Restructuring costs hit D. Telekom net profit

Reuters

BONN, Germany (Reuters) - Deutsche Telekom confirmed its 2011 targets after second-quarter net profit missed expectations, hit by restructuring costs for staff.

Earnings before interest, tax, depreciation and amortization (EBITDA) dropped 6.5 percent to 4.687 billion euros ($6.68 billion), the company said on Thursday.

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Net profit dropped 26.7 percent to 348 million euros on restructuring charges of 600 million euros.

Group sales were down 6.8 percent at 14.475 billion euros.

Analysts polled by Reuters estimated a net profit of 635 million euros, a core profit of 4.67 billion and sales of 14.69 billion euros.

The Bonn-based group confirmed its outlook for a core profit of 19.1 billion euros and a free cash flow of at least 6.5 billion euros.

(Reporting by Nicola Leske)

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