Some signs of improvement in European telco's finances this morning, as Deutsche Telekom and British Telecom reported results for the first quarter.
Deutsche Tel management claim to be very satisfied with its 1Q results, despite profit falling 50.4% year-on-year to €238 million. You have to look behind the headline figures to discover the source of the 'satisfaction', as doing so reveals the telco grew its net cash position and cut net debt versus 1Q11. There was even an improvement at the firm's troubled T-Mobile USA business, though it notes that was in part due to positive forex factors.
British Telecom, meanwhile, appears to be benefitting from a cost cutting program, as operating profit rose 24% year-on-year in calendar 1Q12 - the telco's fiscal 4Q - and 13% for the full year, despite lower revenues. Chief Ian Livingston predicts it will continue to grow profits over the next two years, despite regulatory and economic headwinds.