Deutsche Telekom raised its guidance for a second time this year as it was buoyed by continued gains in the US, and momentum in Europe and home market Germany.

In a Q2 earnings statement, CEO Timotheus Hoettges cited continued growth in the face of a tricky economic setting which left Deutsche Telekom on track to meet ambitious targets as its investments continue to pay off.

Net profit declined 22 per cent year-on-year to €1.5 billion due to higher integration costs for T-Mobile US’ merger with Sprint. Revenue was up 5.9 per cent to €28.2 billion, fuelled in part by higher service sales.

In Germany, revenue rose 2.7 per cent to €6.1 billion, driven by rises in monthly contract customers and service revenue, offset slightly by weaker traction for its broadband services.

In the rest of Europe, Deutsche Telekom reported growth continued “unbated”, although revenue declined 2.7 per cent to €2.7 billion.

T-Mobile US recorded 1.7 million post-paid net additions, with its total customer base increasing 5.2 per cent to 110 million. Revenue decreased 1.1 per cent to 19.8 billion.

In terms of full-year outlook, Deutsche Telekom expects the US to now make a contribution €100 million higher than previously anticipated, while core earnings are expected at around €37 billion, up from €36.6 billion.

During the quarter, Deutsche Telekom also announced a deal to sell a majority stake in a business housing tower assets in Germany and Austria in a bid to cut its debt pile.