BONN, Nov 28: Deutsche Telekom plunged into loss in the third quarter of this year owing to costs connected with new-generation mobile phone technology, but underlying earnings improved on strength in its mobile business, it said on Wednesday.

Deutsche Telekom said in a statement it sustained a net loss of 627 million euros ($552m) in the period from July to September, compared with a profit of 4.113 billion euros a year earlier.

But the 12-month comparison made difficult by the fact that the make-up of the Deutsche Telekom group has changed substantially in the intervening period.

Furthermore, the 2001 after-tax figure included heavy goodwill writedowns as well as the costs of acquiring licences to operate Universal Mobile Telecommunications System (UMTS) technology, the telecoms giant explained.

Underlying profits, as measured by earnings before interest, tax, depreciation and amortisation (EBITDA), amounted to 4.088 billion euros in the period from July to September, 20.6 per cent more than in the corresponding period of 2000.

Third-quarter revenues rose by 25 per cent to 12.525 billion euros.

Looking at the nine months to September as a whole, Deutsche Telekom posted a net loss of 1.004 billion euros, compared with a net profit of 8.445 billion euros a year earlier.

But EBITDA rose to 11.327 billion euros from 9.856 billion euros and revenues were up at 34.993 billion euros after 29.222 billlion euros.

For the year as a whole, Deutsche Telekom reiterated it would probably post a net loss, while revenues would rise by 15 per cent.

Nevertheless, the group said it was likely to pay shareholders a dividend.—AFP