Deutsche Telekom AG (DT) became the latest European telecoms operator to confirm its full-year guidance Thursday, as it posted a 32% increase in second-quarter net profit due to lower interest payments and measures to turn around its performance in the U.K. and U.S. started to take effect.

Net profit for the quarter ended June 30 was EUR521 million, up from EUR394 million a year earlier, as interest payments in the period were around EUR200 million less than a year ago.

Revenue for the period rose 7.4% to EUR16.24 billion, while earnings before interest, taxes, depreciation and amortization adjusted for one-time items and restructuring, the company's preferred measure of operating performance, rose 8.4% to EUR5.26 billion, benefiting from the consolidation of Hellenic Telcommunications Organization SA (OTE) from February.

OTE contributed EUR1.5 billion to Deutsche Telekom's second-quarter sales and EUR500 million to its adjusted Ebitda.

"The figures for the second quarter make us confident for the full year," Chief Executive Rene Obermann in a statement.

Deutsche Telekom has said it expects full year Ebitda, excluding OTE, to be 2% to 4% below 2008's EUR19.5 billion level, with an additional contribution of EUR2 billion from OTE. It expects free cash flow for 2009 to be EUR7 billion, including OTE.

In early reaction analysts said the results are mostly in line with expectations, with no further negative surprises after the company's profit warning in April.

Still, but for the OTE consolidation, Deutsche Telekom's sales and adjusted Ebitda would have fallen on year. Deutsche Telekom has a 30% stake plus one share in OTE.

The packet of measures initiated in April for the U.S., the U.K. and Poland, meanwhile, started to have a positive effect, as adjusted Ebitda margins improved in all three markets, Deutsche Telekom said.

Weak operations in the U.S., the U.K. and Poland led to a profit warning in Deutsche Telekom's first quarter, when it also booked a EUR1.8 billion write down on its T-Mobile U.K operations.

Deutsche Telekom is the latest major integrated operator in Europe to keep its guidance after peers France Telecom (FTE), BT Group PLC (BT) and Telefonica SA (TEF). Telecom Italia SpA (TI) is due to report later Thursday.

Company Web site: www.telekom.de

-By Archibald Preuschat, Dow Jones Newswires, +49 211 138 7218, archibald.preuschat@dowjones.com