Deutsche Telekom’s stock fell almost 7 percent in afternoon trading after it warned that it was feeling the effects of global recession and lowered its profit forecast for the year. The company warned that EBITDA (earnings before interest, taxes, depreciation and amortization) could fall in between 18.7 and 19.1 billion euros ($24.7 billion) after initially forecasting 19.5 billion euros, FT.com reports.

The company’s stock dropped around 7 percent, or 85 cents, to about $11.67 a share after CEO René Obermann said economic woes, tough competition and currency losses is leading to disappointing sales growth in mobile markets in the U.S., the UK and Poland, driving first-quarter group earnings down 5 percent to 4.5 billion euros. Obermann told FT: “Quarter one was a bit more difficult [than expected] and we are therefore a little bit more cautious now” for the whole year, the chief executive said, noting economic forecasts were “if anything” currently looking worse.

Investors have been optimistic that the wireless industry would be somewhat sheltered from the economic problems because cell-phone usage had become a necessity by consumers, not luxuries.