BT to Eliminate 4,000 Jobs, Deutsche Telekom Net Swings to Profit

Sarla Buch
11 May, 2017
New York City

AEGON net surged on reduction in expense in the U.S. and higher earnings in Asia. BT said it may cut 4,000 jobs in its global services. Deutsche Telekom net swung to profit on strong drive by T-Mobile US. Telefonica net surged on the recovery in Brazil currency.

[R]4:00 PM Frankfurt – AEGON net surged on reduction in expense in the U.S. and higher earnings in Asia. BT said it may cut 4,000 jobs in its global services. Deutsche Telekom net swung to profit on strong drive by T-Mobile US. Telefonica net surged on the recovery in Brazil currency.[/R]

In London trading, FTSE 100 index slid 5.49 to 7,379.63 and in Frankfurt the DAX index slumped 60.69 or 0.5% to 12,696.75.

In Paris, CAC 40 index slumped 29.21 or 0.5% to 5,371.25.

AEGON N.V plunged 7.1% to €4.57 after the Netherland-based insurance services provider said sales in the first-quarter ending in March dropped 2.4% from a year ago to €8.2 billion.

Net income in the quarter jumped 164% from a year ago to €378 million from €143 million.

The insurer said increase profit was mainly after largely driven by reduction in expense in the U.S., improved fee income and favorable equity markets as well as higher earnings in Asia and strengthening of the US dollar.

BT Group Plc slumped 4.1% to 299.15 pence after the U.K.-based communications services provider said revenues in the fourth-quarter ending in March jumped 10% from a year ago to £6.1 billion.

Net profit in the quarter tumbled 46.3% from a year ago to £380 million from £708 million and diluted earnings per share dropped to 3.8 pence from 7.4 pence.

BT said as of March 31, net debt was £8.9 billion; £906 million lower than from a year ago period. The debt decrease in the year reflects free cash flow of £2.7 billion after slowdown in the work it does for governments.

Today BT announced it may cut 4,000 jobs in its Global Services unit that serves multinationals.

Deutsche Telekom AG fell 0.7% to €16.74 after Germany-based information technology and communications services provider reported net revenues in the first-quarter ending in March increased 5.8% from a year ago to €18.6 billion.

Net in the quarter swung to profit from a year ago to €747 million from a loss of €3.1 billion and diluted earnings per share swung to €0.16 from diluted loss per share of €0.68.

The Deutsche Telekom said operating profit in the quarter declined 22.2% to €5.96 billion and net debt in the quarter increased 5% to €49.96 billion from €47.60 billion in the same period a year ago.

""Purely theoretically, we can see several advantages to consolidation and convergence,"" said chief executive officer Tim Hoettges and T-Mobile US will likely be part of merger talks in the United States.

SFR Group SA gained 0.9% to €31.76 after France-based cable operator and broadband services provider reported revenues in the first-quarter ending in March jumped 5.1% from a year ago to €2.7 billion.

The network services provider said it is continuing with its transformation and its large-scale network deployments and the expansion of its fiber convergence strategy as 4,201 new municipalities getting 4G or 4G+ and its G service now covers 88% of the population.

Telefonica SA declined 4.1% to €10.02 after Spain-based communications services provider reported revenues in the first-quarter ending in March advanced 5% from a year ago to €13.1 billion.

Net income in the quarter surged 42.2% from a year ago to €779 million from €548 million and earnings per share jumped 48.8% to €0.14 from a year ago period.

The mobile company said net debt in the quarter increased by €171 million to €48.77 billion from the fourth-quarter of 2016.