4/22/2009 11:10:00 AM
T-Mobile first operator to issues profits warning
T-Mobile parent Deutsche Telecom has become the first operator in Europe to issue a profits warning. The company said UK revenue is down around 21% year on year for the first quarter of 2009.
The network cited weakness in the US, the UK and Poland, caused by economic conditions and management changes in the UK, and said overall earnings would be between 2% and 4% below the 2008 level.
The company plans to freeze around €1bn (£0.8bn) of planned capital expenditure this year, which it expected to be about €8.7bn (£7.7bn).
In November, Vodafone said it would cut costs by £1bn and focus on core markets as it lowered its revenue outlook.