German-based carrier Deutsche Telekom reported a 34.8 per cent slip in net profit on Thursday as domestic pressures persisted and the strength of the Euro hit US revenues.

Net profit fell to Eur394m during the second quarter, from Eur604m in the same period last year. Net revenues also slipped nearly 3 per cent to Eur15.1bn over the same period.

The number of domestic fixed lines continued to decrease from over 32,000 last year to 29,820 in the second quarter of this year, although broadband lines are on the rise, with Deutsche Telekom taking 40 per cent of new DSL customers.

The group’s mobile operation increased its quarterly profit by 11.5 per cent to Eur1.45bn, with the web’n’walk data service remaining popular. However, the weakness of the US dollar cast a shadow over the typically robust performance of T-Mobile USA.