T-Online is still in the red
As the largest German Internet provider T-Online announced, in the first quarter of 2001 they had a pre-tax loss before interest, taxes and depreciation amounting to 66.4 million euros or 129.9 million marks. Sales amounted to 280.2 million euros and increased by 61.2 percent compared to the same period of the previous year.
Last year you could still make a profit of 5.8 million euros. The reason for the significant loss of its burdens from foreign subsidiaries and the flat rate, which has since been discontinued and has more than met Telekom's goal. The number of T-Online customers in Germany rose to 7.09 million, 8.6 percent more than a year ago. T-Online has a total of 8.67 million customers, an increase of 9.2 percent over the previous year. T-Online emphasized that with the new tariffs from March 1, a stronger cost control in Germany and at the foreign subsidiaries, the conditions for a steady improvement of the balance sheet had been created. However, I am of the opinion that the majority of T-Online customers, after their flat rate expires, migrate to competitors such as Mobilcom, Arcor or AOL, which still offer an affordable flat rate at more favorable conditions than the old T-Online flat rate, even if you have to change with Mobilcom and Arcor with the entire telephone connection in order to be able to use the flat rate. In addition, it would be very interesting to know what Deutsche Telekom has earned from its own and competitor flat rates.