French telecommunications operator France Telecom has posted a 40.3% leap in 2003 operating profit even though sales slipped by 1.1% last year.
Operating profit rose to just under €10 billion from €6.8 billion in 2002, while sales edged down to just over €46 billion. Full year pre-tax profits rose 16% to €17.3 billion.
The company attributed the strong results to 'dynamic growth' of its mobile and internet businesses.
For 2004, France Telecom said it expected sales to increase by 3% to 5%. Group debt amounted to less than €45 billion at the end of 2003, compared with €68 billion a year earlier.
Financial director Michel Combes said France Telecom was ahead of schedule with plans to resolve the debt issue, which has been one of its biggest headaches. France Telecom's mobile subsidiary Orange contributed €17.9 billion to sales, an annual increase of 5%. Internet unit Wanadoo turned in a 26% sales increase at €2.6 billion.
