T-Mobile owner Deutsche Telekom yesterday cut its growth expectations for this year after warning of continued strong competition in its home market.
The Frankfurt-based company reduced revenues and profits guidance as it said higher-margin business in Germany was being replaced by greater international sales, which are less profitable.
It added that it planned to take a "much more aggressive approach" to competition in its domestic market with price cuts and more bundled products.
As a result of the pressures, underlying earnings should be between £12.9 billion and £13.3 billion, rather than the range of £13.6 billion and £13.9 billion previously expected. Revenues forecasts were lowered by around £404 million.
Deutsche Telekom said the introduction of its Flext tariff had a positive effect on revenues in the UK, but pushed down underlying earnings because of higher customer acquisition costs.