to grow by 1.4 percent in 2017, down from an estimate of 2.2 percent made in March, before voters decided to leave the EU. Hammond also reported that the Office for Budget Responsibility - Britain's independent forecaster - now saw growth in 2018 come in at 1.8 percent, compared with March's prediction of 2.1 percent. Britain's economy has so far largely withstood the shock of the Brexit vote, wrong-footing the Bank of England and the bulk of economists who expected a bigger immediate hit beyond the depreciation of the pound. Fresh borrowing But weak public finances will leave Hammond little room to ramp up public spending or go for big tax cuts in the next couple of years. "Our task is to prepare our economy to be resilient as we exit the EU and match-fit for the transition that will follow," Hammond told parliament. He added that the government would maintain its commitment to fiscal discipline, while recognizing the need for investment to drive productivity. Hammond acknowledged, though, that he would need to borrow billions more pounds over the next five years, with net public sector debt forecast to rise to a peak of 90.2 percent of GDP in 2017/18, up from a projected 81.3 percent in March 2016.

Britain has cut its official forecasts for economic expansion in the next two years. Finance Minister Philip Hammond delivered the first budget statement since voters decided to leave the European Union. Addressing Parliament on Wednesday, British Finance Minister Philip Hammond said gross domestic product in the UK was expected to grow by 1.4 percent in 2017, down from an estimate ... Read More »

The US president as an enterprise

US President-elect Donald Trump has to decide what will happen to his Trump Holding when he moves into the White House. He's a businessman, no politician. And that might bring about various conflicts of interest. There can be no doubt whatsoever that Donald Trump has many interests linked to his own business activities and which are bound to collide in an unparalleled manner with his post as the mightiest politician in the world, once he takes over the reins from Barack Obama. Washington-based lawyer Kenneth Gross agrees that never before has there been such a likelihood of conflicts of interest. Let's get this straight: There's no law forbidding Trump to be businessman, real-estate owner, the boss of a modeling agency, hotel owner and president of the United States, all at the same time. He doesn't have to sell anything he owns, either. In principle, US legislation does recognize potential conflicts between individuals' economic and political interests. Congressional members are not allowed to maneuver themselves into those kinds of conflict, but the president is exempt from this regulation based on the initial belief that this might only unnecessarily complicate the president's job. 'Don't know what you mean' Asked about possible conflicts of interest, Trump said in the run-up to the election that his business activities would not matter to him anymore, should he become president, adding that his only job would be to care about the nation, not his business. This, however, is hard to believe, given to what extent he might profit personally during his presidency. The Trump Holding is involved in a great many sectors - retail, real estate, entertainment and the media, to name but a few. The man owns eight hotels in Chicago, Las Vegas, Honolulu and a few other places. Trump's real estate and golf courses are scattered across the world, including in places such as Dubai, Scotland and Ireland. Washington's diplomatic relationships with many of these nations are complex and not free of strains. At a New York conference back in 2008, Trump bragged about his close business ties with Russia, saying he expected his deals with Russia to be very profitable. He frequently praised Russian President Vladimir Putin, adding he hoped to pull off another big real-estate deal there. Only this week Russia's Deputy Foreign Minister, Sergei Ryabkov, confirmed Moscow had been in contact with the Trump campaign. And the Kremlin didn't hide its excitement over the outcome of the US presidential election. It stands to reason that the Trump Holding would profit from subsidies and tax breaks. Trump himself has produced a number of headlines over his efforts to make use of taxation loopholes. In November, he'll be in court after being accused of cheating students at his Trump University by selling costly seminars without any adequate service in return. Numerous hearings have already confirmed this allegation. Unprecedented situation Let's be clear: Presidents before him also have had their share of business activities before moving into the Oval Office. But they stuck to the trust fund tradition, meaning they handed over all of their conflict-prone investments to such a fund for independent management. Ronald Reagan did it that way, and so did Bill Clinton and the two Bushs. Trump, for his part, intends to hand over his business to a blind trust, which he believes would wall him off from any say in business matters. But the tycoon added this would put his business under the control of three of his children, who are already executive vice presidents of the Trump Organization. This is not nearly the same concept as setting up a conventional trust fund, says Bowdoin College's Andrew Rudalevige, adding that Trump's children can't be called independent at all. But even if Trump puts his investments in a blind trust, he would still know precisely where he owns real-estate property and where he runs his companies. Again, the scope of his business activities is much bigger than that of any other president in the history of the US. But that hasn't kept Trump from asserting he'd never take political decisions just to support his own business. Congress will, of course, be watching closely, Rudalevige says. But the very thought that Trump might pursue his own private or business interests during talks with state leaders or lobby groups has the potential of weakening trust in the political system.

US President-elect Donald Trump has to decide what will happen to his Trump Holding when he moves into the White House. He’s a businessman, no politician. And that might bring about various conflicts of interest. There can be no doubt whatsoever that Donald Trump has many interests linked to his own business activities and which are bound to collide in ... Read More »

2020 Tokyo Olympics faces vast cost overruns

A new estimate commissioned by the freshly elected first-ever woman governor of Tokyo says the 2020 Tokyo Olympics could cost four times the original estimate. Officials have been sent back to the drawing board. Thomas Bach, president of the International Olympic Committee (IOC), was in Japan this week. The next Summer Olympics are due to be held in Tokyo (pictured above) from July 24 to August 9, 2020. As always, there are a great many details to sort out beforehand. One particularly noteworthy detail: The hugely bloated price tag now projected for the Tokyo Olympics. Accompanied by attentive Japanese helpers, Bach hurried from meeting to meeting in the vast metropolis - home to nearly 38 million people in the greater metropolitan area. Among others, he met with Prime Minister Shinzo Abe, and with Yuriko Koike, the energetic governor of Tokyo, to talk about funding. Experts had recently calculated that the Tokyo Summer Games could cost about 26 billion euros ($28 billion), or 3 trillion yen. The estimate came as something of a shock to the Japanese public. Koiko, recently elected the first female governor of Tokyo, had commissioned the estimate, in line with her election campaign promise that she would keep the cost of the Olympics strictly under control. That promise may prove difficult to keep. Costs have been exploding lately. IOC chief plays down cost rises "It's very clear that nobody, nobody has an interest in soaring costs," Thomas Bach said during his Tokyo visit, in an effort to appease public sentiment. He promised to work closely with Japanese organizers to cap costs. "For its part, the IOC has the strongest interest to show that the Olympic Games can be organized in a feasible and sustainable way. This is why we will bring all our expertise and determination to this working group," Bach said, referring to a joint cost-control committee composed of IOC and Japanese officials. World Forum on Sport and Culture Bach hadn't actually come to Tokyo to talk about cost overruns. He was there to give a talk at the World Forum on Sport and Culture, an event organized by the Japanese government to build support for the Olympics. Artists and athletes had been invited to present their ideas. Some of the discussions were held jointly with the Geneva-based World Economic Forum (WEF). WEF's founder, Klaus Schwab, also gave a talk, in which he spoke of the responsibilities of athletes and cultural creatives. Role models "They're role models for young people," Schwab intoned. IOC president Bach nodded his agreement, pleased that Schwab had brought members of his WEF "Young Global Leaders" network along to Tokyo. The network includes some 600 young international leaders, including, for example, Norway's Crown Prince Haakon and Germany's deputy finance minister, Jens Spahn. They chatted about the role of sports in society and its economic impact, among a broad range of topics. Cities of the future "How should the city of the future be designed?" was the topic of one discussion moderated by DW's Amrita Cheema. Merely investing in roadways or railways wasn't enough, the discussants agreed. Cities must also be places where intra- and intergenerational contacts are fostered, and must have enough space for sports and physical activities. "Modern technology can improve the quality of city life," said Kohei Nishiyama, founder of Elephant Design, a Japanese design consultancy. However, technology was not an end in itself, he added - Japan's 2020 Olympics would prove that point. Low-cost visions? At present, Tokyo has a shortage of Olympic money, not a shortage of Olympic visions. Initially, the costs of preparing for and holding the games had been estimated at 6 billion euros. The new estimate is over four times that amount. Accordingly, a working group composed of officials from the Japanese government, the IOC, and the Tokyo Olympic Committee has now been tasked with finding lower-cost solutions. That may prove difficult, as IOC boss Bach has rejected proposals to make changes to Tokyo 2020 venues. The 2020 Olympics in the Japanese megalopolis is meant to show the people of Japan and the world a voyage of exploration into the future: "Discover Tomorrow" is the motto of the 2020 Games. A suitable unofficial motto for the working group might be something like, "Affordably Discover Tomorrow."

A new estimate commissioned by the freshly elected first-ever woman governor of Tokyo says the 2020 Tokyo Olympics could cost four times the original estimate. Officials have been sent back to the drawing board. Thomas Bach, president of the International Olympic Committee (IOC), was in Japan this week. The next Summer Olympics are due to be held in Tokyo (pictured ... Read More »

Monsanto accepts sweeter bid from Bayer

The US seed and pesticide giant Monsanto has agreed to an improved takeover bid from the German pharmaceuticals manufacturer Bayer. The multi-billion-dollar deal will create the world's biggest crop seed producer. German chemicals giant Bayer said on Wednesday it had signed a $66 billion (58.8 billion euros) takeover deal with US genetically modified (GM) seeds firm Monsanto. "Bayer and Monsanto have signed a binding merger agreement that enables Bayer to take over Monsanto for $128 per share," the firms said in a statement. Bayer repeatedly increased its offer to Monsanto since its first $122-per-share bid in May, but the US firm had until now held out for more cash. Top managers at St. Louis-based Monsanto approved the sale to Bayer at a meeting on Tuesday. Bayer reportedly agreed to double the so-called "anti-trust break fee" to about $2 billion that it would pay Monsanto if authorities did not approve the purchase, according to Bloomberg. The deal stands to be the biggest-ever acquisition by a German company. It would create a new global leader in genetically modified seeds and pesticides. Bayer makes a wide range of crop protection chemicals, while Monsanto is known for its seeds business. The transaction is still pending final approval from regulatory bodies in Europe and the US.

The US seed and pesticide giant Monsanto has agreed to an improved takeover bid from the German pharmaceuticals manufacturer Bayer. The multi-billion-dollar deal will create the world’s biggest crop seed producer. German chemicals giant Bayer said on Wednesday it had signed a $66 billion (58.8 billion euros) takeover deal with US genetically modified (GM) seeds firm Monsanto. “Bayer and Monsanto ... Read More »

US, Cuba launch regular commercial flights

After a gap of over 50 years, regular air services between the US and Cuba are resuming, underscoring the mending of ties between the two erstwhile Cold War foes. There are many unresolved issues, though. The year 1961 witnessed a number of historical events, including the start of the construction of the Berlin Wall and Yuri Gagarin's first human space flight. But it was also the last time there was a direct scheduled flight between the US and Cuba. And more than half a century later, regular air services between the two former Cold War rivals are scheduled to resume at 1345 GMTon Wednesday, with an An Airbus A-320 belonging to the US carrier JetBlue Airways making the inaugural flight between Fort Lauderdale, Florida and the central Cuban city of Santa Clara. Coinciding with this event is the Cuban trip of US Transportation Secretary Anthony Foxx, who will be in Havana this week to hold talks with his counterpart Adel Yzquierdo and Foreign Minister Bruno Rodríguez. Foxx is expected to be on the flight, according to a Twitter post from his office. "The revival of regular direct flights is a positive step and a contribution to the process of improving relations between the two countries," Rodriguez said. Both sides have made efforts to deepen the bilateral partnership since December 2014, when US President Barack Obama announced that America was resuming diplomatic ties with Cuba after more than 50 years of deep-freeze. Diplomatic relations were restored in July 2015. A 'proud' airline Giselle Cortes, JetBlue's director of international airports, said her company was "proud" of the fact that it's the airline to operate the first direct flight. Cortes thanked the Cuban authorities for their "excellent" cooperation, particularly the staff of the airport in Santa Clara. She also expressed satisfaction with regard to the security arrangements at Cuban airports. "All international standards are met," she noted, pointing out this was also confirmed by the US Transportation Security Administration (TSA). JetBlue aims to become the "preferred US airline for travel to Cuba," Cortes said. The price of a one-way flight between Fort Lauderdale and Santa Clara amounted to $99 (89 euros), she said, adding that a round trip would cost about $210, including taxes and insurance. The rates are a lot cheaper than those of the charter flights, which are estimated to charge over $400 for a round trip. In 1979, both Washington and Havana authorized charter flights, largely humanitarian in nature, to transport Cubans residing in the United States and limited categories of American travelers. Barring a brief period in the 1980s, the charter flights have continued to operate. According to official figures, there were 4,783 charter flights in 2015 and 3,452 in the first six months of this year. Restrictions remain Since the US government eased travel restrictions to the Caribbean island nation, the number of Americans visiting the country has seen a jump. Washington, however, continues to bar US citizens from traveling to Cuba for tourist activities. Travel is allowed only when it falls under one of the 12 categories approved by the US government. These lingering restrictions also pose significant challenges to the US airlines operating flights to Cuba. And the purchase of the flight tickets is handled by the Florida-based Stonegate Bank, which is currently the only bank to conduct financial transactions between the US and Cuba. Meanwhile, JetBlue says it's working with the Cuban authorities on a mechanism that will facilitate the purchase of tickets in Cuba. The tickets can so far be bought only at the airport in Santa Clara. In total, the restored scheduled air service will comprise of 110 daily round trips, with 90 already authorized by both governments to nine Cuban airports, many of them in or near tourism hotspots. In addition to JetBlue, five other US airlines - American Airlines, Frontier Airlines, Silver Airways, Southwest Airlines and Sun Country Airlines - have been licensed to operate flights to various Cuban cities like Camaguey, Cayo Coco Santa Clara and Santiago de Cuba. They will be permitted to operate flights from airports in Miami, Fort Lauderdale, Chicago, Minneapolis-St. Paul and Philadelphia. The capital's left out There will not be any flights to Havana, however, even though a dozen US airlines applied for the chance to operate scheduled passenger and cargo service to Havana. Collectively, the airlines applied for nearly 60 flights per day to Havana, exceeding the 20 daily flights made available by arrangement between the two governments, according to US officials. But JetBlue executive Cortes hopes the airline will be able to start a service to the Cuban capital city by the end of the year. Transport Secretary Foxx could also announce something new in this regard on Wednesday. Concerns abound about the quality and capacity of Havana's airport, which is already bursting at the seams. Earlier this month, the Cuban government announced its privatization. It roped in the French corporations Bouygues Batiment International and Aéroports de Paris to renovate and manage the capital's José Martí International Airport. Another open question relates to whether or not the Cuban national airline, Cubana, will be able to service US cities, against the backdrop of demands and court rulings in the US regarding damage payments for the losses incurred on account of Cuba's nationalization program following its revolution in the 1950s. That's why there are legitimate fears that Cuban aircraft could be confiscated should they fly to US airports. "We do not anticipate Cuban-owned aircraft will fly to the US in the near future," said a US transport ministry spokesperson in February. And little has changed on this front since then. In this context, a completely normalized commercial flight service between the two countries is still a long way off. The Fort Lauderdale-Santa Clara flight is just the beginning.

After a gap of over 50 years, regular air services between the US and Cuba are resuming, underscoring the mending of ties between the two erstwhile Cold War foes. There are many unresolved issues, though. The year 1961 witnessed a number of historical events, including the start of the construction of the Berlin Wall and Yuri Gagarin’s first human space ... Read More »

US business a blessing for Deutsche Telekom

German telecommunications giant Deutsche Telekom has reported mixed results for the second quarter. Its T-Mobile subsidiary in the US logged a strong performance, but overall net profit dipped nonetheless. Deutsche Telekom on Thursday reported a 13-percent drop in bottom-line earnings for the second quarter as higher staff costs and investments weighed on profit. Net earnings fell to 621 million euros ($693 million) year on year, with the company pointing to the 400 million euros in one-time costs that arose from an early retirement scheme. By contrast, operating profit rose by 8 percent in the three months to the end of June to roughly 5.5 billion euros on revenues amounting to 17.8 million euros, marking a 2-percent increase over the same period a year earlier. Faster internet a priority The company acknowledged it had once again profited from the strong performance of its T-Mobile US subsidiary. A rival of AT&T and Verizon, it secured another 1.9 million customers in the second quarter. Deutsche Telekom confirmed its full-year guidance, predicting pre-tax earnings to hit 21.2 billion euros, a 6-percent surge over 2015. On the home front, the Bonn-based telecoms firm is facing massive investments as it aims to provide faster internet connections to 1.4 million more households across Germany.

German telecommunications giant Deutsche Telekom has reported mixed results for the second quarter. Its T-Mobile subsidiary in the US logged a strong performance, but overall net profit dipped nonetheless. Deutsche Telekom on Thursday reported a 13-percent drop in bottom-line earnings for the second quarter as higher staff costs and investments weighed on profit. Net earnings fell to 621 million euros ... Read More »

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