Didier Lombard, France Telecom's chief executive, said the company continued to eye acquisitions in emerging markets but they would be small.

The company benefited from the roll-out of new “triple-play” high-speed internet, digital television and internet telephone services. It also saw improvements in its Spanish and UK mobile operations, as customers with contracts replace those with pre-paid phones, and in services to businesses in which profit margins increased by 13 per cent.

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