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Thursday, August 7, 2014

Deutsche Telekom Q2 profit beats forecasts on U.S. growth, (NYSE: TMUS)

Deutsche Telekom reported a bigger than expected quarterly core profit on Thursday after a rise in earnings in the United States offset heavy investments in its German networks.Second-quarter earnings before interest, tax, depreciation and amortisation (EBITDA), excluding special items, rose to 4.43 billion euros ($5.9 billion), above the average forecast of 4.35 billion euros in a Reuters poll.Last week, T-Mobile US reported its first net profit in a year, raised its forecasts for subscriber growth and reported the most post-paid phone subscriber additions in the industry.Deutsche Telekom now faces a tough decision on whether to stay in the United States after its preferred strategy of selling T-Mobile US to its bigger rival Sprint crashed into a regulatory wall.

Shares of TMUS fell by 8.4% or $-2.85/share to $31.06. In the past year, the shares have traded as low as $22.95 and as high as $35.50. On average, 4372060 shares of TMUS exchange hands on a given day and today's volume is recorded at 17733466.