(Telecompaper) Deutsche Telekom reported second-quarter revenue down 0.3 percent year-on-year to EUR 15.11 billion, while adjusted EBITDA rose 0.3 percent to EUR 4.42 billion. The company's EBITDA margin improved to 29.3 percent from 29.1 a year ago. Net profit increased by 34.2 percent to EUR 711 million, helped by a gain from the spectrum swap with Verizon in the US. Excluding one-time items, net profit declined 21.5 percent to EUR 636 million, due to increased depreciation and amortization after the MetroPCS takeover and the investment drive in the US. Overall, DT increased capital expenditure by 6.2 percent to EUR 2.20 billion in Q2, led by a 58 percent increase in Germany to EUR 1 billion. Free cash flow was down 5.4 percent to EUR 1.05 billion. The company said it's strategy of investing in networks to gain customers was starting to pay off and also grow revenues.
Deutsche Telekom confirmed its guidance for the full year 2014, with adjusted EBITDA flat at around EUR 17.6 billion and free cash flow lower at EUR 4.2 billion.