France Telecom considers acquisitions

"All the necessary conditions are in place for the group to take part in the consolidation of the European sector," Chief Executive Didier Lombard said in a statement.

France's dominant telecommunications operator said last month it was considering possible Nordic acquisitions including Swedish company TeliaSonera and Norway's Telenor.

France Telecom Chief Financial Officer Gervais Pellissier, speaking in a conference call, said France Telecom is still interested, but has not opened talks with TeliaSonera.

France Telecom said when it looks at possible acquisitions it is seeking synergies, stronger positions in new products and services, increased activity in emerging countries, and compatibility with business models and strategic priorities.

The company also said first-quarter revenue increased 1.4 percent to euro13 billion (US$20 billion) from euro12.8 billion a year earlier, with growth in all business segments.

First-quarter gross operating margin at France's incumbent telecoms operator grew 2.8 percent to euro4.79 billion (US$7.4 billion) from euro4.65 billion a year earlier. Analysts consider the closely watched operating margin to be equivalent to earnings before interest, taxes, depreciation and amortization.

The company does not break out net profit on a quarterly basis.

Through its Orange mobile arm, France Telecom is the country's sole vendor of the Apple iPhone. Pellissier said the company has sold more than 100,000 handsets, up from 70,000 at the end of last year.