Deutsche Telekom in the black

COST-CUTTING and higher mobile phone sales from businesses including T-Mobile pushed Deutsche Telekom to third-quarter profits of e508m (£353m).

The performance, the group's third straight profitable quarter, compares with losses of e20.6bn in the year earlier period. It may accelerate the German government's plan to sell shares worth about e5bn.

Chief executive Kai-Uwe Ricke is counting on the US mobile unit for growth as sales decline at its traditional fixed-line business. Mobiles revenue rose 18% in the first nine months.

Ricke reached his debt-cutting target for this year three months ahead of schedule. It still owes e49.2bn.

In October, Deutsche Telekom sold its 24.8% stake in Globe Telecom. It also plans to sell bonds in T-Mobile. Internet unit T-Online this week posted its first profit since it floated, with third-quarter net income of e3m, from a loss of e291.8m a year earlier.