Deutsche Telekom Profit Falls on T-Mobile USA Client Losses

Deutsche Telekom AG, Europe’s largest phone company, reported a 6.5 percent decline in second-quarter profit before some items as it ceded mobile-phone customers in the U.S. and recorded costs for early retirements in Germany.

T-Mobile USA had a net loss of 281,000 contract clients in the quarter, bringing losses to almost 1 million over 12 months. Analysts had projected a termination of 200,000 accounts. Chief Executive Officer Rene Obermann, 48, is focused on returning Deutsche Telekom’s European markets to growth by 2013 after agreeing to sell T-Mobile USA to AT&T for $39 billion in March. He’s also overseeing a shift into areas such as mobile Internet, digital content and health services to help make up for falling sales from traditional landline and voice services.