UPDATE: Deutsche Telekom Posts Upbeat Q2 Profit

Deutsche Telekom AG DTEGY reported a 34.2% rise in its second-quarter net profit. The Germany-based company's quarterly net profit surged to EUR711 million ($951.5 million), versus EUR530 million. However, adjusted net profit slipped 21.5% to EUR 636 million. Its earnings before interest, tax, depreciation and amortization, excluding certain items, climbed 0.3% to 4.43 billion euros ($5.9 billion), beating analysts' estimates of 4.35 billion euros. Its revenue declined 0.3% to EUR15.11 billion. Capital expenditure rose by 6.2% in the quarter. Revenue in the Germany's operating segment declined 1.8% to EUR 5.5 billion, while Europe revenue fell 7.9% to EUR 3.2 billion. Total revenue in the US surged 14.6% to USD 7.2 billion. Deutsche Telekom's adjusted EBITDA margin widened to 29.3%, from 29.1% in the year-ago period. For the full year, Deutsche Telekom continues to expect adjusted EBITDA of about EUR17.6 billion. It also expects free cash flow to total some EUR 4.2 billion. "Our strategy so far has been to make bold and prudent investments, focus first on lifting customer numbers, and then on upping revenues and results. And we are now starting to reap the rewards," said Tim Höttges, Chairman of the Board of Management of Deutsche Telekom. Deutsche Telekom shares fell 2.47% to close at $15.34 yesterday.