Regulation Restrains France Telecom

Dragged down by adverse regulation, France Telecom said its revenues fell 1.7% year-on-year, on a comparable basis, in the second quarter to 11.19 billion euros. Falling revenues in Europe were partially offset by growth in France Telecom's Middle East and African operations.

France Telecom reiterated its forecast that the underlying trend in its revenues in 2010 will be flat, but expected regulatory measures will cost the company almost 1 billion euros in sales. It also forecast that 2010 capex will come in at around 12% of revenue. source: France Telecom presentation