France Telecom has reported a net profit of €2.5 billion for the first half of the year, compared with a loss of €12.2 billion in the same period last year.
It said operating profit had risen by 46% to €3.2 billion.
France Telecom also surprised the stock market by announcing an offer to acquire the 13.8% of mobile telephone operator Orange which is does not yet own.
The group offered 11 of its own shares for 25 shares in Orange, representing a premium of 21% on the average Orange share price in the last three months.
The bid could cost France Telecom up to €7 billion. France Telecom said it would issue 218 million shares to help finance the purchase.
