Slowing mobile growth to hit France Télécom

30 Mar 2006

According to a report in daily newspaper La Tribune, France Télécom (FT) now expects group sales to fall this year. The news comes just two months after the telco provided guidance of 2%-3% growth for pro forma revenue for 2006. The about-turn follows a realisation that the increase in sales from its mobile division will be weaker than expected in 2006, and will not be able to offset sales declines from the core fixed line business. In an attempt to counteract the trend, FT is preparing a restructuring of its French activities; over 60% of the group’s sales are derived domestically. Details of the restructuring plans are currently unknown.

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