Telekom AG Reports Increase in 2Q Profit

Deutsche Telekom AG , Europe’s biggest telephone company, reported a 32 percent increase in second- quarter profit and reiterated full-year forecasts on measures to improve operations in the U.K., U.S. and Poland , Bloomberg reports.

"We have a lot of work ahead of us to meet our guidance," Chief Financial Officer Timotheus Hoettges said at a press briefing , Wall Street Journal reports.

Meanwhile, net profit at OTE, which is 30 percent-owned by Deutsche Telekom, fell to 4.7 million euros ($6.76 million), coming in below consensus.

Analysts polled by Reuters were expecting net profit of 47.3 million euros, on average, with estimates ranging from 30 million to 58.7 million.

OTE said it recorded a capital gain of 24.4 million euros from the sale of Cosmofon in the second quarter but its bottom line was also impacted by early retirement provisions and a new tax levy on dividends received from mobile arm Cosmote ,Reuters reports.