France Telecom reported a 18% drop in first-half net profit as tax and financing costs increased.

France's dominant telecommunications operator said net profit in the six months through June fell to 2.7 billion euros ($4.21 billion) from 3.3 billion euros.

Revenues advanced 1.5% to 26.3 billion euros ($41 billion) in the first half.

In the second quarter the increase in sales was 1.6% to 13.3 billion euros ($20.73 billion).

The company did not break out separate quarterly profit figures.

France Telecom said it expects continued revenue growth despite an expected slowdown in some countries during the second half.

The company said it confirms its full-year target of generating more than 7.8 billion euros ($12.16 billion) in organic cash flow.

Source:AP News