Although the German telecoms giant reported net profit, after exceptional items, of 7.4bn euros ($6.96bn) for 2000, it also revealed a loss of 1.06bn euros in the fourth quarter.

The net profit of 7.4bn euros is a substantial increase on last year's figure of 1.25bn euros, but has been inflated by one-off income.

A spokesman for Deutsche Telekom attributed the fourth-quarter loss to debt taken out to finance the purchase of third-generation licenses, as well as goodwill costs associated with recent acquisitions.

The annual profit figure was inflated by one-off income from the sale of stakes in GlobalOne, Wind and two German cable companies.

The company also gained from the float of its internet arm, T-Online.

Overall, excluding one-off income, the group broke even with a net profit of zero, said the spokesman.

Analyst disappointment

But even taking into account the one-off income, the profit figure of 7.4bn euros fell short of analysts' expectations.

They had been forecasting after-tax profit of 8.1-8.9bn euros.

Deutsche Telekom shares fell 0.13 euros, or 0.4%, to 36.60 euros.

On London's FTSE 100, British rival BT was down 2.8% to 678.

Sales results

Deutsche Telekom's sales were 15% higher at 40.9bn euros, compared with 35.5bn euros the year before. This was mostly due to increased revenue from foreign subsidiaries.