Bonn based Deutsche Telekom has posted much better than expected third quarter earnings on the back of strict cost controls and the fact that the economy is steadily improving. The figures posted beat all estimates and helped lift the share values.

This year, the telecom company had employed strict restructuring, results of which were evident from the start itself. For the third quarter, the earning figures recently made public by the company stood firm at 5.5 Billion Euros ($8.11 Billion). This is a 5.2% increase from the figures posted for last year. In addition, sales also saw a definite 5.2% rise to 16.2 Billion Euros.

According to the company, its top two profit drivers for the quarter were - strict cost cuts and the stake in Greek telecoms group OTE. Through the cost cuts, the company had aimed to save as much as 4.7 Billion Euros by 2010. Already, costs have been reduced by 5.4 Billion Euros as compared to 2005.