Deutsche Telekom promises significant dividend

Communications giant Deutsche Telekom has promised shareholders meaningful dividends.

CEO of Deutsche Telekom AG, Kai-Uwe Ricke said that the company's dividend for 2004 will be significant and not "merely token", at an investors' conference in the US overnight.

The company's CFO, Karl-Gerhard Eick, reportedly told investors last month to expect a payout of about €0.20-0.25 per share.

The company declined to comment on the figure.

Deutsche Telekom last paid a dividend for the 2001 financial year of €0.37, costing the company some €1.6bn.

It then suspended dividends for 2002 and 2003 as it struggled with its debts.

Ricke announced this summer that the company would resume dividends from the 2004 financial year, payable in 2005.