Deutsche Telekom.jpg
Photograph: Photo by Elizabeth K. Joseph, used under CC BY

 German telecoms giant Deutsche Telekom posted a surprise fall in second-quarter profit on Thursday despite a surge in sales in the United States.

Net profit dropped 12.8 per cent to a lower-than-forecast 621 million euros (693 million dollars) in the three months to the end of June compared with 712 million euros the same quarter last year, Telekom said. Analysts had expected a rise to 840 million euros.

However, the Bonn-based company said that it was sticking to its full-year forecast of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), coming in at 21.2 billion euros.

The forecast represents a 6-per-cent increase compared with 2015.

Telekom also expects revenue to increase in both 2016 and 2017. Second-quarter adjusted EBITDA climbed 8.6 per cent to 5.46 billion euros.

The company's booming US business resulted in group revenue climbing by 2.2 per cent to 17.82 billion euros.

The rise in revenue came despite a more-than 3-per-cent slump in revenue in Telekom's home market in Germany in the face of tough domestic competition and after mobile phone service revenue contracted by 0.8 per cent.

Last month, Telekom's US arm, T-Mobile raised its full-year projection for an increase in subscribers after reporting an 890,000 rise in customers during the second quarter.

Group shares opened 0.5 per cent higher on the Frankfurt Stock Market.

Related stories

Latest news

Serbia's EU negotiator says minority rights neglected

The head of the Serbia's European Union accession negotiation team, Tanja Miscevic, said in Novi Sad on Wednesday that minority rights had been neglected for many years and added that positive results in that regard cannot be achieved over night, the Beta news agency has reported. 

Scientists: Nearby star's 7 rocky planets are "best bet" for life

New analysis of telescope data shows a dwarf star just 40 light years from Earth has at least seven apparently rocky planets with potential to harbour water, an international team of scientists announced Wednesday.

Croatian PM receives EIB Vice-President

Prime Minister Andrej Plenkovic met on Wednesday with European Investment Bank (EIB) Vice-President Dario Scannapieco for talks on the bank's contribution to a new investment cycle in Croatia and its support to the Croatian government to implement key projects, a press release from the government's office said.

Bomb explodes outside police officer's home in Northern Ireland

A bomb exploded outside a police officer's home in Northern Ireland on Wednesday but there were no immediate reports of casualties.

Denmark to charge man with blasphemy over burning Koran

Danish prosecutors said Wednesday they have opened a rare blasphemy case against a man who videotaped himself burning a copy of the Koran.

South Africa to raise taxes for the wealthiest

South Africa will raise the income tax rate for the country's wealthiest to 45 per cent from 41 per cent, Finance Minister Pravin Gordhan announced Wednesday.

Reformist Macron wins support of key centrist leader for French vote

France's reformist presidential hopeful, Emmanuel Macron, got a boost on Wednesday when he picked up the support of a party leader whose centrist constituency played a pivotal role in the last two presidential elections.

Amnesty International warns of nationalist rhetoric and hate speech in Croatia

Croatia continues to have problems with discrimination against ethnic minorities and with freedom of the media, while heightened nationalist rhetoric and hate speech during election time contributed to growing ethnic intolerance and insecurity in the country, global human rights watchdog Amnesty International said in its annual report on the state of human rights in the world in 2016/2017.

Official assigned to Wilders' security team held by Dutch police

A security official assigned to protect Dutch far-right politician Geert Wilders is being held by police on suspicion of passing along classified information about the lawmaker to a Dutch-Moroccan crime gang.

100th anniversary of rescuing starving children marked

A special ceremony was held in Zagreb's Croatian National Theatre on Wednesday to mark the 100th anniversary of one of the greatest humanitarian undertakings in the history of the Croatian people which saved children in Croatia and Bosnia and Herzegovina from famine in the last two years of World War I.

Italy's 'Red Thing' could make impact in election debut, polls show

Two polls conducted for RAI public broadcaster released Wednesday showed a new entity that split from Italy's ruling Democratic Party

Council: Nixing grants to "Novosti" would cause far-reaching implications

The Council for National Minorities, a state-level autonomous umbrella organisation for all ethnic minorities in Croatia, has stated that the cancellation of financial grants to the "Novosti", a newspaper of the ethnic Serb minority, would produce far-reaching implications and stir criticism for reduction of free speech and of freedom of expression of the most numerous ethnic minority.